GLOSSARY OF TERMS

• Account Code :  Account codes group like expenditures as designated by the University Regents, (i.e. Teaching Faculty Salaries, Supplies, Equipment, etc).

• Accounting Procedure : See Accrual Accounting and Cash Basis Accounting.

• Accrual Accounting : The accounting method that recognizes revenues when sales are made or services are performed and recognizes expenditures when goods or services are received, regardless of whether payment has been made or received.

• Activity and Sub-Activity Code : Fund reporting codes used by the Oklahoma State Regents for Higher Education that conform to the National Association of College and University Business Officers (NACUBO) fund categories:

Instruction (Activity  11)

11000        Vocational/Technical Instruction

13000       Community Education

Research  (Activity  12)

21000      Institutes and Research Centers

Public Service  (Activity  13)

31000       Cooperative Extension Service

Academic Support  (Activity  14)

41000       Museum and Galleries

43000      Ancillary Support

Personnel Development  (Activity  14)

46000      Course and Curriculum Development

Student Services  (Activity  15)

51000       Social and Cultural Development

53000      Financial Aid Administration

56000      Student Health Services

Institutional Support  (Activity  16)

61000      Fiscal Operations

65000     Public Relations/Development

Operation and Maintenance of Plant  (Activity  17)

71000      Building Maintenance

73000     Utilities

75000     Major Repairs and Renovations

76000     Safety & Security

77000     Logistical Services

• Agency Departments : Those departments that receive and disburse revenues collected by certain self-supporting entities that charge fees directly related, though not necessarily equal, to the cost of goods and services supplied. Entities that furnish goods or services to individuals, whether university related or not, are referred to as Auxiliary Enterprises and include residence halls, food services, intercollegiate athletics, faculty and staff parking, student health services, etc. Entities whose financial assets are kept in custodial care by the university are grouped as Other Agency Units and include student organizations and other units operating on a cash basis.

• Annual Operating Budget : See Operating Budget.

• Appropriations :  See State Appropriations.

• Department Number : The department number is a niine-digit code that identifies a basic funding unit used by a department for an identifiable activity. Each digit indicates the agency, vice president, class, sub-class, or type and source of funding. The first, second, and third digits are the most significant for budget purposes.

The first digit indicates the state agency:

The second digit generally represents the vice presidential area; however, when accounts have been transferred to different vice presidential areas the second digit will not represent the new vice presidential area:

The third digit indicates the classification of funds:

• Auxiliary Enterprise : See Agency Department.

• Base Budget : An estimate of funding required to continue existing programs at current levels of service. See also Permanent Budget Revision.

• Bond : See Revenue Bond.

• Budget : See Operating Budget and Capital Budget.

• Budget Code : Budgetary classifications of funds designated for salary and wage positions are listed below and represent the first two digits of the object code:

• Budget Reallocation/Realignment : The redistribution of funds between vice presidential areas, colleges, departments, budget categories or positions, activities, etc., without increasing or decreasing the total budget.

• Budget Revision : The reallocation or transfer of funds between areas, budget units, activities, accounts, positions within departments, or maintenance and operations categories, during the fiscal year due to under- or over-estimation of actual expenditures, realignment of priorities, or unexpected funding emergencies.

• Capital Budget : A financial plan for funding new construction, major renovations, and acquisition of physical property for the university, including buildings, land, major equipment, and other items of significant value which have a useful life of several years. Capital revenues for the University of Oklahoma come from five major sources: state appropriations, Section 13/New College Funds, revenue bonds, private donations, and grants.

• Cash Basis Accounting : The accounting method that recognizes revenues only when cash is received and recognizes expenditures only when cash is paid.

• Clearing Department : An intermediary department that temporarily holds funds that have been received from or will be distributed to various other departments.

• Debt Service :  Funds committed to paying principal, interest, and related costs of the University's bonded indebtedness according to a predetermined payment schedule.

• Deficit : Insufficient budget or revenues to cover expenditures during a given accounting period (i.e., monthly, annually, etc.). Deficits can occur by department, within a budget category or by account code or position within a department.

• Department Number :  The department number is a niine-digit code that identifies a basic funding unit used by a department for an identifiable activity. Each digit indicates the agency, vice president, class, sub-class, or type and source of funding. The first, second, and third digits are the most significant for budget purposes.

• Department Sponsor : The individual responsible for authorization of expenditures and reconciliation of department records.

• Depreciation :  The decrease in value or service life of fixed assets through wear and tear, deterioration, obsolescence, etc.

• Discretionary Funds :  A type of unrestricted fund which can be expended for any lawful purpose.

• Educational and General (E&G) Funds :  Money that supports the basic functions of higher education institutions' instruction, research and public service. E&G funds provide the means for these three functions which include all supporting activities such as academic support, student services, institutional support, and plant operation and maintenance. Revenues for these funds are generated from state appropriations; tuition and fees; gifts, grants, and reimbursements; and other revolving fund sources.

• Encumbrance :  Funds committed to the purchase of a specific good or service.

• Entity :  For budget purposes, one or more service unit or auxiliary enterprise accounts with the same mission and performing a single service, such as the set of departments in Housing and Food Services.

• Expenditure :  The disbursement of funds for services or goods such as salaries and wages, maintenance and operations, and capital items.

