GUIDELINES FOR PREPARATION OF OPERATING BUDGETS

Transcription

1 GUIDELINES FOR PREPARATION OF OPERATING BUDGETS December 17, 2015 This document is available at For the Fiscal Years 2016/17, 2017/18 and 2018/19

2 Table of Contents A. Introduction... 1 B. Information and Changes for 2016/ C. Submission Timetable... 5 D. Budget Allocation Framework... 6 E. Format of Budget Submission ) Objectives of the Budget Submission ) Revenues, Recoveries and Transfers... 7 I. Framework Allocations... 7 II. Other Revenue, Recoveries and Transfers ) Expenditures... 8 I. Salaries and Wages... 8 II. Benefits... 9 III. Non-Salary Expenses... 9 IV. Employee Full-Time Equivalent (FTE)... 9 V. Occupancy Cost ) Operating Surplus (Deficit) ) Analysis of Appropriations ) Reallocation Requests ) Adherence to the Budget Guidelines F. Contact Information Appendix A Budget Allocation Framework Appendix B Ongoing vs. One-Time Revenue and Expenditure Guidelines Appendix C Labour/Benefit Account Mapping Appendix D Frequently Asked Questions Appendix E Budget Submission Checklist i

3 A. INTRODUCTION The Operating Budget Guidelines are provided as a budget development framework to ensure consistency across the University. For 2016/17, framework allocations continue to be made according to the methodology of the budget model implemented in 2014/15. The budget model is a hybrid activity based budget (ABB) model where activity units (Faculties) are allocated a share of central revenue based on activity, and support units receive an annual fixed budget based upon prior year s allocation plus increments related to determined priorities. The primary principles of the budget model are outlined in Section B. The budget for 2016/17 will be developed in the Hyperion system, which is integrated with the PeopleSoft system. The 2015/16 projection and 2016/17 budget submissions in Hyperion will be transferred into PeopleSoft after the budget process for 2016/17 is finalized. A brief overview of the Hyperion submission is given in Section E. B. INFORMATION AND CHANGES FOR 2016/17 The following is a list of key information and changes and is not intended to be exhaustive: The primary principle governing McMaster s budget model is that income flows directly to the activity units (Faculties). Support units receive funding through the assessment of levies, charged to the activity units. These levies are controlled by drivers (e.g. enrolment, occupied space etc.) that are most relevant to the operation of the specific support unit. It is therefore clear that two of the main functions of the budget model are to determine, first, how the University s central revenue is allocated amongst the activity units, and second, how the levies that provide funding to the support units are allocated using drivers. Detailed data packs of the allocations and levies will be provided to each Faculty. Further refinements will be made to the model based on decisions regarding priorities, as well as any future changes that may be introduced to the Provincial funding model. The budget planning horizon will cover the three-year period 2016/17 to 2018/19. Submissions should include projections for 2015/16, with high-level projections required for the following two years 2017/18 and 2018/19. The 2016/17 budget should be based on a detailed analysis by department and program which will be used as the benchmark for actual results, while the two following years may project revenue and expenses at the envelope level, incorporating major changes. The specific budget approval will be limited to the 2016/17 fiscal year while the future years remain a working document. Revenue projections for 2016/17 will follow the existing Provincial funding framework for grants and tuition. Future revenues are uncertain due to the 1

4 current initiative by MTCU to modernize the funding model. The Province has designated fiscal 2017/18 as a transition year with the expectation of full implementation of recommended funding model changes in 2018/19. Until more details are known, activity unit allocations will continue to be determined by the budget model as it has been developed. Support unit allocations will not change except for strategic investments. Allocations to support units are shown in Appendix A. Activity unit allocations will follow when projections based on the November 1 count have been incorporated into the budget model. NEW Two narrative templates have been developed for the 2016/17 budget narrative one for activity units and one for support units and must be used for submission. The template requires information specific to the operations of each type of envelope, for example trends of student units taught for activity units and fee for service plans for support units. For both templates, a section for description of initiatives contributing to the objectives of the Strategic Mandate Agreement has been added. This information will be important to ensure that all envelopes are contributing to achievement of SMA objectives, which may impact the Provincial funding formula review. Please be sure to download the updated template for the 2016/17 budget from the Downloads section of the Budgeting Services web site at Please note the following information to be included in the budget submission narrative: - All assumptions must be consistent with these guidelines and no deviations are allowed. Envelope Managers should highlight concerns in their narrative submissions. - NEW In order to better manage occupancy costs, net assignable square meters (NASM) occupied by each envelope must be included in the narrative. The NASM to report for your envelope will be posted in the Downloads section of the Budgeting Services web site at Potential changes in NASM during 2016/17 must be noted. - Significant planned capital expenditures must be included. The link to the capitalization policy can be found at - Details and explanations of all one-time revenue and expenses must be provided (see Appendix B). Please note that contractually limited appointments (CLAs) are not considered to be a one-time expense unless the position will not continue. 2

5 - NEW Major specifically externally funded programs (Fund 45) should be discussed. - Reasons for major variances (>$100K and 10%) of the 2015/16 projection and 2016/17 budget from original budget and prior year actual must be explained. - NEW A Hyperion template will be provided showing high-level categories of revenue and expenses, highlighting the major variances to be explained. This section is intended to provide explanations of significant changes, not a detailed reconciliation. - NEW The most recent organizational chart for the envelope should be included as a one-page appendix in the narrative. - Details of transfers outside your envelope balancing to your submission must be provided in the appendix to your narrative. Before including a transfer in your budget you must confirm that the other side of the transfer has been budgeted. A report template will be provided in Hyperion. Hyperion will be used for entering and managing budgets. Information on how to use Hyperion is available in the Mosaic Resources section of the Budgeting Services web site at Refresher training sessions are planned for November. Assumptions for salary increases in accordance with collective agreements and benefit rates in accordance with rates approved by the Budget Committee will be loaded into Hyperion to facilitate calculation of the compensation budget. The 2016/17 budget in Hyperion will be entered the PeopleSoft GL after approval. NEW A section outlining budgeted positions is included in the narrative. While the FTEs calculated in Hyperion are based on hours worked, this section focuses on trends in fully-staffed complement. Details of requirements are included in the narrative template. For the 2016/17 budget, FTEs will be calculated by Hyperion based on the hours forecast for each employee. This calculation will be consistent with the FTEs used as a driver in the ABB model, which includes hours worked by all employees as recorded in the HR payroll system through salary accounts. For more information, please see Section E 3.IV and Appendix D 6. Budget submissions should include details of strategies for achieving balanced budgets. This should include information on plans for increasing external revenues and/or reducing costs. Examination of alternative processes and consideration of partnerships with other areas (centralized or decentralized) to achieve greater administrative efficiency are encouraged. 3

6 For management purposes, a distinction must be made in faculty salaries between tenure stream (tenure track and tenured), teaching stream (teaching track and permanent teaching), special stream (CAWAR), and CLA. Accounts have been set up to track these categories (see Appendix C). Employee data pre-populated from the HR system will include the actual account being charged with salary and benefit expenses. If an employee appears in an incorrect account, the HR Event Form should be completed to make the correction in the HR system. Contact Budgeting Services if you have questions about the best way to correct information in the budget (contact information in Section F). Presentations to the Budget Committee have been scheduled for selected envelopes. Managers of the remaining envelopes will be advised if a presentation is required once their submissions have been reviewed. The complete schedule is shown in Section C. Appendix D Frequently Asked Questions will be updated as further questions arise and posted to 4

