Monitoring and Forecasting
An essential element of strong financial management at all levels – institutional, divisional and departmental – is the ongoing monitoring of revenues and expenses. Operating budgets reflect detailed allocations and spending limits within the Operating Fund. It is important for divisions to monitor their actual results against these budgets in order to identify expected variances, minimize forecasted negative variances, and utilize favourable forecasted variances for other purposes, first to cover forecasted negative variances.
Academic divisional budgets are based on enrolment plans, so it is imperative that divisions monitor any variance between planned and actual enrolments. Any enrolment variance results in a year-end revenue variance for the division. The Financial Services Department prepares the overall forecast for the University from input provided by the Planning and Budget office and divisions. The University’s forecast is presented annually at mid-year to Business Board for information. Updates are prepared for senior management on a monthly basis.