Design Details - Budgets and Asset Management

Revenue (operating revenue only – FUND 200) is attributed to the Faculty or Unit that generates it using the same formula or simplified version through which the institution receives it. What cannot be attributed is allocated to the General University Fund (e.g. interest income).

Once attributed, Faculties contribute to the University Fund for strategic initiatives, contingency funds and tailored Faculty support and pay into shared service costs (e.g. Library, HR, Finance etc.) based on agreed upon cost drivers. An adjustment is also made for inter-Faculty teaching to create the net operating budget.

Revenue
University Fund
Shared Service Costs
Inter-Faculty Adjustment

Once attributed, Faculties contribute to the University Fund for strategic initiatives, contingency funds and tailored Faculty support, and pay into shared service costs (e.g. Library, HR, Finance etc.) based on agreed upon cost drivers. An adjustment is also made for inter-Faculty teaching to create the net operating budget.

Revenues will be directed to the Faculties or Units that generate them. Inter-Faculty tuition and grant revenues for Double Major and Major Minor programs will be allocated to both Faculties. The total operating revenue received by the institution is categorized as follows:

Credit Tuition

This refers to undergraduate, graduate, domestic, international and non-credit tuition revenue.

Tuition revenue, net of Tuition Set Aside (TSA) and the International Student Recovery (ISR) tax, flows 100% to the home Faculty. Tuition revenue for Inter-Faculty double majors is split 50/50 between the Faculties and for major/minors, it is split 70/30.

Non-Credit Tuition

For non-credit courses, tuition revenue flows to the Faculty that generates it.

Enrolment Grants

This refers to enrolment driven government grants that flow to the University based on eligible enrolments. These grants are attributed to the home Faculty using the same formula (or as close a formula as possible) that the government uses to fund the institution. Grant revenue for Inter-Faculty double majors will be split 50/50 between the Faculties and for major/minors, it will be split 70/30.

Grants in lieu of municipal taxation is a flow-through (grant = municipal taxation) except for international undergraduate and masters students, which is a cost to the Faculties.

Targeted Grants

Targeted grant revenue flows to shared service units or Faculties that have specific accountability for the grant. Examples of such grants include the Women’s Safety and the Disability grants which flow to the VP – Students; the Deferred Maintenance grant which flows to Campus Services; the Credit Transfer and the First Generation grants which flow to the P&VPA and the Deaf Education grant which flows to the Faculty of Education.

Research Overhead

This refers to the Federal Research Overhead, the Provincial Research Overhead Infrastructure and the Research Contract Overhead, provided in support of research overhead at institutions.

The Federal Research Overhead and the Provincial Research Overhead Infrastructure flows to Faculties or Units of the principal investigator, and is attributed based on a 3-year rolling average of all Tri-Council grants, slipped two years. This is a similar formula to that through which the University receives these grants.

The Research Contract Overhead will flow to the Faculty or Unit of the principal investigator.

Student application fees are paid directly to Ontario Universities Application Centre (OUAC). OUAC in turn pays universities their portion of the application fees. Under SHARP, York University attributes their share of the application fees as follows:

To the Faculty of Education, undergraduate Education application fees
To Osgoode Hall Law School, undergraduate Law application fees
All other undergraduate application fees are attributed to the Registrar’s Office
Application fees to professional graduate programs are attributed to the student’s home Faculties
All other graduate application fees are attributed to the Registrar’s Office

Centrally collected ancillary fee revenue includes fees charged to students as permitted by Ministry Guidelines. These include fees in the following categories: athletics and recreation, counselling fees, cultural and special services fees and student referenda fees.

Ancillary revenue is allocated as per the student protocol agreement and current practices, and is allocated to specific units performing the service (e.g. Registrar’s Office and Sports and Recreation).

This is income generated on the university’s working capital cash balances. This excess cash balances are invested in low risk instruments and generate annual income to be used to support the operations of the university.

Investment income cannot be reasonably attributed to a specific Faculty and as such is allocated to the University Fund.

Expendable Donation

Expendable funds are donations that can be used directly to fund a particular or general activity, and are allocated to Faculties and/or units that the donor has specified.

Endowed Donations

Endowment funds are established through donations, and are restricted funds which must be used in accordance with the purpose specified by donors.
These funds are allocated directly to the endowment and annual income flows according to the terms of the endowment.

Capital Donations

These are donations provided to fund capital projects, and are allocated directly to the designated capital projects.

Undesignated Donations

These are unspecified donations, and are allocated directly to the University Fund.

