Preface

The publication of the National Occupational Classification (NOC) 2021 is the thirtieth anniversary of the standard occupational classification system and it introduces a major structural change. The NOC 2021 Version 1.0 overhauls the "Skill Level" structure by introducing a new categorization representing the degree of Training, Education, Experience and Responsibilities (TEER) required for an occupation. The NOC 2021 Version 1.0 also introduces a new 5-digit hierarchical structure, compared to a 4-digit hierarchical structure in the previous versions of the classification. This revision is extensive; the last structural revision was NOC 2011.

Acknowledgements

The National Occupational Classification (NOC) 2021 is published, in partnership by Employment and Social Development Canada (ESDC) and Statistics Canada (StatCan). The NOC 2021 Version 1.0 has been made possible through the significant contributions of a number of individuals and groups, including a team of occupational research analysts and assistants from both ESDC and StatCan. Their commitment to excellence is evident in this new version of the NOC's foundational system used for structuring and describing occupations in the Canadian labour market and for managing the collection, analysis and reporting of occupational statistics. The partnership and collaboration between ESDC and StatCan has ensured that quantitative and qualitative information on occupations continues to be reliable, timely and relevant for a wide range of audiences.

Introduction

• Purpose of the classification
• Background
• Revising the NOC
• The underlying concepts
  • The statistical unit
  • The scope of the classification
  • The classification criteria
• The Classification structure and coding system
  • The Standard NOC 2021 Version 1.0 classification structure
  • The coding system of the NOC 2021 Version 1.0
• The NOC conventions
  • The "Other" title
  • Language
  • Modifying terms for example titles
  • Proprietors
  • Supervisors
  • Inspectors, testers, and graders
  • Apprentices and trainees
  • Format of unit group descriptions
    • Lead statement
    • Illustrative examples / Example titles
    • Inclusions
    • Exclusions
    • Main duties
    • Employment requirements
    • Additional information
  • Coding guidelines to NOC 2021 Version 1.0
• Related classifications
  • North American Industry Classification System (NAICS)
  • Class of worker
  • Relationship between NOC and ISCO-08
• Summary of changes from NOC 2016 Version1.3 to NOC 2021 Version 1.0
  • Higher level structural changes
  • Changes at the unit group level
  • Creation and deletion of new classification items
  • Combination of classification items
  • Decomposition of classification items
  • Transfer of classification items or their parts
  • Virtual changes
  • Net Changes in the NOC 2021 Version 1.0 relative to the NOC 2016 Version 1.3
• More information on the NOC 2021 Version 1.0

Purpose of the classification

The National Occupational Classification (NOC) Canada is a classification of occupations designed primarily for use in statistical programs. It is also used for employment-related program administration and to compile, analyze and communicate information about occupations, such as labour market information. Occupational information is of critical importance for the provision of labour market and career intelligence, occupational forecasting, labour supply and demand analysis, employment equity, job training and skills development, and numerous other programs and services. It provides a standardized framework for organizing the world of work, for pay or profit, in a manageable, understandable and coherent system.

Statistical classifications are comprehensive structured lists of mutually exclusive categories or classification items^{Footnote 1}. In practice, this means that there is always a category in the classification for an object that falls within the scope of the classification, and that the object can be classified in only one category. The section titled "The underlying concepts" further discusses the object and scope of NOC.

The structure of the NOC is hierarchical. This type of classification system enables the collection, analysis and publication of data at different levels of detail, in a standardized way. The section titled "The classification structure and coding system" discusses the structure of the NOC in greater detail.

The purpose of standard classifications is to support the integration of data obtained from multiple sources by organizing the documentation, collection, processing, presentation and analysis of data in a systematic manner. Classifications are essential elements of a coherent and efficient statistical system.

The NOC has been developed to support the integration of occupational statistics. The next section provides a background on the NOC, the potential impact of the redesign and a sense of the different applications of the classification.

Background

The NOC was jointly developed by Employment and Social Development Canada (ESDC) and Statistics Canada (StatCan), and has been maintained in partnership since the first edition published in 1991/1992. Prior to 2011, ESDC NOC and StatCan NOC-S differed in their major group structures and, consequently, in their coding systems. However, the revised NOC 2011 eliminated the differences between the two former systems.

As the Canadian economy and society changes, it is common practice for classifications to be updated and revised as new industries, products, occupations and educational programs are introduced. NOC structural revisions are planned every 10 years and content was updated every 5 years to respond to labour market changes. Starting in 2017, the NOC 2016 has undergone content updates approximately every year to ensure users have the most up-to-date information. This publication of the National Occupational Classification (NOC) 2021 represents a major structural revision of the NOC based on its 10-year revision cycle.

Revising the NOC

The NOC 2016 structure and format are based on a four-tiered hierarchical arrangement of occupational groups with successive levels of disaggregation. It contains broad occupational categories, major, minor and unit groups. It is categorized based on two major attributes of jobs, the "Broad Occupational Category" and the "Skill Level", as classification criteria. The former was defined as the type of work performed, with respect to the educational discipline or field of study for entry into an occupation and the industry of employment (e.g. health occupations or sales and service occupations). The "Skill Level" categorization is primarily defined by the amount and type of education and training usually required to enter and perform the duties of an occupation, but also considers experience, complexity and responsibilities. See NOC 2016 Structure below.

NOC 2016 Structure^{Footnote 2}

Meaning embedded in the coding system - first digit

Broad Occupational Category or the skill type criteria is…	when the first digit is…
Management occupations	0
Business, finance and administration occupations	1
Natural and applied sciences and related occupations	2
Health occupations	3
Occupations in education, law and social, community and government services	4
Occupations in art, culture, recreation and sport	5
Sales and service occupations	6
Trades, transport and equipment operators and related occupations	7
Natural resources, agriculture and related production occupations	8
Occupations in manufacturing and utilities	9

Meaning embedded in the coding system - second digit

Skill Level category or the skill level criteria is…	when the second digit is…
Skill Level A	0 or 1
Skill Level B	2 or 3
Skill Level C	4 or 5
Skill Level D	6 or 7

The NOC 2021 Version 1.0 was developed through ongoing discussions between ESDC and StatCan as well as consultations with stakeholders. During consultations leading toward the NOC 2021 revision, it was suggested to add a new "Level" to the NOC 2016 Skill level categorization, to clarify the distinction in formal training or education required among unit groups, especially in the current "Skill Level B", which has a wide range of formal training or educational requirements. Over time due to the changing world of work, the NOC 2016 "Skill Level B" became a disproportionately large group and thereby limited the ability to analyze distinctions amongst a large percentage of occupations.

Another observation during the revision process was the use of the "Skill Level" categorization in the NOC as possibly being misleading because training and education, which are the main building blocks of the NOC's "Skill Level" categorization, are not considered as "skills" in the labour market. With regards to skills, many countries and organizations are currently developing their own skills taxonomy (which include concepts such as numeracy and literacy). Therefore, it was deemed appropriate for the NOC to move away from the "Skill Level" categorization.

The NOC 2021 Version 1.0 represents a major structural revision whereby the existing occupational groups are reviewed alongside input collected from many relevant stakeholders through consultation. The main accomplishment of the NOC 2021 Version 1.0 was the overhaul of the "skill level" categorization by introducing a new categorization representing the degree of Training, Education, Experience and Responsibilities (TEER) required for an occupation.

