guidelines for preparation of - mcmaster … for preparation of operating budgets december 17, 2015...

GUIDELINES FOR PREPARATION OF

OPERATING BUDGETS

December 17, 2015

This document is available at http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm

For the Fiscal Years

2016/17, 2017/18 and 2018/19

http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm

Operating Budget Guidelines 2016/17

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Table of Contents

A. Introduction ............................................................................................................................................. 1

B. Information and Changes for 2016/17 .................................................................................................... 1

C. Submission Timetable .............................................................................................................................. 5

D. Budget Allocation Framework ................................................................................................................. 6

E. Format of Budget Submission .................................................................................................................. 6

1) Objectives of the Budget Submission .................................................................................................. 7

2) Revenues, Recoveries and Transfers ................................................................................................... 7

I. Framework Allocations .................................................................................................................... 7

II. Other Revenue, Recoveries and Transfers ....................................................................................... 7

3) 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 .............................................................................................................................. 10

4) Operating Surplus (Deficit) ................................................................................................................. 11

5) Analysis of Appropriations ................................................................................................................. 11

6) Reallocation Requests ........................................................................................................................ 11

7) Adherence to the Budget Guidelines ................................................................................................. 11

F. Contact Information ............................................................................................................................... 11

Appendix A – Budget Allocation Framework ................................................................................................. 12

Appendix B – Ongoing vs. One-Time Revenue and Expenditure Guidelines ................................................. 18

Appendix C – Labour/Benefit Account Mapping ........................................................................................... 19

Appendix D – Frequently Asked Questions .................................................................................................... 21

Appendix E – Budget Submission Checklist ................................................................................................... 25


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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


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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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm. 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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm. 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 http://www.mcmaster.ca/policy/General/BusOp/Capital_Assets_Policy.pdf

- 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.



http://www.mcmaster.ca/policy/General/BusOp/Capital_Assets_Policy.pdf


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- 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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm 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.



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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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm.



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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-15 28-Oct-15

Registrar/Undergraduate Scholarships M. Poole 13-Jan-16 27-Jan-16

UTS/Technology Fund J. Kearney 13-Jan-16 27-Jan-16

Student Affairs S. Van Koughnett 27-Jan-16 10-Feb-16

Graduate Studies/Scholarships D. Welch 27-Jan-16 10-Feb-16

MIIETL A. Ahmad 27-Jan-16 10-Feb-16

University Advancement M. Williams 10-Feb-16 24-Feb-16

Research A. Sekuler 10-Feb-16 24-Feb-16

Provost Office/Academic Contingency D. Wilkinson 10-Feb-16 24-Feb-16

Museum of Art C. Podedworny 27-Jan-16 24-Feb-16

President/Strategic Priorities P. Deane 27-Jan-16 24-Feb-16

University Secretariat P. Deane 27-Jan-16 24-Feb-16

Arts and Science Program S. Searls Giroux 27-Jan-16 24-Feb-16

Humanities K. Cruikshank 24-Feb-16 09-Mar-16

Science R. Baker 24-Feb-16 09-Mar-16

Social Sciences R. Cain 24-Feb-16 09-Mar-16

Business L. Waverman 09-Mar-16 23-Mar-16

Facility Support envelopes R. Couldrey 09-Mar-16 23-Mar-16

Administration envelopes/non-academic ancillaries R. Couldrey/D. Henne 09-Mar-16 23-Mar-16

General University R. Couldrey 09-Mar-16 23-Mar-16

Continuing Education S. Searls Giroux 09-Mar-16 30-Mar-16

Engineering I. Puri 16-Mar-16 30-Mar-16

Health Sciences J. Kelton 16-Mar-16 30-Mar-16

HSC Library J. Kelton 16-Mar-16 30-Mar-16

University Library V. Lewis 16-Mar-16 30-Mar-16

University Fund/Academic Funding Allocations D. Wilkinson 16-Mar-16 30-Mar-16

Tuition and Other Fees J. Lee 20-Apr-16 27-Apr-16


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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 [email protected], 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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm

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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm 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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm.

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.

mailto:[email protected]





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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


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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 400000 and 469999, shown in Hyperion in categories Government Grants, Tuition Fees, Research Overhead, Sales, and Investment Income. Internal revenue is budgeted in accounts between 470000 and 489999, 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 800000 and 899999, included with Internal Revenue in Hyperion. External recovery accounts are between 490000 and 499999, 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 480000 and 489999, 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-the-board increases of approximately 1.5%. Any lump sums included in collective


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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 http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm 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 All non-salary expenditure not itemized below.

