¶¡ÏãÔ°AV

The university's overall consolidated budget is $980.4 million for 2024-25. A significant portion of the budget ($209.5 million) is ‘restricted’ funding from government agencies, donors or companies. These restricted funds are controlled by the government and allocated for specific purposes such as research, student support, endowments, and capital projects.

Outside of the restricted funds, the university's operating budget is $719.9 million for 2024-25 and is primarily funded by government operating grants (44%), tuition and student fees (51%), and unrestricted revenues (5%). The unrestricted revenues can be flexibly used for various operational needs. Operational expenses include various expenses, including student support (undergraduate and graduate scholarships and bursaries), student services, academic program delivery, and day-to-day operating and administrative costs such as IT, utilities, maintenance, and janitorial services.

We are anticipating another tight budget cycle. New changes in government policies, particularly those affecting international student enrolment and visa regulations, continue to cause uncertainty. This will influence the budget for this year and future years. Much work has been done by many across ¶¡ÏãÔ°AV to minimize the impact of these challenges, but the ongoing change continues to have an impact.

As we look ahead,  a one-time gain from the final part of divestment from fossil fuels will help ensure we are balanced in the next fiscal. However, we anticipate an operating budget pressure of $20M for next year resulting in a budget cut for most units in 2025-26. Roughly 80% of this year’s deficit is directly linked to the drop in international enrolment. The decision about how to manage those budget reductions will be made by individual units and faculties.

Most of the operating expense budget (74 percent) goes toward compensation for the university's faculty, staff, and students. The remainder of the budget (26 percent) is allocated to supplies and various expenses such as student support (including undergraduate and graduate scholarships, awards and bursaries), improving IT infrastructure, maintaining facilities, renewal and acquisition of the library's collection, among other initiatives. 

• Fiscal Year End & Outlook Updated: Financial results from the previous year are reported, and the financial projections for the next year are updated.
• Campus Conversations: Meetings regarding budgets and priorities are held, student feedback is gathered on fees and priorities, and options are considered.
• Development: Priorities are established and resources are designated. Detailed budgets are developed for departments across the university, reviewed and approved by those with fiscal responsibility for the areas (such as Chairs, Directors, Deans and VPs).
• Review and Approval: Budgets are collected, reviewed and then sent to ¶¡ÏãÔ°AV’s Board of Governors for approval.
  

The Budget Office has a dual reporting structure, reporting to both the Provost and Vice President, Academic, and the Vice-President, Finance and Administration. This transition to shared responsibility for the university budget and budget process will ensure that financial and operational decisions at ¶¡ÏãÔ°AV are made through an academic lens.  

The budget process is a collaboration between the Office of the Provost and Vice-President, Academic, the Office of the Vice-President, Finance and Administration and supporting administrative units. ¶¡ÏãÔ°AV follows a decentralized budget model, meaning that the faculties and supporting units are responsible for ensuring they have a balanced budget within their portfolio.  

As of December 2023, the university has established a Chief Budget Officer role, which will be held by the Provost, establishing the Provost as the primary executive responsible for the university’s budget. This role is accountable for developing a budget strategy and realizing investment and revenue generation opportunities, including those related to systems transformation, enhanced research teaching and learning supports, and internationalization.

During the annual planning cycle (September – October), ¶¡ÏãÔ°AV actively engages with key internal groups and provides information sessions for the upcoming budget cycle for faculty and staff. These information sessions allow teams to engage more fully with the budget leads within their portfolios who develop their team’s budgets. The budget allocations are finalized in November.

The primary aim of the process is ensuring the long-term financial sustainability of ¶¡ÏãÔ°AV, prioritizing the academic mission, student experience and financial support, and the university’s ability to deliver on the priorities outlined in the ¶¡ÏãÔ°AV What’s Next strategy.

The budget is informed by critical economic and political factors, risk assessments, and the University Act. Global conflicts, shortfalls in international enrollments and increased inflation present key challenges for ¶¡ÏãÔ°AV as it plans for 2024-25.  

¶¡ÏãÔ°AV continues to provide outstanding student experience and support for students in need. For every $1 in tuition fees collected, roughly 75 cents go to the academic mission (teaching, research, and student support), and 25 cents to provide educational facilities and services (heat, electricity, etc.).

We actively seek opportunities to address student affordability challenges and minimize increases to tuition fees. Finding cost savings for students continues to be a priority for this budget. 

A student affordability committee comprised of eight members of the Simon Fraser Student Society (SFSS) and Graduate Student Society (GSS) (in addition to four university administrative staff) meets twice a year to explore solutions on various affordability-related topics such as food security, housing, access to affordable transit, access to course materials, etc.