7 C. SUBMISSION TIMETABLE The dates for the various budget envelope submissions and presentations are shown in the table below. The Vice-President must review and approve your budget before it is forwarded to Budgeting Services. Material must be submitted to Budgeting Services on the specified date for review at the following Budget Committee meeting. Workflow is used in Hyperion to transfer control of the budget from submitter to approver within the envelope. Please submit the final narrative (in Word format) and financial report electronically to your Budgeting Services representative (see contact information in Section F) for presentation to Budget Committee. Budget Due in Budget Committee Envelope Budgeting Committee Presentation Budget Envelope Manager Services Presentation If Requested Continuing Education Fees S. Searls Giroux 21-Oct Oct-15 Registrar/Undergraduate Scholarships M. Poole 13-Jan Jan-16 UTS/Technology Fund J. Kearney 13-Jan Jan-16 Student Affairs S. Van Koughnett 27-Jan Feb-16 Graduate Studies/Scholarships D. Welch 27-Jan Feb-16 MIIETL A. Ahmad 27-Jan Feb-16 University Advancement M. Williams 10-Feb Feb-16 Research A. Sekuler 10-Feb Feb-16 Provost Office/Academic Contingency D. Wilkinson 10-Feb Feb-16 Museum of Art C. Podedworny 27-Jan Feb-16 President/Strategic Priorities P. Deane 27-Jan Feb-16 University Secretariat P. Deane 27-Jan Feb-16 Arts and Science Program S. Searls Giroux 27-Jan Feb-16 Humanities K. Cruikshank 24-Feb Mar-16 Science R. Baker 24-Feb Mar-16 Social Sciences R. Cain 24-Feb Mar-16 Business L. Waverman 09-Mar Mar-16 Facility Support envelopes R. Couldrey 09-Mar Mar-16 Administration envelopes/non-academic ancillaries R. Couldrey/D. Henne 09-Mar Mar-16 General University R. Couldrey 09-Mar Mar-16 Continuing Education S. Searls Giroux 09-Mar Mar-16 Engineering I. Puri 16-Mar Mar-16 Health Sciences J. Kelton 16-Mar Mar-16 HSC Library J. Kelton 16-Mar Mar-16 University Library V. Lewis 16-Mar Mar-16 University Fund/Academic Funding Allocations D. Wilkinson 16-Mar Mar-16 Tuition and Other Fees J. Lee 20-Apr Apr-16 5

8 D. BUDGET ALLOCATION FRAMEWORK As shown in Appendix A, support units allocations for 2016/17 to 2018/19 are held flat with the exception of strategic investments. Activity unit allocations will follow when projections based on the November 1 count have been incorporated into the budget model. Only 2016/17 allocations are approved as part of the budget process. Allocations for 2017/18 and 2018/19 are estimates for planning purposes only. All revenue projections are based on the assumption that the current funding formula will continue throughout the projection period. Any changes to the Provincial funding formula may affect the accuracy of the projected revenue and impact the methodology for calculating allocations. Final adjustments to activity units 2015/16 allocations for actual revenue and enrolment will be made during the 2016/17 fiscal year. Any questions on the framework may be directed to budget@mcmaster.ca, which is monitored by the offices of Institutional Research and Analysis and Budgeting Services. E. FORMAT OF BUDGET SUBMISSION Envelope managers are encouraged to set priorities for their units. This means that envelope managers should prepare a summary for the total envelope and the choices that have been made among the different units within the envelope, rather than describing the activities of each individual unit. Narrative Updated narrative templates for activity and support units in Word format may be downloaded from the Downloads section of the Budgeting Services web site at Hyperion summary tables to be included in narrative Section 10.4 and Appendix B may be found in the Downloads section of the Budgeting Services web site at Hyperion Submission Report Instructions on how to use the Hyperion system are available under the Mosaic Resources section of the Budgeting Services web site at Budgets must be entered using Hyperion to provide a consistent format for presentation to the Budget Committee. Data in Hyperion will be pre-populated as follows: Revenue and operating expenses Pre-loaded using previously loaded data. Planners have the option to use the 8 Month Review as the starting point of the budget by copying it into the budget scenario. 6

9 2017/18 and 2018/19 projections will be left blank. Plans for 2017/18 and 2018/19 are required by type of expense but do not need to be entered at the individual account level. Salaries and benefits Hyperion will project salaries and benefits based on employee master data loaded from the HR system at the end of October. Important: Transfers must be entered at the account level in order to balance on a consolidated basis. Interest and debt repayment should also be entered at the account level. A formatted report for submission to the Budget Committee will be available in Reports in Hyperion. You will be notified when the forms and reports are available in Hyperion, expected to be during the first week of November. 1) Objectives of the Budget Submission The Budget Committee requests a written plan for all envelopes. Submissions that project an ongoing (structural) deficit (see Appendix B) must include a detailed plan as discussed with the Vice-President outlining how the deficit will be eliminated. At the meeting with Budget Committee, assume that members have reviewed the material provided. Be prepared to highlight your key points by way of a brief introduction which should be limited to 3-5 minutes. There will be a total of 20 minutes scheduled for introductory remarks and a discussion of the budget submission with each envelope manager. 2) Revenues, Recoveries and Transfers I. Framework Allocations Approved framework allocations are shown in Appendix A. Grant and tuition revenue from Provincially-funded programs is based on IRA projections. To avoid double counting, envelope managers should not include revenue received through the framework in their budgets. Expenses related to enrolment growth should be budgeted. II. Other Revenue, Recoveries and Transfers In addition to the budget framework allocation, envelopes generate other internal and external revenue and recoveries, and may have internal transfers within the University. External revenue and recoveries represent new money to the University, while internal revenue, recoveries and transfers move money around between departments. Revenues include the possibility of a gain or loss. External revenues would include grants, sales, fees, donations, and sponsorships. Internal revenues are generated when one University unit provides goods or services to another and 7

10 receives more than the direct cost (i.e. receives a profit or overhead factor). This would include lab fees, registration for McMaster conferences, and ancillary sales. External revenue is budgeted in accounts between and , shown in Hyperion in categories Government Grants, Tuition Fees, Research Overhead, Sales, and Investment Income. Internal revenue is budgeted in accounts between and , included with Research Overhead and Internal Revenue in Hyperion. Recoveries represent a reimbursement of an actual cost, with no possibility of gain or loss. Recoveries may be from internal or external sources. The amount received just recovers an amount already paid, with no profit or overhead built in. This commonly includes all or part of payroll, equipment or supply costs. Internal recoveries are budgeted in accounts between and , included with Internal Revenue in Hyperion. External recovery accounts are between and , and are shown in the Other Revenue category in Hyperion. Specific salary and benefit recoveries are categorized with salaries and benefits in Hyperion/PeopleSoft. Transfers can be used for any internal transaction with the exception of internal revenue, and are budgeted in accounts between and , included in the Transfer category in Hyperion. Generally, accounts on both sides of the entry must be the same. Any transfers budgeted must be confirmed with the envelope on the other side. A Hyperion report balancing to the transfers budgeted at the envelope level must be included in your narrative budget submission. 3) Expenditures Below are the salary, benefits, and operating expenditure guidelines to be used to develop the 2016/17 budget. Salary increase and benefit rate assumptions will be loaded into Hyperion along with data for each employee and will be used to calculate salary, benefit, and FTE forecasts. I. Salaries and Wages Tenure stream (tenure track and tenured), special stream (CAWAR), teaching stream (teaching track and permanent teaching), Contractually Limited Appointments (CLAs), Graduate Teaching Assistants and Undergraduate Teaching Assistants are included in separate accounts in the Budget Submission Form. A complete list of salary accounts and related benefit accounts is provided in Appendix C, along with a table of all union groups and the correct account(s) to use for each. Salary and wage increase assumptions as approved by the Budget Committee have been built into Hyperion. These assumptions are based on the collective agreements in currently effect, government directives, and future across-theboard increases of approximately 1.5%. Any lump sums included in collective 8