Capital Equipment Please refer to the capitalization policy and

provide an explanation of significant expenditures.

Scholarships and Bursaries 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.



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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, 2015. 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.

NASM

Total

Rent Rate

Rent excl.

insurance NASM

Total

Rent Rate

Rent excl.

insurance NASM

Total

Rent Rate

Rent excl.

insurance

Units

Bookstore 1,995 267.03$ 532,607$ 1,995 267.03$ 532,607$ 1,995 267.03$ 532,607$

Hospitality 4,395 267.03$ 1,173,624$ 4,395 267.03$ 1,173,624$ 4,395 267.03$ 1,173,624$

Housing & Conference Services 61,396 40.85$ 2,507,777$ 61,396 40.85$ 2,507,777$ 61,396 40.85$ 2,507,777$

Continuing Education

(Space with 1500 SF = 140 NASM credit) 1,776 267.03$ 474,281$ 1,776 267.03$ 474,281$ 1,776 267.03$ 474,281$

MPS 521 267.03$ 139,107$ 521 267.03$ 139,107$ 521 267.03$ 139,107$

Parking 113 267.03$ 30,056$ 113 267.03$ 30,056$ 113 267.03$ 30,056$

Telecommunications 74 267.03$ 19,816$ 74 267.03$ 19,816$ 74 267.03$ 19,816$

DBAC (A&R) 8,356 214.52$ 1,792,412$ 8,356 214.52$ 1,792,412$ 8,356 214.52$ 1,792,412$

Total Internal Rent (excl. Insurance) 78,625 6,669,680$ 78,625 6,669,680$ 78,625 6,669,680$

2016/17 Budget 2017/18 Plan 2018/19 Plan


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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. It is recommended that Appendix E be used to ensure compliance.

F. CONTACT INFORMATION If you have any questions or concerns regarding the Operating Budget please contact your Budgeting Services representative:

Iain Clarkson Ext. 21960 or [email protected] François Joubert Ext. 28688 or [email protected] Paola Morrone Ext. 23934 or [email protected] Chris Sylvester Ext. 24766 or [email protected] Lou Mitton Ext. 24316 or [email protected]

Budgeting resources and links can be found online at: http://www.mcmaster.ca/bms/BMS_FS_Budgeting.htm 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.







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APPENDIX A – BUDGET ALLOCATION FRAMEWORK Faculties

$000's Base One-time Total

University

Fund

One-time Base One-time Total

University

Fund


University

Fund


University

Fund

One-time

Enter in Account no: 480000 480000 480000 tbc 480005 480000 480000 480000 tbc 480005 480000 480000 480000 tbc 480005 480000 480000 480000 tbc 480005

Faculties (Academic Programmes)

Business 32,076 1,936 34,012 70 33,882 - 33,882 - 35,182 - 35,182 - 35,967 - 35,967 -

Engineering 55,324 (745) 54,579 345 57,650 - 57,650 160 58,942 - 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 - 23,913 712 23,913 - 23,913 412 23,913 - 23,913 259

Science 51,433 - 51,433 3,050 51,433 - 51,433 1,094 51,433 - 51,433 484 51,433 - 51,433 484

Medical Radiation - Mohawk share 4,817 225 5,042 4,880 - 4,880 4,899 - 4,899 4,877 - 4,877

Social Sciences 30,469 (266) 30,203 1,024 30,457 - 30,457 623 31,050 - 31,050 280 31,873 - 31,873 280

Arts & Science 1,427 17 1,444 57 1,436 - 1,436 57 1,408 - 1,408 57 1,398 - 1,398 57

Sub-total 268,789 1,167 269,956 10,307 272,981 - 272,981 4,455 276,157 - 276,157 2,423 278,714 - 278,714 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) 202 467 - 467 466 - 466 462 - 462

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) 285,823 - 300,053 2,519 302,572 - 305,964 2,607 308,571 - 310,267 3,000 313,267 -

2015/16 2016/17 2017/18 2018/19


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McMaster University - New Budget Model - Faculties

Projected Budget Allocation University Fund 8.00% VP Research Discretionary Fund 7.00%

2015-16 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 1,614 - 200,495

Graduate Tuition 13,382 9,223 9,141 2,592 5,445 - 2,435 - - 42,219

Operating Grant 17,989 42,147 77,257 16,340 46,860 2,613 23,170 1,640 - - - 228,015

Other Income 471 2,281 5,561 415 1,775 - 662 103 - 7,490 - 18,757

Gross Revenue 59,632 112,183 123,018 34,074 92,205 4,817 52,712 3,357 - 7,490 - 489,487

