Budget models are nothing more or less than a set of principles and guidelines whereby the income arriving at an institution is divided amongst the units that are tasked with meeting the institution’s goals and obligations.

Most of the income should be distributed in a formulaic way that is understood by, and transparent to, all. However, there needs to be enough flexibility to enable the institution to address strategic goals that cannot be addressed using a rigid application of the model. The McMaster Budget Model, attempts to strike an appropriate balance between these two tensions. The primary principle governing the Budget Model is that income flows directly to the Activity Units (faculties). Support Units and the aforementioned Flexible Pool receive their funding through the assessment of levies, charged to the Activity Units. These levies are controlled by drivers (e.g. enrolment, occupied space) that are most relevant to the operation of the Support Unit (Registrar, Library etc). It is therefore clear that two of the main functions of the budget model are to determine, first of all, how income arriving at the university is allocated amongst the Activity Units, and secondly, how the levies that provide funding to the Support Units are to be determined.

Budget 2016/17

Resulting budget allocations are derived through a highly transparent process.

Allocation Funding Split

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Support Unit Budgets

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Activity Unit Allocations

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