Section:          Finance

Subject:          Financial Control of Budget: Approval of Expenditures

Policy:              2.9

Approved:      August 22, 1995

Revised:          November 1, 2015

Section:          Finance

Subject:          Financial Control of Budget: Approval of Expenditures

Procedure:     2.9

Approved:      September 2000

Reviewed:      May 21, 2013

Revised:          November 1, 2015

Budget Management Guidelines

Budget Program Expenditure Procedures

Within the confines of each individual program budget, the Program Managers are expected to manage their budget.  Under a specific program, the Program Manager has authority to re-assign budgeted direct expenditures within the total budget.

Some direct expenses are fixed costs and out of the control of Program Managers.  They are as follows:

• Agency fee
• Salaries - determined by the Collective Bargaining Agreement
• Benefits - determined by the Collective Bargaining Agreement

Program Managers cannot exceed the total budgeted direct expenditures without approval from the VP Finance or the President and CEO.

Program Managers will have no access to the indirect administration expenses.  Indirect administration expenses will only be modified by the VP Finance upon consultation with the President and CEO.

In the course of a year some programs will show an over-expenditure due to unforeseen expenses.  It is expected that other programs will come in under budget, which will offset these over-expenditures.

Projected Revenue Less Than Budgeted

If the projected revenue is less than budgeted, then the program has to recognize a total decrease in expenses to maintain the projected surplus/deficit for program.  If this is not possible, the VP Finance is to be consulted immediately.

The VP Finance and VP Academic will meet with the Program Manager(s) to review and assess program budgets once revenues are determined.

Projected Revenue Higher Than Budgeted

If revenue is greater than projected, the VP Finance and VP Academic, in consultation with the Program Manager(s), shall determine the allocation of additional funds. 

The excess revenue from program specific fees and materials & supplies can be added to the direct expenses and utilized in the program if necessary.

Determination of the use of other excess funds (e.g., tuition, seat purchase, etc.) will not take place until the VP Finance and the President and CEO are assured that the fiscal year is on target with budgeted year-end estimates.

Administration Budgets

Within the confines of each individual administration budget the Program Managers are expected to manage their budget.  The Program Manager has authority to re-assign budgeted expenditures within the total budget.

For example:  $500 less is spent in office supplies and these funds are used for advertising.

The following costs are exempt from this:

• Rental - Vehicles
• Salaries - Staff
• Benefits
• Professional Development