Undergraduate Cross Faculty Teaching Adjustment (5,031) (10,849) (216) 4,281 8,413 - 4,026 (624) - 0

Revenue for Contributions 54,601 101,334 122,803 38,354 100,617 4,817 56,738 2,733 - 7,490 - 489,487

University Fund Contribution (4,368) (8,107) (9,824) (3,068) (8,049) - (4,539) (219) - 38,174 - -

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 10,639 185 4,350 - 826 - 8 - 19,955

VP Research Discretionary (7 % of ICR above) (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) - - 307 - 460 (6,308)

Research Infrastructure Fund Distribution 41 903 2,545 44 1,041 - 198 - - (4,772) -

Research Excellence Fund (from UF) 37 496 1,040 29 484 - 164 (2,250)

Revenue Prior to Shared Support Unit Allocations 49,851 95,826 114,173 34,812 96,292 4,817 52,888 2,487 1,864 43,415 - 496,425

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 2 157 - - (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 1,533 662 (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 1,641 376 (353) (409) (575) (151) (347) - (181) - - - - (2,017)

Museum of Art 469 460 (100) (167) (230) (83) (209) - (133) (8) - - - (929)

UG Scholarship 5,477 663 (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 13,774 647 (2,533) (2,914) (4,110) (1,080) (2,489) - (1,295) - - - - (14,421)

Adjustments for Current Practices - Support Units - - 4,196 - - - - - (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) 43,415 - 296,481

2013-14 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 2,539 336

UF Hold Harmless (if necessary) - - 7,741 5,561 2,312 - - - - (15,614.688) - -

Base Net Projected Budget 2015-16 32,076 55,324 69,330 23,913 51,433 4,817 30,469 1,427 (108) 27,800 - 296,481

University Fund One-time 2015-16 70 345 3,491 2,270 3,050 1,024 57 (10,307) -

One Time FY15 True up 1,936 (745) - - - 225 (266) 17 (1,167) -


14




Budgets prior

to double

stepdown

allocation

Net double

stepdown


Health


Med Rad -

Mohawk

Social

Sciences

Arts &

Science

Other

(reconciling

items)

University

Fund

Research

Infrastructure

Fund

Total (after double

stepdown to

support unit

allocations)

Revenue



Operating Grant 17,913 41,840 78,252 15,850 46,796 2,613 22,514 1,652 - - - 227,429

Other Income 471 2,281 5,561 415 1,775 - 662 103 - 7,625 - 18,892

Gross Revenue 61,999 116,197 125,241 33,700 93,527 4,880 52,811 3,410 - 7,625 - 499,391













Occupancy Cost 41,648 (13,562) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) - - - (28,087)


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 2 157 - - (157) - - - - - - - - - (157)

HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) - - - (5,181)




Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) - - - (12,904)



Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) - - - (4,727)


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)



Student Affairs 3,696 5,610 (1,150) (1,832) (1,503) (903) (2,334) - (1,488) (95) - - - (9,306)

MIIETL 1,533 681 (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 1,641 381 (342) (403) (597) (152) (348) - (180) - - - - (2,022)

Museum of Art 469 481 (103) (170) (237) (83) (214) - (134) (8) - - - (950)

UG Scholarship 5,477 664 (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)



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) 44,326 - 302,478


Variance 7,009 7,017 (6,743) (5,747) (2,231) 277 2,528 345

UF Hold Harmless (if necessary) - - 6,743 5,747 2,231 - - - - (14,721) - -

Base Net Projected Budget 2016-17 33,882 57,650 69,330 23,913 51,433 4,880 30,457 1,436 (108) 29,605 - 302,478

University Fund One-time 2016-17 - 160 1,809 712 1,094 623 57 (4,455) -


15




Budgets prior

to double

stepdown

allocation

Net double

stepdown


Health


Med Rad -

Mohawk

Social

Sciences

Arts &

Science

Other

(reconciling

items)

University

Fund

Research

Infrastructure

Fund

Total (after double

stepdown to

support unit

allocations)

Revenue



Operating Grant 18,008 41,323 78,693 15,778 47,115 2,613 22,823 1,619 - - - 227,971

Other Income 471 2,281 5,561 415 1,775 - 662 103 - 7,773 - 19,040

Gross Revenue 63,457 117,411 125,955 33,706 94,057 4,899 53,751 3,351 - 7,773 - 504,360

Undergraduate Cross Faculty Teaching Adjustment (5,050) (11,426) (117) 4,638 8,504 - 4,079 (628) - (0)