The redesign of the NOC for 2021 moves away from the previous version of NOC with four "Skill Level" categories to an innovative six-grouping "TEER" categorization. This change is necessary for several reasons. First, the focus of the NOC is occupations and not skills and the "Skill Level" terminology is often misleading for many stakeholders. This change will reduce confusion. Second, some NOC users artificially create or infer a low- versus high-skill categorization. This redesign moves away from high/low skill categorization as the TEER more accurately captures differences in occupational requirements, which in turn will aid in the analysis of occupations.

The section titled "The classification structure and coding system" discusses the structure of the NOC 2021 Version 1.0 in greater detail.

These changes significantly improve how the NOC classification takes into account the distinctions in formal training and educational requirements and better reflects skill and knowledge development occurring through on-the-job experience. At the same time, it increases the homogeneity of the distribution of unit groups within the classification, and addresses concerns about the "Skill Level" categorization and the distribution of unit groups among them.

The transition from the "Skill Level" to the "TEER" categorization makes the distribution of occupations across the "TEER categories" more balanced. The change in the distribution of unit groups is summarized in the tables below.

Distribution of NOC Unit Groups by Skill Level / TEER

Distribution of NOC Unit Groups by Skill Level / TEER

NOC 2016 V1.3 Distribution of Unit Groups by Skill Level		NOC 2021 V1.0 Distribution of Unit Groups by TEER
		TEER Category 0	9%
Skill Level A	28%	TEER Category 1	19%
Skill Level B	42%	TEER Category 2	31%
Skill Level C	24%	TEER Category 3	13%
Skill Level D	6%	TEER Category 4	18%
		TEER Category 5	9%

The NOC is the nationally accepted taxonomy and organizational framework of occupations in the Canadian labour market. It is important to note that the redesign of the NOC can have significant implications for several Surveys, such as the Labour Force Survey (LFS), and ESDC programs such as the Temporary Foreign Worker Program and Employment Insurance program. This change may have significant impact on various programs throughout other federal departments, as well as provincial, territorial and municipal governments and many users of the NOC.

The NOC 2021 Version 1.0, as of August 10th, 2021, is now the departmental standard for data collection and dissemination for occupations at Statistics Canada. Implementation dates for each new classification version such as NOC 2021 Version 1.0 will vary based on when statistical surveys or programs, entities, organizations or individuals decide to use it.

The underlying concepts

Statistical classifications are built around three basic concepts: the object classified or statistical unit, the scope or universe of the classification, and the criteria used to group statistical units in standard categories or classification items.

The statistical unit

The basic principle of the NOC is the kind of work performed. The statistical unit or object being classified using the NOC is the concept of a "job". A job encompasses all the tasks carried out by a particular person to complete their duties. A job title represents the name given to a job or a position. The term job is used in reference to employment or in self-employment.

An occupation is defined as a collection of jobs, sufficiently similar or identical in work or tasks performed to be grouped under a common label for classification purposes.

The scope of the classification

The scope of the NOC is all occupations and jobs in the Canadian labour market undertaken for pay or profit, including people who are self-employed.

The NOC is not designed to include work or tasks not undertaken for pay or profit, for example, voluntary work. However, a person may complete work not for pay or profit where the tasks completed may be described within some occupational groups.

The classification criteria

The classification criteria refers to the attribute(s) of the statistical unit used to create the most detailed categories of the classification and to group them into analytical aggregates. These attributes must be observable and verifiable in the context of a statistical operation, or it must be possible to derive the information as a set of observed characteristics.

The NOC is built through the application of two major attributes of jobs as classification criteria: broad occupational categories and TEER categories. There are ten broad occupational categories and six TEER categories.

• The ten broad occupational categories are defined by the type of work performed based on the industry of employment and field of study required for entry into an occupation. Within the broad occupational categories factors such as the materials processed or used, the industrial processes and the equipment used, as well as the products made and services provided, have also been considered when combining jobs into occupations and occupations into groups.
• The six TEER categories stand for the Training, Education, Experience and Responsibilities required for occupations. A TEER category is defined by the amount and type of training and education required to enter and perform the duties of an occupation. It also takes into consideration the experience required and the complexity of responsibilities involved in the work. Each TEER category reflects commonly accepted paths to employment in an occupation.

The next section "The classification structure and coding system" provides more detail on how these two criteria together create the classification structure.

The Classification structure and coding system

The NOC contains a standard classification structure and standard variants of that structure. The standard structure is intended for broad use, whereas each variant is designed to meet a specific user need. The NOC provides a systematic classification structure that categorizes the entire range of occupational activity in Canada. Its' detailed occupations are identified and grouped primarily according to the work performed, as determined by the training, education, tasks, experiences, duties and responsibilities for an occupation.

The Standard NOC 2021 Version 1.0 classification structure

The standard classification structure uses a five-tiered hierarchical arrangement of occupational groups with successive levels of disaggregation and contains broad, major, sub-major, minor and unit groupings. The structure of the NOC 2021 Version 1.0 is based on two key occupational categorizations: Occupational categories and TEER categories, which are identified in the first two digits of the 5-digit code, as shown in the table below.

Standard NOC 2021 Version 1.0 classification structure

Title of Hierarchy	Format	Digit	Represents:
Broad Category	X	First Digit – X	Occupational categorization
Major Group	XX	Second Digit xX	TEER categorization
Sub-major Group	XXX	xxX	Top level of the Sub-Major Group
Minor Group	XXXX	xxXX	Hierarchy within the Sub-Major Group
Unit Group	XXXXX	xxXXX	Hierarchy within the Minor Group

Note: As the first digit identifies the Occupation and the second digit identifies the TEER, they are also referred to as the Major Group.

The hierarchical approach of the NOC ensures collection, dissemination and analysis of data at different levels of detail, in a standardized way. Each number or digit at each hierarchical level has a distinct meaning. Each hierarchical level of the classification is described below, from the most detailed to the most aggregated level.

Nomenclature and number of categories within each level of NOC 2021 Version 1.0

Nomenclature and number of categories within each level of NOC 2021 Version 1.0

Level	Coding	Number of categories
Broad Category	1-digit and first digit of all codes	10
TEER	Second-digit of all codes	6
Major Group	2-digit representing the broad category code and the TEER code	45
Sub-major Group	3-digit	89
Minor Group	4-digit	162
Unit Group	5-digit	516

Broad categories
The Broad Category (first digit) of the classification represents the occupational categorization which is defined by the type of work performed, the field of study, or the industry of employment. There are 10 Broad categories in NOC 2021 Version 1.0.

TEER categories
The TEER Category (second digit) of the classification represents the necessary training, education, experience and responsibilities of the occupation. There are 6 TEER categories in NOC 2021 Version 1.0.

Major groups
The Major Group (first and second digits) of the classification is represented by the Broad occupational categorization (first digit) and TEER categorization (second digit) together. A major group also encompasses several sub-major groups and thus represents the two-digit code used by the NOC. There are 45 major groups in NOC 2021 Version 1.0.