Fines and Penalties

Penalties and fines (e.g. tuition late fees) are established to encourage students to meet their financial obligations to the University. These funds are allocated to the University Fund.

Miscellaneous Revenue

Allocated to the area that generates it e.g. Advancement earns revenue through York MBNA credit card partnership.

Once attributed, Faculties and Units contribute a portion of their revenue to the University Fund for strategic initiatives, tailored Faculty support, and contingency funds.

University Fund

The University has created a University Fund which is financed from unallocated revenue, and from attributions by Faculties and Units. This Fund has been created for the purposes of funding the following:

Strategic Initiatives

Funds for strategic allocations including incentives for institutional priorities, assistance for special projects undertaken by Faculties or Units, and/or to help alleviate challenges.

Tailored Faculty Support

A portion of the University Fund is used to support some Faculties where needed.

Contingency

Funds to manage institutional risks and unforeseen costs.

Revenue generating areas (Faculties, School of Continuing Studies and Ancillary Services) are attributed their share of Shared Service costs. Shared Service costs have been grouped into 11 “cost bins”, each cost bin is associated with one or more Shared Service unit. Each cost bin will have one or more service commitments associated with the Shared Service cost except for General Institutional. Service commitments will be defined through SHARP.

Shared Service Costs

University Shared Services support the central academic mission of York University by providing quality administrative services to the York community and enhancing quality of campus life. Shared Service costs are attributed to Faculties and revenue generating units based on agreed upon cost drivers applicable to the Shared Service unit.

The principles for defining cost drivers are:

Transparent

Objectively and consistently calculated

Easily replicated

Based on latest data available prior to the Budget year

There is no 100% opt-out of Shared Service costs, however, recognition of exceptional circumstances in which some services may not be provided centrally may be considered.

Cost Attribution Methodology

Costs have been grouped into 11 cost bins. Each cost bin is associated with one or more Shared Service Unit with applicable cost drivers. Where necessary, sub-bins have been created to support the different functions of the Shared Service Unit e.g. the Utilities and Facilities Maintenance cost bin has three sub-bins: Assigned Space, Common/Unassigned Space and Teaching Space, each with a different function, hence the need for different cost drivers.

Cost drivers determine what proportion of the costs is attributed to Faculties for a particular service.

SHARP Cost Driver Shares

The Financial Management Cost Bin consists of the Division of the Vice-President, Finance and Administration. The core activity of this bin is to support the central academic mission of York University by providing quality administrative services to the York community; enhancing the quality of campus life; and by ensuring fiscal responsibility. Main areas include:

Office of the VP Finance and Administration
Finance
Financial Services in the University Services Centre (USC)
Budgets & Asset Management (BAM)
Internal Audit
UIT’s Enterprise Business Application Services

Cost Driver

3-year rolling average of Total Operating & Research Expenditures

Methodology

Financial Management costs are attributed to all revenue generating units based on each units proportion of total institutional expenditures (operating & research), averaged over 3 years and slipped two years.

The Academic Management Cost Bin captures costs in areas that provide services at an institutional level in support of the administration of Faculties. Main areas include:

Division of the President

Office of the President
Office of the University Secretary & General Counsel
Communication & Public Affairs

Provost & Vice-President Academic

Office of the Provost
Office of Institutional Planning and Analysis
Office of the Vice-Provost Academic
Office of the Associate Vice-President Teaching & Learning
Office of the Associate Vice-President International
Art Gallery of York University

Vice-President Equity, People & Culture

Faculty Relations

Cost Driver

Full Time Equivalents (FTEs) of students and faculty

Methodology

Costs are attributed to Faculties based on the share of student and faculty FTEs, slipped two years.

The Human Resources Cost bin is made up of the departments that provide services at an institutional level to support York University employees. These departments reside under the Division of Equity, People and Culture.

Office of VP Equity, People and Culture
Human Resources
Occupational Health and Safety
Centre for Human Rights, Equity and Inclusion
Employee Relations

Cost Driver

Population Headcount (full time, part-time and casual employees)

Methodology

Costs are attributed to Faculties and Ancillary Units based on share of population of employee headcount slipped two years.

The York University Library (YUL) system has 12 departments across 4 libraries. Library costs are grouped into 2 cost bins:

Collections Cost Bin captures the costs related to the purchase of collection acquisitions for the Library.

Operating Cost Bin captures the costs related to the operations of the YUL departments including all of its core functional units. Main areas include:

Office of the University Librarian (ULO)
Collection activities
Digital Initiatives
Research activities by Librarians
Teaching through the Information Literacy Program
Library as a place
Library Information Services

Cost Driver

Full Time Equivalents (FTEs) of students and faculty.