Occupancy Cost 41,648 (13,562) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) - - - (28,087)


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 2 157 - - (157) - - - - - - - - - (157)

HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) - - - (5,181)




Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) - - - (12,904)



Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) - - - (4,727)


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)



Student Affairs 3,696 5,610 (1,153) (1,807) (1,506) (903) (2,337) - (1,507) (94) - - - (9,306)

MIIETL 1,533 681 (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 1,641 381 (356) (392) (603) (154) (338) - (179) - - - - (2,022)

Museum of Art 469 481 (103) (168) (238) (83) (214) - (136) (8) - - - (950)

UG Scholarship 5,477 664 (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)




Net Revenue 35,182 58,942 64,250 18,258 49,650 4,899 31,050 1,408 (1,010) 44,858 - 307,487


Variance 8,309 8,309 (5,080) (5,655) (1,783) 296 3,120 317


Base Net Projected Budget 2017-18 35,182 58,942 69,330 23,913 51,433 4,899 31,050 1,408 (1,010) 32,341 - 307,487

University Fund One-time 2017-18 - - 1,190 412 484 280 57 (2,423) -


16




Budgets prior

to double

stepdown

allocation

Net double

stepdown


Health


Med Rad -

Mohawk

Social

Sciences

Arts &

Science

Other

(reconciling

items)

University

Fund

Research

Infrastructure

Fund

Total (after double

stepdown to

support unit

allocations)

Revenue



Operating Grant 17,823 40,789 78,873 16,022 46,437 2,613 23,324 1,603 - - - 227,485

Other Income 471 2,281 5,561 415 1,775 - 662 103 - 7,839 - 19,106

Gross Revenue 64,222 118,316 126,163 34,182 93,455 4,877 54,980 3,321 - 7,839 - 507,355













Occupancy Cost 41,648 (13,561) (704) (6,563) (8,652) (1,883) (8,909) - (1,324) (52) - - - (28,087)


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 2 157 - - (157) - - - - - - - - - (157)

HR 5,802 (621) (251) (688) (2,806) (294) (750) - (385) (8) - - - (5,181)




Pension Special 17,437 (4,533) (905) (1,982) (4,447) (1,389) (2,856) - (1,316) (9) - - - (12,904)



Bond Interest 7,380 (2,653) (118) (1,105) (1,456) (317) (1,499) - (223) (9) - - - (4,727)


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)



Student Affairs 3,696 5,611 (1,147) (1,787) (1,509) (910) (2,330) - (1,531) (93) - - - (9,307)

MIIETL 1,533 681 (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 1,641 381 (353) (388) (610) (154) (336) - (182) - - - - (2,022)

Museum of Art 469 481 (103) (166) (238) (83) (214) - (138) (8) - - - (950)

UG Scholarship 5,477 664 (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)


Adjustments for Current Practices - Support Units - - 4,196 - - - - - (4,196) - - -


Net Revenue 35,965 59,921 65,672 18,627 49,308 4,877 31,871 1,398 (2,332) 45,160 - 310,468


Variance 9,092 9,288 (3,659) (5,286) (2,125) 274 3,942 307


Base Net Projected Budget 2018-19 35,965 59,921 69,330 23,913 51,433 4,877 31,871 1,398 (2,332) 34,091 - 310,468

University Fund One-time 2018-19 - - 1,065 259 484 280 57 (2,145) -


17

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

2016/17

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

Academic Support

Office of the Provost 5,481 67 509 6,057 500 6,557 - 6,057 - 6,057 - 6,057 - 6,057 - 6,057 - 6,057

Museum of Art 453 16 - 469 - 469 - 469 - 469 - 469 - 469 - 469 - 469

MIIETL 1,504 29 - 1,533 437 1,970 - 1,533 85 1,618 - 1,533 59 1,592 - 1,533 - 1,533

University Library 17,138 154 400 17,692 - 17,692 - 17,692 - 17,692 - 17,692 - 17,692 - 17,692 - 17,692

Health Sciences Library 2,862 37 - 2,899 - 2,899 - 2,899 - 2,899 - 2,899 - 2,899 - 2,899 - 2,899

Registrar 4,473 116 - 4,589 - 4,589 - 4,589 - 4,589 - 4,589 - 4,589 - 4,589 - 4,589

Sub-total 31,911 419 909 33,239 937 34,176 - 33,239 85 33,324 - 33,239 59 33,298 - 33,239 - 33,239

Research Support

Research 7,482 139 (509) 7,112 8 7,120 - 7,112 - 7,112 - 7,112 - 7,112 - 7,112 - 7,112