¶¡ÏãÔ°AV is addressing students' financial challenges by increasing the 2024-25 budget for scholarships, bursaries, and awards by $2.4 million. 

Out of a total budget of $56.2 million, the university’s operating budget provides support of $34.8M, and external funding provides the remaining $21.4 million.

Also, the additional $4.3 million graduate student funding – Board of Governors approved - for graduate student scholarship funding in 2024-25, was included in the budget.  

Students with demonstrated financial need are encouraged to apply for the general ¶¡ÏãÔ°AV bursary program each term. Please refer to student services for details on the application process and key dates.

Over 800+ scholarships, awards, and bursaries can be found in our .

You can easily search which of ¶¡ÏãÔ°AV’s financial aid funding opportunities you may qualify for by narrowing down your search using different criteria:

• Undergraduate or Graduate
• Type of assistance
• Faculty
• Term of study
• Citizenship status
• Recipient (e.g., Indigenous, mature students, etc.)

¶¡ÏãÔ°AV does not receive provincial support for international students, so the total costs of delivering these programs and services are reflected in the tuition fees. Many factors are considered when setting fees, including student affordability, how it influences students' choices, what programs ¶¡ÏãÔ°AV hopes to grow, comparative fees at other institutions, and institutional and individual inflation pressures.

¶¡ÏãÔ°AV supports international students through bursaries and is one of the few Canadian schools to do so. Moreover, our graduate programs don't have differential fees for international students except in a few instances.

The provincial government has allocated 83,000 undergraduate study permits for B.C., with 53% designated for public post-secondary institutions. ¶¡ÏãÔ°AV’s allocation ensures we can continue delivering on our Strategic Enrollment Plan, increasing the international student population while maintaining a strong academic and student experience.

International students are an integral part of the ¶¡ÏãÔ°AV community, contributing diverse global perspectives to learning, research, teaching, and work. ¶¡ÏãÔ°AV is committed to providing a high-quality education and the necessary support to help international students succeed.

Audited financial statements are a snapshot taken at the end of the fiscal year. The budget surplus accounts for unspent funds and does not consider the timing differences associated with inflows and outflows for commitments.

It's important to note that funds are often given to ¶¡ÏãÔ°AV for specific purposes. The 'surplus' funds related to these committed project expenses often relate to timing and delays in the project.

It's also important to know that surplus funds can only be used once and cannot be used for annual ongoing expenses like salaries, as there needs to be a guarantee that funds required for salaries are available year-to-year.

The budget for the current and future year will be tight. As previously shared with leadership, there is a shortfall in international enrolments, and tuition increases are limited. The university anticipates targeted budget reductions in order to deliver a balanced budget.

Operational budget surpluses are usually due to timing differences and often committed for specific and expected purposes. If an operating unit has a surplus, they may allocate some of it for internal research projects, specific projects, or buying assets. When creating the annual budget, the university considers the available surplus funds, with the aim of using the resources effectively to support the university’s goals and priorities.

It's important to note that the university does not contribute to endowments. Endowments are funded by donations and are restricted for specific purposes as determined by the donors. 

Endowments are funded by donations, with the donors specifying the intended use of these funds. The uses can range from research, scholarships and bursaries to teaching & learning, athletics, and community engagement.

Therefore, while ¶¡ÏãÔ°AV's endowment funds can offer financial support in certain areas and indirectly reduce financial pressure from the institution's operating budget, the university cannot directly use them to offset budget concerns unless those concerns relate to the donor-specified uses of the endowment funds.

In 2024-25, ¶¡ÏãÔ°AV's endowment allocated $29.1M towards its specified support areas. 

Various internal and external factors may impact ¶¡ÏãÔ°AV's 2024–25 financial outcomes. The university monitors these risks as part of its ongoing financial and operational diligence. As part of its mitigation strategy within the operating budget, ¶¡ÏãÔ°AV maintains a contingency fund at just under 2% of total operating revenues. This contingency is distinct from the university's reserves, which are separate financial instruments reported on the balance sheet. The contingency fund provides flexibility to address in-year pressures and opportunities within the approved budget framework.

With lower enrollments and rising costs, we expect the next few years to be about budget restraint. We must collaborate across all the university departments and contribute to cost-saving measures, as ¶¡ÏãÔ°AV is required to end the fiscal year with a balanced budget. We will continue to focus on making smart financial decisions, exploring cost-saving opportunities, finding efficiencies and strategically allocating resources to ensure our institution's long-term financial stability and growth.

¶¡ÏãÔ°AV is also committed to the benchmarking program (UniForum@¶¡ÏãÔ°AV) that compares our administrative costs to similar institutions in Canada and internationally. Now in its fourth year, this program supports resource shifting rather than resource elimination to drive improvement and reduce spending.