University budget guidelines now available

The University has provided the 2015/16 budget guidelines to envelope managers as planning begins for the next fiscal year.

McMaster’s budget model changed this year affecting the process by which funding is distributed within the institution. However, the model itself has no impact on the funding levels to the University, nor to the budget allocation levels to support areas.

It primarily determines how available funding is distributed to the Faculties.

“No matter what budget model we use we must continually adjust to changing levels of funding received by the university,” says Provost David Wilkinson. “Enrollment levels, government funding and other factors directly determine the overall budget, not the model itself.”

In the new budget model resources flow to the Faculty based primarily on how they are received, while tools such as the University Fund enable strategic allocation of resources at an institutional level. The model guarantees that Faculties will be “held harmless” under the new model and that at a minimum, 2015/16 allocations will be equal to the base year’s amount (2013/14).

The model details were carefully vetted during this first year of implementation, and several of the inputs have been adjusted to better attribute revenues and support unit costs to faculty activity. In addition to the top-up for Hold Harmless, the University Fund allocated resources to many projects in each of the faculties.

Therefore, in all instances, budget allocations, combined with the Strategic Investment amounts for the current year (2014/15), exceeded the prior year’s allocation by a minimum of 2% and up to 13% depending on the faculty.

In early December, budget officers will receive the submission guidelines for the next Budget Planning horizon, which will cover the three-year period 2015/16 to 2017/18. Presentations to Budget Committee for each unit commences early in the New Year.

Training has been underway for the new Hyperion platform, which will be used for entering and managing budgets. On Friday Dec. 5, Chairs and Directors are encouraged to attend a presentation and forum for more information about the budget model and tools for assessing impacts of activity changes to Faculties. The event is being held in Council Chambers GH111 at 9:00am. A new website is soon to be launched with updated information about this year’s budget.