Sub-major groups
The Sub-major Group (3-digit) of the classification represents the aggregation of several minor groups and thus represents the three-digit code used by the NOC. There are 89 sub-major groups in NOC 2021 Version 1.0.

Minor groups
The Minor Group (4-digit) of the classification represents the domain in which an occupation is carried out (occupational domain). It is an aggregation of several unit groups and thus represents the four-digit code used by the NOC. There are 162 minor groups in NOC 2021 Version 1.0.

Unit Groups
The Unit Group (5-digit) of the classification is the most detailed level of the classification and represents one or several occupations combined together within the NOC. There are 516 units groups in NOC 2021 Version 1.0.

Example of coding in NOC 2021 Version 1.0: Judges, lawyers and Quebec notaries

Example of coding in NOC 2021 Version 1.0: Judges, lawyers and Quebec notaries

Level	NOC 2021 V1.0 Code	NOC 2021 V1.0 Title
Broad occupational group	4	Occupations in education, law and social, community and government services
Major group	41	Professional occupations in law, education, social, community and government services
Sub-minor group	411	Professional occupations in law
Minor group	4110	Judges, lawyers and Quebec notaries
Unit Group	41100	Judges
Unit Group	41101	Lawyers and Quebec notaries

The Coding system of the NOC 2021 Version 1.0

As identified in the "Classification Criteria" the NOC 2021 Version 1.0 is built through the application of two major attributes of jobs as classification criteria: ten broad occupational categories (BOC) and six TEER categories.

NOC 2021 Version 1.0 Broad Occupational Categories

Broad Occupational Categories are defined as the type of work performed based on, notably, the field of study required for entry into an occupation and the industry of employment. The ten BOCs are classified from 0 to 9.

NOC 2021 Version 1.0 Broad Occupational Categories

NOC 2021 V1.0 Broad Category - Occupation	when the first digit is…
BOC 0 - Legislative and senior management occupations This broad category comprises legislators and senior management occupations.	0
BOC 1 - Business, finance and administration occupations This broad category comprises specialized middle management occupations in administrative services, financial and business services and communication (except broadcasting), as well as professional occupations in financial and business; administrative and financial supervisors and specialized administrative occupations; administrative occupations and transportation logistics occupations; and office and administrative support and supply chain logistics occupations.	1
BOC 2 - Natural and applied sciences and related occupations This broad category comprises occupations in natural sciences (including basic and applied sciences and experimental development), engineering, architecture and information technology. These occupations cover specialized middle management occupations in engineering, architecture, science and information systems; professional occupations in natural sciences (basic and applied sciences and experimental development); and technical occupations related to natural sciences (including basic and applied sciences and experimental development).	2
BOC 3 - Health occupations This broad category comprises specialized middle management occupations in health care, as well as occupations concerned with providing health care services directly to patients (professional and technical occupations in health) and occupations that provide support to health services.	3
BOC 4 - Occupations in education, law and social, community and government services This broad category comprises managers in public administration, in education and social and community services and in public protection services, as well as occupations concerned with teaching, law, counselling, conducting social science research, developing government policy, and administering government and other programs, and related support occupations.	4
BOC 5 - Occupations in art, culture, recreation and sport This broad category comprises specialized middle management occupations in art, culture, recreation and sport, as well as professional, technical, support and other occupations concerned with art and culture (including the performing arts, film and video, broadcasting, journalism, writing, creative design, libraries and museums), recreation and sports.	5
BOC 6 - Sales and service occupations This broad category comprises middle management occupations in wholesale and retail trade, and customer services, as well as occupations concerned with wholesale and retail sales, and customer, personal and support service occupations related to a wide range of trade and service industries, such as accommodation and food services, travel, tourism and cleaning services.	6
BOC 7 - Trades, transport and equipment operators and related occupations This broad category comprises middle management occupations in trades, transportation and equipment, as well as occupations such as technical trades and transportation officers and controllers; general trades; mail and message distribution, other transport equipment operators and related maintenance workers; and helpers and labourers and other transport drivers, operators and labourers.	7
BOC 8 - Natural resources, agriculture and related production occupations This broad category comprises middle management occupations in natural resources, agriculture and related production, as well as occupations concerned with supervision and equipment operation in the natural resource-based sectors of mining, oil and gas production, forestry and logging, agriculture, horticulture and fishing. Harvesting, landscaping and natural resources labourers are also included. Most occupations in this category are industry specific and do not occur outside of the primary resources industries.	8
BOC 9 - Occupations in manufacturing and utilities This broad category comprises middle management occupations in manufacturing and utilities, as well as occupations concerned with supervisory, production and labouring in manufacturing, processing and utilities.	9

The NOC 2021 Version 1.0 TEER Categories

The "TEER" categorization defines the requirements of the occupation by considering the type of training, education and experience required for entry, as well as the complexities and responsibilities typical of an occupation. In general, the greater the range and complexity of occupational tasks, the greater the amount of formal education and training, previous experience, on-the-job training, and in some instance's responsibility, required to competently perform the set of tasks for that occupation.

NOC 2021 Version 1.0 TEER Categories

The NOC 2021 V1.0 Training, Education, Experience and Responsibility (TEER)	when the second digit is…
Management - TEER	0
Completion of a university degree (bachelor's, master's or doctorate); or Previous experience and expertise in subject matter knowledge from a related occupation found in TEER 2 (when applicable).	1
Completion of a post-secondary education program of two to three years at community college, institute of technology or CÉGEP; or Completion of an apprenticeship training program of two to five years; or Occupations with supervisory or significant safety (e.g. police officers and firefighters) responsibilities; or Several years of experience in a related occupation from TEER 3 (when applicable).	2
Completion of a post-secondary education program of less than two years at community college, institute of technology or CÉGEP; or Completion of an apprenticeship training program of less than two years; or More than six months of on-the-job training, training courses or specific work experience with some secondary school education; or Several years of experience in a related occupation from TEER 4 (when applicable).	3
Completion of secondary school; or Several weeks of on-the-job training with some secondary school education; or Experience in a related occupation from TEER 5 (when applicable).	4
Short work demonstration and no formal educational requirements.	5

The NOC 2021 Version 1.0 conventions

This section outlines the conventions adopted in order to assist users in consistently assigning NOC 2021 Version 1.0 codes and titles.

The "Other" title

When a unit group ends with a "9", it is used to classify occupations in an appropriate "other" occupation when a grouping does not account for all the workers in a group, even though such workers may perform distinct sets of work activities. These occupational groups are identified in their title by ''Other'' appearing at the beginning of the title. "Other" titles exist at the sub-group, minor group or unit group level, for example, Sub-major group 729 – Other technical trades; Minor group 2139 – Other engineers; and Unit group 32209 - Other practitioners of natural healing.

Language

The NOC is available separately in both official languages. It is important to note that the French version includes only titles commonly used in French and proper to the milieu and, therefore, these are not normally translations of the English titles. The classification structure is the same in both languages.

Unit group labels, example titles, inclusions and exclusions are presented in a gender-neutral format or identified by the masculine and feminine titles separated by a slash.