VP Research Discretionary Fund 1,368 - 28 1,396 28 1,424 - 1,396 - 1,396 - 1,396 - 1,396 - 1,396 - 1,396

Nuclear Reactor Debt - - - - - - - - - - - - - - - - - -

Sub-total 8,850 139 (481) 8,508 36 8,544 - 8,508 - 8,508 - 8,508 - 8,508 - 8,508 - 8,508

Student Support

Graduate Scholarships/Bursaries 13,762 12 - 13,774 - 13,774 - 13,774 - 13,774 - 13,774 - 13,774 - 13,774 - 13,774

School of Graduate Studies 1,617 24 - 1,641 - 1,641 - 1,641 - 1,641 - 1,641 - 1,641 - 1,641 - 1,641

Student Affairs 3,573 82 - 3,655 - 3,655 41 3,696 - 3,696 - 3,696 - 3,696 - 3,696 - 3,696

Undergraduate Scholarships 13,448 29 - 13,477 - 13,477 - 13,477 - 13,477 - 13,477 - 13,477 - 13,477 - 13,477

Sub-total 32,400 147 - 32,547 - 32,547 41 32,588 - 32,588 - 32,588 - 32,588 - 32,588 - 32,588

Facilities Support

Facilities Services 13,507 239 1,024 14,770 1,089 15,859 129 14,899 62 14,961 - 14,899 - 14,899 - 14,899 - 14,899

HSC Maintenance 3,265 - 134 3,399 265 3,664 - 3,399 - 3,399 - 3,399 - 3,399 - 3,399 - 3,399

Utilities 16,690 42 952 17,684 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 - 5,387

Deferred Maintenance 5,893 - 2,000 7,893 334 8,227 2,000 9,893 334 10,227 - 9,893 334 10,227 - 9,893 - 9,893

Bond Interest 7,380 - - 7,380 - 7,380 - 7,380 - 7,380 - 7,380 - 7,380 - 7,380 - 7,380

Renovation contingency 974 - - 974 - 974 - 974 - 974 - 974 - 974 - 974 - 974

Sub-total 53,096 281 4,110 57,487 5,045 62,532 2,129 59,616 396 60,012 - 59,616 334 59,950 - 59,616 - 59,616

Institutional Support

Administration 16,011 301 - 16,312 - 16,312 - 16,312 - 16,312 - 16,312 - 16,312 - 16,312 - 16,312

UTS 11,918 192 1,000 13,110 2,000 15,110 - 13,110 - 13,110 - 13,110 - 13,110 - 13,110 - 13,110

UTS Asset Management - - 250 250 - 250 - 250 - 250 - 250 - 250 - 250 - 250

University Secretariat 706 12 - 718 - 718 - 718 - 718 - 718 - 718 - 718 - 718

Presidential Budget 1,118 10 - 1,128 - 1,128 - 1,128 - 1,128 - 1,128 - 1,128 - 1,128 - 1,128

University Advancement 5,047 146 - 5,193 - 5,193 - 5,193 - 5,193 - 5,193 - 5,193 - 5,193 - 5,193

General University 7,394 6 - 7,400 - 7,400 - 7,400 - 7,400 - 7,400 - 7,400 - 7,400 - 7,400

Sub-total 42,194 667 1,250 44,111 2,000 46,111 - 44,111 - 44,111 - 44,111 - 44,111 - 44,111 - 44,111

Institutional Priority allocations

Technology Renewal - - - - 4,517 4,517 - - 4,517 4,517 - - 4,517 4,517 - - 4,517 4,517

Pension/post-retirement benefits

Supplemental pension 6,962 - - 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 - 9,554

Post-retirement benefits past service 7,883 - - 7,883 - 7,883 - 7,883 - 7,883 - 7,883 - 7,883 - 7,883 - 7,883

Strategic Priorities - - - - - - - - - - - - - - - - - -

Sub-total 24,399 - - 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 5,788 200,291 12,535 212,826 670 200,961 4,998 205,959 (902) 200,059 4,910 204,969 (1,322) 198,737 4,517 203,254


18

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.

Ongoing One-time Total Ongoing One-time Total

Year 1

Revenue 1,000 50 1,050 1,000 50 1,050

Expenses 1,050 1,050 950 150 1,100

Surplus (deficit) (50) 50 0 50 (100) (50)

Year 2

Revenue 1,000 0 1,000 1,000 0 1,000

Expenses 1,050 1,050 950 950

Surplus (deficit) (50) 0 (50) 50 0 50

Cumulative surplus (deficit) (100) 50 (50) 100 (100) 0

Structural deficit One-time deficit

A structural deficit will continue to

build and is unsustainable.

