Glossary of Frequently Used Finance Terms
Term
Appropriation
Definition
Funding to the System from the state given biennially
Balance Available
The amount of budget left after all encumbrances and payments have been
taken away.
Balance Available
Report
The report which shows you the balances of your cost center; ISRS report
#AC0510CP
Biennium
The two year period for which funding is granted to the System by the
Legislature.
A plan for receiving and spending the dollars that support your department's
activities.
Budget
Compensation
An expense category including salary and benefits used to compensate
employees, including student employees.
Cost Center
Current Budget
The six-digit account number that is assigned to your specific program or
activity.
The amount of budget available to you at the current date. This includes the
amount of budget you started the year with plus any changes to the budget-- if
you've decreased or increased your original budget.
Current Month Actual
The amount paid from your account during the current month.
Encumbrance
Commiting funds for specific activities, thereby making them unavailable for
other activities.
Enterprise Activities
Activities engaged in on a campus that are engaged in with the intent to
generate revenue.
Expense
Dollars spent in support of your department's activities.
External Grants
Dollars granted to the System or to an institution from an outside source
(foundations, federal grants, etc.) for a specific project or program. Such
funding is specifically applied for and requires some degree of special
accounting and reporting.
Fees
Amounts charged to cover the costs for specifically identified services.
FTE
"Full Time Equivalent" is a Human Resources calculation based on full-time
employment. It combines all employment activity within a unit of organization
and displays that activity in terms of full time activity.
Fund
A fiscal entity that has a self-balancing set of accounts, containing all assets,
liabilities, fund balances and changes to fund balance. Using funds allows you
to segregate activities for legal compliance or for financial management.
FYE
"Full Year Equivalent" is a Finance calculation based on full-time enrollment for
a full year of study.
Grants
Dollars ‘granted’ by foundations, the state or federal government or other
sources for special initiatives, projects and/or research
Internal Grants
Dollars granted to an institution or program from an internal source (the
System, or a special fund on campus) for a specific project or program.
Legislative Specials
Dollars within the total System appropriation that are specified for certain
activities and can also be specified for use by certain campuses or institutions.
Glossary of Frequently Used Finance Terms
Term
Non-Personnel
Definition
See "Non-Salary Budget" or "Other Operating Expenses"
Non-Salary Budget
See "Other Operating Expenses"
Object Codes
Budgetary code assignments for specific revenue or expense categories.
Generally used within a campus Business Office to appropriately assign
expense to activities.
The report which shows you what encumbrances have not been fully paid out
yet, i.e., remain open; ISRS report #AC0519CP
Open Commitments
Report
Other Operating
Expenses
An expense category including equipment purchase/rental, supplies, in-state
travel, printing, etc.- any operational expenses not related to compensation or
out of state travel
Other Revenue
Dollars for use by a college or university that comes from a source other than
appropriation or tuition and fees. Examplesinclude parking fees, book sales,
housing revenue, food service, activity fees and Student Union fees. This
revenue is separate from the general fund, offset the expenses related to the
activity that generated them and are generally not available for other uses.
Out of State Travel
An expense category that includes registration, lodging, meals, transportation
expenses incurred while traveling on business out side of Minnesota. Out of
state travel is budgeted and monitored separately.
Personnel
See "Compensation" or "Salary Budget"
Purchase Order Number All purchases and/or agreements to purchase must be assigned a purchase
order number. Purchase Orders are requested in the campus Business Office.
Revenue
Dollars received in support of your deparment's activities.
Salary Budget
See "Compensation"
Transaction List by
Fund Report
The report which shows you all transaction activity that has taken place in your
account; ISRS report #AC0531CP
Transaction Type
a column on the ISRS reports that indicate what kind of accounting transaction
the item is.
User Budget
The amount of budget originally loaded in your cost center, without any
changes.
The amount paid from your account during the current year.
YTD Actual