11 agreements have not been included in increase rates and should be budgeted as a hedge. Salary increase assumptions are for modelling purposes only. Changes in faculty or staff complement should be budgeted on the expected effective date of the change (normally July 1 for faculty). Since the University s fiscal year is May 1 through April 30, this may result in less than a full year s expense and calculated FTE. II. Benefits The benefit costs charged to departments consist of the employer share of statutory government remittances, pension contributions, insurance and surcharges. For 2016/17, insurance rates have been held to the 2014/15 level, and reductions have been approved in the employer s share of pension contributions, benefits and NEER surcharges. Tables showing the components and computation of benefit rates are available in the Downloads section of the Budgeting Services web site at The rates in these tables are used in the Hyperion labour planning module to calculate benefits based on salary level. III. Non-Salary Expenses Supplies and Expenses Capital Equipment Scholarships and Bursaries All non-salary expenditure not itemized below. Please refer to the capitalization policy and provide an explanation of significant expenditures. Identify separately, all amounts paid directly to students. Faculty PDA $2,050 per year (effective July 2015) $2,100 per year (effective July 2016) TMG MPDA $2,500 per year IV. Employee Full-Time Equivalent (FTE) For the 2016/17 budget, FTEs will be calculated by Hyperion based on the hours forecast for each employee. This calculation will be consistent with the FTEs used as a driver in the ABB model, which includes hours worked by all employees as recorded in the HR payroll system through salary accounts. FTEs are the actual time worked compared to standard hours for that position. For example, if a department has 3 part-time employees working a total of 70 hours per week with standard 35 hours per week, the department has 2 FTEs. 9

12 Information about actual paid FTEs for all employee groups is available to envelope managers through Hyperion. Please note that FTEs for TAs and sessional faculty are based on a standard 1,825 hour year and not on head count, i.e. a full-time TA of 266 hours is a 0.15 FTE, and a sessional lecturer teaching 3 units at a standard of 238 hours is a 0.13 FTE. Please refer to the FAQs in Appendix D for additional details on FTEs. V. Occupancy Cost For ancillary and support units that pay for occupancy costs, base space charges have been aligned with the budget model in 2016/17. Direct charges for base services have been incorporated into the rent rates below. There will continue to be additional charges for enhanced and special services as negotiated by each unit. For details of rent calculations, contact your Budgeting Services representative (contact information in Section F). Insurance will be charged separately based on actual premiums paid. Amounts to be budgeted for insurance will be confirmed. Costs of space are assigned based on the prior year actual space inventory (on a slip-year basis) unless otherwise notified by Budgeting Services for large new buildings opening mid-year. Changes in assigned space will be reflected in the following year s projections, thus occupancy cost adjustments for approved relinquished space will take effect for the next budget cycle. Any unit wishing to relinquish underutilized space should provide information on the type and amount of space and the desired timeframe for relinquishing it both to Facility Services and Budgeting Services by December 31, Based on the type and amount of, space Facility Services will determine the exact space to be relinquished. Relinquished space must be of a type and configuration that would be usable by another unit. Facility Services will make all reasonable attempts to match the space to known needs expressed by other units, however, the unit to which the space was originally assigned will remain responsible for the occupancy cost until the end of the next budget cycle. Units NASM 2016/17 Budget 2017/18 Plan 2018/19 Plan Total Rent Rate Rent excl. insurance NASM Total Rent Rate Rent excl. insurance NASM Total Rent Rate Rent excl. insurance Bookstore 1,995 $ $ 532,607 1,995 $ $ 532,607 1,995 $ $ 532,607 Hospitality 4,395 $ $ 1,173,624 4,395 $ $ 1,173,624 4,395 $ $ 1,173,624 Housing & Conference Services 61,396 $ $ 2,507,777 61,396 $ $ 2,507,777 61,396 $ $ 2,507,777 Continuing Education (Space with 1500 SF = 140 NASM credit) 1,776 $ $ 474,281 1,776 $ $ 474,281 1,776 $ $ 474,281 MPS 521 $ $ 139, $ $ 139, $ $ 139,107 Parking 113 $ $ 30, $ $ 30, $ $ 30,056 Telecommunications 74 $ $ 19, $ $ 19, $ $ 19,816 DBAC (A&R) 8,356 $ $ 1,792,412 8,356 $ $ 1,792,412 8,356 $ $ 1,792,412 Total Internal Rent (excl. Insurance) 78,625 $ 6,669,680 78,625 $ 6,669,680 78,625 $ 6,669,680 10

13 4) Operating Surplus (Deficit) The expectation of the Budget Committee is that the envelope is in either surplus or balanced position in each fiscal year. Envelopes with an operating deficit should bring forward a plan as discussed with the Vice-President on how to achieve a balanced budget. Carry forward amounts are not meant to be used to support ongoing operations. 5) Analysis of Appropriations Appropriations are calculated on the budget submission report. The in-year operating surplus (deficit) is added/subtracted to the opening envelope appropriation to determine the ending balance at April 30. 6) Reallocation Requests The Budget Committee will not be accepting any reallocation requests as part of the budget submission. The Budget Committee will examine the unusual and significant cost pressures that have been absorbed in your envelope and the implications for your unit s mission as provided in the budget document template. 7) Adherence to the Budget Guidelines Periodically Internal Audit will conduct an audit within an envelope. recommended that Appendix E be used to ensure compliance. It is F. CONTACT INFORMATION If you have any questions or concerns regarding the Operating Budget please contact your Budgeting Services representative: Iain Clarkson François Joubert Paola Morrone Chris Sylvester Lou Mitton Ext or iclarks@mcmaster.ca Ext or joubert@mcmaster.ca Ext or morronep@mcmaster.ca Ext or sylvest@mcmaster.ca Ext or mittonl@mcmaster.ca Budgeting resources and links can be found online at: The Budget Committee would like to thank you in advance for your continued commitment and effort in building a fiscally sound and accountable budget that will provide a secure future for McMaster. 11

