Financial Literacy Resource

System of accounting used by non-profit entities to track the amount of cash assigned to different purposes and the usage of that cash.

Unrestricted Funds

Funds that are received with no restrictions (also called Spendable funds).  Ex: tuition revenue, operating grants, Ancillary revenue, etc..

Restricted Funds

Funds that are received for a specific purpose.  Ex: research grants, donations, grants with specific restrictions.

Financial document that details the revenues and expenses from the beginning of a fiscal year to the end of a certain time period.

Revenues

Total amount of money earned from its normal business activities.

Expenses

Costs incurred in the course of operations to generate revenue. 

Excess of revenue over expenses

Net position in a current fiscal year, also known as a surplus. This amount is  added to net assets on the balance sheet.

Deficiency of revenue over expenses

Net position in a current fiscal year, also known as a deficit. This amount is subtracted from net assets on the balance sheet.

Financial document that shows the financial status at a particular point in time by showing the assets, liabilities and net assets (reserves).

Assets

Resource owned by an entity as a result of past events (capital, financial, etc..)

Liability

Obligation of an entity arising from past events, which must be settled over time (accounts payable, debt, deferred revenue, etc..

Net Assets (Reserves)

Accumulation of net surpluses set aside to fund future expenses.There are unrestricted and internally restricted net assets. 

Financial gift or fund with the intention that the principal (original amount of gift) is preserved and only the investment income is used to support specific activities or programs.

When an endowment is received, it is recorded as a direct increase in net assets because the principal will not be spent.

Income generated by endowments will be spent and therefore is recorded as investment income when spent, or deferred contribution when investment income is earned but not spent

A formal commitment or documented promise made by a donor to contribute a specific amount of money or resource within a specified time frame.  Pledges are not recorded as revenue until the money is received.

Income Statement for individual funds (Operating & Ancillary) – reviewed every Audit & Finance meeting. 

• Year-to-date Statement – Operating Fund.pdf
• Year-to-date Statement – Ancillary Fund.pdf

Income Statement for all University funds – reviewed at Semester Close (August 31, December 31, April 30th)

• Consolidated Income Statement.pdf

Operating Fund (Fund 10)

The Operating Fund supports the day-to-day operations of the university. It encompasses revenues and expenses directly tied to the mission of the University, education and activities supporting research. The main sources of operating revenue include tuition and government grants to fund academic and administrative functions.

Ancillary Fund (Fund 15)

The Ancillary Fund supports university operations that are supplementary to the core mission of education and research. These activities involve the sale of goods and services to both the university community and external clients.

Includes operations such as residences, food and retail sales, conference services, and extended learning. 

Internally restricted (Fund 11)

The Internally Restricted Fund accounts for expenses that are funded from various allowances negotiated through the collective agreement and Appointment letters such as Personal Expense Reimbursement, Research Allowance, Professional Development allowance, etc.  Transfers from the Operating fund increase the funds available in internally restricted net assets.  Expenses are accounted for when expenses are incurred. Amounts in this fund are carried forward annually until fully spent or no longer available for spending.

Capital Fund (Fund 40)

The capital fund includes activity related to on-going capital infrastructure on campus.

Trust (Non-Endowed) Fund (Fund 50)

The Trust Fund includes donations and fundraising revenues with internal or external restrictions.  Income generated from investments is also recorded as revenue in this fund.  Donation revenue is recorded when expenses are incurred.

Research Fund (Fund 60)

The Research Fund includes funding for research from various sources including the federal government, provincial government, and various not-for-profit organizations.  The spending of these funds is externally restricted by agreements or contracts that define how the money must be used, ensuring alignment with the intentions of the donor or granting agency.

Other Restricted Fund (Fund 70)

Funding provided by an external entity, or internally restricted by an agreement outlining expenditure of the funds and a requirement to return unspent funds at the end of the term. 

Endowments (Fund 51)

Donations or bequests received by the University that have a non-expendable requirement as well as other legal requirements for use as agreed upon by the donor and the University.  This fund also includes internal endowments which are unrestricted donations that have been endowed by action of the Board of Governors.  Fund 51 includes the annual activity (expense and investment income).

Provincial Government Funding received for Domestic students based on various categories such as General Enrolment, Performance/Student Success, Special Purpose, Capital renewal. The majority of government funding is received from the Provincial government.

The province uses a system called Weighted Grant Units (WGUs) to determine varying funding levels for different student groups (Undergraduate, Graduate), and for types of programs (high-cost programs receive more funding per student). WGUs help ensure that funding is distributed in a way that reflects the costs and needs of institutions.

Performance-based funding grants is based on performance measures outlined in its Strategic Mandate Agreement (SMA) with the provincial government.

Special purpose funding grants support specific programs, projects or initiatives including some for specific student groups

Some Federal government grants are received – Mainly Tri-Agency Research funding grants

This includes Tuition fees and Ancillary fees.  Rates are approved annually by the Board of Governors.

Tuition fees for domestic students are regulated by the Provincial government - set according to the Ministry’s Tuition Fee Framework.

Tuition fees for international students are not regulated by the provincial government, but enrolment is now limited by Federal caps on international study permits.

Ancillary fees are collected based on enrolment status and are used to fund specific student programming and services offered.

Program and Course specific fees are collected to cover the costs for expendable materials, or learning materials retained by the student, field trips, or other incidental program or course specific expenses.

Majority of sales and services relates to Residence fees. Some other revenue from on-campus ancillary services and rentals

Nipissing University receives a small amount of revenue from other sources, like donations and investment income.   Investment income from restricted funds and endowment funds are designated for specific purposes like scholarships, bursaries and student support initiatives.

Recognition of externally restricted funds (donations, grants, etc.) as revenue over time

Salaries and benefits are the largest expense of the university – Faculty, Administration and Support staff.   Salary increases are influenced by collective agreement negotiations.

Expenses related to the goods and services required to run operations such as classroom, lab and office supplies, equipment, software licenses, communication, professional services and maintenance materials.

Expenses related to the operation of campus buildings, infrastructure and grounds.

Funds provided to students to help eliminate financial barriers, broaden educational access and recognize both academic excellence and extracurricular involvement.

Allocation of the cost of a capital asset (on balance sheet) over its useful life. 

Cost incurred for borrowing funds.