1 — PREAMBLE
The following policy records for the convenience of those responsible for managing budgets the established practices and policies concerning budget transfers and adjustments.
The Board of Regents approves budgets for the General Operating Fund, Ancillary Operating Fund, Special Program Operating Fund and Endowment Fund. Accountability for the effective management of the budget is delegated through the Board of Regents to the President, who is responsible for managing the University's affairs within the context of the approved budget. The President delegates responsibility for specific areas to the Vice-Presidents, who in turn delegate responsibility for budget management to unit heads (individuals such as deans who have one or more department head or manager reporting to them) who may delegate some responsibility to department heads or managers.
Each person responsible for managing a budget has the flexibility to adjust budget lines within their area, subject to the restrictions outlined below.
2 — POLICY
2.1 Salary and Fringe Benefits Line Items
2.1.1 Increases in the Number of Positions
Any increase in the number of positions must be made in accordance with Policy 3104, Authority to Appoint Faculty and Staff.
2.1.2 Term, Probationary and Tenured Faculty Positions
Savings arising from terminations, resignations, unpaid leaves and retirements revert to the central Academic Position Control Fund. This Fund is administered by the Budget Manager in consultation with the President and the Vice-President (Academic and Research).
2.1.3 Sessional and Stipendiary Faculty Positions
The Budget for sessional and stipendiary faculty positions is controlled by the Vice President Academic and Research. Savings arising from terminations, resignations and unfilled positions revert to the central Academic Position Control Fund. This Fund is administered by the Budget Manager in consultation with the President and the Vice-President (Academic and Research).
2.1.4 Term and Permanent Staff Positions
In the General Operating Fund, savings arising from terminations, resignations, unpaid leaves and retirements revert to the central Non Academic Position Control Fund. This Fund is administered by the Budget Manager in consultation with the President and the appropriate vice-president.
In each of the ancillary operations (ie. bookstore, conferences, residences & dining halls) such savings revert to that operation's contingency fund.
In each of the departments in the Special Program Operating Fund, budgeted staff salary lines will remain unchanged except where a mid-year adjustment is required to reflect significant changes in the department's operational plan. These adjustments will be made with the approval of the vice-president responsible or their delegate.
2.1.5 Casual Staff Positions
A department head or manager may increase this budget line as long as their identifies an equivalent budget reduction.
2.1.6 Student Assistants
In academic units, budget adjustments which reduce this line item require the approval of the Dean. In administrative units, budget adjustments which reduce this line item require the approval of the Unit Head. A department head or manager may increase this budget line as long as they identify an equivalent budget reduction.
2.1.7 Fringe Benefits
Transfers to or from any salary account line must be accompanied by a similar transaction in the related fringe benefits line. For budgeted accounts the rate is 16.5% of salary for regular staff, 16.0% for tenured and probationary faculty, 12.0% for term and sessional faculty, 8.5% for stipendiary faculty, and 8.5% for casual staff and student assistants.
2.2 Non-Salary Line Items
2.2.1 Equipment and Designated Line Items
In academic units budget adjustments in the following line items require the approval of the Dean. In administrative units these adjustments require the approval of the Unit Head.
- furniture & equipment
- computer equipment
- equipment maintenance
- software purchases
- software maintenance/licensing
- external conferences
- travel
- visiting speaker
Approvals for transfers to and from alteration & renovation projects are as specified in the Project Management System Procedures.
2.2.2 General Non-Salary Items
Department heads and managers may make adjustments to the following budget lines:
- advertising
- athletic supplies
- brochures and manuals
- catering
- clothing allowance
- computer supplies
- departmental memberships
- departmental subscriptions
- field trips
- general supplies
- instructional supplies
- laundry & linen expense
- office supplies
- photocopying
- postage
- research supplies
- telephone line charges
- telephone long distance
- other line items not listed in section 2.2.1.
2.2.3 Revenues and Cost Recoveries
Where departments charge for goods or services, the head may adjust their budget to take advantage of revenues received but may not make adjustments that change the net surplus or deficit of the approved budget.
2.2.4 The Budget Manager may on their own authority make adjustments to budget lines within a department to ensure that there are no deficits in any budget line for the department. However, if these adjustments will have a material impact on a department's operations, the adjustments require the approval of the vice-president concerned.
2.3 Contingency Funds & Centralized Provisions
2.3.1 Emergency Reserves and Contingency Funds
Allocations from emergency reserves and contingency funds are made in accordance with Policy 7203, Budget Development Principles and Guidelines.
Allocations from the emergency reserve in the General Operating Fund require the approval of the President.
Allocations from the emergency reserves and contingency funds in the Ancillary Operating Fund require the approval of the Director of Administrative Services.
2.3.2 Provision for Revenue Shortfall
Allocations from provisions for revenue shortfall budgets are made in accordance with Policy 7203, Budget Development Principles and Guidelines.
Allocations from the provision for revenue shortfall in the General Operating Fund cannot be made until it is determined by the Controller that they will not be required to cover a revenue shortfall, and require the approval of the President.
Allocations from the provision for revenue shortfall in each of the Ancillary Operations cannot be made until the Director of Administrative Services determines that they will not be required to cover a revenue shortfall, and require the approval of that Director.
2.3.3 Unit Head Reserve Funds
Allocations from the reserve funds of a Vice-President, Dean and other Unit Head requires the approval of that individual.
2.3.4 Centralized Funds
The General Operating Fund contains a number of line items which are controlled at the institutional level. Examples include provisions for legal fees, supplementary pensions and institutional memberships. These centralized funds are managed by the Budget Manager in consultation with the Vice-President (Administration).
2.4 Interfund Transfers
Except as provided in section 2.6 below, increases to budgeted interfund transfers cannot be made without a specific resolution of the Board of Regents.
2.5 Intra-University Cost Allocations
Adjustments to budgeted intra-university cost allocations from the Ancillary Operating Fund to the General Operating Fund require the approval of the Director of Administrative Services.
2.6 Net Budgeted Surplus/Deficit
In accordance with Policy 8100 (President's Authority to Spend), changes to the net budgeted surplus or deficit as approved by the Board of Regents in May of each year require Finance and Administration Committee approval. This applies to each of the accounting funds that are subject to the annual budgeting process.