14 APPENDIX A BUDGET ALLOCATION FRAMEWORK Faculties $000's Base One-time Total 2015/ / / /19 University Fund One-time Base One-time Total University Fund One-time Base One-time Total University Fund One-time Base One-time Total Enter in Account no: tbc tbc tbc tbc Faculties (Academic Programmes) Business 32,076 1,936 34, ,882-33,882-35,182-35,182-35,967-35,967 - Engineering 55,324 (745) 54, ,650-57, ,942-58,942-59,923-59,923 - Health Sciences 69,330-69,330 3,491 69,330-69,330 1,809 69,330-69,330 1,190 69,330-69,330 1,065 Humanities 23,913-23,913 2,270 23,913-23, ,913-23, ,913-23, Science 51,433-51,433 3,050 51,433-51,433 1,094 51,433-51, ,433-51, Medical Radiation - Mohawk share 4, ,042 4,880-4,880 4,899-4,899 4,877-4,877 Social Sciences 30,469 (266) 30,203 1,024 30,457-30, ,050-31, ,873-31, Arts & Science 1, , ,436-1, ,408-1, ,398-1, Sub-total 268,789 1, ,956 10, , ,981 4, , ,157 2, , ,714 2,145 Provost - Academic Priorities University Fund 24,800 (9,135) 15,665 (10,307) 26,605 2,519 29,124 (4,455) 29,341 2,607 31,948 (2,423) 31,091 3,000 34,091 (2,145) Academic Funding Allocation 467 (265) Sub-total 25,267 (9,400) 15,867 (10,307) 27,072 2,519 29,591 (4,455) 29,807 2,607 32,414 (2,423) 31,553 3,000 34,553 (2,145) Total Faculties 294,056 (8,233) 285, ,053 2, , ,964 2, , ,267 3, ,267 - University Fund One-time 12

15 McMaster University - New Budget Model - Faculties Projected Budget Allocation University Fund 8.00% VP Research Discretionary Fund 7.00% Research Infrastructure Fund 1.00% Budgets prior to double stepdown allocation Net double stepdown allocation Business Engineering Health Sciences Humanities Science Med Rad - Mohawk Social Sciences Arts & Science Other (reconciling items) University Fund Research Infrastructure Fund Total (after double stepdown to support unit allocations) Revenue Undergraduate Tuition 27,790 58,531 31,060 14,728 38,125 2,204 26,444 1, ,495 Graduate Tuition 13,382 9,223 9,141 2,592 5,445-2, ,219 Operating Grant 17,989 42,147 77,257 16,340 46,860 2,613 23,170 1, ,015 Other Income 471 2,281 5, , ,490-18,757 Gross Revenue 59, , ,018 34,074 92,205 4,817 52,712 3,357-7, ,487 Undergraduate Cross Faculty Teaching Adjustment (5,031) (10,849) (216) 4,281 8,413-4,026 (624) - 0 Revenue for Contributions 54, , ,803 38, ,617 4,817 56,738 2,733-7, ,487 University Fund Contribution (4,368) (8,107) (9,824) (3,068) (8,049) - (4,539) (219) - 38, Research Infrastructure Fund Contribution (546) (1,013) (1,228) (384) (1,006) - (567) (27) - - 4,772 - Indirect Cost of Research (excluding Royalties & CRC) 171 3,776 10, , ,955 VP Research Discretionary (Equivalent to 7 % of ICR) (12) (264) (745) (13) (304) - (58) - 1,396 - Adjustments for ICR received by Journal (Contract & ERA) (26) (886) (4,748) (29) (839) - (180) - - (6,709) Adjustments for Current Practices (46) (413) (6,308) (307) (6,308) Research Infrastructure Fund Distribution , , (4,772) - Research Excellence Fund (from UF) , (2,250) Revenue Prior to Shared Support Unit Allocations 49,851 95, ,173 34,812 96,292 4,817 52,888 2,487 1,864 43, ,425 Shared Support Unit Allocations - via double stepdown Occupancy Cost 39,554 (12,797) (670) (6,252) (8,243) (1,794) (8,487) - (1,261) (49) (26,757) Deferred Maintenance 7,893 (3,051) (121) (1,131) (1,491) (325) (1,536) - (228) (9) (4,842) Insurance 1,080 (452) (16) (151) (182) (43) (204) - (30) (1) (628) MIP Occupancy 1 2,677 (192) - (1,688) (603) (11) - - (183) (2,485) MIP Occupancy (157) (157) HR 5,802 (620) (251) (688) (2,807) (294) (750) - (385) (8) (5,182) HR Employee Programs 2,055 (534) (107) (234) (524) (164) (337) - (155) (1) (1,521) Financial Affairs/Admin/ Inst Support 7,600 (2,527) (514) (846) (1,673) (495) (994) - (536) (14) (5,073) Supplementary Pension 4,738 (531) (327) (632) (1,721) (356) (760) - (407) (4) (4,207) Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) (12,904) Presidential/Univ Sec 1,846 (542) (132) (218) (430) (127) (256) - (138) (4) (1,304) General University Expense 6,320 (2,563) (381) (626) (1,239) (367) (736) - (397) (11) (3,757) Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) (4,727) UTS/ Technology Fund 12,559 2,968 (1,728) (2,877) (3,473) (1,429) (3,596) - (2,285) (139) (15,527) UTS- ERP 4,517 (170) (484) (806) (972) (400) (1,007) - (640) (39) (4,347) UA 5,733 1,411 (787) (1,510) (1,918) (554) (1,508) - (827) (39) (7,144) Office of the Provost 6,157 (2,325) (388) (639) (1,264) (374) (751) - (405) (11) (3,832) Research Support 8,770 4,527 (109) (2,419) (8,033) (82) (2,077) - (576) (13,297) Student Affairs 3,655 5,421 (1,116) (1,790) (1,447) (901) (2,265) - (1,462) (93) (9,076) MIIETL 1, (264) (423) (393) (213) (535) - (345) (22) (2,195) Libraries 17,692 7,762 (2,911) (4,719) (5,373) (2,411) (5,946) - (3,857) (238) (25,454) HS Library 2,899 1,643 (520) (842) (959) (430) (1,061) - (688) (42) (4,542) Registrar 4,753 6,952 (1,298) (2,236) (1,888) (1,179) (2,994) - (1,974) (137) (11,706) SGS 1, (353) (409) (575) (151) (347) - (181) (2,017) Museum of Art (100) (167) (230) (83) (209) - (133) (8) (929) UG Scholarship 5, (724) (1,342) (485) (658) (1,752) - (1,101) (76) (6,140) UG Bursaries 8,000 (0) (917) (1,699) (844) (833) (2,218) - (1,394) (96) (8,000) Grad Scholarship 13, (2,533) (2,914) (4,110) (1,080) (2,489) - (1,295) (14,421) Adjustments for Current Practices - Support Units - - 4, (1,972) - - 2,224 Total Shared Support Unit Allocations 202,169 0 (17,775) (40,502) (52,584) (16,460) (47,172) - (22,420) (1,060) (1,972) - - (199,945) Net Revenue 32,076 55,324 61,589 18,352 49,120 4,817 30,469 1,427 (108) 43, , Projected Hold Harmless Level (Adjusted) 26,873 50,633 69,330 23,913 51,433 4,603 27,929 1,091 Variance 5,203 4,691 (7,741) (5,561) (2,312) 214 2, UF Hold Harmless (if necessary) - - 7,741 5,561 2, (15, ) - - Base Net Projected Budget ,076 55,324 69,330 23,913 51,433 4,817 30,469 1,427 (108) 27, ,481 University Fund One-time ,491 2,270 3,050 1, (10,307) - One Time FY15 True up 1,936 (745) (266) 17 (1,167) - 13