Methodology

Costs are attributed to Faculties based on share of student and faculty FTEs, slipped two years.

Advancement is responsible for managing relationships to increase understanding and support York’s key constituents, including alumni and friends, members of the community and philanthropic entities of all types.

Advancement has two cost bins: the Development and the Alumni and Community Relations bins.

Development

The Development Bin captures the costs related to efforts to promote and secure philanthropic support from alumni, donors, parents and friends, and is comprised of:

All central shared development costs and
50% – Vice President – Advancement Office

Cost Drivers

Two Drivers, weighted as follows:

75% annual fund solicitation: 5-year rolling average of graduates, slipped two-years, by Faculty
25% major gift solicitation: 10-year rolling average of funds raised, slipped two-years, by Faculty

Methodology

Costs are attributed based on 75% of a Faculty’s 5-year rolling average of graduates slipped two years, and 25% of a Faculty’s 10-year rolling average of funds raised, slipped one-year.

Alumni & Community Relations

The Alumni & Community Relations Bin captures the costs related to managing alumni and donor information, processing gifts to the university and engaging York graduates on behalf of the university. Main areas include:

Convocation
Events and Ceremonials
Alumni Communications
Community
Relations
Alumni Engagement
50% of Vice-President – Advancement Office

Cost Driver

Five -year rolling average of graduates from each Faculty

Methodology

Alumni and Community Relations costs are attributed based on each Faculty’s share of a rolling average of graduates (degrees awarded) in the most recent 5 years, slipped two years.

Costs associated with the Campus Services bin have been divided into 2 main bins with sub-bins.

Utilities and Facilities Maintenance Costs

Costs under this bin are for Utilities (heating, cooling, electricity and water), Deferred Maintenance, Building Maintenance, Fire Inspection, Work Control Centre, Contract Administration, Stores, Custodial, Insurance and Administrative Overhead.

Assigned Space

This space is available exclusively for the use of a Faculty/Ancillary/Shared Service unit. The Faculty, Ancillary unit or Shared Service unit that occupies this type of space is attributed all the Utilities and Facility Maintenance costs associated with the space.

Cost Driver

Net Assignable Square Metres (NASM)

Methodology

Costs are attributed based on the NASM occupied by Faculty, Ancillary unit or Shared Service unit.

Common/Unassigned Space

This is space that cannot be directly attributed to an individual Faculty, Ancillary unit or Shared Service unit. Such space provides service across the University and includes foyers, hallways, washrooms, electrical rooms, etc.

Cost Driver

Population FTEs (students, faculty and staff)

Methodology

Costs are attributed to revenue generating units based on share of population FTEs.

Teaching Space

The Teaching Space cost sub-bin captures the costs related to teaching space.

Cost Driver

The Teaching Space sub-bin has two cost drivers:

NASM of space utilized
Length of time space is utilized

Methodology

Classrooms are grouped into categories based on number of seats, and the Teaching space NASM is calculated based on these classroom categories. The NASM is further adjusted to take into account the amount of time this space is utilized.

Other Campus Services/Community Safety

This bin captures costs related to other services provided by Facilities Services/Community Safety to the York community, such as Security, goSAFE, CCTV Monitoring, Card Access, Emergency Preparedness, Transportation, Grounds, Waste, Capital Fleet Replacement, Mailing Services, Environmental Design & Sustainability, Planning & Renovations, Facilities Development, Administrative Overhead, etc.

Cost Driver

Population Head count (students, faculty, staff)

Methodology

Costs are attributed based on the share of population of full-time and part-time employee (faculty & staff) headcount, and student headcount (domestic & international).

Enterprise Academic Services

The Enterprise Academic Services Bin (inclusive of supporting infrastructure) captures costs related to providing information and technology services in support of students.

Cost Driver

Total Full Time Equivalents (UG FFTEs & Graduate FTEs) of students.

Methodology

Costs are attributed to revenue generating units based on Costs (net of recoveries) are attributed to Faculties based on share of students.

Common Services

The Enterprise Academic Services Bin (inclusive of supporting infrastructure) captures costs related to providing information and technology services in support of students.

Cost Driver

Total population of students, faculty and staff (UG FFTEs & Graduate, faculty & staff FTEs).

Methodology

Costs are attributed to Faculties based on share of students, staff and faculty.

The costs in this bin are related to the costs of running the office of the Dean, Graduate Studies.

Cost Driver

Population of Graduate Students (FT & PT Headcount).

Methodology

Costs are attributed based on Total Graduate Student Headcount (FT & PT), Domestic and International.

