LFS Policy – Budget Communication and Allocation

Overview:

The Faculty’s operating budget is primarily composed of university central funds and tuition revenue. On an annual basis, each Faculty prepares their budget for submission to the Budget Office and provides quarterly forecast reports. The Budget Office then consolidates the budgets submitted from faculties/units and reports to the Executive Committee, Board of Governors and Provincial Government.

Budget Allocation:

Units/Programs:

Zero-Based Budgeting is the budget model used for administrative units and undergraduate programs. This method of budgeting requires the justification of all expenses for the fiscal year. The approved budget will be allocated to each unit/program and then reviewed quarterly by the Associate Deans in consultation with Finance and the Dean. It is the budget holder’s responsibility to monitor the budget on a regular basis.

Variances must be justified during the quarterly review and no over expenditure is allowed.

Professional Masters:

Full-cost Budgeting was introduced to the Professional Masters Programs in FY17. Program budgets include the full cost which covers operations, teaching and administration. Teaching and administration costs are based on actuals for the year, then allocated by courses and number of students, respectively.

The Faculty receives tuition allocation at year-end1. If the Program generates a surplus after considering full cost, 2/3 of the surplus will be retained by the program (for reinvestment in the program and for participating faculty members) and 1/3 of the surplus will be retained by the Faculty for general operations.

Budget revisions will be required if preliminary tuition allocation2 is less than projected tuition revenue.

Again, Program budgets will be reviewed quarterly by the Associate Deans in consultation with Finance and the Dean. Variances must be justified by the Program and no over expenditure is allowed.

Research Centres:

Research Centres are expected to be self-sustaining3 units, meaning they are able to maintain their entire operation by independent effort. Both the annual operating budget and the 5 year plan are required for research centres. It is the responsibility of each Centre to monitor their respective budget on a regular basis. Any variances must be justified during the quarterly review with the Associate Deans in consultation with Finance and the Dean and no over expenditure is allowed.

Carry Forward:

Only self-sustained units/programs are eligible to retain an annual surplus to be carried forward to the following year. Funds carried forward must be reinvested in the units/programs within 1 to 2 years. Any funds accumulated for more than 2 years must have a definitive use and timeline with approval by the Dean.

Budget Communication:

All budgets are reviewed and approved by the Associate Deans in consultation with Finance and the Dean.

Appendix I: LFS Budget Communication Plan

Appendix II: LFS Budget Process Timeline

Notes:

  1. UBC’s fiscal year ends on March 31st.
  2. Enrollment Services runs a preliminary tuition calculation in October based on September’s
  3. Self-sustained units/programs operate independently without funding from the Faculty or the

LFS Operating Budget Communication Plan

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* Faculty represents Faculty of Land and Food Systems (Dean/Associate Deans/Finance).

** Q1 represents quarter one, same applies to Q2 and Q3.