16 McMaster University - New Budget Model - Faculties Projected Budget Allocation University Fund 8.00% VP Research Discretionary Fund 7.00% Research Infrastructure Fund 1.00% Budgets prior to double stepdown allocation Net double stepdown allocation Business Engineering Health Sciences Humanities Science Med Rad - Mohawk Social Sciences Arts & Science Other (reconciling items) University Fund Research Infrastructure Fund Total (after double stepdown to support unit allocations) Revenue Undergraduate Tuition 29,767 62,868 31,797 14,775 39,463 2,266 27,111 1, ,703 Graduate Tuition 13,850 9,208 9,632 2,660 5,494-2, ,367 Operating Grant 17,913 41,840 78,252 15,850 46,796 2,613 22,514 1, ,429 Other Income 471 2,281 5, , ,625-18,892 Gross Revenue 61, , ,241 33,700 93,527 4,880 52,811 3,410-7, ,391 Undergraduate Cross Faculty Teaching Adjustment (5,154) (11,311) (210) 4,543 8,596-4,176 (641) - 0 Revenue for Contributions 56, , ,031 38, ,123 4,880 56,988 2,770-7, ,391 University Fund Contribution (4,548) (8,391) (10,002) (3,059) (8,170) - (4,559) (222) - 38, Research Infrastructure Fund Contribution (568) (1,049) (1,250) (382) (1,021) - (570) (28) - - 4,869 - Indirect Cost of Research (excluding Royalties & CRC) 171 3,776 10, , ,955 VP Research Discretionary (Equivalent to 7 % of ICR) (12) (264) (745) (13) (304) - (58) - 1,396 - Adjustments for ICR received by Journal (Contract & ERA) (26) (886) (4,748) (29) (839) - (180) - - (6,709) Adjustments for Current Practices (46) (413) (6,330) (307) (6,330) Research Infrastructure Fund Distribution , , (4,869) - Research Excellence Fund (from UF) , (2,250) Revenue Prior to Shared Support Unit Allocations 51,893 98, ,324 34,722 97,663 4,880 53,131 2,520 1,864 44, ,307 Shared Support Unit Allocations - via double stepdown Occupancy Cost 41,648 (13,562) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) (28,087) Deferred Maintenance 9,893 (3,826) (152) (1,418) (1,869) (407) (1,924) - (286) (11) (6,067) Insurance 1,080 (452) (16) (151) (182) (43) (204) - (30) (1) (628) MIP Occupancy 1 2,677 (192) - (1,688) (603) (11) - - (183) (2,485) MIP Occupancy (157) (157) HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) (5,181) HR Employee Programs 2,055 (534) (107) (234) (524) (164) (337) - (155) (1) (1,521) Financial Affairs/Admin/ Inst Support 7,600 (2,525) (514) (846) (1,674) (496) (995) - (536) (14) (5,075) Supplementary Pension 3,238 (200) (236) (456) (1,242) (257) (549) - (294) (3) (3,038) Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) (12,904) Presidential/Univ Sec 1,846 (531) (133) (219) (434) (128) (258) - (139) (4) (1,315) General University Expense 6,320 (2,563) (381) (626) (1,239) (367) (736) - (397) (11) (3,757) Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) (4,727) UTS/ Technology Fund 13,809 2,947 (1,874) (3,101) (3,770) (1,511) (3,901) - (2,450) (150) (16,757) UTS- ERP 4,517 (171) (486) (804) (978) (392) (1,012) - (635) (39) (4,346) UA 5,733 1,415 (804) (1,533) (1,913) (542) (1,502) - (815) (39) (7,148) Office of the Provost 6,157 (2,324) (388) (639) (1,264) (374) (751) - (405) (11) (3,833) Research Support 8,770 4,634 (110) (2,439) (8,097) (83) (2,094) - (581) (13,404) Student Affairs 3,696 5,610 (1,150) (1,832) (1,503) (903) (2,334) - (1,488) (95) (9,306) MIIETL 1, (267) (426) (399) (210) (543) - (346) (22) (2,214) Libraries 17,692 8,159 (2,970) (4,781) (5,510) (2,395) (6,066) - (3,888) (241) (25,851) HS Library 2,899 1,722 (531) (855) (985) (428) (1,084) - (695) (43) (4,621) Registrar 4,753 7,349 (1,364) (2,315) (1,949) (1,188) (3,116) - (2,029) (141) (12,102) SGS 1, (342) (403) (597) (152) (348) - (180) (2,022) Museum of Art (103) (170) (237) (83) (214) - (134) (8) (950) UG Scholarship 5, (734) (1,344) (493) (639) (1,761) - (1,092) (76) (6,141) UG Bursaries 8,000 (0) (929) (1,702) (852) (809) (2,229) - (1,383) (96) (8,000) Grad Scholarship 13, (2,442) (2,859) (4,256) (1,090) (2,488) - (1,285) (14,419) Adjustments for Current Practices - Support Units - - 4, (1,972) - - 2,224 Total Shared Support Unit Allocations 206,054 (0) (18,011) (41,334) (53,738) (16,555) (48,461) 0 (22,674) (1,085) (1,972) - - (203,830) Net Revenue 33,882 57,650 62,587 18,166 49,202 4,880 30,457 1,436 (108) 44, , Projected Hold Harmless Level (Adjusted) 26,873 50,633 69,330 23,913 51,433 4,603 27,929 1,091 Variance 7,009 7,017 (6,743) (5,747) (2,231) 277 2, UF Hold Harmless (if necessary) - - 6,743 5,747 2, (14,721) - - Base Net Projected Budget ,882 57,650 69,330 23,913 51,433 4,880 30,457 1,436 (108) 29, ,478 University Fund One-time , , (4,455) - 14

