This glossary provides definitions of key terms used in the Survey on Research Activities and Commercialization of Intellectual Property in Higher Education (SRACIPHE).

Affiliated legal entity: A legally distinct organization that has a formal relationship with a postsecondary institution, such as an affiliated college, centres collégiaux de transfert de technologie et de pratiques sociales novatrices (college centres for the transfer of technology and innovative social practices; CCTT) research institute, technology transfer organization or other related entity, and whose activities may be reported separately or included in a combined report, as permitted by the survey.

Centre collégial de transfert de technologie (CCTT): A Quebec-based college technology transfer centre that supports applied research and technology transfer to industry.

Collaborative research agreement: A project-specific agreement under which two or more organizations jointly undertake research activities and share expertise, resources, facilities or research outcomes with no external funds brought to the reporting institution.

Copyrights: A form of intellectual property that protects original works, including scientific publications, software code, artistic works, technical documentation and other creative outputs arising from research or innovation activities

Field and environmental infrastructures: Research facilities and sites located in natural or controlled environments that support data collection, monitoring, observation or experimentation outside traditional laboratory settings. Examples include observatories, field stations, experimental farms and environmental monitoring sites.

Full-time equivalent (FTE): A measure of work effort expressed as the total hours worked divided by the average annual hours worked in a full-time position.

Grant-based research agreements: A research project funded through a formal grant from a government, non-profit organization or other funding body, where the funding is subject to specified terms and conditions related to project activities, reporting or intellectual property.

Industrial design: A form of intellectual property that protects the visual features of a product, including its shape, configuration, pattern or ornamentation.

Institutional-level research partnership agreement: A formal, ongoing collaboration framework between an institution and an external organization that supports multiple or future research projects. Formal research partnerships are broader than individual project-specific research agreements.

Integrated circuit topographies: A recognized form of intellectual property in Canada that protects the three-dimensional layout design of the electronic components and connections within a semiconductor integrated circuit.

Intellectual property (IP): Assets arising from creations of the mind that may be legally protected. Examples include patents for inventions, copyrights for original works, trademarks for names and logos, trade secrets for confidential information and industrial designs for the visual appearance of products.

Intellectual property (IP) commercialization: Activities that support the transfer, development or use of intellectual property arising from research or innovation. Commercialization pathways may include licensing, assignment (sale of intellectual property), spin-offs, start-ups and collaborative partnerships.

Intellectual property (IP) licence: A legal agreement that grants a person or organization permission to use, develop, or otherwise exploit intellectual property (IP) owned by another party under specified terms and conditions. Ownership of the intellectual property remains with the licensor. Licences allow use without transferring ownership.

Intellectual property (IP) management: Activities related to the identification, assessment, protection, administration, transfer and licensing of intellectual property (IP). These activities may include invention disclosures, IP assessment, patenting, licensing, management of IP assets and portfolios, negotiation of IP-related agreements, and support for the commercialization of intellectual property.

Intellectual property (IP) support: Advisory, educational or facilitation services related to intellectual property. These services may include disclosure support, patent strategy advice, IP-related industry liaison activities, training, outreach or other assistance that supports intellectual property activities without necessarily involving ownership or direct management of intellectual property.

Invention disclosure: A formal notification submitted to an institution that describes a potentially protectable invention, design, copyright, plant variety, software, algorithm, trade secret, trademark or other intellectual property arising from research or innovation activities. Invention disclosures are used to evaluate, manage, protect or support the commercialization of intellectual property.

Inventions: A novel product, process or technical solution arising from research, experimental development or other creative activity. An invention may be eligible for protection through intellectual property rights such as patents.

New product: A good or service that is new or significantly improved during the reporting period with respect to its characteristics, functionality, software, components, materials or intended use, and that reached final development, demonstration, qualification, deployment, operational use or commercialization during the reporting period. Minor modifications or routine updates are not considered new or improved products.

New or improved process: A method, technique, procedure or system that is new or significantly improved during the reporting period and is used to produce, deliver or support goods, services or other activities. Improvements may include changes to workflows, manufacturing methods, operational practices, equipment or software. For this survey, report only processes that reached final development, demonstration, qualification, deployment, operational use or commercialization during the reporting period.

New or improved prototype: A preliminary or functional version of a product, process or technology that is new or significantly improved during the reporting period and is developed to test, demonstrate, validate or refine a concept, design or technical solution before full implementation, deployment or commercialization. For this survey, report only prototypes that reached final development, demonstration, qualification, deployment, operational use or commercialization during the reporting period.

Patent: A form of intellectual property that grants the owner the exclusive right, for a limited period, to prevent others from making, using or selling an invention without permission in the jurisdictions where the patent is granted.

Patent application: A formal request submitted to a patent office seeking patent protection for an invention.

Plant variety rights: A form of intellectual property that protects new plant varieties and grants the breeder exclusive rights over the propagation and commercialization of the variety.

Research and development (R&D): Creative and systematic work undertaken to increase the stock of knowledge and to develop new applications of that knowledge. For the purposes of this survey, the terms research and research and development (R&D) include basic research, applied research, and experimental development, where applicable to the institution completing this form. These activities are defined according to the Frascati Manual:

• Basic research: Experimental or theoretical work undertaken primarily to acquire new knowledge without a specific practical application in view.
• Applied research: Original investigation undertaken to acquire new knowledge directed primarily towards a specific practical aim or objective.
• Experimental development: Systematic work that draws on existing knowledge and practical experience to develop new or improved products, processes, or services.

Research services / testing agreements: A fee-for-service arrangement in which an institution provides research, testing or analysis for an external organization according to agreed requirements and deliverables.

Spin-off: For this survey, a spin-off is a company created to commercialize intellectual property (IP) or technology developed at the institution.

A spin-off must have a formal and verifiable link to IP developed at the institution. This includes companies where at least one of the following conditions applies:

• The company has licensed IP (e.g., patents, software or know-how) from the institution.
• The company is based on an invention disclosure submitted to the institution.
• The institution holds equity in the company as a result of an IP contribution.

Exclude:

• Companies based solely on knowledge, skills or experience acquired at the institution without a documented link to institutional IP, even if they receive support through incubators, accelerators or mentorship programs.
• Start-ups founded by students, graduates, faculty or staff that do not have a formal relationship to IP developed at the institution.

Start-ups: A start-up is a new company created to address a market need, typically built on a novel idea or technology and supported by a business plan and growth strategy. 

For the purpose of this survey, start-up refers to a business that may receive support from this institution, but where there is no formal or verifiable relationship to IP developed at this institution.

Start-ups may include student-led ventures, incubator or accelerator-supported companies or external clients.

Sponsored or contract research agreement: A project-specific research agreement under which an external organization funds research activities in exchange for defined deliverables, timelines or reporting requirements.

Technology access centre (TAC): A specialized applied research and innovation centre affiliated with a Canadian college or CEGEP that provides applied research, testing, technical services and innovation support to external organizations, particularly small and medium-sized enterprises (SMEs), to support technology development, adoption, commercialization and the resolution of business or technical challenges.

Technology readiness levels (TRLs): A scale used to assess the maturity of a technology, product, process or prototype as it progresses from research and development to deployment and operational use.

• TRL 1–3: Research, concept development and proof of concept.
• TRL 4–6: Validation, refinement and testing in laboratory, simulated or relevant operational environments.
• TRL 7–9: Demonstration, qualification, deployment and operational use.

Technology transfer office (TTO): An office that supports the identification, protection, management and transfer of intellectual property and research outputs arising from research and innovation activities. TTOs may provide services such as invention disclosure management, intellectual property assessment, patenting, licensing, partnership development and support for intellectual property commercialization.

Trade secret: Confidential business or technical information that derives value from not being generally known and is protected through measures to maintain its secrecy.

Trademarks, branding or marketing outputs: Forms of intellectual property that protects distinctive names, logos, symbols, slogans or other identifiers used to distinguish goods or services from those of others.

This guide is designed to assist respondents in completing the Survey on Research Activities and Commercialization of Intellectual Property in Higher Education (SRACIPHE).

If you require additional information or clarification while completing the survey, please contact Statistics Canada:
Help Line: 1-877-949-9492
Email: statcan.sraciphe-earcpies.statcan@statcan.gc.ca

Confidentiality

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects that could identify any person, business, or organization, unless consent has been provided by the respondent or disclosure is permitted under the Statistics Act.

Information collected through this survey will be used for statistical purposes only.

Survey Purpose

The purpose of this survey is to collect information about commercialization activities undertaken within the higher education sector.

Survey Coverage

This survey focuses on the higher education sector, including applied research and technology transfer organizations or units that carry out basic commercialization activities on behalf of postsecondary education institutions.

1) Higher education sector

The higher education sector, as defined in the Organisation for Economic Co-operation and Development (OECD) Frascati Manual, consists of institutions that provide formal postsecondary education programs such as universities, colleges, collège d'enseignement général et professionnel (CEGEPs), institutes of technology and polytechnics.

Research activities under the direct control of, or administered by, a postsecondary institution performed at another institution such as a hospital or research institute are considered part of the higher education sector. These activities are to be included in this survey and should be reported by the associated higher education institution.

For the purpose of this survey, research also includes experimental development, where applicable to the institution completing this form.

The terms research and research and development (R&D) used in this survey encompass basic, applied research and experimental development, as described by the Frascati Manual.

To reduce respondent burden, only postsecondary institutions performing more than $500,000 of R&D in the 2025 fiscal year are being asked to complete this survey.

2) Applied research and technology transfer organizations

Technology transfer offices (TTOs), Technology access centres (TACs) and centre collégial de transfert de technologie et de pratiques sociales novatrices (college centres for the transfer of technology and innovative social practices; CCTTs) are included in the survey population, including those that are external to or independent of a higher education institution. This ensures that relevant commercialization activities undertaken by some institutions are not excluded from the survey solely based on how these services are owned, organized or accessed by a postsecondary institution.

General information

General reporting principle

Information for this survey may be distributed across research offices, technology transfer offices, commercialization units, faculties, departments, affiliated organizations, and finance offices. Respondents are encouraged to coordinate across these units to provide the most complete response possible.

When deciding whether to include an activity, legal entity, agreement, intellectual property asset, or commercialization activity, include it if the activity is under the control of, administered by, owned by, or formally managed by the reporting institution during the reporting period. If the activity is managed and reported by another organization, do not report it unless specifically instructed elsewhere in the questionnaire.

