Recovery of Overhead on Community

Recovery of Overhead on
Community-Based Programs
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Number:
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Operations
All University Personnel
April 12, 2015
Vice President Academic
Board of Governors
Senior Financial Officer (306) 790-5950 ext. 2405
Introduction
This policy sets out the authority, responsibility and procedures for recovery of overhead on community
based programs carried out by the University. The recovery of overhead on the delivery of specific
educational programs to communities is necessary to reimburse the University for the indirect costs of
developing and delivering the program in communities where the University does not have a campus.
Definitions
“Community Based Program” - an academic program comprised of multiple classes and courses offered
by the University and delivered at a centralized off-campus location to a specific audience of students;
“Direct Costs” - the costs that are directly attributable to a program developed and delivered for a specific
community by the University;
“Indirect Costs” - the costs, at the executive, faculty or other departmental level including any and all
administrative units, that the University incurs to support the development and delivery of the program
being provided;
“Overhead” - the amount recovered in a community based program budget to cover the indirect costs
associated with that program.
Policy
All community based programs delivered by the University must provide for the recovery of indirect costs
on a sliding scale between 20% and 40%, with 30% being the default rate. Management will provide the
Board with a rationale for the rate in each case. Factors to be considered when determining the rate may
include the duration of the contract, the number of students involved, the financial impact on the
RECOVERY OF OVERHEAD ON COMMUNITY-BASED PROGRAMS
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FIRST NATIONS UNIVERSITY OF CANADA
community partner, and other relevant considerations. The overhead rate for each program contract will
be approved by the Board of Governors on the recommendation of the President.
The overhead recovered pursuant to this policy will be distributed as follows:
(a) General University Revenue
50%
(b) Principal Program Faculty
50%
(c) In situations where more than one faculty is involved in the delivery of the program, the
faculty allocation will be shared in proportion to the proposed allocation of work.
Role and Responsibilities
A. Vice President Academic - will serve as the procedural authority for the application of this policy,
with overall authority for the establishment of these programs resting with the Board of Governors
on the recommendation of the President;
B. Personnel delivering program - when negotiating the delivery of a specific program, they must
include the applicable overhead recovery amount in cost estimates prepared for the proposed
program.
Consequences for Noncompliance
Any contracts negotiated without appropriate authority could result in the delivery of a community based
program being terminated and the senior officer who approved the contract without due authority, facing
disciplinary action up to and including dismissal.
Processes
Any community organization wanting to enter into an agreement with the University for the delivery of a
program in their community will first meet with the Vice President Academic along with other University
personnel as required to discuss the proposed scope and timing of the program to be delivered. Once
that is clearly understood, personnel responsible for the delivery of the program in consultation with the
Senior Financial Officer will prepare a detailed expense budget covering all aspects of the program. This
budget must include the recovery of overhead of all associated costs on a sliding scale between 20% and
40%, with 30% being the default rate.
After the completion of the proposed final budget for the program and with the initial agreement of the
community involved, a formal contract will be prepared for submission to the Board of Directors for
review, ratification and finally execution by the parties.
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