UFV Draft Budget Model Proposal Introduction Hybrid Model

UFV Draft Budget Model Proposal

Introduction Hybrid Model Incremental Performance Based Responsibility Centred Management Key Out Comes Keep it Simple Provide Flexibility Increase Transparency Maintain Accountability Ensure Sustainability

Key Targets 6 Key Targets to Balance: Domestic FTE Ensure we meet Ministry FTE targets International Enrolments Ensure International revenue streams continue; one area of potential revenue growth Contractual Obligations Maintain Faculty/Sessional ratios as per CA Meet Budgeted Tuition Targets Ensure our revenues match our expenses Expense Budgets are maintained Ensure expenses stay within budget Admin/Academic Co-dependence on revenues Both Administration and Academic budgets are effected as revenues change (maintain 60/40 budget ratio)

Budget Model Overview Assume current program and service mix Initial budget based on 11/12 Revenue allocated out to match expenses Revenue will be budgeted for each division Variances will be maintained at the division level Revenues shared between Academic and Admin Areas Additional sections charged surcharge Deficit and surplus carry forward Initiatives and Innovations fund established

Evaluation Criteria Objectives Advance the Universities Mission Initiatives & innovations fund; key targets Premium on Program Quality Allows reinvestment of surplus; Initiatives & innovation fund Decision Making Evidence Based Revenues & expenditures tied together Promote Fiscal Responsibility Accountable for deficits and meeting targets Promote Innovative & Entrepreneurial Activities Initiative & innovation fund; carry forward surplus Preserve High Quality Programs Initial budget does not change; targets based on Div not dept level

Evaluation Criteria cont. Objectives cont. Greater Transparency Revenues tied to expenses Widespread Participation Transparency allows for greater discussion Incentivize Meeting Goals & Mission Has key targets & allows carry forward of surplus Compliance with Contractual Obligations Surcharges to ensure compliance Provide Decision Makers more Control Greater flexibility to redistribute resources + carry forward surplus Improve Understanding of Fiscal Matters Model ties expenses to revenues

Example – Academic Faculty

Discussion