Reporting

Postsecondary institutions should report for themselves wherever possible. Combined reporting is permitted where it is more practical for the institutions involved, provided that the activity of each legal entity is reported only once and is not double counted across multiple reports. If you provide information for more than one institution, please indicate the legal units included in this report in Questions 9 and 10.

The activities of TTOs, TACs and CCTTs that are administrative units of a postsecondary education institution should be reported by the postsecondary education institution. All TACs should fall into this category.

TTOs and CCTTs that are registered as a not-for-profit organization and are affiliated with one or more postsecondary education institutions, as subsidiaries or other legally distinct entities, will receive the survey. These institutions should report for themselves unless their activities are reported by their affiliated postsecondary institution as noted in Question 9.

Hospital(s) that conduct research and affiliated research institute(s) or research centre(s) whose research is not majority controlled and administered by a higher education institution are not considered part of the postsecondary sector and therefore will not receive a survey questionnaire. Postsecondary institutions affiliated with these organizations should however report the portion of research activities carried out at the affiliated hospital, research institute or research centre that are under their direct control or administration. This research is typically overseen by professors cross-appointed to the affiliated body and undertaken by graduate students of the higher education institution. Research activities that are not under the control or administered by the postsecondary institution should not be reported. This approach ensures that only the activities attributable to the higher education sector are included.

In cases where a postsecondary institution manages commercialization activities for another institution, such as fostering technology transfer or managing intellectual property (IP), pertinent questions will enable the respondent to indicate how these activities are organized and how they will be reported by this institution.

Reporting Period (Question 8)

All questions in this survey should be answered in reference to this institution's fiscal year that ended between April 1, 2025, and March 31, 2026, inclusive. The start date of the fiscal year does not matter; only the fiscal year end date is used to determine the reporting period. This period represents the Reference Year for the survey (2025).

For example:
Fiscal year April 1, 2024, to March 31, 2025, → Do not report (end date is before April 1, 2025).
Fiscal year July 1, 2024, to June 30, 2025, → Report (end date falls within the reporting period).
Fiscal year January 1, 2025, to December 31, 2025, → Report (end date falls within the reporting period).
Fiscal year April 1, 2025, to March 31, 2026, → Report (end date falls within the reporting period).

All information reported in this survey should correspond to the institution's fiscal period identified above. Financial information, including commercialization revenues and other reportable activities, should be reported for that period. Personnel counts, full-time equivalents (FTEs) and other institutional measures should also relate as closely as possible to the same reporting period. Where exact alignment is not possible, respondents should use the best available information from institutional records and apply reasonable estimates where necessary. Please note any significant departures from the reporting period or estimation methods in the survey comments section.

If the institution underwent structural changes during the reference period (e.g., amalgamation, transfer of functions, or dissolution), respondents should report data consistent with the institutional boundary applicable during the stated fiscal year and provide clarification in the comments section.

Use of Comment Boxes

Comment boxes are provided at the end of each module. Respondents are encouraged to:

• Clarify or qualify responses,
• Explain assumptions or estimation methods used,
• Identify data limitations or reporting challenges, and
• Provide suggestions to improve question wording, definitions, or response options.

Comments are reviewed by Statistics Canada and used to improve future versions of the survey.

Providing detailed and constructive feedback helps ensure that the survey remains clear, relevant, and aligned with institutional practices across the higher education sector.

General reporting instructions

Four data types

The questions in the questionnaire fall into four categories: date, categorical, numerical and currency (dollar amounts).

Date questions require a specific date as the response (e.g., DD/MM/YYYY).

Categorical questions require selecting one or more predefined response options (e.g., Yes/No, multiple choice categories).

Numerical questions require a number as the response, such as counts or percentages.

Report all dollar amounts in thousands of Canadian dollars ($CAD '000), rounded to the nearest whole thousand. For example, $55,417 should be reported as 55.

If exact figures are unavailable, provide your best estimate based on institutional records, sampling, extrapolation, administrative data, or professional judgment. Estimates are preferred to leaving responses blank whenever a reasonable estimate can be produced.

Reporting federal business numbers

Providing a federal business number is optional. If a business number is not available, you may leave this field blank and continue filling out the other fields in the question.

Reporting zero

Please respond to each question whenever possible. If the data are unavailable, leave the question blank—do not enter zero unless the correct value is zero.

Reporting incomplete or unavailable information

If precise figures are not available, please provide your best estimates.

The survey questionnaire includes non-mandatory checks in the form of pop-up windows that remind respondents of unanswered questions. By closing the pop-up window, respondents can skip the question and proceed to the next question. However, it is important to note that missing responses are considered non-responses and may result in imputation or follow-up.

Response option – not applicable

In this survey, the "Not Applicable" option means that the institution does not carry out the activities in question and that this option should be selected. Leaving responses blank will be interpreted as the information being "not available" or "unknown" and may lead to follow-up. In the event a respondent is unable to provide an answer (i.e., the information is unknown and cannot be obtained or estimated), respondents are advised to skip the question (i.e., submit a blank response) and indicate in the relevant comment box that the question could not be answered.

If a question includes a "Not applicable" or similar response option, select the option that best applies. For quantitative questions that do not include a "Not applicable" option, leave the response blank if there was no activity, activity was negligible, or a reasonable estimate cannot be provided. Please explain any omitted responses in the comment box at the end of the applicable module. This will assist Statistics Canada in interpreting your submission.

Responses, including additional information provided in the open comment boxes, will be analyzed to inform future iterations of the survey.

The Questionnaire

Module 1: Institutional Information (Question 7 - Question 11)

Question 7 – Institution Type and Structure

This question asks the respondent to confirm the type of the reporting institution. Question 7 is a filter question that all respondents are asked. It serves to minimize response burden for smaller institutions, or for those who perform more modest levels of R&D. Only institutions that are reflected in one of the three answer categories are required to complete the full questionnaire.

The response "None of the above" in Question 7 should be selected only if the institution type and structure is not reflected in the preceding answer categories.

Definition: Research and Development (R&D)

R&D includes systematic, creative activities undertaken to increase knowledge and to develop new or improved products, processes, services, or technologies.

Include:

• Salaries and benefits of employees employed by the institution conducting R&D (including permanent, temporary, or casual employees)
• Payments to self-employed individuals or contractors working on-site on the institution's internal R&D projects
• Other current expenditures that directly support in-house R&D activities (e.g., materials, supplies, software, or utilities used for R&D projects)
• Capital expenditures for R&D related infrastructure and for machinery and equipment used in R&D activities
• Payments to external institutions for R&D where the tertiary educational institution administers or has direct control over the research being conducted.

Exclude:

• Payments for R&D performed by external organizations, individuals, or companies that are not controlled or administered by this institution (extramural R&D)
• Grants, fellowships, or contracts paid to individuals or organizations within or outside Canada
• Routine activities (e.g., standard testing, maintenance, training, or market research) should only be included if they are an integral part of a defined R&D project.

Reporting instructions: Question 9 and 10

Many universities, colleges, polytechnics and CEGEPs have complex legal structures covering multiple legal entities that serve the core activities of the higher education institution. The following question is not an exercise to list all the legal structures that are part of an institution's organizational structure but to clarify what entities are being reported through this questionnaire to avoid double counting.

In general, this report should include all organizational units and legal entities that support the mission of the higher education institution. This includes the activities of all departments within the institution that are engaged, in whole or in part, in research, intellectual property support and management, and commercialization. For colleges and CEGEPs this includes the activities of centre collégial de transfert de technologie et de pratiques sociales novatrices (college centres for the transfer of technology and innovative social practices; CCTTs) and Technology Access Centres that are embedded within the institution.

Postsecondary institutions affiliated with research institutes or hospitals should report only the portion of research activities carried out at the affiliated hospital, research institute or research centre that is under the direct control of or administered by the postsecondary institution. Research activities that are not under the control or administered by the postsecondary institution should not be reported.

Technology transfer offices (TTOs) and CCTTs that operate as not-for-profit organizations affiliated with one or more postsecondary institutions, as subsidiaries may report independently.

Combined reporting

A single combined response may be submitted for the following institutional entities or arrangements, provided that the information is held or managed by the institution completing this survey, and the affiliated institution is not submitting a report in its own name.

Examples of affiliated legal entities that may be included in a combined report include:

• affiliated or federated university colleges that do not administer research funding independently, and do not receive invention disclosures directly
• small affiliated entities whose research activities (if any) and intellectual property are fully managed by the parent institution
• established network of institutions, wholly owned and operated subsidiaries (e.g., innovation centres, affiliated research institutes)
• TTOs and CCTTs that operate as separate not-for-profit organizations affiliated with one or more postsecondary education institutions, as subsidiaries, where noted in Question 10.

In Question 9 the reporting institution should indicate whether the report covers only the institution verified as the respondent in the beginning of the questionnaire (option 1), whether the report covers the verified respondent and other affiliated legal entities (option 2) or if the institution specified as the verified respondent is included in another institution's report (option 3). If the reporting institution is included in another institution's report, then the responding institution will be prompted to end the questionnaire.

An institution should select option 1 if the responding institution is:

• an overarching institution, such as a university, college, CEGEP or polytechnic. Include any centre collégial de transfert de technologie et de pratiques sociales novatrices (college centre for the transfer of technology and innovative social practices; CCTT), technology access centre or technology transfer office (TTO) embedded within the institution in this report; or,
• a CCTT or TTO that operates as a separate not-for-profit organization affiliated with one or more postsecondary institutions.

Question 10 is intended to identify all legally distinct entities whose activities are included in this report. Do not list all organizations that are affiliated with this institution. Only include affiliated higher education institutions (e.g., federated or affiliated colleges), centre collégial de transfert de technologie et de pratiques sociales novatrices (CCTTs), or technology transfer offices (TTOs) whose research, intellectual property, or commercialization activities are being reported through this questionnaire. This information is used to define the reporting boundary and prevent double counting across multiple reports. Providing a federal business number is optional. If a business number is not available or the reporting institution is not able to provide the data, you may leave this field blank and continue to add the entity.

Example

University A submits a combined report that includes:

• the university;
• an affiliated federated college; and
• a separately incorporated TTO.

All three entities should be listed in Question 10.

Activities should only be reported once. If an activity is reported by an affiliated institution, TTO, or CCTT, do not report the same activity again in another questionnaire. The affiliated entities should select option 3 of Question 9 "The response for this institution is included in the report of another institution".

Do not list:

• affiliated foundations,
• alumni associations,
• student organizations,
• pension entities, or
• other affiliated organizations whose activities are not included in this report.