Modifying terms for example titles

Modifying terms have been added to several job titles, as extensions, to designate the industrial sector or the domain of expertise. If applicable, this information is preceded by a dash at the end of the title (cashier supervisor - retail) to distinguish between similar titles. These modifying terms may also specify where the titles appear in the classification structure (painter - visual arts; painter - motor vehicle repair). This information should be considered when coding job titles.

Proprietors

As a general rule, the class of worker status, that is, whether the respondent works for wages or is self-employed, is not considered for classification purposes.

An exception is made for proprietors in retail trade, food and accommodation services, and residential home building. These are classified as managers to the following unit groups:

• 60020 - Retail and wholesale trade managers
• 60030 - Restaurant and food service managers
• 60031 - Accommodation service managers
• 70011 - Home building and renovation managers

Supervisors

Supervisors are generally classified with the workers supervised and as a result would not have a separate unit group. But there are exceptions to this convention, for example, unit groups 31300 - Nursing coordinators and supervisors and 62010 – Retail sales supervisors.

Supervisors in the following occupational categories have been classified in supervisor unit groups separate from the workers supervised:

• administrative services occupations
• nursing occupations
• sales and service occupations
• trades and transport and equipment operators
• occupations in natural resources and agriculture
• occupations in manufacturing.

Even when separate supervisory unit groups exist, "lead hands" are not classified as such, as previous research has indicated that supervision is usually only a minor part of such jobs.

Inspectors, testers, and graders

Generally, inspectors with TEER 2 requirements have been classified in separate unit groups or with technicians and technologists, with matching requirements. Other non-technical inspectors, testers, graders and samplers have been included either in separate unit groups covering occupations in processing industries or in unit groups of assemblers and fabricators in manufacturing industries. This is reflective of patterns of employment found within industries and the increasing responsibility for quality control that is placed on manufacturing production workers.

Apprentices and trainees

Apprentices and trainees have been classified in the same unit groups as the occupations for which they are training. Similarly, interns, residents and articling students are classified with their respective professional groups.

This convention has been adopted to prevent a proliferation of unit groups of apprentices. It is not intended to imply equivalence or interchangeability of apprentices or trainees with fully qualified workers.

Format of unit group descriptions

Each NOC unit group description consists of several standardized sections which define and describe its content.

Lead statement

This section provides a general description of the content and boundaries of the unit group and indicates the main activities of occupations within the unit group. It also indicates the kinds of industries or establishments in which the occupations are found. The list of places of employment is not always exhaustive, but can assist in clarifying the occupations described and in differentiating them from occupations found in other groups.

Illustrative examples^{Footnote 3} / Example titles^{Footnote 4}

This section is a list of titles commonly used in the labour market. The titles are intended to illustrate the contents and range of the occupational group. This is not an exhaustive list of job titles.

Inclusions

This section provides a list of borderline job titles belonging to a particular NOC unit group. Inclusions are examples in classes where it might not be clear from reading both the class text and title that the example belongs in the class.

Exclusions

This section clarifies the boundaries of the unit group by identifying related unit groups and similar occupations that are classified elsewhere. Unit groups or individual occupations are cited in this section when they bear a functional similarity to the unit group or when similar titles occur.

Main duties

The main duties section describes the most significant duties of the occupations in the group. They are not intended to be comprehensive of all the tasks performed in the occupation. They represent key duties that are related to the occupation(s) associated with the unit group and can be listed using:

• a series of statements that can be applied to all occupations in the group;
• two or more sub-sets of occupations with statements that apply to each sub-set or component;
• a series of brief statements that are linked to specific occupations, that, while similar enough to be in the same group, can be described separately.

Statements in italics, at the end of this section, identify a specialization that may exist within the occupation.

Employment requirements

This section describes the employment requirements for the unit group. Several types of requirements are identified in this section and are listed in the following order.

• Type and level of education: for example, secondary school, college diploma, university degree and including specific subject matter if relevant, starting with the lowest possible requirement for entry into the occupation.
• Specific training: for example, apprenticeship training, on-the-job training, training courses specific to an occupation.
• Experience in another occupation: for example, supervisors usually require several years of experience in the occupation that they supervise.
• Licences, certificates or registration: for example, regulatory requirements to practice in a regulated profession, special licenses to operate certain kinds of vehicles.
• Other requirements: for example, athletic ability or artistic talent.

Some occupations have very definite employment requirements while for others, there is no consensus or a range of acceptable requirements exist. The following terminology is used to indicate the level of the requirement:

• "... is required" - to indicate a definite requirement;
• "... is usually required" - to indicate something that is usually required by the majority of employers, but not always required by all employers; and
• "... may be required" - to indicate something that may be required by some employers, but on a less frequent basis.

Employment requirements items to note:

• Some occupations are designated as regulated professions and trades. Regulations are subject to change and may vary across jurisdictions. The most reliable information on regulatory requirements for occupations is found on the websites of provincial regulatory organizations and licensing authorities.
• For reasons of brevity, the term college includes: community colleges, CÉGEPS, technical institutes, trade schools and agricultural colleges. Where relevant, in some provinces, it may also include private training organizations, music conservatories and other non-degree granting institutions.
• The Employment requirements section does not attempt to describe personal suitability requirements that are assessed by employers as part of the hiring process.

Additional information

This section appears in some unit group descriptions. It provides information on the following:

• progression to other occupations (such as supervisory or management positions) based on transferability of skills from acquired occupational experience;
• mobility patterns, such as inter- and intra-occupational transferability of skills (for example, identifying occupations that are part of internal lines of progression or specializations within a subject matter area);
• trends and forthcoming changes in the unit group's employment requirements; and other information to clarify and define the unit group.

Coding guidelines to NOC 2021 Version 1.0

The NOC is designed to classify occupational information in the Canadian labour market in a standardized framework and a manageable, understandable and coherent system. Statistics Canada's role is to provide occupational information for statistical surveys and data analysis.

When conducting a search to determine what code is best associated with a job title or occupation it is important to note:

• Even though the NOC contains more than 30,000 job titles in each of Canada's official languages the list is not meant to be exhaustive. The list of examples does provide extensive coverage of commonly used and understood titles in the economy and of more specific titles found in many occupational areas.
• Occupations are identified and grouped primarily by:
  • the type of work performed based on, notably, the field of study required for entry into an occupation and the industry of employment, and;
  • considering the type of training, education and experience required for entry, as well as the complexities and responsibilities.

Both of which are determined by the main duties, tasks and responsibilities of the occupation and are key when trying to determine the best code for a job title. Consideration of these factors has proven to be effective in helping to narrow the search for a desired NOC code.