17 McMaster University - New Budget Model - Faculties Projected Budget Allocation University Fund 8.00% VP Research Discretionary Fund 7.00% Research Infrastructure Fund 1.00% Budgets prior to double stepdown allocation Net double stepdown allocation Business Engineering Health Sciences Humanities Science Med Rad - Mohawk Social Sciences Arts & Science Other (reconciling items) University Fund Research Infrastructure Fund Total (after double stepdown to support unit allocations) Revenue Undergraduate Tuition 30,242 64,683 31,880 14,804 39,790 2,286 27,710 1, ,024 Graduate Tuition 14,737 9,124 9,821 2,710 5,377-2, ,326 Operating Grant 18,008 41,323 78,693 15,778 47,115 2,613 22,823 1, ,971 Other Income 471 2,281 5, , ,773-19,040 Gross Revenue 63, , ,955 33,706 94,057 4,899 53,751 3,351-7, ,360 Undergraduate Cross Faculty Teaching Adjustment (5,050) (11,426) (117) 4,638 8,504-4,079 (628) - (0) Revenue for Contributions 58, , ,838 38, ,560 4,899 57,830 2,723-7, ,360 University Fund Contribution (4,673) (8,479) (10,067) (3,067) (8,205) - (4,626) (218) - 39, Research Infrastructure Fund Contribution (584) (1,060) (1,258) (383) (1,026) - (578) (27) - - 4,917 - Indirect Cost of Research (excluding Royalties & CRC) 171 3,776 10, , ,955 VP Research Discretionary (Equivalent to 7 % of ICR) (12) (264) (745) (13) (304) - (58) - 1,396 - Adjustments for ICR received by Journal (Contract & ERA) (26) (886) (4,748) (29) (839) - (180) - - (6,709) Adjustments for Current Practices (46) (413) (5,388) (307) (5,388) Research Infrastructure Fund Distribution , , (4,917) - Research Excellence Fund (from UF) , (2,250) Revenue Prior to Shared Support Unit Allocations 53,315 99, ,026 34,814 98,071 4,899 53,900 2,478 1,864 44, ,219 Shared Support Unit Allocations - via double stepdown Occupancy Cost 41,648 (13,562) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) (28,087) Deferred Maintenance 9,893 (3,826) (152) (1,418) (1,869) (407) (1,924) - (286) (11) (6,067) Insurance 1,080 (452) (16) (151) (182) (43) (204) - (30) (1) (628) MIP Occupancy 1 2,677 (192) - (1,688) (603) (11) - - (183) (2,485) MIP Occupancy (157) (157) HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) (5,181) HR Employee Programs 2,055 (534) (107) (234) (524) (164) (337) - (155) (1) (1,521) Financial Affairs/Admin/ Inst Support 7,600 (2,525) (514) (846) (1,674) (496) (995) - (536) (14) (5,075) Supplementary Pension 3,238 (200) (236) (456) (1,242) (257) (549) - (294) (3) (3,038) Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) (12,904) Presidential/Univ Sec 1,846 (531) (133) (219) (434) (128) (258) - (139) (4) (1,315) General University Expense 6,320 (2,563) (381) (626) (1,239) (367) (736) - (397) (11) (3,757) Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) (4,727) UTS/ Technology Fund 13,809 2,946 (1,879) (3,064) (3,769) (1,511) (3,906) - (2,479) (148) (16,755) UTS- ERP 4,517 (171) (487) (795) (977) (392) (1,013) - (643) (38) (4,346) UA 5,733 1,415 (818) (1,534) (1,907) (538) (1,494) - (820) (38) (7,148) Office of the Provost 6,157 (2,324) (388) (639) (1,264) (374) (751) - (405) (11) (3,833) Research Support 8,770 4,634 (110) (2,439) (8,097) (83) (2,094) - (581) (13,404) Student Affairs 3,696 5,610 (1,153) (1,807) (1,506) (903) (2,337) - (1,507) (94) (9,306) MIIETL 1, (268) (421) (399) (210) (544) - (351) (22) (2,214) Libraries 17,692 8,159 (2,977) (4,720) (5,517) (2,394) (6,071) - (3,934) (238) (25,851) HS Library 2,899 1,722 (532) (844) (986) (428) (1,085) - (703) (42) (4,621) Registrar 4,753 7,349 (1,353) (2,291) (1,938) (1,187) (3,133) - (2,059) (140) (12,102) SGS 1, (356) (392) (603) (154) (338) - (179) (2,022) Museum of Art (103) (168) (238) (83) (214) - (136) (8) (950) UG Scholarship 5, (727) (1,334) (492) (638) (1,768) - (1,107) (75) (6,141) UG Bursaries 8,000 0 (920) (1,688) (852) (807) (2,237) - (1,400) (95) (8,000) Grad Scholarship 13, (2,543) (2,783) (4,297) (1,098) (2,418) - (1,281) (14,419) Adjustments for Current Practices - Support Units - - 4, (2,874) - - 1,322 Total Shared Support Unit Allocations 206,054 (0) (18,133) (41,051) (53,776) (16,556) (48,421) 0 (22,850) (1,071) (2,874) - - (204,732) Net Revenue 35,182 58,942 64,250 18,258 49,650 4,899 31,050 1,408 (1,010) 44, , Projected Hold Harmless Level (Adjusted) 26,873 50,633 69,330 23,913 51,433 4,603 27,929 1,091 Variance 8,309 8,309 (5,080) (5,655) (1,783) 296 3, UF Hold Harmless (if necessary) - - 5,080 5,655 1, (12,517) - - Base Net Projected Budget ,182 58,942 69,330 23,913 51,433 4,899 31,050 1,408 (1,010) 32, ,487 University Fund One-time , (2,423) - 15

18 McMaster University - New Budget Model - Faculties Projected Budget Allocation University Fund 8.00% VP Research Discretionary Fund 7.00% Research Infrastructure Fund 1.00% Budgets prior to double stepdown allocation Net double stepdown allocation Business Engineering Health Sciences Humanities Science Med Rad - Mohawk Social Sciences Arts & Science Other (reconciling items) University Fund Research Infrastructure Fund Total (after double stepdown to support unit allocations) Revenue Undergraduate Tuition 30,889 66,127 31,914 14,990 39,999 2,264 28,408 1, ,206 Graduate Tuition 15,039 9,118 9,815 2,755 5,245-2, ,558 Operating Grant 17,823 40,789 78,873 16,022 46,437 2,613 23,324 1, ,485 Other Income 471 2,281 5, , ,839-19,106 Gross Revenue 64, , ,163 34,182 93,455 4,877 54,980 3,321-7, ,355 Undergraduate Cross Faculty Teaching Adjustment (5,023) (11,506) (142) 4,645 8,612-4,028 (616) - 0 Revenue for Contributions 59, , ,021 38, ,067 4,877 59,009 2,705-7, ,355 University Fund Contribution (4,736) (8,545) (10,082) (3,106) (8,165) - (4,721) (216) - 39, Research Infrastructure Fund Contribution (592) (1,068) (1,260) (388) (1,021) - (590) (27) - - 4,946 - Indirect Cost of Research (excluding Royalties & CRC) 171 3,776 10, , ,955 VP Research Discretionary (Equivalent to 7 % of ICR) (12) (264) (745) (13) (304) - (58) - 1,396 - Adjustments for ICR received by Journal (Contract & ERA) (26) (886) (4,748) (29) (839) - (180) - - (6,709) Adjustments for Current Practices (46) (413) (4,080) (307) (4,080) Research Infrastructure Fund Distribution , , (4,946) - Research Excellence Fund (from UF) , (2,250) Revenue Prior to Shared Support Unit Allocations 54, , ,517 35,255 97,629 4,877 54,974 2,461 1,864 45, ,522 Shared Support Unit Allocations - via double stepdown Occupancy Cost 41,648 (13,561) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) (28,087) Deferred Maintenance 9,893 (3,826) (152) (1,418) (1,869) (407) (1,924) - (286) (11) (6,067) Insurance 1,080 (452) (16) (151) (182) (43) (204) - (30) (1) (628) MIP Occupancy 1 2,677 (192) - (1,688) (603) (11) - - (183) (2,485) MIP Occupancy (157) (157) HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) (5,181) HR Employee Programs 2,055 (534) (107) (234) (524) (164) (337) - (155) (1) (1,521) Financial Affairs/Admin/ Inst Support 7,600 (2,524) (514) (846) (1,674) (496) (995) - (536) (14) (5,075) Supplementary Pension 3,238 (200) (236) (456) (1,242) (257) (549) - (294) (3) (3,038) Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) (12,904) Presidential/Univ Sec 1,846 (531) (133) (219) (434) (128) (258) - (139) (4) (1,315) General University Expense 6,320 (2,563) (381) (626) (1,239) (367) (736) - (397) (11) (3,757) Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) (4,727) UTS/ Technology Fund 13,809 2,945 (1,870) (3,032) (3,772) (1,522) (3,895) - (2,516) (147) (16,755) UTS- ERP 4,517 (171) (485) (786) (978) (395) (1,010) - (652) (38) (4,346) UA 5,733 1,415 (825) (1,536) (1,898) (542) (1,478) - (831) (38) (7,148) Office of the Provost 6,157 (2,324) (388) (639) (1,264) (374) (751) - (405) (11) (3,833) Research Support 8,770 4,634 (110) (2,439) (8,098) (83) (2,094) - (581) (13,404) Student Affairs 3,696 5,611 (1,147) (1,787) (1,509) (910) (2,330) - (1,531) (93) (9,307) MIIETL 1, (267) (416) (399) (212) (542) - (356) (22) (2,214) Libraries 17,692 8,159 (2,962) (4,666) (5,531) (2,411) (6,052) - (3,993) (236) (25,851) HS Library 2,899 1,722 (529) (834) (989) (431) (1,082) - (714) (42) (4,621) Registrar 4,753 7,349 (1,349) (2,265) (1,935) (1,198) (3,125) - (2,092) (138) (12,102) SGS 1, (353) (388) (610) (154) (336) - (182) (2,022) Museum of Art (103) (166) (238) (83) (214) - (138) (8) (950) UG Scholarship 5, (725) (1,320) (491) (643) (1,763) - (1,124) (74) (6,141) UG Bursaries 8,000 - (917) (1,670) (852) (814) (2,231) - (1,422) (94) (8,000) Grad Scholarship 13, (2,524) (2,751) (4,347) (1,099) (2,400) - (1,299) (14,419) Adjustments for Current Practices - Support Units - - 4, (4,196) Total Shared Support Unit Allocations 206,054 (0) (18,071) (40,828) (53,845) (16,628) (48,321) 0 (23,102) (1,063) (4,196) - - (206,054) Net Revenue 35,965 59,921 65,672 18,627 49,308 4,877 31,871 1,398 (2,332) 45, , Projected Hold Harmless Level (Adjusted) 26,873 50,633 69,330 23,913 51,433 4,603 27,929 1,091 Variance 9,092 9,288 (3,659) (5,286) (2,125) 274 3, UF Hold Harmless (if necessary) - - 3,659 5,286 2, (11,069) - - Base Net Projected Budget ,965 59,921 69,330 23,913 51,433 4,877 31,871 1,398 (2,332) 34, ,468 University Fund One-time , (2,145) - 16