Module 3: Intellectual property (Question 16 to Question 35)

This module collects information on IP management and support activities undertaken by your institution as well as IP commercialization activities.

IP management activities include identifying, protecting and managing intellectual property, such as invention disclosures, patent applications, IP portfolio management and licensing activities.

IP support activities include advisory, administrative or facilitation services that help researchers, inventors or institutions identify, protect, manage or use intellectual property.

Examples of IP management and support activities include:

• administering invention disclosure processes;
• identifying potential applications or users of research results;
• providing IP assessments, advice or education;
• preparing documentation required to protect IP;
• supporting patent, copyright or trademark applications;
• managing institutional IP portfolios;
• providing licensing guidance or administrative support;
• facilitating collaborations related to IP development or use;
• providing commercialization support services or knowledge transfer assistance;
• providing funding for IP-related activities; and
• applying for IP on behalf of a third party or supporting an application by preparing the required documentation.

Institutions should report these activities whether they are delivered by internal staff or through external service providers or partners.

IP commercialization activities involve transferring, licensing, assigning, commercializing or otherwise applying intellectual property to generate economic or societal value outside the institution. These activities typically involve formal agreements, transactions or relationships with external organizations.

Examples of IP commercialization activities include:

• licensing or assigning IP rights;
• executing option agreements;
• creating or supporting spin-off companies based on institutional IP (covered in module 5);
• negotiating commercialization agreements;
• generating licensing, royalty or other commercialization revenue;
• transferring technology or know-how to industry or other organizations; and
• supporting the market adoption of research-based products, services or technologies.

The key distinction is that IP management or support activities focus on identifying, protecting, administering and enabling the use of IP, whereas IP commercialization activities focus on transferring or exploiting IP to create economic or societal value through licensing, commercialization agreements, start-up creation or other forms of technology transfer.

IP-related activities may be carried out by one or more organizational units, such as an office of applied research, the vice-president (research) office, an industry liaison office or a technology transfer office.

Module 4: Support for advancing projects toward commercialization (Question 36 to Question 40)

The questions in this section use the Technology Readiness Level (TRL) framework to describe the maturity of a product, process or prototype. The TRL scale is referenced in the response categories for Question 36 to help respondents identify activities conducted to help advance projects towards commercialization. Respondents who did not select the following option in Question 36: "Final development, qualification or market-ready preparation of products, processes or prototypes (associated with TRL 7 and above)" are not required to answer Questions 37 to 40. These follow-up questions apply only to respondents reporting activities at TRL 7 and above.

Examples of activities typically associated with TRL 7 and above

• field testing of a prototype in an operational environment
• pilot deployment with an external client or partner
• certification, qualification, or regulatory testing
• final design refinement before market launch
• demonstration of a technology under real-world conditions.

If you provide an estimate for the number of new or improved products, processes or prototypes, please describe your estimation method and any key assumptions or calculations in the comment box for Question 39 or Question 40.

If your institution does not track activities that advanced research outcomes toward commercialization (Question 37), you may skip Question 38, which asks for the number of new or improved products, processes or prototypes.

Definition: Technology readiness levels (TRL)

A TRL scale is used to assess the maturity of a technology, product, process or prototype as it progresses from research and development to deployment and operational use.

The following table provides a short summary of each TRL level.

Module 5: Business support (Question 41 to Question 47)

Reporting instruction: Question 43

Providing a federal business number is optional. If a business number is not available or the reporting institution is not able to provide the data, you may leave this field blank and continue to add the spin-off.

Definition: Spin-off

For the purpose of this survey, a spin-off refers to a company created to commercialize intellectual property (IP) or technology developed at this institution.

Institutions should report only spin-offs where there is a formal and verifiable link to IP developed at the institution.
Please consider companies that registered as a legal entity within the 2025 fiscal year.

Include only companies that meet at least one of the following conditions:

• The company has licensed IP (e.g., patents, software, or know-how) from this institution
• The company is based on an invention disclosure submitted to this institution
• The institution has equity participation in the company based on an IP contribution.

Exclude:

• Start-ups founded by students, graduates, or staff without a formal IP relationship to the institution
• Companies based on general knowledge, skills, or experience acquired at the institution, without documented IP linkage
• Start-ups supported by incubators, accelerators, or mentorship programs unless they meet the IP-related conditions above.

Only include spin-offs that the institution can identify and substantiate based on formal records or agreements.

Definition: Start-ups

For the purpose of this survey, a start-up refers to a new company created to address a market need, typically built on a novel idea or technology and supported by a business plan and growth strategy.

Institutions should report only start-ups where there is no formal or verifiable relationship to IP developed at this institution. This applies regardless of whether the start-ups received support from this institution or not.

Please consider companies that registered as a legal entity within the 2025 fiscal year.

Include only companies that meet at least one of the following conditions:

• founded by students, graduates, or staff without a formal IP relationship to the institution
• Companies formed based on general knowledge, skills, or experience acquired at the institution, without documented IP linkage
• Companies supported by incubators, accelerators, or mentorship programs unless they meet the IP-related conditions above.

Exclude:

• Spin-offs that have licensed IP (e.g., patents, software, or know-how) from this institution
• Companies that are based on an invention disclosure submitted to this institution
• Companies where the institution has equity participation in the company based on an IP contribution.

Canadian Centre for Education Statistics

This information is collected under the authority of the Statistics Act, Revised Statutes of Canada, 1985, Chapter S-19.

Although your participation in this survey is voluntary, your cooperation is important so that the information collected will be as accurate and complete as possible.

Purpose of the survey

This survey collects financial information (income and expenditures) on all universities and degree-granting colleges in Canada. Your information may also be used by Statistics Canada for other statistical and research purposes.

Confidentiality

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Statistics Canada will use the information from this survey for statistical purposes.

Fax or e-mail transmission disclosure

Statistics Canada advises you that there could be risk of disclosure during the transmission of information by facsimile or e-mail. However, upon receipt, Statistics Canada will provide the guaranteed level of protection afforded all information collected under the authority of the Statistics Act.

Record linkages

To enhance the data from this survey, Statistics Canada may combine it with information from other surveys or from administrative sources.

General information

• Name of University (or College)
• Address of preparer
  • Street
  • City
  • Province
  • Postal Code
• Fiscal year ending: Day Month Year
• Name and title of preparer
• Telephone
  • Area code
  • Number
  • Local
• Fax
  • Area code
  • Number
• E-mail address
• Name of Senior Administrative Officer (if different from above)

Instructions

1. Please read carefully the accompanying Guidelines.
2. All amounts should be expressed in thousands of dollars ($'000).
3. In the "Observations and Comments" section, please explain financial data that may not be comparable with the prior year.
4. Please do not fill in shaded areas. All non-shaded cells should be completed.
   A nil entry should be indicated with a zero.

Reserved for Statistics Canada

• Full-time equivalent
• Report Status
• Institution Code: nceYYIII
• Comments

Observations and comments

• Description (Fund and type of income)
• Comments

Observations and comments

• Description (Fund and type of expenditure)
• Comments

Observations and comments

• Description (Function and type of expenditure)
• Comments

Consultation objectives

The Census of Environment (CoE) User Satisfaction of Products engagement activity was conducted to better understand, from the users' perspective, the relevance, usability, accessibility, quality and impact of Census of Environment products. The Census of Environment program was established to provide foundational data on Canada's environment, including information on ecosystem extent and condition, ecosystem services, and links between environmental, social and economic data. This integrated information supports Canadians in making informed decisions about ecosystems and natural capital.

The primary objective of this engagement was to assess the usefulness of Census of Environment products and outputs during the program's first five years and to identify opportunities for future improvements.

Consultation methods

The consultation was conducted through an e-form questionnaire developed collaboratively by Statistics Canada's Consultative Engagement and Census of Environment teams. The questionnaire included 13 closed-ended questions and 3 open-ended questions covering product satisfaction, usefulness, data relevance, ease of access, information needs, natural capital valuation, and opportunities for improvement.

The e-form was promoted through social media, the Census of Environment portal, The Daily, stakeholder communications and partner networks. Data collection took place between September 25, 2025 and January 30, 2026, during which 125 responses were received from a diverse group of users, including representatives from the federal government, provincial and local governments, academia, non-governmental organizations, the private sector and other interested stakeholders.

Results

Participants generally expressed positive views regarding the usefulness and relevance of Census of Environment products and data.

The consultation identified several opportunities to further enhance Census of Environment products and services. Five key recommendations emerged from the feedback:

1. Expand data on ecosystem condition, ecosystem services and natural capital valuation. 
2. Provide more geographically detailed data and reporting, for example, at regional, watershed and local scales.
3. Strengthen linkages between environmental, socio-economic and health-related data, for example, exposure to extreme heat and poor air quality.
4. Increase awareness of the Census of Environment portal and improve its organization to enhance the discoverability of products.
5. Increase outreach activities to promote Census of Environment products and keep users informed about new data releases and tools.

Statistics Canada thanks participants for their contributions to this consultative engagement initiative. Their feedback will help guide the continued development and improvement of Census of Environment products, ensuring they remain relevant, accessible and responsive to the needs of Canadians and the environmental data community.

• I. Preamble
  • A. Reconciliation to Audited Financial Statements
  • B. Limitations
• II. Reporting Practices
  • A. Prescribed Reporting Practices
  • B. Uniform Reporting Practices
    • 1. Basis of Consolidation
    • 2. Funds
    • 3. Accrual Concept
    • 4. Funds Flow Approach
    • 5. Guidance on Use of the Correct Fund
    • 6. Capital Assets
    • 7. Vacation Pay, Pension Costs and Future Benefits
    • 8. Sales and Cost Recoveries
    • 9. Interfund Transfers
    • 10. Gifts-In-Kind
    • 11. Borrowing and Principal Repayment
    • 12. Full Costing of Ancillary Services
    • 13. Use of Estimates
• III. Detailed Instructions for Institutions Reporting Financial Data
  • A. Comparable Financial Data
  • B. Annual Return
  • C. Definitions, Explanations and Examples
    • 1. Funds
    • 2. Income by Fund (Table 1)
    • 3. Expenditures by Fund (Table 2)
    • 4. General Operating Expenditures by Function (Table 4)

I. Preamble

Financial Information of Universities is an annual survey conducted by Statistics Canada to provide a basic source of reference for the financial data of universities and degree-granting colleges in Canada.

The Guidelines are intended to assist both users and preparers of the financial data reported in the annual survey (or "return"), and are organized as follows:

Section II provides general information for both users and preparers of the annual return. This section discusses financial reporting by institutions and identifies users of the annual return and their needs, as well as the relationship of generally accepted accounting principles to the financial data and the prescribed reporting practices underlying that data.