Selecting a NOC code

1. To find a NOC code associated with a job title start by using the search function and enter an occupational title or keywords related to the occupation. Searching the NOC will generate a list of possible occupations. If the initial search does not yield a matching occupational profile, sound practice is to broaden or narrow the search by using different related keywords.
2. In order to research how closely a NOC unit group code matches a given occupation, the details of the NOC profile in question are to be reviewed, such as the main duties and employment requirements to assess which one most accurately represents the occupation in question. Other information within the NOC profile should also be assessed such as example titles, additional information, and exclusions.
3. If the NOC unit group associated with the job title or occupation in question using the title job search is not found, the NOC structure can be used to narrow down the research. Apply knowledge of which sector of activity the occupation in question is associated to, e.g. health, natural sciences, trades, or transportation. That will limit the search to NOC unit groups found under one "broad occupational category", which is represented by the first digit of the NOC code. Reduction of the scope based on the TEER requirements of the job or occupation can be beneficial. These requirements correspond to the second digit of the NOC code. Please note these may differ from personal educational levels.
4. Once the broad occupational category and the TEER associated with the job have been identified, a short list of relevant NOC sub-major groups (represented by the first three digits of the NOC code) and NOC minor groups (represented by the first four digits of the NOC code) will be available.
5. A review of the list of all the NOC unit groups found under the relevant NOC minor groups is required, prior to accessing the occupational description of each unit groups to find where the occupation has been classified.
6. To code an occupation, it is possible to use either the search tool or the classification structure.

Related Classifications

The classification of occupations does not stand alone but must be understood as being related to other classifications, such as the North American Industry Classification System (NAICS) and that of Class of Worker. Each of these classifications supplements the NOC 2021 Version 1.0 in presenting a rounded picture of the nature of a person's job.

North American Industry Classification System (NAICS)

The industrial qualifier which may accompany the job title:

1. Indicates the type of economic activity with which the job is usually associated. (It is important to note that the assignment of an industrial qualifier does not necessarily limit a job to that industry. These qualifiers are merely indicative of the possible areas of activity in which the job may be found.)
2. Permits the assignment of similar titles to different occupation groups where the duties vary between industries.
3. Aids in defining the specific occupations and helps the coder grasp the underlying principles of this classification.

The industry in which the individual is employed is determined by the kind of economic activity of the establishment. The establishment is usually a factory, mine, farm, store, other place of business or an institution for which a number of basic production variables can be compiled.

It is important to note the conceptual differences between an industry classification and an occupation classification. An establishment can employ individuals performing completely different occupations, and these are classified to appropriate occupational groups, but the industrial classification of each individual employed in the establishment should be the same and is determined by the nature of the production process of the establishment. In other words, the nature of the factory, business or service in which the person is employed does not determine the classification of the occupation, except to the extent that it enables the nature of the duties to be more clearly defined, but it does determine the classification of the establishment by industry.

Class of worker

Class of worker refers to an individual's employment relationship to the business in which they work, as employee or self-employed, including unpaid family workers, and thus provides another means of describing the work. The NOC 2021 Version 1.0 does not indicate the class of worker classification for each occupation since many occupations contain both jobs held by employees and jobs of self-employed individuals. The scope of what is an occupation has been outlined in the section "The underlying concepts".

Relationship between NOC and ISCO-08

The NOC is comparable to the International Standard Classification of Occupations (ISCO) published by the International Labour Organization (ILO). While the NOC was originally developed in Canada in the 1980s, ISCO was also being reviewed and updated to produce ISCO-88. Communication between the NOC and ISCO research teams led to similarities, such as a similar conceptual framework that includes the Skill Type and Skill Level dimensions. The similarities between the NOC and ISCO increased in later structural revision (ISCO-08 and NOC 2011) cycles. However, certain conceptual differences between the NOC 2021 Version 1.0 and ISCO-08 limit comparability. For instance, differences in the classification criteria and classification structure exist between NOC 2021 Version 1.0 and ISCO-08. Additionally, subsistence occupations included in ISCO are not part of the NOC. For countries and regions in which subsistence activities are virtually non-existent, the ILO affirms that such activities may be excluded without loss of international comparability.

The concordance between NOC 2011 and ISCO 2008 can be used for purposes of showing the relationship between NOC 2016 and ISCO 2008 since the structure is the same in both NOC 2011 and NOC 2016. A correspondence table is available between NOC 2016 V1.3 and NOC 2021 V1.0; a correspondence table between NOC 2021 V1.0 and ISCO-08 will be developed and published.

Summary of changes from NOC 2016 Version 1.3 to NOC 2021 Version 1.0

Changes occurred at all levels of the NOC structure. Some items were revised while others were added, split, transferred or merged. A complete list of all changes detailed at the unit group level (the most detailed level of the NOC structure) is released as a separate correspondence file and is available at NOC 2016 V1.3 - NOC 2021 V1.0.

Higher level structural changes

The following are some examples of higher level structural changes:

In the 2016 version of the NOC, "BOC 0 – Management" included all unit groups dedicated to managerial occupations. Under the 2021 NOC, management is identified in the employment requirements, via the TEER system, rather than as a "field of study and/or industry". The BOC 0 now only contains legislators and senior management occupations. Middle management occupations previously in BOC 0 have been redistributed into the remaining 9 BOCs based on the industry of employment. For example: 0211 - Engineering managers (NOC 2016 V1.3) has been moved to BOC 2 – Natural and applied sciences and related occupations, to unit group 20010 – Engineering managers (NOC 2021 V1.0).

Another example of a higher level structural change is NOC 2016 Version 1.3 minor group 227 - Transportation officers and controllers (and associated unit groups) was moved from BOC 2 - Natural and applied sciences and related occupations to BOC 7 - Trades, transport and equipment operators and related occupations as NOC 2021 Version 1.0 minor group 7260 - Transportation officers and controllers (and associated unit groups). This move better aligns the minor occupation group with the industry of employment.

As it is done for all standard statistical classifications, we provide a more detailed analysis of the changes at the lowest of the classification, which is the unit group level for the NOC.

Changes at the unit group level

The unit group level (5-digit) is the most detailed level of the NOC and it is used for the analysis of the changes in a more detailed manner. Some items were revised while others were added, split, transferred or merged. The Generic Statistical Information Model (GSIM) is used to identify the types of changes made to the classification: real changes and virtual changes. Real changes are those affecting the scope of the existing classification items or categories, whether or not accompanied by changes in the title, definition and/or the coding. Virtual changes are those made in coding, titles and/or definitions, while the meaning or scope of the classification item remains the same. The "real changes" are the most important ones for analysis.

Here are some examples of real changes at the unit group level:

Creation and deletion of new classification items

Creations occur when a new item emerges and is not part of any one or more existing item(s). A deletion, the mirror opposite of creation, occurs when an item expires and no part of it proceeds as part of one or more existing item(s). No new classification items (unit groups) were created to the NOC 2021 Version 1.0, and no NOC 2016 V1.3 classification items were deleted according to the deletion and creation definitions found in GSIM.

Combination of classification items

Combinations consist of mergers and take-overs among classification items. There were 9 mergers and 3 take-overs of NOC 2016 Version 1.3 unit groups. Essentially, unit groups were combined into an emerging unit group (merger) or an existing unit group (take-over) with the intent to re-arrange the classification of occupational groupings to reflect the current and emerging labour market.

Merger examples

Merger examples

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
9222	Supervisors, electronics manufacturing	Merger	92021	Supervisors, electronics and electrical products manufacturing	9222 and 9223 expired and all parts of both merged into emerging item 92021.
9223	Supervisors, electrical products manufacturing	Merger

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
9432	Pulp mill machine operators	Merger	94121	Pulp mill, papermaking and finishing machine operators	9432 and 9433 expired and all parts of both merged into emerging item 94121.
9433	Papermaking and finishing machine operators	Merger

Take-over examples

Take-over examples

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
7247	Cable television service and maintenance technicians	Take-over	72204	Telecommunications line and cable installers and repairers	7247 expired and part proceeds between 72204 and 72205.
		Take-over	72205	Telecommunications equipment installation and cable television service technicians

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
9531	Boat assemblers and inspectors	Take-over	94219	Other products assemblers, finishers and inspectors	9531 expired and all proceeds taken over as part of 94219.