A one-time deficit can be covered

by surpluses in other years.


19

APPENDIX C – LABOUR/BENEFIT ACCOUNT MAPPING

Salary Account Description Benefit Account Description

ACADEMIC FULL-TIME

500001 Academic Full Time Salary 510001 Benefits Academic FT

500005 Academic Ceil GUAR/Other 510005 FB PT Other Academic

500131 Academic Teach Track 510131 FB Academic - Teach Track

ACADEMIC STIPENDS

500111 Academic Admin Stipend 510001 Benefits Academic FT

500002 Academic FHS Stipend 510002 FB Academic FHS Stipend

ACADEMIC CLA

500121 Academic - CLA 510121 FB Academic - CLA

ACADEMIC CAWAR

500141 Academic - Cawar 510141 FB Academic - CAWAR

ACADEMIC PART-TIME

501001 Academic Salary Part Time 511009 FB PT Academic

501002 Honoraria Academic Part Time 511010 FB PT Other Academic

501003 Academic Salary Incentives PT 511009 FB PT Academic

501004 Salary Undergrad Student Can 511001 FB PT Undergrad Student - CDN

501005 Salary Masters Student Can 511002 FB PT Masters Student - CDN

501006 Salary PhD Student Can 511004 FB PT Ph.D Student - CDN

501007 Salary PostDoc Fellows 511003 FB PT PostDoc Fellow - CDN

501008 Salary Undergrad Studt Foreign 511005 FB PT Undergrad Stud - Foreign

501009 Salary Masters Student Foreign 511006 FB PT Masters Student - Foreig

501010 Salary PhD Student Foreign 511008 FB PT Ph.D Student - Foreign

501011 Salary PostDoc Fellows Foreign 511007 FB PT PostDoc Fellow - Foreign

501012 Salary Session Lecture PT 511011 FB Sessional Lecturer

501013 Faculty supervision 511010 FB PT Other Academic

501014 Invigil iating 511010 FB PT Other Academic

501015 Salary Part Time Marking 511009 FB PT Academic

501016 Clinical Scholars 511009 FB PT Academic

TA

522001 TA-Graduate In Time FT 532001 FB TA-Graduate In Time FT

522002 TA-Grad OverTime/Non Mac 532002 FB TA-Grad OverTime/Non Mac

522011 TA- Undergraduate 532011 FB TA- Undergraduate

NON-ACADEMIC FULL-TIME

540001 Support Salaries FT 550001 Benefits Support Full Time

540002 Supports C/S Sec 550020 FB Support C/S

540003 Support Clinical Educ/Hospital 550020 FB Support C/S

540005 Support FT- Other 550050 Benefits Support FT - Other

570001 Hourly Staff Wages 571001 FB Hourly Staff Wages

NON-ACADEMIC PART-TIME

541001 Support Salaries Part Time 551001 FB Support PT

541002 Honoraria Non Academic PT 551050 Honoraria Non Academic PT

541003 PIP's Nurse Salaries 551004 FB PIP's Nurse

541004 Support Sal Desk Clerks PT 551002 FB Support Desk Cleck PT

541005 Shift Premiums PT 551001 FB Support PT

541007 Transcriptions SA 551050 Benefits Support Full Time

541008 Supp Sal WorkStudy/McWork PT 551008 FB Support Work Study/McWork

541010 Support Salaries PT Overtime 551010 FB Support Staff OverTime

541050 Support Sal PT Other 551050 FB Support Other PT

541051 For MACVIP Clearing Errors 551050 FB Support Other PT

541099 Invalid Combo HCM Earnings 551099 Invalid Combo HCM Deductions


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Salary accounts by union group

