2016-17 Detailed Budget Development
Presented by: Financial Services (FS) – Budget & Special Projects
January 2016
www.usask.ca/fsd
U of S Budget Process Overview
… Jun 15
July 15 …
Nov 15
Dec 15
Jan 16
Feb 16
Mar 16
Apr 16
May 16
Integrated Planning Process
Multi-Year Budget Framework
Resourcing Discussions 16/17
= PCIP approval
= Board approval
Detailed Budget Process (including final resourcing decisions) 16/17
Operations Forecast 17/18
Ongoing monitoring of: key assumptions, actual results
Jun 16
Jul 16
University Revenues
Central Operating Budget – Revenue Sources
Central Operating Budget Revenues:
Historic Range
Provincial operating grant (includes targeted funding)
65% - 70%
Tuition
20% - 25%
Interprovincial funding (WCVM)
4% - 6%
Investment income
2% - 5%
Other revenue
1% - 2%
Total
100%
Allocations from Central Operating Budget
Allocations from Central Operating Budget:
Historic Range
Funding envelopes to academic units*
60% - 65%
Funding envelopes to support units*
18% - 23%
Funding envelopes to institutional initiatives*
Institutional expenses paid centrally
Total
* Surpluses/deficits stay with the unit/initiative
5% - 7%
8% - 12%
100%
Expenses Covered – By Type
Expenses Covered by Operating Budget:
Historic Range
Salaries and benefits
60% - 65%
Targeted and directed initiatives
15% - 20%
Other non-salary operating expenses
10% - 15%
Utilities
3% - 5%
Additional pension and LTD payments
1% - 2%
Total
100%
Detailed Operating Budget - Objectives

Support University governance/stewardship

Mechanism for units to plan, manage, and monitor their financial resources

Includes operating allocation as determined from resourcing decisions
(envelope)

Developing realistic budgets to reflect the unit’s planned activities for the
upcoming year

Update the institutional multi-year budget framework

Update and apply consistent budgeting principles across units
Resourcing Decisions

Historical Incremental
Responsibility Center Management

Budgetary responsibilities are becoming more decentralized

Expenses do not drive operating allocation

Operating allocation provided as an “envelope” that supports the core
teaching and support activities of the unit

Envelope funding based on strategic factors and alignment of unit
priorities with institutional priorities
Resourcing Decisions – cont’d

Determination of 16/17 envelopes

Three sources of operating revenue allocated to units: provincial grant,
targeted funding for specific initiatives, tuition (TABBS-based)

PCIP has approved 1% increase on provincial grant component

16/17 projected envelopes, which includes PCIP-approved adjustments,
will be communicated in February 2016 (subject to Board approval in
June 2016)
Resourcing Decisions – cont’d

RCM Phases

15/16 – strategic resource allocation and envelope funding
•
•
•
Partial reinvestment of FIRP savings
Further development of strategic envelope (includes APF, etc.)
TABBS model refinements underway

16/17 – TABBS-based tuition allocated to revenue centres

Next steps:
•
•
Consultations with Unit Heads regarding next phases of RCM transition
Consideration of other TABBS model components (i.e. indirect costs, provincial
grant)
Detailed Budget – Key Principles

Comprehensive Budgeting



Units to determine which positions and non-salary expenses are funded from envelope
(operating allocation for core teaching and support activities)



Fund clean-up and simplification – contact Controller’s Office
Funds with accumulated surpluses – Reserves Policy
Does not have to be tied to prior year
Total envelope-funded expenses should align with total envelope available
All other expenses should be designated as non-base budget, fund balance, fee-forservice, recovery, grant, and other


Not funded from envelope (operating allocation)
Must budget associated revenue sources (e.g. grants/contracts, internal and external sale
of goods/services, interfund transfers) to offset these expenses
Envelope Funding (59008)

Starting with 16/17 detailed budget, units can modify operating
allocation budgets (account 59008) in Budget Development


Effective planning and management of financial resources for unit
Operating allocation based on ongoing changes as of November
30, 2015 by CFOAPAL rolled forward into Budget Development as
starting point


Projected envelopes that include PCIP-approved adjustments will be
communicated on February 2016
Total budgeted vs. final Board-approved envelope funding
a)
Differences, if any, will be adjusted in the main unit fund/org
Items to Consider for 16/17 Detailed Budget

Salary Budgeting





Salary adjustment pools for unknown salary changes - $1 placeholder
Account for employee turnover and attrition as much as possible
Electronic data extract of worksheets available upon request (hardcopy
with changes noted must be submitted to Budget Management)
Refer to Salary Parameters/Full Position Costing and Benefit
Parameters on FS Budgeting page as required
Non-Salary Budgeting


Spending allocation budgets entered in Budget Development in late
January
Interfund transfer budgets clean-up – use of other applicable accounts
besides 80006
Summary of Key Dates
Important dates for the 16/17 Detailed Budgeting Process:
Position and Salary Verification Worksheets:

Issued to units on December 18, 2015

Due back to Budget Management on February 29, 2016
Budget Development (non-salary, revenues, recoveries, transfers):

Opened to units on December 18, 2015

Closes on February 29, 2016
Budget Upload into UniFi – June 2016 (after PCIP and Board approval)
Budget Packages to Units – July 2016
Five-Year Rolling Forecasts

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New multi-year budgeting tool introduced to colleges/schools in
14/15
Extended to support units in 15/16
High-level financial representation of existing resources, strategic
direction, and planned expenditures
Enhance understanding of financial resources
Guide planning discussions with Provost/PCIP and development
of detailed budgets
How can we better support you?
FS Website (Budgeting page)

New budget cycle (16/17) communications will be posted on
Budgeting page as they are issued

Includes training materials and other budget-related resources

Link: www.usask.ca/fsd/colleges_depts_research/budgeting.php
Contact Information

Budget Management:

Piya Sen, Director 966-8756 piya.sen@usask.ca

Kris McWillie, Manager 966-2798 kris.mcwillie@usask.ca

Lucy Vuong, Analyst 966-2206 lucy.vuong@usask.ca

Lorraine Shantz, Analyst 966-1398 lorraine.shantz@usask.ca

Justine Marchuk, Analyst 966-4770 justine.marchuk@usask.ca

ICT Training:

Siu-Ching Fong, UniFi Training & Support
phone: 966-8783
email: unifisupport@usask.ca
Questions
or Comments?