COMMON UVSC
FINANCE AND RELATED TERMS
(Prepared by Budget Office, May 2003)

Academic Year -- August through April; Fall & Spring semesters.

Career and Technical Education Instruction -- Programs which are terminal in nature and the associated courses. ATE programs generally offer diplomas, certificates or AAS degrees. Courses are generally numbered below 3000; some 3000 level courses required for terminal degrees may be designated as ATE courses.

Balanced budget -- A budget in which receipts are equal to or greater than outlays (expenses).

Budget -- The budget is the authorized level of expenditure for an individual cost center. For appropriated cost centers, the budget is an allocation determined through administrative process. For non-appropriated cost centers, the budget is set according to the projected revenue and/or stipulations of the grant or revenue source.

Budget Transfer -- Transaction that reduces the budget in one cost center/account and increases the budget in another cost center/account by an equal amount. Appropriated budgets may only be transferred between appropriated cost centers.

Calendar Year -- January 1 through December 31.

Capital Expenditures -- Expenditures which result in the acquisition of or addition to fixed assets; tangible items with an individual item cost of $5,000 or more.

Carryover/Carry Forward -- A portion or total of the unexpended balance of a cost center budget/revenue, which is made available for expenditure in the succeeding year.

Compensation -- The total dollar amount, including gross salaries and employee benefits, paid directly to or on behalf of personnel.

Cost Center -- The smallest unit of activity or area of responsibility into which an operating organization is divided for control and accountability purposes and to which budget/costs are assigned or allocated.

Current Expense -- Operating expense for tangible items (less than $5,000 per item) and intangible goods and services (telephone, conference registration fees, copies, parts, software, etc.).

Dedicated Credits -- Revenues other than state tax funds which are appropriated by the legislature generally comprised of tuition, admission fees, certain sales & services, etc.

Deficit -- The excess of liabilities and reserves of a fund over its assets, or excess of expenses over revenues/budget.

Departmental Full-time Equivalent Students (DFTE) -- Number of students enrolled in a department course section multiplied by the credits for the course divided by 15 for a term FTE or 30 for an annualized FTE.

Departmental Student Credit Hours (DSCH) -- Number of students enrolled in an individual department course multiplied by the course credit hours.

Direct Costs -- Those expenses that are readily identifiable with a specific cost objective or center, generally through the institution's financial records.

Direct Instructional Costs -- All faculty and staff compensation and other instructional cost center expenditures directly related to the production of FTE students.

Education and General (E&G) -- Line item appropriated by the legislature for the general operation of the College, including budget-related instruction, support services, and operation and maintenance of facilities.

Encumbrances -- An amount of the available balance of a cost center account earmarked for paying anticipated or known obligations.

Enrollments, Budget-Related -- Enrollments generated in courses that are designated by the Board of Regents as budget related and are eligible for state funding.

Enrollments, Self Supporting (Off Budget) -- Enrollments generated in courses that are designated by the Board of Regents as self supporting and are not eligible for state funding.

Fiscal Year (FY) -- Any yearly accounting period. The State's & College's fiscal year begins on July 1 and ends on the following June 30. Summer semester is the beginning academic term in a fiscal year.

Full Time Equivalent Faculty -- A two academic semester salaried position equals 1.0 salaried faculty FTE. Each 18 credit hours of instruction provided by an hourly faculty (adjunct/overload) equals 1.0 hourly faculty FTE (state standard).

Full Time Equivalent Student (FTE) -- Represents 30 semester credit hours per year (annualized) or 15 semester credit hours per semester (non-annualized). One student taking 30 semester credit hours in an academic year equals one annualized FTE.

Function of expense -- A NACUBO codification system that prescribes how higher education will account for and report on expenditures. These functions are described briefly as follows:

• Instruction - This functional category includes all costs associated with direct classroom instruction: faculty, department heads, support staff, general supplies and expense, instructional equipment, and part-time wages expended by instructional departments.
• Research - all research activity organized to produce research outcomes. Currently, all scholarly activities at UVSC are classified as Academic Support/faculty development.
• Public Service - activities established primarily to provide instructional and non-instructional services beneficial to groups external to the institution (Small Business Development Center, as an example).
• Student Services - Social and cultural development, counseling and career guidance, financial aid administration, admissions and records, deans of students, athletics, and intramurals.
• Institutional Support - President's Office, Vice Presidents, centralized planning, fiscal operations, central administrative support, such as administrative data processing, personnel, purchasing, transportation, public safety, community relations including alumni, institutional advancement, and college relations.
• Mandatory Transfers - money paid out on long-term bonding and grant commitments for physical facilities - federal financial aid match monies.
• Plant Operations (O&M) - administration of physical plant, custodial, engineering, and maintenance services, insurance, preventative and deferred maintenance.
• Student Assistance (Financial Aid) - all college supported grants to students.

Fund -- Represents a distinct phase of the activities of a unit and the fund is controlled by a self-balancing group of accounts in which all of the financial transactions of the particular phase are recorded.

Appropriated/General Operating (Hard) Funds -- the on-going, base operating budget for the institution appropriated by the Legislature, includes salaries, benefits, operating expenses, fuel & power. Revenue sources are tax funds and tuition. May also include one-time/supplemental funds from legislature.

Non-appropriated Funds (Soft) -- funds which are not appropriated by the Legislature. Revenue sources include student fees, sales and rental revenue, grant revenue, course fees, non-credit instruction, workshops, etc.

Capital appropriations -- funds provided for a specific physical plant related project. Capital and operating appropriations each must be used for the specific purpose for which funds were provided.

Note:  Funds may not be transferred between capital, appropriated or non-appropriated funds.

Lower Division Instruction -- Courses below 3000 not designated as ATE.

Operating Expenses -- Non-compensation expenses such as supplies and equipment.

Over Expenditure -- An over expenditure occurs when actual expenditures and encumbrances exceed the budget in a cost center/account.

Reallocation -- Moving dollars between specified account categories (such as salaries and equipment) or moving resources (such as salaried positions) from one cost center to another.

Scholarships -- Financial aid award which is funded by a non-appropriated source. May include tuition and/or fees and/or cash awards. This does not result in a reduction of tuition revenue.

Student Faculty Ratio -- Number of FTE students divided by the number of FTE faculty.

Tuition Waivers -- Financial aid award which waives tuition only for identified students; limited by legislative statute. Tuition waivers result in a reduction of tuition revenue.

Upper Division Instruction -- Courses 3000 and above not designated as ATE.

ACRONYMS
ATE	Career and Technical Education
CPI	Consumer Price Index
DFCM	Division of Facilities and Construction Management
DFTE	Departmental Full-time Equivalent Students
DSCH	Departmental Student Credit Hours
E&G	Education & General
FASB	Financial Accounting Standards Board
FTE	Full Time Equivalent
FY	Fiscal Year
GASB	Governmental Accounting Standards Board
Hard	Appropriated Funds
MATC	Mountainland Applied Technology College (UCAT)
NACUBO	National Association of College and University Business Officers
OCHE	Office of the Commissioner of Higher Education
O&M	Operations and Maintenance
PAF	Personnel Action Form
Regents	Utah State Board of Regents
SAF	Semester Appointment Form
SBR	Utah State Board of Regents
SCH	Student Credit Hours
Soft	Non-appropriated Funds
Trustees	Utah Valley State College Board of Trustees
UCAT	Utah College of Applied Technology
UEC	Utah Electronic College
USHE	Utah System of Higher Education
UVSC	Utah Valley State College