19 Support Units $000's 2014/15 base cfwd Salary adjustment Other allocations 2015/16 base 2015/16 one-time 2015/16 total Base allocations 2016/17 base Academic Support Office of the Provost 5, , ,557-6,057-6,057-6,057-6,057-6,057-6,057 Museum of Art MIIETL 1, , ,970-1, ,618-1, ,592-1,533-1,533 University Library 17, ,692-17,692-17,692-17,692-17,692-17,692-17,692-17,692 Health Sciences Library 2, ,899-2,899-2,899-2,899-2,899-2,899-2,899-2,899 Registrar 4, ,589-4,589-4,589-4,589-4,589-4,589-4,589-4,589 Sub-total 31, , ,176-33, ,324-33, ,298-33,239-33,239 Research Support Research 7, (509) 7, ,120-7,112-7,112-7,112-7,112-7,112-7,112 VP Research Discretionary Fund 1, , ,424-1,396-1,396-1,396-1,396-1,396-1,396 Nuclear Reactor Debt Sub-total 8, (481) 8, ,544-8,508-8,508-8,508-8,508-8,508-8,508 Student Support Graduate Scholarships/Bursaries 13, ,774-13,774-13,774-13,774-13,774-13,774-13,774-13,774 School of Graduate Studies 1, ,641-1,641-1,641-1,641-1,641-1,641-1,641-1,641 Student Affairs 3, ,655-3, ,696-3,696-3,696-3,696-3,696-3,696 Undergraduate Scholarships 13, ,477-13,477-13,477-13,477-13,477-13,477-13,477-13,477 Sub-total 32, ,547-32, ,588-32,588-32,588-32,588-32,588-32,588 Facilities Support Facilities Services 13, ,024 14,770 1,089 15, , ,961-14,899-14,899-14,899-14,899 HSC Maintenance 3, , ,664-3,399-3,399-3,399-3,399-3,399-3,399 Utilities 16, ,684 3,357 21,041-17,684-17,684-17,684-17,684-17,684-17,684 HSC Utilities 5, ,387-5,387-5,387-5,387-5,387-5,387-5,387-5,387 Deferred Maintenance 5,893-2,000 7, ,227 2,000 9, ,227-9, ,227-9,893-9,893 Bond Interest 7, ,380-7,380-7,380-7,380-7,380-7,380-7,380-7,380 Renovation contingency Sub-total 53, ,110 57,487 5,045 62,532 2,129 59, ,012-59, ,950-59,616-59,616 Institutional Support Administration 16, ,312-16,312-16,312-16,312-16,312-16,312-16,312-16,312 UTS 11, ,000 13,110 2,000 15,110-13,110-13,110-13,110-13,110-13,110-13,110 UTS Asset Management University Secretariat Presidential Budget 1, ,128-1,128-1,128-1,128-1,128-1,128-1,128-1,128 University Advancement 5, ,193-5,193-5,193-5,193-5,193-5,193-5,193-5,193 General University 7, ,400-7,400-7,400-7,400-7,400-7,400-7,400-7,400 Sub-total 42, ,250 44,111 2,000 46,111-44,111-44,111-44,111-44,111-44,111-44,111 Institutional Priority allocations Technology Renewal ,517 4, ,517 4, ,517 4, ,517 4,517 Pension/post-retirement benefits Supplemental pension 6, ,962-6,962 (1,500) 5,462-5,462 (902) 4,560-4,560 (1,322) 3,238-3,238 Pension special payments 9, ,554-9,554-9,554-9,554-9,554-9,554-9,554-9,554 Post-retirement benefits past service 7, ,883-7,883-7,883-7,883-7,883-7,883-7,883-7,883 Strategic Priorities Sub-total 24, ,399 4,517 28,916 (1,500) 22,899 4,517 27,416 (902) 21,997 4,517 26,514 (1,322) 20,675 4,517 25,192 Total support units 192,850 1,653 5, ,291 12, , ,961 4, ,959 (902) 200,059 4, ,969 (1,322) 198,737 4, , /17 one-time 2016/17 total Base allocations 2017/18 base 2017/18 one-time 2017/18 total Base allocations 2018/19 base 2018/19 one-time 2018/19 total 17