Decomposition of classification items

21 classification items are a result of either a breakdown or a split-off: 10 breakdown and 11 split-offs. Unit groups either expired and were distributed over emerging items (breakdown) or partially continued with part assigned (split-off) to emerging unit group with the intent to better align occupational grouping based on the TEER classification criteria and reflect the current and emerging labour market. Below are examples of decomposition changes related to the addition of more detailed classification items.

Breakdown examples

Breakdown examples

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
2263	Inspectors in public and environmental health and occupational health and safety	Breakdown	21120	Public and environmental health and safety professionals	2263 expired and the denotations distributed among emerging items 21120 and 22232
		Breakdown	22232	Occupational health and safety specialists

Split-off examples

Split-off examples

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
0431	Commissioned police officers	Split-off	40040	Commissioned police officers and related occupations in public protection services	0431 continues as 40040 and part split-off to emerging item 41310.
		Split-off	41310	Police investigators and other investigative occupations

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
1511	Mail, postal and related workers	Split-off	64401	Postal services representatives	1511 continues as 74100 and part split off to emerging item 64401
		Split-off	74100	Mail and parcel sorters and related occupations

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
2171	Information systems analysts and consultants	Split-off	21211	Data scientists	2171 continues as 21222 and part split-off to emerging items 21211, 21220, 21221 and 21233.
		Split-off	21220	Cybersecurity specialists
		Split-off	21221	Business systems specialists
		Split-off	21222	Information systems specialists
		Split-off	21233	Web designers

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
2172	Database analysts and data administrators	Split-off	21211	Data scientists	2172 continues as 21223 and part split-off to emerging item 21211.
		Split-off	21223	Database analysts and data administrators

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
2173	Software engineers and designers	Split-off	21211	Data scientists	2173 continues as 21231 and part split off to emerging item 21211.
		Split-off	21231	Software engineers and designers

There were 9 decomposition instances where part of a unit group continued and part split-off to an emerging unit group and part transferred to an existing unit group. Below is an example of this.

Split off/Transfer Example

Split off/Transfer Example

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
3124	Allied primary health practitioners	Split-off	31302	Nurse practitioners	3124 continues as 31303 and part transferred to 32103 and part split off to emerging item 31302.
		Split-off / Transfer	31303	Physician assistants, midwives and allied health professionals
		Transfer	32103	Respiratory therapists, clinical perfusionists and cardiopulmonary technologists

Transfer of classification items or their parts

There were 36 instances where part of a unit group continued and part of it was transferred to one or more existing unit groups with the intent to better align with the TEER classification criteria and in some cases better realign occupational groupings.

Transfer examples

Transfer examples

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
1253	Records management technicians	Transfer	12111	Health information management occupations	1253 continues as 12112 and part transferred to 12111.
		Transfer	12112	Records management technicians

NOC 2016 V1.3 Code(s)		REAL CHANGE GSIM NAME	NOC 2021 V1.0 Code(s)		Description of Change
1525	Dispatchers	Transfer	13201	Production and transportation logistics coordinators	1525 continues as 14404 and part transferred to 13201.
		Transfer	14404	Dispatchers

Virtual Changes

Essentially, all items of the classification were affected by virtual changes. For example, all unit groups with 1 to 1 links were still affected by code changes as a result of the TEER system. At the most detailed level of the classification (unit groups) more than 470 unit groups were modified where changes were made to titles and definitions. For example, some titles were modified to better describe the occupational groupings based on content revisions. These types of changes are important for clarification and making necessary updates or corrections.

Finally, all changes made (real or virtual) can potentially have an impact on the content of the classification file, which at the most detailed level contains leading statements, illustrative and example job titles, exclusions, inclusions, main duties, employment requirements and additional information. More than 3500 content items have been either added, deleted or edited and more than 1000 job titles have been added, deleted or edited in this NOC 2021 Version 1.0. These two components of the classification support coding of occupations and fosters fluidity when reading or using the classification.

Net Changes in the NOC 2021 Version 1.0 relative to the NOC 2016 Version 1.3

Net Changes in the NOC 2021 Version 1.0 relative to the NOC 2016 Version 1.3

Level	NOC 2021 V1.0	NOC 2016 V1.3	Net Changes
Broad Category	10	10	0
Major Group	45	40	+5
Sub-major Group	89Table Note 1	N\A	+89
Minor Group	162	140	+22
Unit Group	516Table Note 2	500	+16
Table Notes Footnote 1 New to the NOC structure in 2021. Return to table note 1 referrer Footnote 2 22 unit groups were eliminated and 38 new unit groups were added, resulting in a net difference of 16. Return to table note 2 referrer

More information on the NOC 2021 Version 1.0

For questions related to the National Occupational Classification, please send an email to: statcan.csds-standards-occupations-cnsd-normes-professions.statcan@statcan.gc.ca.

For information on the National Occupational Classification (NOC) and its use for programs and services such as, immigrating to Canada, labour market information, job searches and working in Canada, please contact Employment and Social Development Canada (ESDC).

Release date: October 25, 2023

Status

This standard was approved as a departmental standard on August 10th, 2021.

NOC 2021 Version 1.0

The publication of the National Occupational Classification (NOC) 2021 is the thirtieth anniversary of the standard occupational classification system and it introduces a major structural change. The NOC 2021 Version 1.0 overhauls the "Skill Level" structure by introducing a new categorization representing the degree of Training, Education, Experience and Responsibilities (TEER) required for an occupation. The NOC 2021 Version 1.0 also introduces a new 5-digit hierarchical structure, compared to a 4-digit hierarchical structure in the previous versions of the classification. The NOC has been developed and maintained as part of a collaborative partnership between Employment and Social Development Canada and Statistics Canada. This revision is extensive; the last structural revision was NOC 2011.

