A balance driver-based allocation and a stable base within budgets is a key concept of the revised budget model. The allocation rules ensure that enrolment activity drives tuition allocations while the allocation of the provincial grant is aligned with a base grant similar to how the province funds the University. This helps portray our internal economy here at the university and, particularly with the revenue allocations, provides more stability and predictability and less variability.
Revenue allocations
Tuition revenue that is planned centrally is allocated to academic units based on one or more variables referred to as drivers or directly to the unit generating the revenue. The provincial grant revenue forms a base in an academic unit budget that is adjusted each year for the change in the level of provincial grant funding and tuition rate changes. Targeted Provincial funding is budgeted directly to the academic unit/activity it is intended for.
Because revenue is planned centrally, academic units are responsible for managing within their approved budget. Fluctuations in actual tuition and operating grant revenue against plan are monitored and managed centrally.
Units are also responsible for budgeting some revenues directly themselves. This includes course-related fees and all of the income-funded activity and various grants and revenues from industry partners and from federal and provincial governments.
Central cost allocation
Central cost allocation is another fundamental component of the model. Allocating costs to the academic units is intended to enhance transparency around costs incurred to operate the university.
Central unit net costs are allocated to academic units using one overhead rate that is applied to the revenue allocated to the Academic unit.
The University Fund
The final main element of the budget model is the University Fund. Designed to address university strategic priorities and operations, it is funded by contributions from investment income and revenues earned from the International College of Manitoba and Ancillary Services. The funds are used to invest in strategic priorities, including mission-critical subvention.