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

Source Revenue Proportions

Support Units & Cost Drivers

All other Units and Envelopes requiring a Budget

Employee Support

  • HR, Suppl. Pension, Employee Programs

Drivers

  • Employee FTE or Pensionable salaries

General Administration

  • Admin, Financial Affairs, President, Advancement, Branding & Marketing

Drivers

  • 3 year average expenses or revenues

General Resources

  • Library, Museum, MIIETL, UTS

Drivers

  • Student & Employee or Faculty FTEs

Occupancy

  • Facilities, Utilities, Def. Maintenance

Drivers

  • NASM

Research Support

  • HROADS, Research Finance, MILO

Drivers

  • 3 year average research revenue

Student Support

  • SGS, Registrar, Scholarships

Drivers

  • Grad and/or UG FTEs

Activity Units

The 6 Faculties (and Arts & Science Program)

  •  DeGroote School of Business

  •  Faculty of Engineering

  •  Faculty of Health Sciences

  •  Faculty of Humanities

  •  Faculty of Science

  •  Faculty of Social Sciences

  •  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. During the first several years of the new budget model a significant portion of the University Fund will be used to hold harmless those Activity Units whose allocation would otherwise drop below the base year (2013/14) level.

The first calls on the University Fund are to a number of ongoing commitments:

  • Distribution required to "Hold Harmless" certain Faculties as a result of a change in Budget Models.
  • 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 in lieu of residual framework funding that was used for this purpose in the old model. This will be 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. The largest draw on this currently is the increase to the base level of funding for the McMaster Institute for Innovation and Excellence in Teaching and Learning, MIIETL (over the previous base funding for CLL).

2014/15 Spending Allocations ($)

*Unfunded Priorities funded through Budget Committee