This section will assist users and preparers of the annual return to appreciate the differences between accounting principles for audited financial statements and prescribed reporting practices for the annual return.

Section III provides detailed instructions for institutions reporting financial data. This is the "how-to" section for preparers to refer to when completing the forms, and will be of interest to users who seek additional information on specific terms or particular line items used in the annual return.

A. Reconciliation to Audited Financial Statements

A copy of your audited financial statements is requested for submission along with your input return. If a copy is not available please advise us of the date on which the audited financial statements will be forwarded.

B. Limitations

Notwithstanding the use of detailed Guidelines to assist preparers, there are limitations in the comparability of the data because of differences in the underlying accounting practices followed by institutions. Even the most stringent of reporting guidelines cannot eliminate differences resulting from different underlying accounting practices. As well, interregional comparisons must recognize differences such as various sources of funding, fiscal year-end dates varying from March 31^st to June 30^th, and variations in provincial policies and provincial funding responsibilities.

Specific examples where differences between institutions result in limitations in the comparability of financial data include:

• Definition of research – The definition or research used by an institution will determine the income and expenditures that are reported in the Sponsored research fund. For example, clinical trials may or may not be defined as research and therefore may or may not be reported as sponsored research expenditures.
• Hospitals and hospital based medical research – The amount and level of detail reported by institutions for hospitals and for hospital based medical research varies depending upon the corporate relationship between the institution and the hospital.
• Canada Foundation for Innovation (CFI) Provincial matching grants – while an institution separately reports certain specific provincial government grants that are earmarked as CFI matching grants, not all provincial CFI matching grants are separately reported because not all are specific and earmarked.
• Internal sales and cost recoveries – Depending upon particular management information systems and business practices, an institution may report amounts by reducing offsetting expenditures or as internal cost recoveries.
• Computing and communication costs – The amount reported by institutions for computing and for communication costs will vary depending upon whether an institution has a centralized or decentralized structure for computing and for communications.

In addition, comparisons of financial data over multiple years should be done with caution because of changes in generally accepted accounting principles that could alter the underlying data and changes in the Guidelines that govern the reporting of the data.

II. Reporting Practices

This section will assist users and preparers of the annual return to appreciate the differences between accounting principles for audited financial statements and prescribed reporting practices for the annual return.

A. Prescribed Reporting Practices

The audited financial statements of reporting institutions are prepared in accordance with generally accepted accounting principles (GAAP). Adherence to GAAP results in consistency of reported financial results from one year to the next.

In certain situations, however, GAAP permits individual institutions to choose between equally acceptable alternatives. As an example, institutions can choose either the deferral or restricted fund method of revenue recognition, and reporting nuances of each method may make comparisons between institutions difficult.

In addition, the users of the annual return may require, in certain situations, financial data based on an accounting practice that deviates from GAAP. For example, users of capital expenditure data generally require line item reporting of income and expenditures based on the flow of funds, rather than on capitalized and amortized amounts.

By way of highlights, users and preparers of the financial data should note the following points that apply to the annual return, even though they may represent differences from the practices normally followed by individual institutions in reporting financial information:

• Restricted funds include both external and internal restrictions, rather than external only.
• Certain restricted income not expended in the year, such as income in the Sponsored research fund, is reported on the funds flow approach, rather than deferred (see Section II.B.4).
• Capital expenditures are reported on the funds flow approach, rather than capitalized and amortized (see Section II.B.6).
• Certain expenditures, such as vacation pay, pension costs and future benefits, are reported on the cash basis, rather than accrued (see Section II.B.7).
• Institutions are encouraged to minimize interfund transfers by reporting income and the corresponding expenditures in the same fund (see Section II.B.9).
• Users require income and expenditure data, only; therefore, a complete set of financial statements is not reported.

These Guidelines are not intended to conform an institution's annual return to its financial statements or its internal management reports. The prescribed practices, including the uniform reporting practices that follow, may or may not be in accordance with generally accepted accounting principles. These Guidelines are intended to promote consistency of financial data.

B. Uniform Reporting Practices

For consistency of financial data, reporting institutions and the preparers of the annual return within those institutions must comply with the Guidelines in general, and specifically with the uniform reporting practices. The uniform reporting practices, and the detailed instructions that follow in Section III, have been developed recognizing that balance is required between the information requirements of the users of the annual return and the response burden that is placed on the preparers. The uniform reporting practices are as follows:

1. Basis of Consolidation

For related and affiliated entities, each institution is to report financial data in the annual return on the same basis as that used for its consolidated financial statements. If the financial data for the entity are only reported in the notes to the consolidated financial statements, then the financial data are not reported in the annual return. For instance, the financial data for a Charitable Foundation will only be included in the annual return if the Charitable Foundation is consolidated in the financial statements of the institution.

2. Funds

The financial data will be reported following a form of fund accounting. Fund accounting classifies resources for accounting and reporting purposes in accordance with activities or objectives as specified by donors, in accordance with regulations, restrictions, or limitations imposed by sources outside the institution, or in accordance with directions issued by the governing body of the institution.

A fund is an accounting entity with a self-balancing set of accounts for recording assets, liabilities, a fund balance, and changes in the fund balance. Funds have been identified as either unrestricted or restricted. Restricted funds, other than Endowment, account for resources that may be used for current purposes, but with some limitations imposed by external or internal sources.

For accounting and reporting purposes, institutions combine the funds with similar characteristics into distinct fund groups. The fund groups reported in the annual return, with a brief explanation of each, are as follows:

General operating is an unrestricted fund that accounts for the institution's primary operating activities of instruction and research, other than sponsored research.

Special purpose and trust is a restricted fund. The funds, including donations, may be restricted by external sources, or internally restricted by the institution's governing body, for purposes other than sponsored research (Sponsored research fund), or capital (Capital fund).

Sponsored research is a restricted fund that accounts for income and expenditures for all sponsored research. Amounts are separately reported for entities consolidated and entities not consolidated (see Section II.B.1).

Ancillary is an unrestricted fund that separately accounts for all "sales-producing" operations or "self-supporting" activities that are supplementary to the institution's primary operating activities of instruction and research.

Capital is a restricted fund that accounts for resources provided to the institution for capital purposes and not reported in any other fund.

Endowment is a restricted fund that accounts for the capitalization of externally or internally restricted amounts, primarily donations, which cannot be spent.

Section III.C.1 provides additional information and explanatory comments on each of the above funds.

3. Accrual Concept

As a general reporting practice, institutions follow the accrual, rather than the cash basis of accounting. The accrual concept refers to the method of recording transactions where income is reported in the period in which the income is considered to have been earned, rather than received; and expenditures, in the period in which the expenditures are considered to have been incurred, rather than disbursed. An example of the application of this concept to an income item is the accrual for interest earned, but not received; and, to an expenditure item, is the accrual for retroactive salary costs earned, but not paid.

Exceptions in the annual return to the accrual concept include

• the funds flow approach for reporting income in the Special purpose and trust, and Sponsored research funds (see Section II.B.4),
• the funds flow approach for reporting income and expenditures for capital asset transactions (see Section II.B.4), and
• the cash basis for reporting vacation pay, pension costs and future benefits (see Section II.B.7).

4. Funds Flow Approach

For specific types of activities, income will be reported in the annual return following a funds flow approach; that is, for both Special purpose and trust, and Sponsored research (see Section III.C.1), the funds are reported as income in the period in which the funds are received or receivable. The corresponding expenditures, on the other hand, are reported consistent with the accrual concept; that is, in the period in which the expenditures are incurred. For example, when an institution is awarded a research contract, the income is reported when the funds are received or receivable under the terms of the contract.

Income and the corresponding expenditures are to be reported in the same fund (see Section II.B.9).

5. Guidance on Use of the Correct Fund

For all funds the matching principle applies; that is the revenue and related expenditure should be recorded in the same fund. It is not as straightforward to decide whether the revenue or expenditure source should dictate the fund where they are recorded. Depending upon the fund, there is not one method that says that expenditures should be recorded in the same fund as the revenue (expenditures follow revenues) or vice versa (revenues follow expenditures). Other reporting considerations have taken precedence over this consideration. However, while the applicable method may not be consistent across all funds, it is consistent within a given fund. The following shows the method to follow for each fund:

Operating Fund – expenditures follow revenues; Special Purpose & Trust Fund – expenditures follow revenues; Sponsored Research Fund – expenditures follow revenues; Ancillary Fund – expenditures follow revenues; Endowment Fund – revenues follow expenditures; Capital Fund – expenditures follow revenues.

6. Capital Assets

The uniform reporting practice in the annual return for capital expenditures is to follow the funds flow approach, rather than to capitalize and amortize. Funds received to acquire capital assets are reported as income in the period in which the funds are received or receivable. Funds used to acquire capital assets are reported as expenditures in the period in which the funds are paid or payable.

Capital expenditures are to be reported in the same fund as the corresponding income. Specifically, capital expenditures are only reported in the Capital fund when the corresponding income is reported in the Capital fund.

7. Vacation Pay, Pension Costs and Future Benefits

Vacation pay, pension costs and future benefits, including benefits arising as a result of early retirement, are to be reported on the cash basis. The cash basis refers to the method of recording transactions where expenditures are reported in the period in which cash is disbursed.

8. Sales and Cost Recoveries

The practices followed by institutions in reporting sales and cost recoveries in their financial records vary significantly and, for the most part, are dependent upon the particular management information systems and business practices of the respective institutions.

For the annual return, as a general practice, sales and cost recovery amounts are to be reported at "gross", rather than "net". "Gross" means that the sales and the corresponding cost are reported as separate items. "Net" means that the sales and corresponding cost are combined, and the difference is reported as a separate item. Reporting amounts at "gross" provides users of the financial data with better information than reporting at "net".

Sales and cost recovery transactions can generally be classified as external sales, internal sales, external cost recoveries and internal cost recoveries.

• (a) External sales and external cost recoveries – "third party" transactions, where the price to the external party is determined based on either the commercial value of the services or product, or the cost of the services or product. The price may or may not include a profit component.
• (b) Internal sales – transactions between funds or functions, where the price to the internal party is determined based on either the commercial value of the services or product, or the cost of the services or product. The price includes a profit component. Internal sales exclude transactions based specifically on indirect or overhead costs. For the purposes of the annual return, internal sales will be categorized by those sales originating from ancillary services (see Section III.C.1 – Ancillary) and those sales originating from other funds or functions.
• (c) Internal cost recoveries – the recovery, allocation, charge-out or transfer of costs between funds or functions. Internal cost recoveries refers specifically to indirect or overhead costs.

