Glossary of Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Account: This is the combination of a budget (02-024-01 UP) and a fund (10010 or 56BG0). The budget portion of the account number is seen in two formats, the expanded IBIS format (02-024-01 UP) and the old format (224-01 UP). The fund number indicates the type of fund (10010 is general). Fund numbers for restricted accounts are assigned by research accounting based on the type of gift, grant or contract.
Actual: These are income or expenditures that have occurred. Income becomes "actual" when cash is received or, for certain areas, when the service has been performed or goods delivered and the income has been earned. Expenses become "actual" when the University makes the payment. Salary and wage expenditures move into the actual column when the payroll is issued.
Balance: The amount of funds remaining after encumbrances and actual expenses are deducted from the budget. It is based on the following equation:
Total budget – Encumbrances – Actual Expenses = Balance
Budget: The total amount of funding provided in an account for use within a specified period of time. General funds accounts have a budget that covers a single fiscal year and may be a combination of permanent and temporary funds. Restricted accounts have a budget that covers the term of the grant or contract.
Budget Categories: For general funds -- salaries, wages, departmental allotment. For restricted funds -- salaries, wages, departmental allotment, equipment, tuition, fringe, and overhead (F&A costs). To view budget and expenditure breakdown by these categories, the ICAG screen can be used.
Carryforward: Fiscal year-end funding balance returned to the budget as temporary funding the next fiscal year. Currently, an administrative area is allowed up to 8% of its total permanent funding base from a fiscal year to be carried forward into the next fiscal year without an exception. These funds can be used on departmental allotment and/or renovations expenditures. Funds may not be used for salary expense.
Cost Center: A sub-division of an account that is used for allocating and tracking funds and expenditures within the account. Cost centers must be uniquely named within an administrative area.
Departmental Allotment: A budget category of expenditures with object codes 300 – 495. Used to fund items for support a unit’s operations, including items such as office equipment, computers and software, travel, communications, group meals, etc. Does not include capitalized equipment (greater than $4,999) and other major budget category items (salaries, wages, etc.)
Encumbrance: This refers to a commitment of funds that have not yet been expended.
Endowment Funds: A fund that is maintained in perpetuity, and only a portion of the annual investment return is used for the purposes specified by the donor. The rest of the investment yield is returned to principal. Thus, over the years, the fund can grow and hopefully keep pace with inflation. Some uses include, student scholarships, faculty chairs, and general college enhancement.
Financial Officer: An employee of the Corporate Controller’s Office who is assigned to an administrative area to ensure policies, procedures, and controls are maintained for financial and budget issues. Responsibilities include managing transaction approval, general salary increase process, position management, audit, annual budgeting process, reporting and forecasting, and other needs of the Budget Executive. (Go to the Staff/Contact tab for a Directory of Financial Officers)
Fixed-Term Position: A position that is funded for a contracted period of time on a temporary basis, although the original source may be either permanent or temporary funds. Appointments are discontinued at the stated ending date, but may be renewed if the funding is available. See HR06 for more information.
Fund: An account suffix that designates type of funding source (general, grant, contract, gift, endowment)
General Funds: State appropriation, tuition and fees, and departmental income used for the general operation of the University.
General Salary Increase Process: The salary increase process is done on an annual basis and is effective July 1 of the new fiscal year. Increases are given for merit based on annual career conferences and the staff review and development process. Funds are received from the Central University administration to fund increases.
Gift Funds: Donations to the unit for one time use. Gifts can either be restricted by the donor, or unrestricted. Gifts are placed in an "OGE" account (NOT a general fund). Gift funds and general funds may not be commingled.
ICAG (Inquiry on Category): This mainframe report lists the total of each financial category
(income, salary, wage, departmental allotment, fringe, tuition, equipment, capital and indirect
(F&A) costs) on requested account or cost center. For general accounts, the total is a
year-to-date total. For restricted account, the total is contract-to-date total.
For more information: http://ais.its.psu.edu/ibiswork/subsyste/document/fans/fa_icag.htm
Income: Funds received for use within the University for services and products rendered. Income sources consist of tuition, fees, sales, gifts and grants, and other miscellaneous income steams.
ISTR (Inquiry on Structure): This mainframe report lists the total of each central object
code used on a requested account. For general accounts, the year-to-date balance is
displayed. For restricted accounts, the year-to-date and contract-to-date balances are
displayed. Users can drill down to obtain additional financial detail about the data in ISTR.
For more information: http://ais.its.psu.edu/ibiswork/subsyste/document/fans/fa_istr.htm
Maximum daily travel allowance: The maximum amount that the University reimburses meal expense while an employee is on CONUS travel for University business. The Penn State reimbursement rates are published on the Travel Rates page. (Formerly located in GURU Appendix 11.) Employees may request meal reimbursement based upon actual expenditures up to the published maximum daily limit. (Policy TR05)
Object code: A numerical list of codes for assigning all income, salary, wage, and departmental expense items. The University object code list is found in GURU (Appendix 9).
Per Diem: The amount that the University reimburses meal, incidental and lodging expense while an employee is on O-CONUS travel for University business. All O-CONUS travel, as defined in Policy TR06, is to be reimbursed on a per-diem basis, not on an actual basis. All O-CONUS per diem rates can be found on the Travel Rates page. (Formerly located in GURU Appendix 10.)
Permanent Funds: Budgeted funds that will recur from year-to-year within an account. All standing appointments and fixed-term multi-year appointments (3-year) must be funded with permanent dollars by budget policy.
Position savings: Permanent funding savings realized when a new employee is hired at a lower salary than the previous employee. Normally, these funds revert to the Budget Executive. Check with your Financial Officer for your Administrative Area’s policy.
Restricted funds/miscellaneous funds: Income derived from government and private contracts, gifts and grants.
Salary release/savings: Temporary budget savings resulting from a vacant position, or when actual salary expense is distributed to an external funding source. The savings occur on general funds budgets where the position is permanently budgeted.
Standing Position: A position that is funded with permanent budget dollars and will recur from year to year.
Subsidy: University funds provided for the general operating needs of a unit not covered by expected income production.
Supplemental pay: Compensation paid to an employee of the University for additional duties performed beyond their currently contracted or assigned job requirements. Supplemental payments are typically paid to faculty member for overload situations or to staff for additional duties assumed outside of their normal work duties. Supplemental payments should be approved by the Budget Administrator and Financial Officer. Payments are processed through the University’s Payroll Office so that withholding taxes are calculated and withheld at the appropriate levels. See Policy HR06 for more information.
Temporary Funds (temporary budget): Funds available for one-time use within a fiscal year. There is no guarantee that temporary funds will be available in the following year. General funds carried over from one year to the next year are treated as temporary funds. Cannot be used to support standing or fixed-term multi-year positions.