Term
|
Definition
| An accounting measurement method that ignores wheter cash has been received or paid. This method considers revenues earned, but not collected in case, and expenses incurred, whether paid in cash or due to be paid. |
|
|
Term
|
Definition
A budgeting model that encompasses all resources, including those that may be subject to restrictions such as gifts of endowment income. |
|
|
Term
|
Definition
The allocation of the cost of intangible assests as expenses to multiple periods. The value of the intangible asset's cost is divided by the number of periods the asset is expected to provide benefit. The resulting amount is treated as an expense during each period. |
|
|
Term
|
Definition
Self-supporting campus-based activities that provide services to students, faculty and staff. Examples include dining operations, residence halls and bookstores. |
|
|
Term
|
Definition
A budgeting philosophy that involves decentralized decision making, starting at the most basic unit level. |
|
|
Term
|
Definition
The series of scheduled events that must occur to develop a budget. |
|
|
Term
|
Definition
| Physical resources with a cost (or fair market value, if dontated) exceeding an established dollar threshold that are expected to provide service for more than a single year. Unless the resources are expected to maintain or increase their value over time, the cost of the assets is allocated to the benefiting periods through amortization or depreciation. Examples include land, buildings, equipment and leasehold improvements. |
|
|
Term
|
Definition
The process used to develop and monitor resources and investments related to large-dollar projects undertaken either to acquire or to construct capital assets such as buildings. |
|
|
Term
|
Definition
| The process of recording expenditures for long-term resources as assets rather than as expenses. Expenses are recognized as costs of a particular period, while capital assets' costs are recognized over time through amortization or depreciation. |
|
|
Term
|
Definition
The ability to use unspent budget resoruces from one fiscal period in a subsequent fiscal period. |
|
|
Term
|
Definition
An organizational unit that incurs expenses but cannot generate revenues. |
|
|
Term
|
Definition
| The cumulative value of scheduled or routine maintenance and repairs for facilities that an organization chooses not to undertake when originally scheduled -typically due to finanical considerations. |
|
|
Term
|
Definition
| The allocation of the cost of tangible assets as expenses to multiple periods. The value of the tangible asset's cost is divided by the number of periods the asset is expected to provide benefit. The resulting amount is treated as an expense during each period. |
|
|
Term
|
Definition
Resources that the governing board or management has reserved for specific purposes. Contrast restricted funds. |
|
|
Term
|
Definition
Costs that can be identified specifically with a particular project or activity. |
|
|
Term
|
Definition
| The category of revenues and expenses related to the primary academic activities of a college or university. Examples include revenues and expenses generated in the three primary mission-related programs: instruction, research, and public service. Types of revenue include tuition and required fees, sales of educational services, and gifts. Types of expenses include the functional expenses classified as instruction, research, public service, academic support, student administration and services, institutional support, operations and maintenance of plant, and student financial aid. |
|
|
Term
|
Definition
| A gift carrying a stipulation that the principal be invested in perpetuity, with the investment income generated by the gift being available for program support or other purposes. Income from restricted endowments support specific programs identified by the donor, while income from unrestricted endowments may be used for any institutional purpose. |
|
|
Term
|
Definition
Gifts of principal that may never be expended. |
|
|
Term
|
Definition
| Resources set aside by an institution's governing board and combined with true and term endowments for investment purposes, with only the investment income available for use. The principal can be expended at the discretion of the governing board. |
|
|
Term
|
Definition
| Revenue earned by investing endowment principal, typically in stocks, bonds, and other investments. The revenue consists of dividends, interest, rents, and realized and unrealized gains from the sale of stocks, bonds, or other investments. |
|
|
Term
|
Definition
An imminent financial crisis that threatens the survival of the institution as a whole and cannot be alleviated by less drastic means than termination of faculty appointments. |
|
|
Term
|
Definition
A budget strategy that relies on quantitative measures to distribute resources. Typical measures include student full-time equivalents, employee full-time equivalents, and assignable square feet. |
|
|
Term
FUNCTIONAL CLASSIFICATION |
|
Definition
A method of categorizing expenses based on their purpose rather than on the nature of the expense. Examples include instruction, research, and academic support. |
|
|
Term
|
Definition
A budget strategy that focuses on percentage adjustments to the existing base budget rather than on specific priorities. |
|
|
Term
|
Definition
Costs that are incurred for multiple purposes and, therfore, cannot be linked specifically to a particular project or activity. |
|
|
Term
|
Definition
