SHARP - Budgets and Asset Management

The York University Shared Accountability and Resource Planning (SHARP) budget model, is a modified activity-based budget framework that focuses on the University’s core activities when establishing budgets. We start by identifying the key activities the university performs and assigns resources to these activities based on planned activity levels.

At York University, our core operating activities are categorized as: Academic, Research, and Shared Services (Student Services, Facilities, IT, and other Administration). We also have other ancillary activities which includes continuing studies, ancillary services (food services, bookstore, parking) and athletics & recreation.

Revenue 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 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.

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 Office of the Vice-Provost 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.

Other Revenues include expendable donations or income from endowed funds, fines and penalties, and other miscellaneous revenues

University Shared Services are the central operations of the University such as the President’s and Provost’s offices, Finance, Facilities, IT, Student Services, and more. These central areas provide critical services to all Faculties, Researchers, Students and other administrative units. Total cost of all Shared Services at York University are measured against the guideline establishing that the total cost of shared services should be no greater than 30% of the University’s total revenues. In a period of declining revenue, this places pressure on shared services units to reduce total costs and optimize services.

Cost Attribution

Shared Services costs are attributed to each of the Faculties and Other revenue generating units through established cost drivers where cost drivers are established based on the principle of ‘Causality’ and ‘Benefits Received” while factoring in measurability and materiality in the selection of a cost driver.

Service Tiers (NEW)

In the most recent update of the model, Shared Services units can now create ‘Service Tiers’ which aim to allow Service units to offer customized services to Faculties or other revenue generating units who need something beyond the base level of services normally offered. The following Services Tier levels are available:

•Base (Bronze) – this is the base service of the unit. It represents the fixed cost or the lowest common denominator. All Faculties and Other Revenue Generating units pay for base level shared services. This level is mandatory.

•Silver – this is a premium level 1 and specific services included in this tier are outlined by the shared service unit. Costs to opt into this tier will be calculated by the total cost to provide these services above the base costs and allocated according to established cost drivers. Costs are shared across each of the Faculties opting into this tier.

•Gold – this is a higher premium level of service contemplated by some shared service units. Similar to the silver level, specific services included in this tier are outlined by the shared service unit. Costs to opt into this tier will be calculated by the total cost to provide these services above the base costs and silver tier costs and allocated based on the established cost drivers. Costs are shared across each of the Faculties opting into this tier.

The University fund is supported by revenues contributed from Ancillary services, School of Continuing Studies, Each faculty, and unallocated sources (such as interest income). These funds are then used to support institutional strategic initiatives, collaboration and manage institutional risks. The University Fund Council advises the President on the allocation of funds from the University Fund.

The inter-faculty adjustment is an adjustment to a home faculty’s revenue to reflect the value of teaching provided by another faculty. For Tuition and Grant revenue, 40 percent of the average Arts and Science rate is directed to the teaching faculty, while 60 percent is retained by the home faculty under the current methodology. This methodology is under review.