1. UFV Draft Budget Model Proposal

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

3. 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)

4. 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

7. 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

8. 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

9. Example – Academic Faculty

10. Discussion