HTML format

• Introduction Updated: September 14, 2023
• NOC 2021 Version 1.0 - Classification structure

CSV format

• NOC 2021 Version 1.0 - Classification structure (CSV, 384.72 KB)
• NOC 2021 Version 1.0 - Elements (CSV, 4.89 MB)

PDF format

• NOC 2021 Version 1.0 (PDF, 6.37 MB) (catalogue no. 12-583-X)

Correspondence tables

• NOC 2016 V1.3 - NOC 2021 V1.0 Updated: September 14, 2023

Variants of the NOC Version 1.0

• Variant of the National Occupational Classification (NOC) 2021 Version 1.0 for Science, Technology, Engineering and Mathematics (STEM) ( Variant of the NOC 2021 Version 1.0 - Science, Technology, Engineering and Mathematics (STEM) (CSV, 625.46 KB) )
• Variant of the National Occupational Classification (NOC) 2021 Version 1.0 for Analysis by TEER (Training, Education, Experience and Responsibility) categories ( Variant of the NOC 2021 Version 1.0 - Analysis by TEER (Training, Education, Experience and Responsibility) categories (CSV, 949.53 KB) )
• Variant of the National Occupational Classification (NOC) 2021 Version 1.0 with Aggregates for Analysis of Labour force ( Variant of the NOC 2021 Version 1.0 - Aggregates for Analysis of Labour force (CSV, 969.45 KB) )

Date: August, 2021

Program manager: Director, Centre for Population Health Division
Director General, Health, Justice, Diversity and Populations

Reference to Personal Information Bank (PIB)

Personal information collected through the Survey on Health Care Workers' Experiences During the Pandemic is described in Statistics Canada's "Health Surveys" Personal Information Bank. The Personal Information Bank refers to personal information that is related to participants of health surveys conducted by Statistics Canada. The personal information may include the following: name, contact, biographical, biometric, citizenship status, education, employment, financial, language, health and medical information (from blood, urine and hair samples), pregnancy, breastfeeding, sleep habits, sexual behaviour, nutrition, alcohol and e-cigarette/cigarette use, medication/drug use, physical attributes, physical activity, neighbourhood environment, place of birth, and provincial health card number.

The "Health Surveys" Personal Information Bank (Bank number: StatCan PPU 806) is published on the Statistics Canada website under the latest Information about Programs and Information Holdings chapter.

Description of statistical activity

Statistics Canada is conducting the Survey on Health Care Workers' Experiences During the Pandemic, under the authority of the Statistics Act ^{Footnote 1} , on behalf of the Public Health Agency of Canada and Health Canada.

The purpose of this survey is to understand the impact of the COVID-19 pandemic on health care workers in Canada. This voluntary survey will cover topics such as job type and setting, personal protective equipment (PPE) and infection prevention and control (IPC) practices and protocols, COVID-19 vaccination and diagnosis, and the impacts of the pandemic on personal health and work life. It also includes general demographic questions.

A master microdata file will be produced and made available in Statistics Canada's Research Data Centres (RDC)^{Footnote 2} . A subset of the master file which contains only information of respondents who have consented to share their information, called the share file, will be made available to the Public Health Agency of Canada (PHAC) Health Canada (HC), the Institut de la Statistique du Québec (ISQ) and provincial and territorial ministries of health. A Public Use Microdata File (PUMF)^{Footnote 3} will also be produced for use by the Canadian Institute for Health Information (CIHI) and will be available to members of the public. Health Canada, PHAC and CIHI plan to use the survey results to help inform health care workforce planning, the delivery of health care services and to better understand what health care workers need in terms of equipment, training and support.

The survey targets health care workers and those working in a health care setting in Canada since the start of the COVID-19 pandemic who are living in the 10 provinces. Because of the small number of health care workers in the territories, the limitation of collection to the capital cities and the low response rates currently being experienced in the territories it was deemed that collection in the territories would not produce enough respondents to be able to release reliable estimates at the individual territorial level.

Questions on health include self-perceived health, mental health, and daily stress both currently and compared to before the COVID-19 pandemic, resilience, feelings of anxiety, depression, or suicide, chronic conditions, and changes in lifestyle and behaviours, such as consumption of alcohol, tobacco, cannabis, pain relievers for non-therapeutic purposes, or illegal drugs.

Questions on COVID-19 include the impact of COVID-19 on the respondent's job and personal life, COVID-19 diagnosis, possible hospitalization, where it was contracted, and reason(s) for getting tested. Also included are questions on COVID-19 vaccination, reasons for not having been vaccinated (if applicable), and precautions taken at home related to COVID-19.

In addition, respondents will be asked to confirm their name, and provide other demographic information such as date of birth, age, gender, postal code, province/territory of residence, province/territory of work, Indigenous identity, population group, immigration and citizenship and income. The purpose of including these questions is to determine if there are differences in the impacts of the pandemic on health care workers from various groups. For example, those living in different provinces, younger or older health care workers, or differences among genders.

A sample of 32,500 individuals were selected from Census 2016 long form respondents. These were individuals who had identified as a health care worker at the time of Census 2016 or who were registered in a health care education program between 2015 and 2018, according to the Postsecondary Student Information System (PSIS). This is a targeted respondent survey. Responses will be aggregated to ensure that no individuals can be directly or indirectly identified.

Reason for supplement:

While the Generic Privacy Impact Assessment (PIA) addresses most of the privacy and security risks related to statistical activities conducted by Statistics Canada, this supplement describes additional measures being implemented due to the sensitivity of the information being collected. As is the case with all PIAs, Statistics Canada's privacy framework ensures that elements of privacy protection and privacy controls are documented and applied. The Survey on Health Care Workers' Experiences During the Pandemic will collect information on the impact of the COVID-19 pandemic on health care workers' personal and professional lives, including their mental well-being (including feelings of anxiety, depression, or suicide) as well as sensitive personal information such as name, date of birth, and gender identity. This supplement describes how Statistics Canada designed and developed this survey while taking into account the possible impact on vulnerable populations.

Necessity and proportionality

The collection and use of personal information for the Survey on Health Care Workers' Experiences During the Pandemic can be justified against Statistics Canada's Necessity and Proportionality Framework:

1. Necessity:

   The impact of the COVID-19 pandemic on health care workers is not fully understood. There are few existing sources of information on this topic, in particular on the impact on health care workers' personal life, so a survey is needed to fill this data gap. The results of this survey may be used by the Public Health Agency of Canada, Health Canada, the Canadian Institute for Health Information and other government organizations to help to inform health care workforce planning, the delivery of health care services and to better understand what health care workers need in terms of equipment, training and support.

   Only health care workers living in the provinces are eligible to participate. This is a targeted respondent survey and respondents will confirm that they are health care workers at the start of the survey. The demographic data and occupational group information collected will be used for analysis of subgroups of the population. The health care workers have been stratified into four groups from a list of 24 occupations: physicians, nurses, personal support workers (PSWs) and other health care workers. A goal of the survey is to be able to understand how the impacts of the pandemic are affecting different types of health care workers.

   The survey data file, without direct identifiers other than postal code and date of birth, will be made available to researchers in the Research Data Centres (RDC) upon approval of requests to access the data for statistical research. Statistics Canada's directives and policies on data publication will be followed to ensure the confidentiality of any data released from the RDC. Only aggregate results, which are fully anonymized and non-confidential, without direct identifiers, which precludes the possibility of re-identifying individuals, can be released from the RDC. Statistics Canada will retain this data as long as required for statistical purposes, in order to conduct analysis of long‐term impacts.

   Although there are currently no plans for record linkage, direct personal identifiers such as name will be retained on a separate file in a secure location for potential linkage opportunities in the future.