External sales, external cost recoveries and internal sales originating from ancillary services are to be reported as sale of services and products. (See Section III.C.2 – line 25.)

As an exception to reporting amounts at "gross", and also to avoid double counting of income and expenditures, the preferred method of reporting internal sales, other than those originating from ancillary services, is to report the amounts at "net". To report at "net", income in the fund or function selling the services or product is netted against the expenditures in that same fund or function. The fund or function purchasing the services or product reports the expenditure. Alternatively, where "netting" is not possible or feasible within a fund or function, the internal sales can be reported separately under an expenditure line item (a recovery) in both the fund or function selling the services or product and the fund or function purchasing the services or product. (See Section III.C.3 – line 20.)

Internal cost recoveries are also to be reported in such a manner as to avoid double counting of expenditures. The preferred method is direct allocation – that is, by reducing the expenditure types in the fund or function from which the costs are allocated, offset with a corresponding increase in the same expenditure types in the fund or function to which the costs are allocated. This approach provides users with better functional comparisons of individual expenditure line items. Alternatively, where direct allocation is not possible or feasible, the internal cost recoveries can be reported separately under an expenditure line item (a recovery) in the fund or function from and to which the costs are allocated. (See Section III.C.3 – line 20.)

9. Interfund Transfers

Situations arise where in the normal course of operations, an institution reports income in one fund, but reports the corresponding expenditure in another fund. In such situations, the institution records a transfer from the fund in which the income was received, to the fund in which it is expended. This transfer is referred to as an interfund transfer. The transfer of an operating surplus from the Ancillary fund to the General operating fund is an example of an interfund transfer.

These Guidelines encourage institutions to report income and the corresponding expenditure in the same fund. For example, capital expenditures are to be reported in the same fund as the corresponding income and investment income earned on trust and endowment funds is to be reported in the same fund as the corresponding expenditures. This approach provides users with better financial data to calculate statistics such as the relationship between income and expenditures, by fund.

10. Gifts-In-Kind

Gifts-in-kind that are recorded in an institution's audited financial statements will be reported in the annual return as both an income and expenditure item.

11. Borrowing and Principal Repayment

Interest payments will be reported as expenditures in the appropriate fund. The borrowing and repayment of principal will not be reported as income or expenditure.

12. Full Costing of Ancillary Services

Ancillary services (see Section III.C.1 – Ancillary) should include all direct expenditures and cost allocations related to ancillary operations. Cost allocations, for example, should include a reasonable allocation for utility (unless the utility is an ancillary service) and plant maintenance, and for the institution's management and administrative support. Cost allocations to ancillary services are internal cost recoveries (see Section II.B.8) in the fund or function from which the costs are allocated.

13. Use of Estimates

To complete the annual return in accordance with these uniform reporting practices, costs may have to be allocated among funds and functions. Where cost allocations are required, the allocations can be based on best estimates.

III. Detailed Instructions for Institutions Reporting Financial Data

This section provides detailed instructions for institutions reporting financial data. This is the "how-to" section for preparers to refer to when completing the annual return, and will be of interest to users who seek additional information on specific terms or particular line items used in the annual return. Preparers of the financial data should review the previous sections of the Guidelines before proceeding.

A. Comparable Financial Data

Normally, the criteria for placement of a particular income or expenditure item within a fund or function in the annual return is the same as that used by an institution in its financial statements or internal management reports. However, where the Guidelines specifically designate the placement of an item, the item must be shown under the designated heading regardless of the institution's practice. Consequently, the classification of activities or items of income and expenditure in the annual return may differ from the classification used by an institution in its financial statements or internal management reports. For example, health services and athletics are to be reported in the Student services function in the annual return (see Section III.C.4 – Student services) although they may be reported as ancillary services in the institution's financial statements or internal management reports.

The financial data reported by each institution will be more useful when the data have been prepared consistently over time. In order to satisfy user information needs, preparers must comply with these Guidelines.

B. Annual Return

The detailed financial data requested in the annual return are reported in Tables 1, 2 and 4. (Note that Table 3 pertains to a more detailed survey conducted with other institutions and is not part of this package). The contents of the annual return are as follows:

• General Information and Instructions
• Table 1. Income by Fund
• Table 2. Expenditures by Fund
• Table 4. General Operating Expenditures by Function

In certain situations, an institution may determine that while it has complied with the Guidelines, it has provided financial data that may exceptional. In such situations, the institution can provide either accompanying notes of explanation, or observations and comments in the space provided at the bottom of each Table. This additional information would be useful for Statistics Canada in its review of the annual return for reasonableness. Examples could be any "material" extraordinary or non-recurring income or expenditure item included in a fund and/or functional area.

An institution may also use the space provided at the bottom of each Table for any observations and comments that the institution wishes to make regarding items not covered in the annual return.

Preparers should recognize that users of the annual return are prepared to accept reasonable allocations where exact numbers are not available (see Section II.B.13).

C. Definitions, Explanations and Examples

The funds are discussed first, to assist the preparer to segregate the various income and expenditure items for reporting purposes. Following the discussion of funds, the financial data to be reported on the applicable lines in each Table are discussed. The financial data should be reported by fund in Tables 1 and 2 of the annual return.

1. Funds

Fund accounting (see Section II.B.2) classifies resources for accounting and reporting purposes in accordance with activities or objectives as specified by donors, in accordance with regulations, restrictions, or limitations imposed by sources outside the institution (external restrictions) or in accordance with directions issued by the governing body (internal restrictions). Funds have been identified as either unrestricted or restricted. Restricted funds, other than Endowment, account for resources that may be used for current purposes, but with some limitations imposed by external or internal sources.

For accounting and reporting purposes, institutions combine the funds with similar characteristics into distinct fund groups. For the annual return, the fund groups are General operating, Special purpose and trust, Sponsored research, Ancillary, Capital, and Endowment.

Preparers should note the following:

• restricted funds include both external and internal restrictions,
• income and expenditure within Sponsored research is separately reported for entities consolidated and entities not consolidated (see Section II.B.1),
• interfund transfers should be minimized by reporting income and the corresponding expenditure in the same fund (see Section II.B.9).

General operating is an unrestricted fund that accounts for the institution's primary operating activities of instruction and research, other than sponsored research. The general operating fund includes the costs of privately funded and non-credit programs.

Fund income includes provincial government grants (including research other than sponsored research), student tuition and other fees (for credit and non-credit courses), and income from private and other unrestricted sources. Fund income also includes investment income, if the corresponding expenditures are reported in the General operating fund.

Fund expenditures are for the general operating costs of the institution including instruction and research (other than sponsored research), academic support services, library, student services, administrative services, plant maintenance, external relations and other operating expenditures of the institution. Fund expenditures also include the purchase of capital assets, if the corresponding income is reported in the General operating fund.

Special purpose and trust is a restricted fund. The funds, including donations, may be restricted by external sources, or internally restricted by the institution's governing body, for purposes other than sponsored research (Sponsored research fund), or capital (Capital fund). Income is to be reported following the funds flow approach (see Section II.B.4).

Fund income includes designated gifts, benefactions and grants. Fund income also includes investment income, if the corresponding expenditures are reported in the Special purpose and trust fund.

Fund expenditures include the purchase of capital assets, if the corresponding income is reported in the Special purpose and trust fund.

Sponsored research is a restricted fund that accounts for income and expenditures for all sponsored research. Amounts are separately reported for entities consolidated and entities not consolidated (see Section II.B.1). Income is to be reported following the funds flow approach (see Section II.B.4).

Fund income includes funds to support research paid either in the form of a grant or by means of a contract from a source external to the institution. Income sources include government, private industry and donors. The federal grant allocation for Indirect Costs of Research would be included here. The corresponding expenditures should be reported as an internal cost recovery between the Operating and Sponsored Research Funds, similar to the treatment of overheads. Fund income also includes investment income, if the corresponding expenditures are reported in the Sponsored research fund.

Fund expenditures include activity funded from Sponsored research income and exclude activity funded from the General operating fund. Fund expenditures include the purchase of capital assets, if the corresponding income is reported in the Sponsored research fund. Fund expenditures also include internal cost recoveries (see Section II.B.8).

Funds from Canada Foundation for Innovation, along with applicable matching funds, are to be reported as Sponsored research income. The corresponding expenditures, including the purchase of capital assets, are to be reported as Sponsored research expenditures.

Funding related to Canada Research Chairs are to be reported as Sponsored Research income. The corresponding expenditures, including the purchase of capital assets, are to be reported as Sponsored Research expenditures.

Within the Sponsored research fund, the first column in the applicable Tables is used to report income and expenditures for entities consolidated, and the second column, for entities not consolidated. Both columns combined represent the total Sponsored research reported by the institution. For the first column, "Entities Consolidated", reported amounts are based on the financial data of entities included in the consolidated financial statements of the institution.

For the second column, "Entities not Consolidated", institutions are permitted to separately report sponsored research, including hospital based medical research funding, that is granted to academic staff of the reporting institution, but conducted in entities that are not consolidated. Reporting of the sponsored research is permitted if all the following four conditions are met:

• the entity not consolidated must be an affiliated institution as established by an affiliation agreement with the reporting institution.
• academic staff from the reporting institution lead the sponsored research project and conduct the research at the non-consolidated affiliated institution,
• the financial data (income and expenditure) for the sponsored research are reported in the financial statements of the non-consolidated affiliated institution, and
• the sponsored research would be reported in the Sponsored research fund had the research been conducted at the reporting institution, rather than at the affiliated institution.

In addition, for "Entities not Consolidated", the amounts reported as income (Table 1, line 27, column 4) must equal the amounts reported as expenditures (Table 2, line 24, column 4).

To provide financial data that are comparable, the income and expenditure items for sponsored research for entities not consolidated are to be reported in accordance with these Guidelines. Although this financial data have not been subject to audit by the reporting institution, there is an expectation that the data have adequately documented support.

Ancillary is an unrestricted fund that separately accounts for all "sales-producing" operations or "self-supporting" activities that are supplementary to the institution's primary operating activities of instruction and research. Ancillary services exist to provide goods and services to students, faculty, staff, and others. Ancillary services charge a fee directly related to, although not necessarily equal to, the cost of the goods or services.

Ancillary services typically include bookstores, food services (dining hall, cafeterias, vending machines), residences and housing, parking, university press, publishing, laundry services, property rentals, university facility rentals, theaters, and conference centers.

