Understanding SFU's Financial Framework

SFU's Financial Framework

At 91泡芙, responsible financial management supports academic, research and operational excellence. By strategically allocating and managing resources, we aim to advance our academic mission and strategic priorities, while ensuring long-term financial sustainability.

A Balanced Budget Mandate

In British Columbia, universities are mandated to operate with a balanced budget, meaning their annual operating revenues must equal their yearly operating expenditures. This means the revenue expected in a given year, needs to cover the annual costs required to run the university (salaries, benefits, utility costs, supplies, etc.). This requirement is enforced by the , though universities operate under the accounting framework, which provides funding and establishes financial policies.

Therefore, if SFU expects to earn $1 million this year (revenue), it can only spend up to $1 million this year on operating costs (expenses). We can鈥檛 dip into other accounts to spend more in operating funds. We need to operate within our means. If we could borrow from other funds, that would increase the operating costs beyond the expected revenue and would count as a deficit, which is not allowed, nor is that sustainable as the university may not be able to cover the same amount for operating costs in future years.

Revenue sources

SFU鈥檚 funding comes from multiple sources, each of which is important for supporting our programs and priorities 鈥� some of the key sources of revenues are:

Government funding

A significant portion of SFU鈥檚 revenue comes from the Province of British Columbia.

For 2025鈥�26, the amount provided is $415.7鈥痬illion across all funds.
Of that, $395鈥痬illion supports SFU鈥檚 core operating budget, and $20.7鈥痬illion is restricted for specific project-based initiatives. SFU also receives support from the federal government in support of indirect costs of research and restricted research activities, as well as other activities.

Tuition and student fees

Tuition makes up $310.5 million of the university鈥檚 revenue in 2025鈥�26.
Domestic tuition growth is capped at 2%, while international tuition rates are adjusted to market conditions, reflecting that there is no provincial funding for international enrolments.

Research grants and contracts

SFU secures federal agency funding (e.g., NSERC, SSHRC, CIHR) and partnerships with industry and non-profits to expand research opportunities, drive innovation, and enhance the student experience through research involvement.

$113鈥痬illion in externally restricted research revenue

Investment income

Our active investment portfolio generates additional revenue, enabling us to support student services, academic activities and campus improvements.

$34鈥痬illion in investment income.
There was an estimated $22 million gain from fossil-fuel divestment, which is an accounting gain recorded on the sale of non-endowment Canadian equity investments that grew in value over time. These investments will be sold as part of our committment to move to fossil fuel-free investments. Because of the Public Sector Accounting Standards (PSAS) rules, this gain can only be recorded once the investments are sold - not while they are held.
This one-time gain contributes to SFU鈥檚 consolidated surplus, which includes restricted funds that are earmarked for specific purposes and cannot be used to offset general operating costs like faculty or departmental budgets.

Campus services

Residence and housing, the bookstore, food services, parking and sustainable mobility, SFU childcare, document solutions and meeting, event, and conference services provide essential services while generating revenue to offset operational expenses incurred in providing these services.

$50 million in campus services revenues that support the operational costs of providing these services

Donations and endowments

These contributions support scholarships, research, and major capital projects that benefit both current and future students and cannot be used for other items. Funds not used are carried into future years for the designated purpose.

$70鈥痬illion in donations and non-government grants.

Financial decision making

Aligning financial decisions with SFU鈥檚 strategic plan

Our institutional strategy shapes how we prioritize projects, allocate resources, and measure success, ensuring every dollar we spend advances excellence, inclusion, and sustainability.

Decentralized budget model

SFU follows a decentralized budget model overseen by the Chief Budget Officer, where faculties, research units, and administrative departments manage their own budgets while aligning with institutional financial guidelines.

Budget approach and allocation

Our annual operating budget outlines how and where SFU directs resources. Expenses in the operating budget are guided by What鈥檚 Next: The SFU Strategy. We also ensure that financial resources help advance priorities such as the international enrolment initiatives, strategic technology investments, research and innovation and Reconciliation.

