Financial Authority

To confirm the Board’s role over the financial affairs of the University of Saskatchewan (USask), including annual approval of a comprehensive consolidated budget and the Board’s authority to reclaim, reallocate, or repurpose financial resources when it is in USask’s best interest. Further, to establish financial authority and accountability for resource allocation, resource use, and how delegation may occur.

Guided by USask’s mission, vision, values, and strategic and supporting plans, this policy balances the need to manage financial resources to support teaching, research, scholarly and artistic work.

• Governance: aligns financial authority with governance responsibilities and is delegated, by the Board to the President, who delegates to academic and administrative leaders within the governance framework.
• Stewardship: ensures financial resources are used efficiently for the intended purposes.
• Timeliness: promotes the use of financial resources within a reasonable timeframe.
• Comprehensiveness: extends financial authority across all financial resources within USask’s comprehensive consolidated financial statements.
• Consistency: incorporates into USask culture a standard approach to the management, administration and control of financial resources, to support decision making across all levels.
• Accountability: holds those given financial responsibilities to provide assurances and be answerable for the appropriate utilization of financial resources.
• Equity: ensures financial sustainability through the provision of services to current and future students.

Complimentary to The University of Saskatchewan Act, 1995 and Board bylaws, applies to all financial resources across all fund types within USask’s comprehensive budget and consolidated financial statements. Including externally restricted contracts, research, and trust funds administered in compliance with external agencies or parties and USask policies.

The Board holds authority over USask financial affairs, including resources and assets. The Board approves the comprehensive budget, which includes resource allocations to Leaders. The Board holds the right to repurpose, reclaim, and reallocate resources, subject only to external restrictions and/or contractual obligations.

The President is responsible for directing the business affairs of USask to advance the mission, including strategically aligning resources in USask’s budget.  The President may delegate work, including the development of the budget, to any Leader, but may not delegate accountability. The Leader entrusted with this delegation enlist the support of a committee approved by the President.

Leaders are accountable for the financial sustainability over delegated business affairs and financial resources entrusted to them. This includes developing structurally balanced multi-year budget plans, addressing accumulated deficit balances, and holding policy threshold reserve balances.

Leaders are expected to hold reasonable undesignated reserve balances to support financial sustainability and to invest in opportunities that advance USask’s mission and/or address risks. Undesignated reasonable reserve thresholds are 1.5% to 6% of prior year ongoing expenditures.

Leaders are expected to deploy resources prudently and responsibly to support teaching, research, scholarly and artistic work, for the benefit of students, faculty and staff.

Leaders are answerable for resource utilization through routine financial reporting. Leaders may delegate responsibility to individuals who undertake financial duties and activities, while retaining financial accountability for the use of financial resources.

All USask staff and persons acting on behalf of USask share a collective responsibility for sound stewardship of USask resources; each holding responsibility to be aware of, and to comply with USask policies and procedures.

Leaders:  

• Are responsible for the management of business affairs and resources entrusted to them.
• Set the tone for financial stewardship by deploying resources to advance the mission and priorities.
• Deliver prudent fiscal management, avoid or address deficits, and manage financial sustainability.
• Provide clear and succinct multi-year budget plans, quarterly progress updates, and annual reports.
• Determine when financial resources may be repurposed, reclaimed or reallocated for the benefit of programs and activities, subject to external or Board restrictions and/or contractual obligations; or in the case of support units, only within the same cost-allocation category unless reviewed and approved by the Strategic Finance Committee.
• Ensure current terms of reference are maintained, including terms of reference for institutional and strategic funds.
• Maintain oversight and are accountable to those from whom authority has been delegated.

Those to whom authority has been delegated: 

• Are accountable for sound financial stewardship.
• Are answerable for providing assurances through regular financial reporting.
• Are required to follow USask policy, procedures, and comply with routine reporting.
• May approve revenues, expenditures and interfund transfers.
• May provide operational management expertise, knowledge, and support for financial planning and decision making.

Research Investigators: 

• Are responsible for ensuring research funds are administered in compliance with the terms and conditions of research agreements and in accordance with USask policies and procedures.

Failure to carry out Leader responsibilities, including deliver action plans to address non-compliance:

• May result in the dismissal of the Leader within USask policies, procedures, and collective agreements.
• May result in reallocation of resources or other measures deemed appropriate by those with higher authority within the governance framework.

If there is reason to suspect that laws or USask policies have been or are being violated, access to USask financial resources may be frozen, restricted, or withdrawn.

The source of institutionally approved definitions is in the Academic and Curricular Nomenclature.
For additional definitions related to this policy, please refer to the Financial Authority Procedures document.

Related Procedures and documents

Financial Authority Procedures
Academic and Curricular Nomenclature 

Applicable Legislation or Regulations

University of Saskatchewan Act, 1995