20 APPENDIX B ONGOING VS. ONE-TIME REVENUE AND EXPENDITURE GUIDELINES It is important to separate one-time from ongoing items within budget reporting to be able to clearly identify if a unit s funding/revenue can sustain its level of operations on a continual basis. Ongoing expenditures An ongoing item is one that is incurred in the normal operations of a unit. It is a part of the regular activities and required on a continual basis for the efficient and productive running of the unit. Examples would be salaries and benefits for permanent employees, supplies, telecommunications, printing, computer purchases (if done on a rotating basis through the unit), and travel. One-Time Expenditures One-time items are those that would occur within a single reporting period and which are unlikely to recur in the future, although they could cross over multiple reporting periods. These would be items that are not part of the normal activities of a unit. Examples would be severance payments, consultants/contractual staffing used for a specific time-defined project, computer purchase that would be large and one-time (system replacements), large capital purchases, large renovations. Structural Deficit A structural deficit occurs when the regular ongoing costs within a unit exceed the regular ongoing revenue/allocation for that unit. This means that the income is not sufficient to cover the costs of regular ongoing operations. A structural deficit in the ongoing operations of a unit cannot be sustained as it shows that the unit will not be able to cover its costs on a continual basis. A deficit in the ongoing operations of a unit may not be considered a structural deficit if there is a reasonable strategy to address the deficit. One-Time Deficit A budget deficit may be incurred in a particular year within an area due to one-time expenses. This does not mean that the deficit will occur in all years, as the expenses will reduce to normal levels once the one-time event has been completed. Structural deficit One-time deficit Ongoing One-time Total Ongoing One-time Total Year 1 Revenue 1, ,050 1, ,050 Expenses 1,050 1, ,100 Surplus (deficit) (50) (100) (50) Year 2 Revenue 1, ,000 1, ,000 Expenses 1,050 1, Surplus (deficit) (50) 0 (50) Cumulative surplus (deficit) (100) 50 (50) 100 (100) 0 A structural deficit will continue to build and is unsustainable. A one-time deficit can be covered by surpluses in other years. 18

21 APPENDIX C LABOUR/BENEFIT ACCOUNT MAPPING Salary Account Description Benefit Account Description ACADEMIC FULL-TIME Academic Full Time Salary Benefits Academic FT Academic Ceil GUAR/Other FB PT Other Academic Academic Teach Track FB Academic - Teach Track ACADEMIC STIPENDS Academic Admin Stipend Benefits Academic FT Academic FHS Stipend FB Academic FHS Stipend ACADEMIC CLA Academic - CLA FB Academic - CLA ACADEMIC CAWAR Academic - Cawar FB Academic - CAWAR ACADEMIC PART-TIME Academic Salary Part Time FB PT Academic Honoraria Academic Part Time FB PT Other Academic Academic Salary Incentives PT FB PT Academic Salary Undergrad Student Can FB PT Undergrad Student - CDN Salary Masters Student Can FB PT Masters Student - CDN Salary PhD Student Can FB PT Ph.D Student - CDN Salary PostDoc Fellows FB PT PostDoc Fellow - CDN Salary Undergrad Studt Foreign FB PT Undergrad Stud - Foreign Salary Masters Student Foreign FB PT Masters Student - Foreig Salary PhD Student Foreign FB PT Ph.D Student - Foreign Salary PostDoc Fellows Foreign FB PT PostDoc Fellow - Foreign Salary Session Lecture PT FB Sessional Lecturer Faculty supervision FB PT Other Academic Invigiliating FB PT Other Academic Salary Part Time Marking FB PT Academic Clinical Scholars FB PT Academic TA TA-Graduate In Time FT FB TA-Graduate In Time FT TA-Grad OverTime/Non Mac FB TA-Grad OverTime/Non Mac TA- Undergraduate FB TA- Undergraduate NON-ACADEMIC FULL-TIME Support Salaries FT Benefits Support Full Time Supports C/S Sec FB Support C/S Support Clinical Educ/Hospital FB Support C/S Support FT- Other Benefits Support FT - Other Hourly Staff Wages FB Hourly Staff Wages NON-ACADEMIC PART-TIME Support Salaries Part Time FB Support PT Honoraria Non Academic PT Honoraria Non Academic PT PIP's Nurse Salaries FB PIP's Nurse Support Sal Desk Clerks PT FB Support Desk Cleck PT Shift Premiums PT FB Support PT Transcriptions SA Benefits Support Full Time Supp Sal WorkStudy/McWork PT FB Support Work Study/McWork Support Salaries PT Overtime FB Support Staff OverTime Support Sal PT Other FB Support Other PT For MACVIP Clearing Errors FB Support Other PT Invalid Combo HCM Earnings Invalid Combo HCM Deductions 19

22 Salary accounts by union group Code Union Group Account CFA Clinical Faculty Academic Full Time Academic Ceiling Guarantee Academic Teaching Track Academic Admin Stipend Academic FHS Stipend Academic Contractually Limited Appointment Academic CAWAR CLF Clinical Fellows Salary Post-Doctoral Fellows CLS Clinical Scholar Clinical Scholars CP1 Teaching Assistants CUPE Unit TA Graduate In Time FT TA Graduate Over Time/Non Mac TA Undergraduate CP2 Sessional Faculty CUPE Unit Salary Sessional Lecture PT CP3 Post-Doctoral Fellows CUPE Unit Salary Post-Doctoral Fellows CPM Sessional Music Faculty CUPE Unit Academic Salary PT CVA Conversational Assistants Academic Salary PT ESA Interim Support Salaries PT Work Study/McWork HSP Hospitality SEIU Hourly Staff Wages MCH Machinists SEIU Hourly Staff Wages MFF MUFA Faculty Academic Full Time Academic Ceiling Guarantee Academic Teaching Track Academic Admin Stipend Academic FHS Stipend Academic Contractually Limited Appointment Academic CAWAR MFL MUFA Librarians Support Salaries FT MFO Faculty Association Office N/A MUL MUALA Support Salaries FT OMC Facility Services casual Hourly Staff Wages OPM Operations & Maintenance BUC Hourly Staff Wages OTA Other Academic Persons of Interest Academic Full Time Salary PDF Post-Doctoral Fellows Non-Union Salary Post-Doctoral Fellows RAA Research Associate Academic Support Salaries PT SAA Senior Academic Officers Academic Full Time Salary SAO Senior Administrative Officers Support Salaries FT SCH Graduate Scholarships N/A TMG TMG UF1 Staff Unifor Unit 1 Permanent: Support Salaries FT Limited Term: Support Salaries PT Permanent: Support Salaries FT Limited Term: Support Salaries PT UF3 Parking Unifor Unit Hourly Staff Wages UF4 Security Unifor Unit Hourly Staff Wages ZAC Academic Converted Academic Salary PT 20

23 APPENDIX D FREQUENTLY ASKED QUESTIONS General 1. How do appropriations and carry-forwards work? How do we show them? Appropriations and carry-forwards are unspent (surplus) or overspent (deficit) funds from the previous year. Appropriations or carry-forwards are shown at the bottom of the budget submission form: The opening balance for a particular year should be the closing balance from the prior year for each category. Total revenue, expenses and appropriations for all types (on-going and onetime) are summarized in the last lines of the form. A_3000: The total of revenue and expense for the type (On-Going, One-Time or All Type) selected in the point of view. Note that this total could be different than the Deficit or (Surplus) All Types if the point of view has selected only On-Going or One-Time. Total Revenue All Types: The total of all on-going and one-time revenue. Total Expenses All Types: The total of all on-going and one-time expenses. Deficit or (Surplus) All Types: The net of all on-going and one-time revenue and expenses. Opening Appropriations All Types: Actual and 8 Month Review: Actual ending appropriations in FY15 Budget: Ending appropriations forecast in the FY15 8 Month Review PS Adjustments All Types: Actual year-to-date journal entries to appropriation accounts in PeopleSoft GL. The only entries to appropriations should be corrections of errors occurring in the prior year-end roll-over. 21