For the purposes of this document:

"Unit" refers to a faculty, school, academic support unit (for example, the Libraries) or administrative unit whose head reports to the President, Vice-President, Associate Vice-President or Vice-Provost. An academic department within a faculty or school is not a Unit as the term is used within this document.

"Unit Head" refers to the individual with supervisory authority over a Unit as well as the President, Vice-Presidents, Associate Vice-Presidents and Vice-Provosts. Regardless of how many signing authorities a unit may have, the operating budget is the responsibility of the Unit Head.

"Signing Authority" refers to any individual responsible for the control and administration of operating funds within a Unit but ultimately the responsibility is that of the Unit Head.

"Operating Funds" consist of:

• unrestricted operating funds (typically funded by Council on Post-Secondary Education (COPSE) grants and tuition fees) and
• internally restricted funds (typically amounts funded by sources such as sales and service income, gifts for operating purposes and endowment transfers).

"Baseline budget" or "baseline funding" refers to continuing budget amounts of the Unit.

"Fiscal budget" or "budget only" or "budget only funding" refers to current year only budget amounts.

1.0 Reason for Procedures

The purpose of this document is to set out procedures secondary to the Policy entitled "Administration and Control of Operating Funds".

2.0 Procedures

Responsibilities of Unit Heads

2.1 Unit Heads are responsible for the budgetary control of their Units and are considered the primary signing authority for their Units.

2.2 Unit Heads may delegate the day-to-day administration and control of their operating budget to a business manager or administrative assistant and designate these individuals as alternate signing authorities.

2.3 Unit Heads are responsible to ensure that at all times during the year, and at the end of the fiscal year the expenditures in a Fund/Organization/Program (FOP) does not exceed the authorized budget for that FOP.

Reconciliations

2.4 Unit Heads are responsible to ensure that each FOP under their control is reconciled to supporting documents every month. The reconciliation process may be delegated to administrative support staff but shall be reviewed and approved by the Unit Head each month.

2.5 The FOP reconciliation process shall normally include the following steps:

a) Maintain a file of source documents (order forms, receiving receipts, invoices, appointment forms, time sheets, etc.) and each month reconcile the transactions in the FOP to the source documents.
b) Identify and correct errors.

2.6 The reconciliation package should be retained for a period of seven years and made available to Financial Services or Audit Services upon request.

Carryover

2.7 Any spending in excess of budget in a Unit’s unrestricted operating funds will first be subtracted against any positive carryover generated in the Unit(s internally restricted funds. In the event that a Unit is in a negative position at fiscal year end, this will be carried over to the next fiscal year as a reduction to the Unit’s opening operating budget.

Budget Maintenance

2.8 All operating budget-funded permanent/continuing/ongoing positions require baseline funding equal to the annual salary of the position. Baseline funding is not required for leave replacements. Adjustments to the baseline and fiscal budget relating to staff turnover are to be initiated by the unit at the time of turnover. Baseline and fiscal budget funding must also be sufficient to cover staff benefits and payroll levy.

2.9 Sufficient fiscal budget funding must be in place for all positions funded through the unrestricted budget and internally restricted budget to cover actual and projected salary, benefit and pay levy costs for the entire fiscal year.

2.10 For positions funded by fiscal budget only in the unrestricted operating budget and for positions funded by internally restricted funds, Units are responsible for covering the costs of any type of salary, benefits and pay levy increases for a position.

2.11 All costs resulting from position reclassifications, promotions or extraordinary salary including benefits and pay levy increases must be funded from within existing resources and are the responsibility of the Unit. Adjustments to the baseline and fiscal budget are to be initiated by the Unit.

2.12 New ongoing academic positions may only be created with permission of the Vice-President (Academic) and Provost.

2.13 New ongoing support staff positions may only be created with permission of the appropriate Vice-President or the President.

2.14 Sufficient fiscal budget funding must be in place to cover actual and projected costs for the entire fiscal year for all non-employment payments to individuals (such as fellowships, scholarships and bursaries) funded through the unrestricted operating budget and internally restricted budget.

2.15 It is the responsibility of the Unit Head to obtain prior approval from the Vice-President (Administration) to use operating funds for renovations or the purchase of equipment with a total cost exceeding $100,000.

2.16 Due to the variable nature of revenues associated with internally restricted funds, Unit Heads are responsible for monitoring changes in actual or anticipated revenues and for initiating requests for budget additions and/or reductions in a timely manner.

2.17 Baseline and fiscal budget funds may be transferred within the Unit at the discretion of the Unit Head provided that baseline funds are not removed for academic positions that are controlled through the Strategic Initiatives Process (SIP). Please refer to SIP guidelines on the Vice-President (Academic) and Provost website.

Responsibilities of Financial Services

2.18 Financial Services will stop transactions from being processed, where feasible, if sufficient funds are not available.

2.19 Financial Services will notify Unit Heads of any areas of concern with regard to the operating budget. In the event the Unit Head does not take corrective action, Financial Services will notify the Vice-President (Administration) who will take appropriate action which may include placing the Unit in a spending freeze.

2.20 Baseline and fiscal funding to cover scale increases, annual increments, step increases, merit increases, anomalies and resulting benefits and pay levy increases will be transferred from central reserves for baseline funded positions in the Unit’s unrestricted operating budget (i.e. Fund 110). These fiscal amounts will be prorated where applicable to match the actual amount required to the end of the current fiscal period. For positions that are not fully baseline funded, baseline and fiscal amounts transferred will be prorated accordingly. There will be no transfers for increases to unfilled/vacant positions, positions funded within the internally restricted funds or positions in the unrestricted operating fund that are fiscal budget funded only.

2.21 Pooled and individual travel and expense allocations, where applicable, will be transferred early in the fiscal year. Funds authorized for transfer from central reserves (moving allowance funds, research study leave travel and expenses etc.) will be processed by Financial Services on receipt of approved expense claims.

Related Guidelines for the Administration and Control of Operating Budget

2.22 Guidelines and process for the following are available on the Financial Services website:

a) budget transfers
b) carryover
c) Indirect Cost of Research
d) budget striking
e) glossary for the terminology used in relation to the budget process

2.23 Further information relating to the SIP process and guidelines can be found on the Vice-President Academic and Provost website.

3.0 Accountability

3.1 The University Secretary is responsible for advising the President that a formal review of the Procedure is required.

3.2 The Comptroller is responsible or the communication, administration and interpretation of this Policy.

4.0 Review

4.1 Formal Procedure reviews will be conducted every ten (10) years. The next scheduled review date for these Procedures is April 23, 2018.

4.2 In the interim, this/these Procedures may be revised or rescinded if:

(a) the Approving Body deems necessary; or
(b) the relevant Bylaw, Regulations or Policy is revised or rescinded.

5.0 Effect on Previous Statements

5.1 These Procedures supersede the following:

(a) all previous Board/Senate Procedures, and resolutions on the subject matter contained herein; and
(b) all previous Administration Procedures, and resolutions on the subject matter contained herein; and
(c) all previous Faculty/School Council Procedures stemming from the Faculty/School Council Bylaw and academic and admission Regulations and any resolutions on the subject matter contained herein; and
(d) Policy – 302 Administration and Control of the Operating Budget

6.0 Cross References

Cross referenced to:

(1) Administration and Control of Operating Funds Policy
(2) Budget Policy and Procedures