Annual Budget Policy – Procedure Statement

Annual Budgeting Process

The annual budgeting process will begin October 1^st of each year.  Budget sheets along with mandate will be sent to each unit manager and the Dean(s).  Meetings will be scheduled in October between administrative directors, program coordinators, the Vice Presidents, Associate Deans and the Director of Finance to discuss initial budgets.  Proposed budgets should be submitted to the Director, Finance by November 30^th.   Each budget submission shall include:

1. All academic plans, if applicable;
2. A rationale for each budget line;
3. A breakdown of each item included in a budget line;
4. Timing of when the expense will be incurred. For example monthly, quarterly or paid in a specific month every year. This is required when Finance enters the budgets into the accounting system. The result of entering the budget into the period when it is paid is a more accurate budget to actual report each month.
5. If budgeting for anything new (i.e. anything not included in your previous status quo budget), a    business case should be submitted which outlines the reason for the new budget initiative, benefits             to the University, risks to the University if not approved, and recommendation of where the available funds will come from to pay for the initiative.

Once the business case is complete it should be:

• Presented to and approved by the Associate Dean(s), Vice President, Academic and Finance for all units under his/her supervision, who will then,
• Submit to the Director of Finance, who will review and prepare a recommendation for the President.
• Business cases presented by the Finance department will be submitted directly to the President for consideration.

Please note: Submission of a business case does not guarantee approval.

Once all budgets, including businesses cases if any, have been submitted, they will be consolidated by Finance and the overall budget for the University will be reviewed.  At this stage, should Finance have any questions regarding the budget submission, a meeting with the administrative director, program coordinator, Associate Dean(s) or appropriate Vice President will be arranged.  All consolidated budgets will receive final review by January 15^th.

The consolidated budget will then be reviewed with the President.  If any changes are necessary, meetings will be arranged with administrative directors, program coordinators, Associate Dean(s), Vice Presidents and the Finance Director to discuss changes and options.  All decisions made will be incorporated into the budget by January 31^st.  The revised budgets will then be reviewed by the President for approval.

Finance, along with the President’s office, will prepare the budget submission to be presented to the Board of Governors.  This will be completed by February 15^th.

The Board of Governors will review the budget submission at their February meeting which is usually held the last weekend of the month.

Once the budget has been approved by the Board of Governors, the budget is closed.  There will be no further budget changes considered, except under extreme extenuating circumstances.   Each administrative director, program coordinator and Associate Dean will be given a copy of their approved budget by March 15^th.

Requests For Budget Changes That Fall Outside the Annual Budgeting Process

Administrative directors or program coordinators will submit a business case outlining the reason for the new budget initiative.  This business case will include the benefits to the University, risks to the University if not approved, costs and a recommendation of where it is suggested that the funds come from to pay for the initiative.  This business case should be:

• Presented to and approved by the Associate Dean(s), Vice President, Academic or Finance for all units under his/her supervision, who will then,
• Submit to the Director of Finance, who will review and prepare a recommendation for the President.  President approval is required before any changes are made to the budget.

Reporting and Forecasting

Variance reports comparing amount budgeted to actual dollars spent will be provided to administrative directors, program coordinators, Associate Dean(s) , Vice Presidents and the President on a monthly basis.  Reports will be distributed by the end of the month following.  For example, April reports will be received by the end of May.  When the reports are distributed, Finance will be available to meet with each unit to discuss results.  

On a regular basis, but more importantly at each quarter end, Finance performs forecasts of revenue and expenses to the end of each year and may request to meet with each unit to discuss any relevant variances.  The University must provide regular reporting to the Board, funding agencies and various other stakeholders.  If any budget lines are expected to be over or under budget, this must be reflected and explained in the forecast.  This process allows the University to more accurately estimate our year-end financial results and provides us the opportunity to address with any significant variances or concerns throughout the year.

Ad hoc report requests for a certain budget code or special project can be requested from Finance at any time. 

Finance is available at any time to help units with any budget questions or concerns.