All sales, external and internal, from ancillary services are reported as income (see Section II.B.8).

To report expenditures, full costing of ancillary services is required (see Section II.B.12). The preferred method of reporting internal cost recoveries or cost allocations is direct allocation, but where direct allocation is not possible or feasible, the internal cost recoveries can be reported under a separate expenditure line item (see Section II.B.8). Any capital items purchased directly from Ancillary income are to be reported in the Ancillary fund on the appropriate expenditure line.

Capital is a restricted fund that accounts for resources provided to the institution for capital purposes and not reported in any other fund. Income and expenditures are to be reported following the funds flow approach for capital assets (see Section II.B.6).

Fund income includes grants and related investment income, donations, and other resources made available to the institution by external funding sources, such as government and donors, specifically for capital purposes.

Fund expenditures include building programs, acquisitions of major equipment and furniture, major renovations and alterations, space rental and buildings, land and land improvements.

Because capital expenditures are to be reported in the same fund as the corresponding income, not all capital expenditures will be reported in the Capital fund. For example, funds from Canada Foundation for Innovation, along with applicable matching funds, are to be reported as Sponsored research income. The corresponding expenditures, including the purchase of capital assets, are to be reported as Sponsored research expenditures.

Endowment is a restricted fund that accounts for the capitalization of externally or internally restricted amounts, primarily donations, which cannot be spent.

Investment income generated by endowments may be used for various purposes, with these purposes often restricted by donors. Investment income should be reported in the same fund as the corresponding expenditures. Expenditures, excluding those incurred to earn investment income, are to be reported in an appropriate fund other than the Endowment fund. Expenditures incurred to earn investment income are to be reported "net" of the investment income.

Investment income that is used to preserve the capital value of the Endowment fund is reported as income in the Endowment fund.

2. Income by Fund (Table 1)

The funds described in Section III.C.1 are reported in columns 1, 2, 5, 6, 7 and 8 in Table 1, with the total of the funds reported in column 9. Column 5 reports the sub-total for the Sponsored research fund. Within Sponsored research, column 3 reports "Entities Consolidated" and column 4 reports "Entities not Consolidated".

The types of income to be reported in Table 1 are identified on the left-hand side of the Table. If there is uncertainty as to which line to use to report a type of income, report the income on the line best describing the activity. For example, government funds to pay tuition fees for participants in a non-credit program should be reported on line 13 (Non-credit tuition), rather than under government grants and contracts. Furthermore, where the designation of a particular type of income in this Table differs from that used by an institution in its financial statements or its internal management reports, the type of income must be shown per the Guideline instructions regardless of the institution's practice.

As a general reporting practice, institutions follow the accrual, rather than the cash basis of accounting (see Section II.B.3). For reporting income, exceptions to the accrual concept in the annual return include the funds flow approach for reporting funds received to acquire capital assets (see Section II.B.6) and for reporting income in the Special purpose and trust, and Sponsored research funds (see Section II.B.4).

Income includes gifts-in-kind that are recorded in an institution's audited financial statements (see Section II.B.10).

The six major categories of income are:

• government departments and agencies – grants and contracts,
• tuition and other fees,
• donations, including bequests
• non-government grants and contracts,
• investment, and
• other (including sale of services and products, and miscellaneous).

(i) Government departments and agencies - grants and contracts

Lines 1 to 11 include grants from, and contracts with, federal government departments and agencies, provincial government departments and agencies, and municipal governments. Grants and contracts from other provincial governments and from foreign governments are also reported in this category.

Government grants provide financial support to institutions and the grants may or may not be restricted.

Government contracts provide financial support to institutions under certain stipulations and conditions, including the provision of a deliverable product, such as a piece of equipment, a service, or a report. A contract normally includes provisions for institutions to recover certain indirect or overhead costs, with the contract specifying or documenting the basis for the calculation of the recoverable costs.

Federal

Lines 1 to 7 include all research grants, research contracts, grants and contributions from the Government of Canada and its departments and agencies, including the federal portion of capital and other grants that flow through a provincial government. Income received from the six major federal government agencies is reported on lines 1 to 6, as applicable.

The line items under "federal" are as follows:

Line 1 Social Sciences and Humanities Research Council (SSHRC)

Line 2 Health Canada

• Income from Health Canada not reported under Line 4 – Canadian Institutes of Health Research (CIHR) – should be reported in this line.

Line 3 Natural Sciences and Engineering Research Council (NSERC)

Line 4 Canadian Institutes of Health Research

Line 5 Canada Foundation for Innovation (CFI)

• CFI income is reported under the Sponsored research fund.

Line 6 Canada Research Chairs

• Funding for Canada Research Chairs is reported under the Sponsored Research Fund.

Line 7 Other federal

• Income from all other federal government departments and agencies is reported on this line. This would include grant allocations for the Indirect Costs of Research.

Other

Lines 8 to 11 include all grants from, and contracts with, the province and its departments and agencies, municipal governments, other provinces, and foreign governments.

The line items under "other" are as follows:

Line 8 Provincial

• Income from provincial government departments and agencies, including provincial CFI matching grants, is reported on this line.
• Provincial CFI matching income from the Ministry responsible for the institution is reported under the Sponsored research fund.

Line 9 Municipal

• Examples of income to be reported on this line include grants from urban transit, communication and parking authorities.

Line 10 Other provinces

• This line includes grants from, and contracts with, provinces other than the province with jurisdiction.

Line 11 Foreign

• Examples of income to be reported on this line include grants from the National Endowment for Humanities, National Institutes of Health, and the National Science Foundation.

(ii) Tuition and other fees

The types of revenue (Lines 12 to 14) include credit course tuition, non-credit tuition and other fees.

Line 12 Credit course tuition

• Credit courses are courses of instruction or programmed learning that are offered within a degree program; or, that may be granted status equivalent to a credit course within a degree program.
• Credit courses are offered during the fall and winter sessions of a semester type operation, all three terms of a trimester operation and the year round operation of graduate schools and include intersession, spring session and summer session credit courses and credit extension.
• Credit course tuition includes tuition and other mandatory fees related to the instruction of the courses, such as computer and laboratory fees.
• Credit course tuition also includes fees for “make up” or special courses that are related to the credit offerings of the institution, and fees for auditing in credit courses.
• Credit course tuition should be reported on this line whether the cost of the credit course is subsidized or fully recoverable.

Line 13 Non-credit tuition

• Non-credit programs are courses of instruction or programmed learning that are not credit courses (see line 12).
• Non-credit tuition includes fees for lectures, courses and similar activities that are not recognized by the institution for the purpose of granting credit. Non-credit programs are usually offered through continuing education units.
• Government funds to pay tuition for participants in a non-credit program should be reported as non-credit tuition, rather than as government grants and contracts.

Line 14 Other fees

• Other fees include all compulsory and non-compulsory fees charged to students such as health services, athletics, library, applications, late registrations, lockers and transcripts. These fees would be reported under the General operating fund.
• Other fees exclude fees collected by the institution acting in an agency capacity. An example would be student fees collected on behalf of student controlled and administered activities such as student councils or federations.

(iii) Donations, including bequests

Donations are a voluntary transfer of cash or negotiable instruments made without expectation of return or benefits of any kind to the donor. Bequests flow from wills. Donations, including bequests, are considered to be gifts for tax purposes. Amounts received that are eligible to be receipted as charitable donations for federal income tax purposes are to be reported on lines 15 to 17, as applicable.

Lines 15 to 17 categorize "donations, including bequests" by individuals, business enterprises, foundations and not-for-profit organizations.

In addition, donations designated for specific purposes and donations that cannot be spent are reported in the Endowment fund (see Section III.C.1 – Endowment). Donations also include gifts-in-kind that are recorded in an institution's audited financial statements (see Section II.B.10).

With the exception of circumstances outlined in the preceding paragraph, donations are to be reported in the same fund as the corresponding expenditures (see Section II.B.9).

Line 15 Individuals

• This line includes families.

Line 16 Business enterprises

• Business enterprises include unincorporated businesses as well as privately or publicly incorporated companies that are operated for profit and derive revenue mainly from the sale of goods and services. The common forms of unincorporated businesses are sole proprietorships and partnerships, and examples include farmers and professional practitioners.

Line 17 Not-for-profit organizations

This includes foundations and other not-for-profit organizations.

• A foundation is an entity that can either be a corporation or a trust constituted and operated exclusively for charitable purposes. Funds contributed to an institution by a non-consolidated charitable foundation would be reported here.
• Not-for-profit organizations include associations or societies, and examples include religious organizations, labour unions, professional organizations and fraternal societies.

(iv) Non-government grants and contracts

Non-government grants and contracts provide financial support under certain specific stipulations and conditions, including the provision of a deliverable product, such as a piece of equipment, a service, or a report. The amounts received by an institution are not considered as charitable donations for tax purposes and therefore are ineligible to be receipted as charitable donations for federal income tax purposes.

Lines 18 to 20 categorize "non-government grants and contracts" by individuals, business enterprises, foundations and not-for-profit organizations.

Line 18 Individuals

• This line includes families.

Line 19 Business enterprises

Business enterprises include unincorporated businesses as well as privately or publicly incorporated companies that are operated for profit and derive revenue mainly from the sale of goods and services. The common forms of unincorporated businesses are sole proprietorships and partnerships, and examples include farmers and professional practitioners.

Line 20 Not-for-profit organizations

This includes foundations and other not-for-profit organizations.

• A foundation is an entity that can either be a corporation or a trust constituted and operated exclusively for charitable purposes.
• Not-for-profit organizations include associations or societies, and examples include religious organizations, labour unions, professional organizations and fraternal societies.

(v) Investment Income

Investment income includes income from dividends, bonds, mortgages, short-term notes and bank interest. Bond interest would include an accrual for stripped bonds (see Section II.B.3). Investment income also includes realized and unrealized gains and losses on investment transactions, if the gains and losses are reported in the audited financial statements, regardless of how investments have been designated by the institution (held for trading or not).

Investment income excludes income from a non-consolidated charitable foundation. Income from a non-consolidated charitable foundation should be reported on line 17 (Not-for-profit organizations).

Included in this section are endowment and other investment income (Line 21 and 22).

Line 21 Endowment

• Investment income earned on endowment funds is reported on this line under the same fund as the corresponding expenditures.
• Investment income earned on endowment funds and used to preserve the capital value of the Endowment fund is reported on this line under the Endowment fund.
• Expenditures incurred to earn investment income, such as the cost of an investment manager(s) to manage the endowment funds, are to be reported "net" of the investment income.

