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Governance

Glossary of Budget Terms

Auxiliary Enterprise
Budget
Budget Variance
Budget Working Group
Capital Budget
Current Funds
Debt Service
Designated Funds
Driver
Encumbrance
Expenditure
Expense
Fiscal Year
FOAPAL
Fringe Benefit
Fringe Chargeback
Fund
Fund Additions
Fund Balance
Fund Deductions
General Fund
One-time Funds
Operating Budget
Position Control
Reserves
Responsibility Center
Restricted Funds
Revenue
State Appropriations
Strategic Fund
Student General Fee
Support Unit
Teaching Unit
Tuition
Unit
Unrestricted Funds

Auxiliary Enterprise - An entity that exists to furnish goods or services to members of the campus community, or to the general public, and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. Examples include Student Recreation and Wellness Center, Student Housing, Parking Services, Childcare Services, Pertle Springs, and University Bookstore and Textbook Services. These services are fully costed and expected to be self-supporting based on the fees charged. An Auxiliary may be subsidized with general revenue at the discretion of the President and the Board.

Budget - The annual plan for the expenditure of estimated resources to support the University’s priorities and operations.

Budget Variance - The difference between the budgeted amount of expense or revenue and the actual amount. The budget variance is favorable when the actual revenue is higher than the budget or when the actual expense is less than the budget.

Budget Working Group - Serves as an oversight mechanism that ensures the integrity, balance and transparency in the budget process; evaluates all aspects of the budget relative to the resource allocation model and makes recommendations to the Strategic Leadership Team (SLT).

Capital Budget - Budget/plan for capital assets and infrastructure such as facilities, renovation, information technology, and certain equipment.

Current Funds - Those funds that are earned and expended in the current fiscal year.

Debt Service - The amount of principal and interest owed on borrowed monies.

Designated Funds - Resources received by the university that have no limitations or stipulations placed on them by external entities but that are internally authorized by the Board of Governors for a specific purpose. Examples of designated funds are student fees (e.g., Course Materials and Lab Fees).

Driver - The basis for allocating revenues or expenses across the centers.

Encumbrance - Funds committed for future payment. Examples include purchase order encumbrances, salary encumbrances, and general encumbrances used for non-payroll and non-purchase order expenses.

Expenditure - The use of funds to pay for activities related to the operation of the university.

Expense - The cost of goods and services.

Fiscal Year - A 12-month accounting period specified by the calendar year in which the fiscal year ends. The University’s fiscal year begins July 1 and ends June 30 of the following calendar year.

FOAPAL - The FOAPAL is an acronym for the chart of accounts structure used by the Banner finance system. FOAPAL stands for the Fund-Organization-Account-Program-Activity-Location codes.

 

Fringe Benefit - A fringe benefit is an additional cost the University incurs on behalf of its employees to enhance their well-being. Depending on the nature of the remuneration, fringe benefits may be taxable or nontaxable. Fringe benefits include but are not limited to retirement, employee health, vision, dental, and the University’s FICA contribution.

 

Fringe Chargeback - A method used to allocate benefit costs to units in proportion to direct salary costs incurred by each employee class. The chargeback rates will vary depending upon benefits eligibility, coverage selection, and average salaries of personnel within the employee class.

Fund - A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities, residual equities or balances, and changes therein that are segregated for the purpose of carrying on specific activities or objectives, in accordance with special regulations, restrictions or limitations.

Fund Additions - Entries that affect the fund balance of an account. Examples include receipts of gifts, grants, contracts, or investment income.

Fund Balance - The accumulation of all inception-to-date revenue, expense, transfer, Fund Addition, and Fund Deduction activity in the Fund.

Fund Deductions - Entries that affect the fund balance of an account. An example of a fund deduction is losses on investment.

General Funds - The main University fund used to record state appropriation, tuition, and expenses related to the University’s core mission.

One-time Funds - Resources that cannot be anticipated on a long-term or consistent basis, and therefore, should not be allocated to support ongoing expenses.

Operating Budget - Detailed projection of all estimated income and expenses based on forecasted revenue during a given period (usually one year) to support the operations of the university, including instruction, scholarships and financial aid, and administrative activities.

Position Control - A system of tracking information based on positions rather than employees.

Reserves - The balance of funds that is retained by units at year end for future fiscal years.

Responsibility Center - Typically these are the units of the university that bring in revenue (e.g., tuition or sales) for services rendered. A responsibility center (RC) may be a college or an auxiliary operation. RCs are responsible for managing revenues, expenses and fund balances and related financial decisions. Auxiliary RCs are fully costed but may be subsidized at the discretion of the university.

Restricted Funds - Funds whose use has been restricted by an external agency or individual. These funds are limited to support specific purposes and/or units. Examples include certain research awards and gifts.

Revenue - Inflow of funds from sales, services, fees, gifts, or other external sources, including the state of Missouri and tuition.

State Appropriations - Funds allocated by the Missouri Legislature that is comprised of General Revenue and Lottery.

Strategic Fund - Funding distributed annually through a formal request and approval process, targeted in areas of strategic importance to the university.

Student General Fee - Mandatory fees assessed for non-instructional student services. The fee is charged to every student who is enrolled in at least one class, and is used to promote the student’s emotional and physical well-being, as well as their cultural and social development outside of formal instructional programs, most specifically through student services and student activities.

Support Unit - A unit that generates little or no external revenue, but provides critical services to support the activities of the responsibility centers. Examples include academic support units, general administration, business operations, libraries, information technology, facilities, and sponsored programs.

Teaching Unit- The college/department/school providing the delivery of instruction.

Tuition - A Board of Governors’ approved fee for instructional services, determined by the student’s residency status, the number of credit hours for which the student is registered, the student’s course of study and the student’s classification level.

Unit - A unit describes a unique entity and may be a college, a department, or a service center depending on the contextual use of the word.

Unrestricted Funds - Refers to funds that have no external limitations on their use. Examples of unrestricted funds include auxiliary funds and general funds.