An Overview of University Finances

AuthorCheryl Foy
 
An Overview of University Finances
In Chapter , we began the discussion of the government’s role in uni-
versity nances. In this chapter, we take a closer look. is chapter is not
about how to read balance sheets and university nancial statements. When
universities look for board members, they look for a certain number of
members who have strong nancial backgrounds and are nancially literate,
so that the board has the requisite expertise to oversee university nances.
Even if you aren’t recruited because of your nancial expertise, you should
learn to read nancial statements. e focus of this chapter, however, is a
further understanding of university nances and the issues the board and
leadership team face in making nancial decisions.
It won’t surprise you to know that the nancial picture for universities
is complex . e board has a role in approving the budget and must under-
stand the strategic choices and the risks associated with budget decisions.
e board plays a primary role in ensuring the nancial sustainability of
the university. Board members should understand revenue sources, main
categories of expenditures, and trends that underlie nancial sustainability.
is is not an easy thing to learn. ere are provincial dierences, and
those will have an eect on your university. For example, in , the
Ontario government undertook a review of its post-secondary education
funding formula and, in a bid to include other objectives, switched from
1 Ben Lewis, “University Funding in Ontario and the Implications of the New Performance-
Based Funding Model, a Discussion” Academic Matters (13 December 2017), online:

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT