Operating Budget Changes – Authorizations and Procedures

Overview

The section Budget Changes – The Decision Process identifies the situations in which it may be appropriate to change the operating budget.

Authority to change the annual budget for the Operating Fund rests with the Business Board which in turn delegates this authority to the administration. Under this delegation, changes may be categorized as follows:

budget changes requiring senior administrative authorization, and
budget changes which may be authorized within a division.

Budget Changes Authorized at President / Vice-President Level

The following budget changes must be authorized by any two of the President, Vice-President and Provost, and Vice-President, University Operations:

increases in expenditure budgets which are offset by additional general university income,
increases in expenditure budgets which are not offset by additional income, and
decreases to income or expenditure budgets.

Budget Changes Authorized by Divisions

The Business Board has delegated authority to the Chief Financial Officer to develop an administrative policy, i.e. a regulation, covering the following budget changes:

transfers of income or expenditure budgets between accounts, and
increases in expenditure budgets which are offset by additional divisional income.

First level of delegation
The administrative policy allows that the President and Vice-Presidents have the authority and responsibility for the management of budgets within their portfolio including the authority to make the budget changes in the above categories.

Second level of delegation
The authority for such budget changes will normally be further delegated to a Principal, Dean or Head of a Division.

Third level of delegation
A Principal, Dean or Head of a Division has the discretion to further delegate this authority within the

division to senior academic or administrative officers.

Conditions for Delegating Authority for Budget Changes

Responsibilities of the Head of the Division
Any new or significantly expanded business venture must be reported and approved by the Vice-President to whom the division head reports. In so doing, particular attention should be focused on any long term commitments arising from the venture such as staff complement additions.

A periodic accountability report on the financial position of the division, noting any significant variances, will be issued to the Vice-President to whom the division reports.

Responsibilities of the Vice-President
Each Vice-President will provide a periodic accountability report to the President on the financial position of divisions in the Vice-President’s portfolio, noting any significant variances.

Restrictions

An expenditure budget which is centrally designated for a specific purpose may not be reallocated for another purpose unless approved by any two of the President, Vice-President and Provost, and Vice-President, University Operations.
The level of delegation and control to be exercised within the portfolio must be formally documented and maintained on a current basis.

Budget Transfer/Revision Form

When a budget transfer or revision is allowable by governance, the Budget Transfer / Revision form would be completed by the requesting department. It is important that a full explanation of the change is included in the purpose section of the form.

Changes requiring senior administrative authorization
The Budget Transfer / Revision form should be completed and forwarded to the office of the Principal, Dean or Director for approval, and then, once obtained, forwarded on to the Planning and Budget Department at:

Simcoe Hall, Room 240
27 King’s College Circle

The Planning and Budget Department will then forward the form to the President and/or Vice-Presidents for approval. The President and/or Vice-Presidents return the approved form to the Planning and Budget Department for processing in FIS.
Other budget changes not requiring senior administrative authorization
Where a department / division head wishes to process budget changes which do not require senior administrative authorization, the budget transfer / revision form is forwarded to the division head (e.g. office of the Principal, Dean or Director) for approval, and then processed in FIS by the division.

Note: Forward all budget supplements and returns to the Planning and Budget Office for processing.

For assistance in completing the Budget Transfer / Revision form, contact your divisional planning and budget officer.

Last revision April 2007