Revenues are allocated to Faculties based on Activity (enrolment, teaching, research, other). Support unit (e.g. Library, SGS, HR, etc.) budgets are deducted from the Faculty revenues based on cost drivers. Unforeseen events, strategic priorities and holding harmless faculties negatively impacted by the new model, required the creation of a University Fund which is funded with a tax on revenue.
Information Box Group
Attribute Framework Revenue
Attribute Framework Revenue based on the Revenue Drivers
- Contribute to University Fund & Research Infrastructure Fund (RIF)
- Receive RIF Rebate
Attribute Support Envelopes
Attribute Support Unit envelopes using Cost Drivers
Assess Hold Harmless
Assess results compared to base year
Budget Details Components
FRAMEWORK REVENUE DRIVERS
The funds and activity distributed through the model
|Revenue Source||Revenue Attribution (Resource Allocation)|
|Students||Tuition||UnderGraduate – 100% to Faculty of Teaching (teaching faculty rate, residual shared 50/50)|
|Graduate – 100% to Faculty of Registration|
|Provincial Grant||100% to Faculty of Registration|
|Application Fees||100% to Faculty of Application|
|Research||Research Overhead Grants||90% to Faculty using average Research Awards 10% to VPR Research Fund|
|Financial Position||Interest – Short term||
Short term – Annual Faculty balances in operating & research ledgers
Net general endowment interest (not targeted) – on total average expenditures
Information Box Group
Support Units & Cost Drivers
- HR, Suppl. Pension, Employee Programs
- Employee FTE or Pensionable salaries
- Admin, Financial Affairs, President, Advancement, Branding & Marketing
- 3 year average expenses or revenues
- Library, Museum, MIIETL, UTS
- Student & Employee or Faculty FTEs
- Facilities, Utilities, Def. Maintenance
- HROADS, Research Finance, MILO
- 3 year average research revenue
- SGS, Registrar, Scholarships
- Grad and/or UG FTEs
The 6 Faculties (and Arts & Science Program)
The University Fund
The primary focus of the University Fund is to provide a pool of funds to be allocated for strategic purposes consistent with the University mission. The University Fund enables McMaster to fund areas of priority, on both a short and long term basis.
The first calls on the University Fund are to a number of ongoing commitments:
- Distribution required to “Supplement” certain Faculties as a result of corridor constraints regarding growth programs.
- Contribution to the Capital Reserve which ensures we continue to have funds to fund new infrastructure projects in the future.
The University Fund has been used to create two sub-funds that are directly linked to the support strategic goals. These are:
- The Research Excellence Fund which is awarded on a formulaic basis to be used at the discretion of the Deans to enhance research excellence in the Faculties.
- The Strategic Alignment Fund provides support to academic units for short term projects such as new program development and the support of pedagogical infrastructure that is transformative in nature.
The University Fund also provides an Unfunded Priorities pool depending on fund availability. This is used by the Budget Committee to address funding requests from all areas of the University through the regular budget submission process.
The remaining funding is for Other Priorities for unforeseen events, new initiatives and to support Faculties through matching funding for critical operations.