   Statistics Canada's microdata linkage and related statistical activities were assessed in Statistics Canada's Generic Privacy Impact Assessment.^{Footnote 4} All data linkage activities are subject to established governance^{Footnote 5} , and are assessed against the privacy principles of necessity and proportionality.^{Footnote 6} All approved linkages are published on Statistics Canada's website.^{Footnote 7}

2. Effectiveness - Working assumptions:

   A questionnaire was developed by following Statistics Canada's processes and methodology to produce results that are representative of the population. The survey will be administered using a self-reported electronic questionnaire with interviewer telephone follow-up for non-response. A random sample of health care workers or individuals expected to be working as health care workers from Statistics Canada's 2016 Census 2016 will receive an invitation letter and secure access code to complete the survey on Statistics Canada's secure website. After 3 and a half weeks, interviewers will follow up with individuals that have not yet responded, to re-issue the invitation and provide respondents with the opportunity to complete the survey over the telephone with a trained Statistics Canada interviewer. The collection period will be approximately ten weeks. All Statistics Canada directives and policies for the development, collection, and dissemination of the survey will be followed, and survey responses will not be attached to respondents' addresses or phone numbers. The data will be representative of the health care worker population and may be disaggregated by province, ethnicity, gender, age groupings, and other variables; in order to ensure anonymity.

3. Proportionality:

   Data on mental health and its impacts, as well as data on consumption of illegal drugs are highly sensitive. Moreover, mental-health issues may be exacerbated due to COVID‐19 isolation protocols. For these reasons, experts at Statistics Canada have been consulted on the scope and methodology of the survey. Wherever possible, questions about mental health and well‐being from existing surveys have been used. Some of these questions were taken from the Survey of COVID-19 and Mental Health (SCMH) and have previously undergone qualitative testing; the SHCWEP questionnaire also underwent qualitative testing.

   All the data to be collected are required to fulfill the purpose of the survey as described above. All questions and response categories were carefully considered to ensure they accurately capture the data in question to help inform activities such as health care workforce planning, the delivery of health care services and to better understand what health care workers need in terms of equipment, training, and support.

   Statistics Canada directives and policies with respect to data collection and publication will be followed to ensure the confidentiality of the data. Individual responses will be grouped with those of others when reporting results. Individual responses and results for small groups (as established by minimum prevalence levels for each variable among these small groups) will not be published or shared with government departments or agencies. This approach will also reduce any potential impact on vulnerable populations or subsets of populations, as the grouping of results will protect the confidentiality of individuals within a particular subset of the population. As permitted by the Statistics Act^{Footnote 8} and with consent of individual respondents, survey responses may be shared with the Public Health Agency of Canada, Health Canada, provincial and territorial ministries of health, and for Quebec residents, the Institut de la statistique du Québec, strictly for statistical and research purposes, to aid in future policy decisions related to health care workers, in accordance with Statistics Canada's security and confidentiality requirements.

   The findings will support decision-making at all levels of government and improve knowledge and understanding of the impact of the COVID-19 pandemic on health care workers, and will help inform government decision‐making in order to support health care workers in their personal and professional lives. The privacy measures taken are proportional to the potential risks to an individual's privacy.

   Proportionality has also been considered based on ethics:

   Prior to collection, individuals selected to participate in the survey will be clearly informed that the survey is voluntary. They will also be informed of the survey's purpose and topics, so that they can make an informed decision about whether they want to participate. This notification to all potential participants will be done in writing on the questionnaire, or verbally by the interviewer before any questions are asked. They will also be asked if their data can be shared with the Public Health Agency of Canada, Health Canada, provincial and territorial ministries of health, and for Quebec residents, the Institut de la statistique du Québec.

   Since some of the survey questions are sensitive and could lead to distress, mental-health resources will be included in the help text for those questions, which can be accessed in the electronic questionnaire and during interviews.

   The help text reads as follows and includes 10 resources of which 3 are listed here as examples:

   In the current context of COVID-19, many people are trying to adjust to the new norms, such as returning to work or day-to-day life. During this time, many people may not feel that they are in control of things, and it is normal to feel concerned, sad, stressed, confused, scared or worried.

   Should you need any support, please contact any of the following resources:

   • Canada Suicide Prevention Service

     A national network of existing distress, crisis and suicide prevention line services

     Crisis Services Canada website

     Telephone: 1-833-456-4566

   • APPELLE (Quebec Residents)

     Help line for those thinking about suicide or are worried about a loved one

     Telephone: 1-866-277-3553

   • Centre for Addiction and Mental Health

     A wide range of clinical care services for mental illness and addictions

     Camh website

     Telephone: 1-800-463-2338

4. Alternatives:

   Research was conducted on existing administrative data and other surveys related to health care workers. It was determined that these types of data sources would not provide the details needed to fully understand the impact of the COVID-19 pandemic on health care workers. As a result, it was determined that a survey to collect this information was required. A previous crowdsource collection, where information is collected from volunteers, took place in November and December of 2020 which collected information primarily related to the participant's work environment and access to infection prevention and control (IPC) and personal protective equipment (PPE) at work without much information about individuals' personal lives. Additionally, because it was a crowdsource collection, it is not possible to use it to produce estimates that are representative of the Canadian population. Based on discussions between health and methodology experts within Statistics Canada and the Public Health Agency of Canada, it was determined that a survey with at least 30,000 units was necessary to produce reliable and accurate results by province and the four health occupation groups of interest (physicians, nurses, PSWs, and other health care workers). Releasing data at these aggregated levels would reduce the potential to identify impacts on vulnerable populations, subsets of populations, and groups.

Mitigation factors:

Some questions contained in the Survey on Health Care Worker's Experiences During the Pandemic are considered sensitive as they relate to an individual's mental health and well-being. The overall risk of harm to the survey respondents has been deemed manageable with existing Statistics Canada safeguards that are described in Statistics Canada's Generic Privacy Impact Assessment, as well as with the following measures:

Mental-Health Resources:

As with mental health surveys conducted by Statistics Canada, mental-health resources and contact information will be provided to respondents as a help button within the electronic questionnaire. In addition, in the case of telephone follow-up for non-response, interviewers will be trained and equipped to offer mental health resources and contact information to survey respondents.

Transparency:

Prior to collection, individuals selected to participate in the survey will be clearly informed that the survey is voluntary. They will also be informed of the survey's purpose and topics, so that they can make an informed decision about whether they want to participate. This notification to all potential participants will be done in writing on the questionnaire, or verbally by the interviewer before any questions are asked. The topics listed as part of the survey will include: job type and setting, personal protective equipment (PPE) and infection prevention and control (IPC) practices and protocols, COVID-19 vaccination and diagnosis, and the impacts of the pandemic on personal health and work life. It also includes general demographic questions. This information will be provided through invitation and reminder letters, and will be repeated at the beginning of the questionnaire. Information about the survey, as well as the survey questionnaire, will also be available on Statistics Canada's website.

Confidentiality:

Individual responses will be grouped with those of others when reporting results. Individual responses and results for very small groups will never be published or shared with government departments or agencies. Following careful analysis of the data, consideration will be given prior to the release of aggregate data to ensure that marginalized and vulnerable communities are not disproportionally impacted. As permitted by the Statistics Act, and only with the consent of the respondent, survey responses may be shared with PHAC, Health Canada and provincial and territorial ministries of health, strictly for statistical and research purposes, and in accordance Statistics Canada's security and confidentiality requirements. The postal code will not be used to identify respondents given that only aggregated data will be released.

Conclusion:

This assessment concludes that with the existing Statistics Canada safeguards and additional mitigation factors listed above, any remaining risks are such that Statistics Canada is prepared to accept and manage the risk.

• 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.