Administrative Overhead
A fee assessed to auxiliary account actual expenditures in the salary, OPS and expense categories. The revenues from this fee are used to support positions in departments such as Controllers Office, Purchasing and other areas in order to offset the workload generated by auxiliary operations.

Auxiliary Enterprises
An auxiliary enterprise furnishes a service to students, faculty, or staff, and charges a fee directly related to, but not necessarily equal to the cost of the service. They are essential elements in support of the educational program, and conceptually should be regarded as self-supporting. Quasi-auxiliaries are an exception to this in that they are not totally self-sufficient and require the addition of some state revenues.

Available Balance - Represents the calculation of the formula: BUDGET - ENCUMBRANCES - DISBURSEMENTS and reflects the amount of the budget available for future expenditures (usually through the end of the Fiscal Year - June 30).

Balance Forward - The Fiscal Year To Date balance (END BAL) for the specific object code as of the end of the Prior Month, is carried forward as the beginning balance (BAL FWD) for the Current Month.

Budget - The approved level of expenditure by category within each fund / department.

Budget Entities - Examples of budgetary units include Educational & General, Contracts &Grants, Auxiliary Enterprise, and the budget entity encompassing Local funds such as Athletics, Student Activities, Concessions and Financial Aid.

Budget Authority - Budget authority represents the authority to spend. Within the Auxiliary Trust Funds, budget authority represents the estimated figures for revenues and expenditures submitted by each departments respective project leader. Budget authority can be amended during the fiscal year up or down depending on actual departmental performance. Due to its use as an estimating tool, Auxiliaries are required to have both budget authority and cash in order to spend. Please see the definition for “Cash” for more detail since the two components are complimentary. Adjustments to budget authority can be accomplished through an amendment increasing or decreasing total budget authority at the fund level and/or through a budget transfer if a shift from one category to another is needed at the departmental level.

Carry Forward – The remaining balance of a certified encumbrance at 12/31 of the new fiscal year.  The amount is swept by the budget office and distributed according to their policy.

Cash - Cash is the driving force behind auxiliary operations. Departments that are able to grow their revenue streams beyond estimated figures in the beginning of the fiscal year are entitled to request additional budget authority if they wish to spend the funds. Since auxiliaries are self supporting departments, it is considered prudent financial stewardship to build a cash cushion or emergency fund to offset financial difficulties due to market condition changes.

Concession Fund - The concession fund is a separate fund which derives its income from revenues produced by the vending machines. Concession fund dollars are considered to be more "flexible" in their use than E&G dollars, and they are spent to a great extent on food/entertainment items.

Category - Divides the budget appropriated to a department into levels such as Revenues, Salaries and Benefits, Other Personal Services, Expenses, Operating Capital Outlay, etc. and summarizes object codes within the specific category.

Certified Forward

Commodities - Any item that is ordered in E&G that is not received becomes a certified encumbrance.  The encumbrance is rolled into the next fiscal year along with an equal amount of committed budget.  A certified encumbrance can only be used on the respective item that generated the encumbrance and cannot be modified.  Certified encumbrances must be liquidated by 12/31 of the new fiscal year or remaining balance becomes carry forward.  Additionally,  any item that is ordered in E&G/GTAIDS fund that is not received by 06-30, becomes a certified forward encumbrance.

Services - Any services that were performed prior to 6-30-07, and not accrued as of 6-30-07 are considered certified forward.

Disbursement - Records the actual processing for payment of an existing encumbrance, or other expenditure of available budget balance.

Document Number - Reference number that provides an audit trail to the actual physical document, i.e voucher, journal entry, cash receipt, etc.

Encumbrance - Records the estimated liability for goods or services to be received in the future, obligates the budget, and reduces the available balance. A financial transaction which reserves funds for a specifically identified purpose. For example, a requisition submitted to the Purchasing Department will generate an encumbrance until the goods or services are actually paid for at which time the encumbrance will be decreased and the actual expenditure component increased. Encumbrances are key components from a planning perspective since it allows managers to quickly determine how much money is actually available for spending versus monies already committed for future spending such as payroll encumbrances. The allocation (budget authority and a positive figure) minus encumbrances and actual expenditures result in the available balance which can be positive or negative. In summation, encumbrances represent expenditures that are going to happen and impact cash but have not occurred as of yet.

Expenditure Category - This term refers to an accumulation of like costs into predetermined categories; for example, Salaries and Benefits, Other Personal Services (OPS), Operating Expenses, Operating Capital Outlay (OCO) and Educational Data Processing. Funds are appropriated by these same categories. Examples of operating expenses include phone services, copying, supplies while OCO expenditures would include items with unit costs greater than $1,000 or a useful life greater than one year such as a computer system purchase.

Fiscal Year - A twelve month period of time running from July 1 of one calendar year through June 30 of the next calendar year.

Fund - An accounting entity with a self-balancing set of accounts consisting of assets, liabilities, and fund balance. Separate departments are maintained within each fund to observe limitations and restrictions placed on the use of resources. A cash account which receives monies from designated sources such as the following: General Revenue Fund (state revenues mainly sales tax), Educational Enhancement Fund (lottery receipts) and Trust Funds (receipts from designated sources such as student fees, federal sources, etc). With regards to the Auxiliary Trust Funds, these are self supporting trust funds which generate revenues by providing goods and services versus being allocated a lump sum appropriation as is the case for Education & General.

Intercollegiate Athletics - A budget entity which contains revenues derived from student athletic fees that each university is authorized by BOR rule to collect as a component of the mandatory fee schedule and from ticket sales. T

Investment Income - Monies generated through the use of cash management methodologies. Idle cash in the trust funds is invested with the Office of the State Comptroller generating interest income from the float. The funds generated through this activity are reinvested in the Auxiliary Trust Fund as strategically needed to support the mission.

Local Funds - Local Funds are budget entities which contain operating resources for Student Activity, Intercollegiate Athletics, Concessions, and Student Financial Aid, and Self-Insurance Programs.

Object Codes - Expenditure, budgetary, or revenue classification used to identify the type of service, material, or other charge received or rendered. A six-digit number which designates the purpose for which funds are budgeted and expended within each expenditure category by account number. Object codes identify very specific transactions such as long distance phone service, in state versus out of state travel, etc.

Operating Budget - An expenditure plan developed by a university for each fiscal year. With regards to Auxiliaries, the plan encompasses estimated budget authority requirements for the year based on projected cash revenues as well as estimated expenditures for the year by expenditure category.

Operating Capital Outlay (OCO) - A basic expenditure category represented in the university operating budget and legislative request budget which details the cost of equipment over $1,000 to be purchased in a fiscal year and a life expectancy of 1 year or more.

Operating Expense - One of the basic expenditure categories which includes the cost of expendable items such as postage, telephone, office supplies and utilities.

Revenue - Represents actual cash receipts from all sources for Trust Funds and Local Funds.

Transfer - Accounting code used to record movement of cash between departments without movement of expenditures.

Trust Funds - Funds which come from sources other than the General Tax base such as the Auxiliary, Concession, Student Activity, Athletics, Financial Aid, Educational Enhancement and Incidental Trust Funds. The Legislature must authorize the level (amount) of such funds that may be used by the each university..

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