Line 22 Other investment

• Investment income earned on all funds other than endowment funds is reported on this line under the same fund as the corresponding expenditures.
• Other investment income also includes charges for deferred or installment payments and for unpaid student tuition and other fees.
• Any significant non-recurring items should be explained by way of accompanying notes or in the observations and comments section at the bottom of Table 1.

(vi) Other

Other income (Lines 23 and 24) includes sale of services and products, and miscellaneous.

Line 23 Sale of services and products

• This line includes external sales and external cost recoveries (see Section II.B.8).
• External sales and external cost recoveries include sales to outside organizations, such as those for laboratory tests, space rental, utilities and incidental income (including athletic gate receipts, parking fees, conferences and various medical clinics).
• This line also includes rental income from residences and parking.
• Payments received from non-consolidated federated or affiliated entities for the provision of instructional, administrative or other services are reported as sale of services and products.
• For ancillary services (see Section III.C.1 – Ancillary), this line includes both external and internal sales (see Section II.B.8).
• Internal sales, other than those originating from ancillary services, and internal cost recoveries are not reported as income.

Line 24 Miscellaneous

• Miscellaneous income includes commissions, royalties and fees from the use of institution owned rights or properties, or fees for services rendered. Miscellaneous also includes library and other similar fines, rentals, net gain or loss on sale of fixed assets and any type of income not identified in the other categories of income.
• Payments received from non-consolidated federated or affiliated entities for the provision of instructional, administrative or other services are reported as sale of services and products (line 23).

3. Expenditures by Fund (Table 2)

The funds described in Section III.C.1 are reported in columns 1, 2, 5, 6, 7 and 8 in Table 2, with the total of the funds reported in column 9. Column 5 reports the sub-total for the Sponsored research fund. Within Sponsored research, column 3 reports "Entities Consolidated" and column 4 reports "Entities not Consolidated".

The types of expenditures to be reported in Table 2 are identified on the left-hand side of the Table. Where the designation of a particular expenditure in this Table differs from that used by an institution in its financial statements or its internal management reports, the expenditure must be shown under the designated Table heading regardless of the institution's practice.

As a general reporting practice, institutions follow the accrual, rather than the cash basis of accounting (see Section II.B.3). For reporting expenditures, exceptions to the accrual concept in the annual return include the funds flow approach for reporting funds used to acquire capital assets (see Section II.B.6) and the cash basis for reporting vacation pay, pension costs and future benefits (see Section II.B.7).

Expenditures include gifts-in-kind that are recorded in an institution's audited financial statements (see Section II.B.10).

The repayment of principal will not be reported as an expenditure (see Section II.B.11).

Lines 1 to 20 report expenditures that are generally recurring, with a sub-total for lines 1 to 20 reported on line 21. Lines 22 and 23 report significant periodic expenditures such as those for buildings, land and land improvements (line 22) and unusual or non-recurring expenditures, referred to as lump sum payments (line 23), such as those for special assisted early retirement programs. The total of all expenditures is reported on line 24.

The types of expenditures to be reported in Table 2, by line, are as follows:

Lines 1 – 3: Salaries and wages

Salaries and wages are categorized as academic salaries (lines 1 and 2) and other salaries and wages (line 3). Academic salaries are reported by academic ranks (line 1) and by other instruction and research (line 2).

The following types of payments are to be reported as salary and wage expenditures:

• compensation payments, such as payments for salary continuance during sick leave or maternity leave,
• severance payments as a result of terminations in the normal course of business, and
• vacation pay (see Section II.B.7).

Certain lump sum payments for current and future fiscal periods to employees who have terminated employment with the institution are reported on an accrual basis as lump sum payments (line 23).

With the exception of vacation pay, the amounts to be reported as salaries and wages in the annual return are to be calculated following the same practices as those used by the institution for its audited financial statements.

Lines 1 – 2: Academic salaries

Academic salaries are reported by academic ranks and by other instruction and research.

Line 1 Academic ranks

• This line includes payments to both full and part time staff members who hold an academic rank at the reporting institution and are engaged in instruction and research activities.
• The academic ranks include deans, professors, associate professors, assistant professors and lecturers.
• Academic salaries also include payments to staff members in the academic ranks for various types of leave such as administrative, academic or sabbatical.

Line 2 Other instruction and research

• This line includes payments to both full and part time staff and non-staff members without academic rank at the reporting institution, but who are engaged in instruction and research activities.
• The staff and non-staff members include instructors, tutors, markers, laboratory demonstrators, teaching assistants, research assistants, invigilators, clinical assistants, post-doctoral fellows, and others.
• Other instruction and research salaries also include payments made to graduate and undergraduate students undertaking instruction and research activities.

Line 3 Other salaries and wages

• This line includes salaries and wages not reported on lines 1 and 2. Specifically, other salaries and wages includes payments to all full and part time non-instructional (support) staff including among others, technicians, teaching and research laboratory technicians, clerical and secretarial, professional and managerial, janitorial, trades and maintenance.
• Other salaries and wages also includes payments to individuals who may hold an academic rank, or equivalent thereto, but are engaged in activities other than instruction and research. Examples of such individuals include the president, vice-presidents, certain professional librarians and computing center personnel.

Line 4 Benefits

• Pension costs and future benefits, including benefits arising as a result of early retirement, are to be reported on the cash basis (see Section II.B.7). Otherwise, the amounts to be reported as benefits in the annual return are to be calculated following the same practices as those used by the institution for its audited financial statements.
• Benefits include the cost of an institution's contributions (with respect to salaries) for pensions (including payments for actuarial deficiencies and past service liability), group life insurance, salary continuance insurance, dental plans, workers' compensation, health taxes, tuition remission, employment insurance and other costs of an employee benefit programs.
• Benefits also include the cost of benefits paid during early retirement periods, as well as the cost of post retirement benefits.
• Whenever an institution pays a premium or sets aside a negotiated amount for an employee, these amounts should be included as Benefits.
• Memberships or other perquisites of employment are not reported as Benefits.

Line 5 Travel

• Travel includes expenditures on recruitment, travel, moving and relocation of staff, field trips and all other types of travel necessary for the operation of the institution.

Line 6 Library acquisitions

• Library acquisitions include all purchases of, and access to (including electronic access), books, periodicals and other reference materials for the institution's main branch and faculty or departmental libraries.
• Cost of binding may also be included if normally considered part of the acquisition cost.

Line 7 Printing and duplicating

• This line includes expenditures that would normally be consumed in the fiscal year such as printing, duplicating, photocopying, reproductions, illustrations, publishing and the related supplies.

Line 8 Materials and supplies

• Materials and supplies include expenditures that would normally be consumed in the fiscal year such as sports supplies, stationery, computer and other office supplies.
• Also included are material and supplies for teaching and laboratories. Laboratory supplies include chemicals, instruments, animals, feed and seed.
• Small dollar value equipment and computer software items should be reported under furniture and equipment purchase (line 18).

Line 9 Communications

• Communications includes telephone, data communications, mailing and courier, but excludes expenditures reported as equipment rental and maintenance (line 19).
• Telephone includes watts lines, line services, long distance and other charges.

Line 10 Other operational expenditures

• This line includes space rental, property taxes, institutional membership fees, insurance, meals, advertising and promotion, and doubtful accounts.
• Space rental includes the cost of renting space and land on a long-term basis.
• Property taxes include all taxes paid directly to municipalities by the institution, whether assessed on property values or based on student population.
• Institutional membership fees include fees paid by the institution to outside organizations in lieu of membership.
• This line includes all other expenditures that are not reported elsewhere.

Line 11 Utilities

• Utilities include expenditures for items such as electricity, water, natural gas, fuel and sewer.
• Utilities also include the generating costs for electricity, steam, water, and natural gas.

Line 12 Renovations and alterations

• This line includes expenditures for renovations and alterations to the existing space of the institution, whether the expenditures are internally performed or externally contracted.

Line 13 Scholarships, bursaries and prizes

• This line includes payments to students (except those for which the student is required to perform service for the payment) such as those for fee remission, prizes and awards.
• Payments for which the student is required to perform service for the payment are reported as other instruction and research (line 2), and include payments to graduate and undergraduate students who are instructors, tutors, markers, laboratory demonstrators, teaching assistants, research assistants, invigilators, clinical assistants, post-doctoral fellows, and others.

Line 14 Externally contracted services

• This line includes all expenditures for services contracted to external agencies except for renovations and alterations (line 12), professional fees (line 15), equipment rental and maintenance (line 19), and buildings, land and land improvements (line 22).
• Examples of expenditures to be included are cleaning contracts, security services, snow removal and similar time and material contracts, and food services.
• Where food services are contracted, the contract amount in total should be shown on this line and not as cost of goods sold (line 16) or any other expenditure types, even though the contractor may provide a breakdown of costs.

Line 15 Professional fees

• Professional fees include all fees paid to legal counselors (including retainers for the negotiations of collective agreements), auditors, and computer, human resource and other consultants.
• This line excludes consulting fees for renovations and alterations (line 12), equipment rental and maintenance (line 19), and buildings, land and land improvements (line 22).

Line 16 Cost of goods sold

• Cost of goods sold is to be used where an inventory method of accounting is normally employed, (e.g. bookstore, food services) and should include the laid down cost of goods purchased for resale only. The remaining costs of operating the service, such as salaries and supplies, are to be shown in their respective expenditure types.
• Where a service is externally contracted, particularly for ancillary services, the total costs of the contract should be included in externally contracted services (line 14). For example, contracted food services are to be reported on line 14, under the Ancillary fund.
• The cost of goods sold is to be reported under the same fund as the income from the sale of the product (see Section III.C.2 – line 25).

Line 17 Interest

• This line includes all interest expenditures to service debts of the institution. Examples include bank interest, mortgage or debenture interest and related charges, and the interest component of installment or lease payments
• Repayments of principal such as principal reductions on loans, mortgages, debentures or repayable grants are not reported as expenditures (see Section II.B.11).