Student Support Services role is to serve all York University students by providing various services that help enhance the student experience. All the functions of the Student Services Division has been rolled up into the Student Services Bin.

Cost Driver

Student Headcount (FT & PT, UG & Graduate).

Methodology

Costs are attributed based on total UG & Grad student headcount (FT & PT, Domestic & International) of Faculties.

The Research Management Bin is responsible for the University’s strategic research planning and provides research services for faculty members.

Cost Driver

Two cost drivers: i) Population of Tenure Stream & Probationary Faculty (50%); ii) Research Expenditure (50%).

Methodology

Attribute costs based on two drivers, weighted equally:

Faculty share of population of total headcount of Full-time TS/Prob faculty; excluding alternate & teaching stream faculty;
Faculty share of a 3-year rolling average of Research Expenditures.

Definition

Articles in collective agreements require certain pots of funds to be set aside to be used for specific purposes such as union training programs, employee accommodation costs, joint affirmative action committee funding, YUFA marketability adjustments etc. The costs in this bin are related to these commitments.

Cost Driver

Enhanced Fringe Benefit Overhead Rate as determined by collective agreements.

Methodology

Adjust the Standard Fringe Benefit Overhead Rate to include collective agreement benefits by employee group (Faculties, Ancillary Units & Shared Services).

Definition

The University is currently required to fund Pension Solvency Payments, Other Post-Employment Benefits (OPEB) and an actuarial calculation for Pension Costs. The costs in this bin are intended to meet this requirement.

Cost Driver

Pensionable Salary Base of employee groups eligible for pension & post-retirement benefits.

Methodology

Attribute costs based on pensionable salary base of eligible employee groups (Faculties, Ancillary Units & Shared Services).

Definition

The University waives the tuition of employees and their dependents when they are registered as students at York University and for incoming students in the exchange program.

The costs in this bin relate to the waived fees.

Cost Driver

Faculty and Ancillary unit share of population of employees (headcount) eligible for tuition waivers (faculty & staff).

Methodology

Attribute costs based on headcount population of eligible employees.

Definition

These are debts that relate to uncollected revenues from tuition fees, associate course fees, residence fees, meal plan fees, ancillary fees and student referenda fees (student accounts only).

Cost Driver

Ratio of uncollectable fees to total fees in defined bad debt generating categories (student accounts only).

Methodology

Attribute costs based on a 3-year rolling average (slipped two years), of the ratio of uncollectable fees to total fees in tuition (credit & non-credit) and associate course fees, student ancillary fees, student referenda fees, residence fees, and meal plan fees.

Definition

These include day care centre costs, pay equity, WSIB payments, external legal fees, banking services fees, liability insurance, institutional memberships, credit rating fees, false fire alarm charges, etc.

Cost Driver

Total Full Time Equivalents (FTEs) of students and faculty.

Methodology

Attribute costs to Faculties based on their share of students and number of faculty, slipped two years defined as follows:

UG students: Fiscal Full Time Equivalents (FFTEs), Domestic and International
Graduate students: Annualized Full Time Equivalents (FTEs), Domestic and International
Faculty: Full Time Equivalents (FTEs), for full-time and part-time faculty.

Definition

Capital Debt consists of General Institutional costs related to mortgage and interest payments.

Costs in the Capital Reserve Payment consist of General Institutional costs related to deferred maintenance and capital ripple renovation project amortizations.

Cost Driver

Enhanced Fringe Benefit Overhead Rate as determined by collective agreements.

Methodology

Capital Debt: Faculty share of assigned space in Net Assignable Square Metres (NASM) adjusted for funds raised by the Faculty

Capital Reserve Payments: Faculty share of assigned spaced (NASM).

Definition

These include centrally funded student scholarships and bursaries, including those administered by Student Services.

Cost Driver

Faculty student population defined as:

UG students: Fiscal Full Time Equivalents (FFTEs), Domestic and International
Graduate students: Annualized Full Time Equivalents (FTEs), Domestic and International

Methodology

Attribute costs to Faculties based on their share of Undergraduate FFTEs & Graduate FTEs.

Undergraduate Teaching

This is revenue (tuition and grant) related to reimbursement to Faculties for inter-Faculty teaching (service teaching) of general education courses. The reimbursement rate is calculated using one rate:

For tuition fee revenue, 40% of the average non-professional tuition fee rate is flowed to the teaching Faculty, while 60% is retained by the home Faculty; and,
For grant revenue, 40% of the average Arts and Science grant rate is flowed to the teaching Faculty, while 60% is retained by the home Faculty