• Fiscal Year :  The twelve month period from July 1 through June 30. Often identified as FY or FY06, which means the fiscal year beginning July 1, 2005, and ending June 30, 2006.

• Fixed Asset :  Property such as land, buildings, machinery, and similar equipment that is retained and used over an extended period.

• Fixed Cost :  Charges set and subject to change primarily by external agencies, such as insurance premiums, pension premiums, utility charges, memberships, and other similar service costs.

• Full-time-equivalent (FTE) :   The percentage of full effort given a position; e.g., 1.00 FTE means full-time.

• Fund :  A set of departments containing a designated sum of money identified for a specific purpose. See also the names of specific funds in this listing.

• General University Department :   Centrally budgeted funds that provide fiscal support on a university-wide basis, such as fringe benefits, utilities, and institutional memberships.

• Grants and Contracts :   A type of restricted fund from governmental or private sources for use only as specified by the funding agency.

• Hard Money :  Funding generated centrally or university-wide.  The Oklahoma State Board of Regents designates these funds as "Educational and General Part I".   Examples include state appropriations, tuition, and fees.

• Income :  Revenue associated with auxiliary enterprises or other business operations.

• Indirect Cost :  Overhead expenses charged against grant agencies, auxiliary enterprises, service units, or instructional and research units as reimbursement for university services such as administrative costs, custodial services, utilities, building and equipment use, etc.

• Line-Item :   The smallest, most detailed, category identified by a code, such as individual positions, travel, communications, equipment, etc.

• Maintenance and Operations (M&O) Budget :  Includes consumable goods (i.e., supplies and equipment, services, rental and contractual items, travel, and operating capital).

• Norman Campus :  The central Norman Campus, the Law Center and the Oklahoma Geological Survey.

• Operating Budget :  A financial plan of current operations that encompasses both estimated revenues and estimated expenditures for a specified period, normally one fiscal year.

• Overhead :  See Indirect Cost.

• Pay Distribution :  The designation of departments from which payroll expenses for a position are to be charged.

• Payroll Expense Transfer :   The process of correcting a payroll amount that has been charged to an incorrect department, account code or position number.

• Permanent Budget Revision :   Annualized changes made to the base budget that serve as the foundation for the next fiscal year operating budget.

• Position :  An employment slot that bears a title, funding, FTE, salary grade, and job description. The University's three position types are as follows:

• Position Number :   A five-digit code is automatically assigned to a position by the computer when a position is initiated by a department via the New Position Request Form. A unique number is assigned to each position and has no link to a department, area or account code. No two positions (pool or individual) throughout the campus will share the same position number. Contact Human Resources to establish a new position number.

• Reallocation :  See Budget Reallocation.

• Reimbursement :   Repayment to a department or fund for services provided or payments made.

• Responsible Department :  The E&G, agency, or service unit department responsible for a position; if necessary, the responsible department assumes the pay distribution during an employee's period of appointment. A grant department cannot be a responsible department.

• Restricted Funds :  Gifts, grants, contracts, and endowments received from local, state, federal, and private sources and used only as specified by the donor.

• Revenue Bonds :  Funds borrowed against anticipated revenue and most often used for Auxiliary Enterprises. Such bonds may also be used for service unit improvements, as in the utilities system, creating savings in the educational and general budget.

• Revenues :  Income to cover an institution's expenditures. See State Appropriations and Revolving Fund.

• Revolving Fund :  A component of the educational and general fund, consisting of revenue from student tuition and fees; gifts, grants, and reimbursements; sales and services of educational departments; and all other revenue available to the institution in support of educational and general activities. The fund is classified as "revolving" because the balance of funds is retained by the university from year to year. The unspent portion is not returned to the state as is required for state appropriations.

• Salary Recapture :  The transfer of salary funds from vacant or underfilled positions into one or more central administrative accounts.

• Section 13/New College Funds :   Income from the sale and lease of state Section 13 lands which were granted at statehood for the use and benefit of higher education institutions. Under law, institutions may use these funds "for construction and purchase of buildings, for the purchase of equipment, and for other capital additions."

• Self-Generated Funds :   Funding generated at the budget unit or departmental level (usually designated for that department or unit) and considered by the Oklahoma State Board of Regents as part of "Educational and General Part I" funding in addition to centrally allocated funds. Examples include course fees, foundation reimbursements, and gifts restricted to a specific department.

• Service Unit :  An entity that provides a specific service to other institutional departments, rather than to individuals, and charges those departments for services rendered. These units serve as intermediaries for expenditures of other operating departments. They include physical plant, central computing, office systems support and rental, motor pool, the telephone system, public safety, the storeroom, printing services, architectural and engineering services, etc. All service units on the Norman Campus are internal.

• Soft Money :  See Self-Generated Funds.

• State Appropriations :   Annual legislative allotment from the state's general revenue fund. The operating budget portion must be spent during the fiscal year for which it is appropriated while the capital budget portion may be spent over several years.

• University System :  The Norman Campus, Law Center, Schusterman Center in Tulsa, Oklahoma Geological Survey, and Health Sciences Center in Oklahoma City.

• Unrestricted Funds :  Monetary resources that are not subject to specific external guidelines or regulations and are expendable for any activities that promote the instruction, research, and public service missions of the university.