Code Union Group Account

CFA Clinical Faculty

500001 Academic Full Time

500005 Academic Ceiling Guarantee

500131 Academic Teaching Track

500111 Academic Admin Stipend

500002 Academic FHS Stipend

500121 Academic Contractually Limited Appointment

500141 Academic CAWAR

CLF Clinical Fellows 501007 Salary Post-Doctoral Fellows

CLS Clinical Scholar 501016 Clinical Scholars

CP1 Teaching Assistants CUPE Unit 1

522001 TA Graduate In Time FT

522002 TA Graduate Over Time/Non Mac

522011 TA Undergraduate

CP2 Sessional Faculty CUPE Unit 2 501012 Salary Sessional Lecture PT

CP3 Post-Doctoral Fellows CUPE Unit 3 501007 Salary Post-Doctoral Fellows

CPM Sessional Music Faculty CUPE Unit 2 501001 Academic Salary PT

CVA Conversational Assistants 501001 Academic Salary PT

ESA Interim541001 Support Salaries PT

541008 Work Study/McWork

HSP Hospitality SEIU 570001 Hourly Staff Wages

MCH Machinists SEIU 570001 Hourly Staff Wages

MFF MUFA Faculty

500001 Academic Full Time

500005 Academic Ceiling Guarantee

500131 Academic Teaching Track

500111 Academic Admin Stipend

500002 Academic FHS Stipend

500121 Academic Contractually Limited Appointment

500141 Academic CAWAR

MFL MUFA Librarians 540001 Support Salaries FT

MFO Faculty Association Office N/A

MUL MUALA 540001 Support Salaries FT

OMC Facility Services casual 570001 Hourly Staff Wages

OPM Operations & Maintenance BUC 570001 Hourly Staff Wages

OTA Other Academic Persons of Interest 500001 Academic Full Time Salary

PDF Post-Doctoral Fellows Non-Union 501007 Salary Post-Doctoral Fellows

RAA Research Associate Academic 541001 Support Salaries PT

SAA Senior Academic Officers 500001 Academic Full Time Salary

SAO Senior Administrative Officers 540001 Support Salaries FT

SCH Graduate Scholarships N/A

TMG TMGPermanent: 540001 Support Salaries FT

Limited Term: 541001 Support Salaries PT

UF1 Staff Unifor Unit 1Permanent: 540001 Support Salaries FT

Limited Term: 541001 Support Salaries PT

UF3 Parking Unifor Unit 3 570001 Hourly Staff Wages

UF4 Security Unifor Unit 4 570001 Hourly Staff Wages

ZAC Academic Converted 501001 Academic Salary PT


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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 one-time) 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.


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Closing Appropriations – All Types: Total of Deficit/(Surplus), Opening Appropriations, and PS Adjustments

2. Why is there such a long time between submission and

presentation/review (two weeks)? Budgeting Services needs the time to review budget submission prior to forwarding it to Budget Committee. The Budget Committee also needs time to review the submission before the meeting.

3. What are Ancillaries? Ancillaries are units that operate as profit centres. They generate their own revenue to cover both the direct and indirect expenses of their operations. The University has seven areas that operate as profit centres. They are:

Media Production Services Campus Store Hospitality Services Parking Housing & Conference Services Centre for Continuing Education Off-Campus Housing

4. If your budget is rolled up into a larger unit, how do you know what your allocation is?

To get your allocation you can contact your Director of Administration, Business Manager or Budgeting Services.

Revenue and Funding

5. How do we budget for recoveries received for work done by part-time employees? When do we use the 'Recoveries' line? Normally, recoveries for part-time staff (Work-study, MacWork) go directly against the salary account where the salary is paid from. In some cases departments may wish to use a part-time salary recovery account (541801).

Salary

6. How are FTEs calculated? What about FTTEs?

FTEs are not head counts. For Unifor and TMG staff, FTEs are calculated based on time worked as a proportion of total hours available in the year, depending on the standard work week of that employee:

35 hours/week = 1,825 hours/year 37.5 hours/week = 1,955 hours/year


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40 hours/week = 2,086 hours/year For employees working a total of 1,217 hours in a year on a position with a standard work week of 35 hours, the calculation would be:

1,217 hours worked/1,825 hours available = 0.67 FTE

Faculty FTTEs (full-time teaching equivalent) are normally the same as FTEs, and are not needed on the submission.

7. Where can I find details of my FTEs?

A report showing actual and committed hours and the resulting FTE calculation is part of the Hyperion labour planning module forms under 2.2 Planners. Total hours by employee are available on form 05. Labour Hours Input, with calculated FTE available in the last column. Details of FTE by account are available on form 10. FTE By Empl & Account.

8. Do you count contract positions?

All hours paid to employees on salary accounts through the HR payroll system are counted toward FTE.

9. How do you account for part-time/casual?

Part-time/casual staff costs should be included in the part-time line of the category in which they fall i.e., Academic or Support on the Budget Submission Form.

10. What salary and wage assumptions will be used?

Salary expense estimates calculated through Hyperion will be based on the

signed collective agreements with McMaster University. For estimates in the absence of specific salary details, assume the continuation of the current contract or agreement including, where applicable, across the board, scale, merit, and CPM increases. Assumptions used in the Hyperion labour planning module may be viewed in the forms under 2.1 Admin. Salary estimates are for modelling purposes only.