Budget Process

The budget process is collaborative, led by the Office of the Provost and Vice-President Academic in consultation with the Office of the Vice-President, Finance and Administration.
SFU follows an annual budget cycle鈥攕tarting with multi-year projections and stakeholder consultations in spring/summer. Students, faculty and staff are invited to participate in budget information sessions each fall, which is followed by Board approval of the final budget before the new fiscal year begins.

Operating budget overview and distribution

The total operating budget for 2025-26 is $747.7 million, which supports SFU鈥檚 core teaching and learning functions, research, student services, renovation and maintenance.
This amount comes from a combination of provincial operating grants ($395鈥痬illion), tuition and student fees ($310鈥痬illion), and other income (e.g., sales of goods/services, non-government grants/contracts, miscellaneous revenues).

Salary and operating expenses

76% of the operating budget goes towards employee salaries and benefits.
The remaining 24% funds key items such as scholarships and bursaries, professional and contracted services (e.g., legal, janitorial and security, technology), supplies and equipment, utilities, and a small contingency for unexpected costs.

Explaining accumulated surpluses

The accumulated surplus is a cumulative pool (from past years as well as the current year) of financial resources reserved for things like building upgrades across SFU鈥檚 three campuses, research initiatives, or other future funding commitments. It is a common misunderstanding is that an accumulated surplus is extra money sitting around; the money is actually already spent or committed to specific thing.
A healthy accumulated surplus signals strong fiscal management and investment in infrastructure to support long term sustainability of an organization.
Within SFU鈥檚 accumulated surplus are the following:
- Endowment funds - these restricted funds typically represent more than 50% of SFU鈥檚 accumulated surplus. An endowment fund is a permanent fund where donors contribute to the capital, but only the investment income from the principal is spent on activities such as student scholarships, research, and other projects and programs made possible through the generosity of donors. The intent of this type of funding is to provide a sustainable, long-term funding that "keeps on giving" year after year. As only a portion can be spent annually, there will always be a large pools of funds noted under endowments.
- Capital assets 鈥� these funds are to support systems and buildings, and represent funds already spent.
- Restricted funds 鈥� these funds may be a surplus and not yet spent for the year, but they are committed to certain projects (ie. a research project fund over several years). Restricted funds will be spend in future years under the designated projects they have already been committed to. These funds allow the university to invest in one-time priorities. Considerations for how to spend these funds come out of annual budget consultations and are guided by the university鈥檚 priorities.

See Budget FAQ for more information about SFU's budget.

Investments

Responsible investment approach

SFU follows Responsible Investment (B10.16) and Investment Governance (B10.09) policies that incorporate Environmental, Social, and Governance (ESG) standards. As part of its 2021 divestment commitment, 91泡芙 in the final phase of removing fossil-fuel holdings鈥攖hese funds will be reinvested into fossil-fuel-free funds.

ESG integration

SFU aligns with the UN Principles for Responsible Investment and typically engages external investment managers experienced in ESG-focused portfolios. This balanced approach prioritizes sound financial returns while reflecting SFU鈥檚 sustainability and social-responsibility values.

Impact measurement

Tools like the Investment Portfolio Carbon Footprint Report and regular ESG assessments help track and improve the portfolio鈥檚 environmental and social performance. SFU also supports local impact by investing in mission-driven funds such as the Vancity Community Investment Bank (VCIB).

Annual performance reports

SFU discloses its investment progress in Custodial Statements of Endowment Investments, Annual Financial Reports, and periodic policy reviews/consultations. These updates detail portfolio performance, carbon reductions, and policy adjustments that keep SFU鈥檚 investment strategy aligned with its academic mission and sustainability goals.

To learn more about SFU鈥檚 investment policies, ESG considerations, and consultation opportunities, visit SFU Finance: Responsible Investments.

Key financial terms and concepts

Learn more about the most common budget and finance terms, such as operating funds, restricted funds, surplus and endowments and more. These core concepts will help you better interpret SFU鈥檚 budget documents.

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