| The foundational assets and resources needed to operate a college or university. Some assets are tangible as in roadways, steam tunnels and computer system cables, while others are intangilble as in systems, policies, and procedures. |
|
|
Term
INITITATIVE-BASED BUDGETING |
|
Definition
| A budget strategy that focuses on obtaining resources for priority activities and programs by requiring all activities and programs to reallocate a small protion of their base budgets for redistribution. |
|
|
Term
|
Definition
| A type of budgetary control under which resources are distributed in detailed categories such as salaries, travel, and contractual services, with a requirement that funds be spent within those categories. |
|
|
Term
|
Definition
A depiction of the planned physical development of a campus, usually identifying existing boundaries and facilities as well as planned additions |
|
|
Term
|
Definition
| Financial aid awarded to a student based on criteria other than demonstrated need. Frequently merit aid is based on accomplishments in the classroom or on special skills or talents. |
|
|
Term
|
Definition
| A method of categorizing expenses by the type of expense rather than the purpose for which the expense is incurred. Examples include salaries, benefits, supplies, and travel. |
|
|
Term
|
Definition
| Financial aid awarded to a student solely on the basis of demonstrated financial need, as determined using the federal government's methodology. Need can be met either with federal student aid programs or with institutional funds. |
|
|
Term
|
Definition
| The quantitative manifestation of an organization's (or one of its subunits') planned revenues, expenses, and contributions and withdrawals from reserves. These are usually supported by narrative documents identifying goals, objectives, and priorities and, in some cases, performance standards related to the various activities and programs to be undertaken by the unit covered by the budget. |
|
|
Term
|
Definition
| The additional workload for a faculty member in excess of the requirements for his or her normal full-time academic appointment. The term also refers to the additional compensation provided for the additional effort. |
|
|
Term
PERFORMANCE-BASED BUDGETING |
|
Definition
| A budget strategy that relies on the establishment of specific institutional performance objectives to justify a portion of base budget resources or incremental resources. |
|
|
Term
PLANNING, PROGRAMMING & BUDGETING SYSTEMS |
|
Definition
| A budgeting strategy that attempts to link the planning process to resource allocation by relying on the systematic analysis of various alternatives based on their relative costs and benefits. |
|
|
Term
|
Definition
A process in which managers of programs and activities must identify a small portion of existing resources that will be redistributed in accordance with established priorities. |
|
|
Term
|
Definition
| Funds set aside as savings in accordance with organizational plans. These might be created for facilities maintenance and renewal, to meet unanticipated operating costs, or to be invested as quasi-endowment. |
|
|
Term
RESPONSIBILITY CENTERED BUDGETING |
|
Definition
A budget strategy that treats individual units and programs as revenue centers or cost centers. Revenue centers are allowed to control the revenues they generate and are responsible for financing both their direct and indirect
expenses. Cost centers are supported by assessments on other units or by centrally administered allocations. |
|
|
Term
|
Definition
| Resources provided from external sources that must be expended in accordance with stipulations established by the provider. Under existing accounting rules, only donors can establish restrictions for independent institutions, while an external party (such as a donor, a creditor, or another government) can create restrictions for public institutions. Contrast - Designated Funds. |
|
|
Term
|
Definition
A series of actions involving the elimination and/or reduction of programs and activities undertaken in response to serious financial difficulties. |
|
|
Term
|
Definition
An organizational unit with the ability to generate revenues by direct action. |
|
|
Term
|
Definition
| The portion of resources related to each endowment fund that is made available for spending in a given fiscal year. Usually expressed as a percentage, the amount typically includes both current investment yield (dividends and interest) as well asa portion of accumulated realized gains and appreciation. Also called payout rate. |
|
|
Term
|
Definition
An agreement between an institution and an external entity (such as a federal agency, corporation, or foundation) under which the institution undertakes an activity with financial support from the external entity. The agreement specifies what will be accomplished and identifies the amounts and types of costs that will be reimbursed. |
|
|
Term
|
Definition
| A budgeting philosophy that involves highly centralized decision making, with most direction filtering down through the organizational hierarchy from central administrative offices. |
|
|
Term
|
Definition
| The practice of using institutional resources to award financial aid, thereby lowering the cost of attendance for selected students. Although the aid can address demonstrated financial need, it frequently is awarded on a merit basis. |
|
|
Term
|
Definition
Institutional resources that can be used for any purpose that is consistent with and supportive of the overall purpose of the organization. |
|
|
Term
|
Definition
| A budget strategy that requires each program or activity to articulate its contribution to the achievement of the organization's mission, annually or on a cyclical basis. |
|
|
|