11. How should positions undergoing evaluation be handled?

Budget the salary costs at the expected pay rate after evaluation, including any retroactive amounts that may be payable. Adjustment may be made to the employee’s hourly rate through Hyperion on form 0.4 Existing Employees - Input, with retroactive payments entered as a hedge.


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Benefits

12. Most of my staff are single and I have consistently been under budget in benefits when using this formula? Can I revise the formula? The prepopulated benefits rates as part of the assumptions in Hyperion consist of a factor for each employee group that will bring the overall rate closer to the actual charges. If the resulting calculation is unreasonable, a hedge may be entered.

13. Do you have to budget MPDA even if staff never use it?

Yes. MPDA budgets must be allocated as long as the employee is part of the department.

Non-salary

14. How can I tell which account to use for capital?

Projects performed by Facility Services and funded from operating accounts must use transfer account 480910. Other accounts outlined in the capital assets policy are:

Equipment/furniture/vehicles > $5,000 610000 Equipment - Major 610015 Office Furniture & Fixtures 610010 Vehicle Purchase

Computer Equipment > $2,000 610030 Equipment - Computer

Computer Software/Systems > $5,000 610040

Renovations and Alterations > $100,000 that extend the useful life of the asset

620100

Minor renovations and alterations should be charged to account 620000. For full details refer to the Capital Assets policy at http://www.mcmaster.ca/policy/General/BusOp/Capital_Assets_Policy.pdf.

http://www.mcmaster.ca/policy/General/BusOp/Capital_Assets_Policy.pdf


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APPENDIX E – BUDGET SUBMISSION CHECKLIST

Budget Year

Envelope

General Response Comments

1

2

Assumptions

3

4

5

6

Operating Surplus (Deficit)

7

8

9

10

11

12

13

14

15

Accuracy

16

17

18

19

20

Capital (assets purchased out of operating)

21

22

23

24

25

26

27

Clear

Yes

No

N/A

Data Validation

Budget Submission Checklist

Has analysis and documentation been prepared to support the nature,

cost estimate and need for each capital acquisition > $5,000?

Has documentation been prepared to support (in aggregate) the nature,

aggregate cost estimate and need of capital items <$5,000. Have

estimates been made of recurring vs. discretionary amounts ?

Have estimated maintenance costs been considered?

Have “one time” and “other unusual” costs been considered and

detailed?

Are the opening carry forwards /appropriations correct?

Has the current envelope allocation been verified?

If there have been past recurring deficits, has the Envelope Manager (a)

reviewed the unit budget(s) and (b) developed a plan to avoid

recurrence?

Have variances been analyzed and considered for the current

submission?

If question 14 is "Yes", have these items been documented and

assessed in terms of likelihood of re-occurrence and impact?

Is the documentation attached to the submission?

If question 18 is "Yes", have these changes been (a) identified (b)

documented and (c) rechecked for validity and accuracy independently?

Has the business unit entered into any leases? If so, has a summary of

these leases been prepared?

Have alternatives, such as contracting out, leasing, delaying the

purchase and/or repairing/modifying existing facilities/equipment been

considered?

Has the clerical accuracy of the submission been checked independently

of the preparer (i.e., validation / review of formulas; manual recheck)?

Have any modifications been made to the spreadsheet design?

Have all supporting schedules and documents been checked for validity,

accuracy and consistency with the amounts in the submission?

Have all capital assets estimates been identified and tabulated pursuant

to the general ledger sub codes?

Has the prior year’s budget been compared to the actual results?

Do the prior year and actual amounts agree to FAS?

Have expenditures been based on the preliminary enrolment data as

provided in the “Guidelines for Preparing Operating/Ancillary Budgets”?

Has the unit considered the changing environment and implications for

operations [future plans, events, issues, threats and opportunities]?

Does the total of expenditures equal the envelope allocation?

Is the budget in a balanced in-year position? (i.e., total expenditures

should not exceed total revenue for each fiscal year; carry-forwards /

reserves not used to balance in-year deficits)

Has the submission been prepared in accordance with the “University’s

Operating and Ancillary Budgets” policy and "Guidelines?

Has the submission been reviewed for overall reasonableness?

Have the planning assumptions outlined in the “Guidelines” been (i)

documented and (ii) used to prepare the budget?

Have measures been taken to ensure that (i) carry forwards/ reserves

are preserved for their purpose and (ii) not used to fund ongoing

operations?

guidelines for preparation of - mcmaster … for preparation of operating budgets december 17, 2015...

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