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Policies and Procedures

Policies and Procedures / Policy Gazette / Board of Governors / Budget Policy Objectives (B 10.05)

Budget Policy Objectives

Date

April 27, 1995

Revision Date

March 24, 2011

Number

B 10.05

Revision No.

B

  1. In accordance with Section 29 of the University Act, the University is not permitted to incur any liability or make expenditures which it is unable to fund out of annual income for the year. 

     

  2. In order to facilitate appropriate financial planning and control, each year the University will develop a fiscal budget for unrestricted operating funds used for academic program delivery and administration of the University.

    The University's consolidated fiscal budget must be balanced or reflect a surplus of revenues over expenditures. A budget reflects the best estimate of planned revenues and expenses as of a point in time. Salary and benefit increases, inflation and other estimated changes must be budgeted. In addition, the budget must include all recurring and one-time revenues and expenditures for the full fiscal year.

  3. In the development of the University budget the following must be observed:

    1. The budget for any fiscal year shall not deviate materially from the Board's policies and priorities.
    2. Annual recurring expenditure obligations must not be funded from non- recurring revenues.
    3. Revenues and expenditures must be projected in a manner that avoids fiscal jeopardy.
    4. Ancillary operations must be operated to cover all direct and indirect operating costs.
    5. The University shall not proceed with major building projects unless funding for the full capital and operating costs has been identified.

Interpretation

Questions of interpretation or application of this policy or its procedures shall be referred to the President and the Chair of the Board of Governors, who will jointly make a decision which shall be final.