Line 18 Furniture and equipment purchase

• This line includes laboratory equipment (other than consumables), computing equipment and computer software packages, administrative equipment and furnishings (including carpets and drapery), copying and duplicating equipment, and maintenance equipment. Installation expenditures for the above items are to be included as part of their cost.
• This line also includes installment payments and payments under lease purchase contracts, where the lease is a capital lease for accounting purposes. The interest component of any such payments should be reported on line 17.
• This line includes small dollar equipment and computer software items that would normally be expensed in the accounting records of the institution.
• Furniture and equipment purchases are reported under the same fund as the corresponding income (see Section II.B.6). For example, purchases made from CFI grants are reported under Sponsored research (see Section III.C.1 – Sponsored research). Purchases made or to be made from current or future ancillary services income are to be reported under Ancillary (see Section III.C.1 – Ancillary).
• Amortization is not reported as an expenditure.
• Provisions for the replacement of furniture and equipment are considered to be transfers to appropriation or reserve accounts; consequently, such provisions are not to be reported as expenditures.

Line 19 Equipment rental and maintenance

• This line includes all rental and maintenance expenditures for furniture and equipment including laboratory equipment (other than consumables), administrative equipment and furnishings (including carpets and drapery), copying and duplicating equipment, computing equipment, maintenance equipment and telephone equipment.
• This line also includes lease purchase contracts, where the lease is an operating lease for accounting purposes.
• This line also includes expenditures for equipment repairs and maintenance contracted to external agencies.

Line 20 Internal sales and cost recoveries

• The preferred method of reporting internal sales, other than those originating from ancillary services, is to report the amounts at "net" (see Section II.B.8). The preferred method of reporting internal cost recoveries is direct allocation (see Section II.B.8). Where the preferred method is not possible or feasible, this expenditure type can be used, but when it is used, the internal sales and cost recoveries for all funds, when added together, must equal zero.
• This line includes internal sales, other than those originating from ancillary services, and internal cost recoveries (see Section II.B.8).
• Internal sales originating from ancillary services are to be reported as sale of services and product (see Section III.C.2 – line 25).
• Common examples of internal cost recoveries include the overhead recovery of administrative costs and the indirect costs of research between the General operating fund and the Ancillary and Sponsored research funds, and the overhead recovery of utility (unless the utility is an ancillary service) and maintenance costs between the General operating fund and the Ancillary fund.
• To provide better functional comparisons of types of expenditures, institutions are asked to minimize the use of this line to the extent possible.

Line 21 Sub-total

• This line is the sub-total of all expenditures reported on lines 1 to 20.

Line 22 Buildings, land and land improvements

• Buildings include all expenditures that are normally considered part of the construction cost as well as costs incurred during the construction period such as utilities. Land and land improvements include acquisition costs and site preparation such as landscaping, sewers, tunnels and roads. All fees and planning costs related to buildings, land and land improvements are also included.
• Furniture and equipment purchases are reported on line 18.
• The expenditures for buildings, land and land improvements are reported under the same fund as the corresponding income (see Section II.B.6). For example, purchases made from CFI grants are reported under Sponsored research (see Section III.C.1 – Sponsored research). Purchases made or to be made from current or future ancillary services income are to be reported under Ancillary (see Section III.C.1 – Ancillary).
• Amortization is not reported as an expenditure.
• Provisions for the replacement of buildings are considered to be transfers to appropriation or reserve accounts; consequently, such provisions are not to be reported as expenditures).

Line 23 Lump sum payments

• This line includes certain lump sum payments for current and future fiscal periods to employees who have terminated employment with the institution. The characteristics of the payments are such that similar transactions or events are not expected to occur frequently over several years, or do not typify normal business activities of the institution.
• Lump sum payments are reported on an accrual basis.
• Examples of lump sum payments include payments under downsizing or special assisted early retirement programs.
• Severance payments as a result of terminations in the normal course of business are reported as salary and wage expenditures (lines 1 to 3).

4. General Operating Expenditures by Function (Table 4)

Expenditures by Fund (see Section III.C.3) and this section of the Guidelines are very similar in that types of expenditures are identified on the left-hand side of both Tables. However, unlike Table 2 (which is organized by fund), Table 4 is organized by operational or functional areas, within the General operating fund, that represent the major areas of institutional activity. The functions are Instruction and non-sponsored research, Non-credit instruction, Library, Computing and communications, Administration and academic support, Student services, Physical plant and External relations. These functions are reported in columns 1 to 8, with the total of the functions reported in Column 9. The amounts in Column 9 should be identical to the amounts in Table 2, Column 1 (General operating).

This section provides details to assist preparers to segregate, by function, the various activities and types of expenditures under the General operating fund. Unless otherwise indicated, the definitions, explanations and examples presented in Section III.C.3 for types of expenditures also apply to this section. In addition, as noted previously, where the designation of a particular expenditure in this Table differs from that used by an institution in its financial statements or its internal management reports, the expenditure must be shown under the designated heading regardless of the institution's practice. For example, health services and intramural and intercollegiate athletics are to be reported under the Student services function although they may be reported as ancillary services in the institution's financial statements or its internal management reports.

In reporting General operating fund expenditures by function, preparers should be familiar with the uniform reporting practices (see Section II.B). In particular, preparers should be familiar with the practices on internal and external cost recoveries (see Section II.B.8) and use of estimates (see Section II.B.13).

The functions in the General operating fund are as follows:

(i) Instruction and non-sponsored research

The Instruction and non-sponsored research function in the General operating fund includes all direct costs of faculties, academic departments (including salaries of academic deans and their offices), graduate school, summer school, credit extension, and other academic functions and expenditures attributable to this function.

(ii) Non-credit instruction

The Non-credit instruction function in the General operating fund includes lectures, courses and similar activities that are not recognized by the institution for the purpose of granting credit. Non-credit programs are usually offered through continuing education units. Normally where there is non-credit tuition income reported on line 13 under the General operating fund in Table 1, the corresponding expenditures (not necessarily equal to the income) will be reported under this function.

(iii) Library

The Library function in the General operating fund includes the institution's Archives and other activities related to the institution's main branch and faculty or departmental libraries. The expenditures include the salary and wage costs of providing the library services as well as the cost of books and periodicals.

(iv) Computing and communications

The Computing and communications function in the General operating fund includes only the activities of centralized computing and communication facilities.

A centralized computing facility refers to computer related activities and resources that have been organized under the management of a central administration. The computing facility is usually seen as an institutional resource that is available on an institution-wide basis and is the most effective way of providing certain services supportive of the institution's research and administrative activities. Such a facility usually results from factors including economies of scale, a large number of users who require a wide variety of services, and a high degree of technical expertise required in computer operations.

This function does not include the activities of local or decentralized stand-alone computer installations that are under the management of, and were established for the main purpose of providing services to a single division or department. The expenditures for decentralized computing facilities are to be included under the related functions and funds, as appropriate.

A centralized communications facility includes the costs of telephone equipment rental, service, acquisition and switchboard, including related personnel and other costs. The expenditures for decentralized communications facilities are to be included in the related functions and funds, as appropriate.

If an institution employs a charge-out system for central computing time or communications equipment usage, expenditures should be combined and reported under this function.

Any sales to, or recoveries from, other functional areas or funds, or outside users, are considered to be either an internal or external cost recovery and are to be reported according to the uniform reporting practice for internal and external cost recoveries (see Section II.B.8).

(v) Administration and academic support

The Administration and academic support function in the general operating fund covers expenditures in the two broad areas of academic support and other support services. Other support services include administration. These areas are combined and reported in Table 4 under Administration and academic support.

The academic support area of the Administration and academic support function includes all activities provided by an institution in direct support of Instruction and non-sponsored research. This area includes the following types of activities:

• the positions of vice-president academic and research (or their equivalents) and their offices
• faculty and instructional support services
• research administration (including grants and contracts administration)
• registrar's and graduate students office (including calendars, admissions, student records and related reporting)
• convocation and ceremonies
• co-op program administration
• central animal services
• central shops for instruction and research (machine shop, glass blowing, electronics shop)
• distance education support
• instructional technology and audio visual services
• academic class scheduling

The administration area of the Administration and academic support function includes the following activities:

• administration, planning and information costs and activities associated with the positions of president and vice president (or their equivalents) and their offices, except for the positions of vice-president academic and research (or their equivalents) and their offices, which are included in the academic support area. Administrative costs for activities such as fundraising, development, alumni and external communications are included in the external relations area.
• finance, including investment management, internal audit and accounting
• human resources (personnel)
• institutional research
• board and senate secretariat
• printing and duplicating services.

Specific types of expenditures in the administration area include the following:

• professional fees including legal, audit, human resource and other consulting fees that are not specifically attributable to another function. Computer consulting fees are included if the computing facilities are decentralized
• general university memberships
• liability and E & O insurance (fire, boiler and pressure vessel, and property insurance are reported under the Physical plant function).

The appropriate reporting for computing, communications, purchasing, receiving and stores will depend upon whether the institution operates with centralized or decentralized facilities. If the institution has centralized facilities for computing and communications, the activities should be reported under the Computing and communications function. If the institution has centralized facilities for purchasing, receiving and stores, the activities should be included in the administration area of the Administration and academic support function. If any of computing, communications, purchasing, receiving or stores is decentralized, then these activities should be included under the related functions and funds, as appropriate.

(vi) Student services

The Student services function in the General operating fund includes the cost of services (other than direct teaching, research and administrative services) provided to students by the institution. Generally, these services will include:

• the dean of students and the dean's office
• counseling and chaplaincy services
• career guidance and placement services
• intramural and intercollegiate athletics (not physical education)
• student health services
• student accommodation services (not residences)
• student transportation services
• student financial aid administration
• bursaries, scholarships and prizes
• grants to student organizations, including the student union
• student programs, including music, drama and student center
• student day care center
• any other student services, social or cultural activities funded by the institution

These services may be provided from the General operating fund income in whole, or in part by a specific fee included in the student incidental fee structure. Where an institution acts in an agency capacity, however, and collects student fees on behalf of student controlled and administered activities such as student councils or federations, the fees collected by the institution are to be excluded from income of the institution. The amount turned over to the benefit of the student council or federation is to be excluded from expenditures of the institution.

(vii) Physical plant

The Physical plant function in the General operating fund includes expenditures related to the physical facilities of the institution. The expenditures include the physical plant office, space planning, maintenance of buildings and grounds, custodial services, utilities, vehicle operations, security and traffic, repairs and furnishings, renovations and alterations, mail delivery services, long-term space and property rental, and municipal taxes (including those for which compensatory grants are received from government).

Physical plant also includes fire, boiler and pressure vessel, and property insurance. All other insurance is reported in the administration area of the Administration and academic support function.

(viii) External Relations

The external relations area includes all activities provided by an institution in support of ongoing external relations. These activities include fundraising, development, alumni, public relations and public information or external communications. The related administrative costs from the office of the vice-president(s), or equivalent, responsible for one or more of these activities should be included in this area.