What is a budget model?

Memorial is in the early stages of developing at new budget model for the university. Budget models are comprised of a budget allocation method that specifies the processes by which decisions about the budget are made, including discretionary elements such as the authority and values of relevant decision makers (Hanlon, 2008)​. 
 
Budget models are often hybrid and reflect the distinctiveness of the institutions they serve. No two university budget models are identical in design and implementation as no two universities are the same. 

After much consultation and discussion with the deans and other senior leaders, the decision has been made to implement an activity-based/responsibility centred management budget model at Memorial.

This budget model assumes faculties/schools receive the revenue they generate; and they are responsible for costs associated with the academic and administrative support of their programs (e.g., facilities management, human resources). The model also features a General University Fund to provide opportunities for strategic funds, subventions and institutional contingencies. An accountability framework is also an important component that will accompany the budget model.  

 Next steps 

Memorial is in the early phase of this project with an anticipated implementation timeline that would bring us to April 2027 for the commencement of the transition. During the interim period, we will be working closely with the groups in the implementation structure to complete the design, model the shadow results, and develop a transition plan to move the university to an activity-based/responsibility centred management budget model.   

Information on the budget model development and implementation will be posted on this webpage regularly and shared with the university community.