Glossary of Terms
A GLOSSARY OF FINANCIAL TERMINOLOGY – Used in reference to Legacy Systems and KFS – See also General Ledger Information
ACCOUNT STATUS – Legacy system term, imported for reference into the KFS chart of accounts. The most often used status codes were “A” for active, “F” for frozen, “T” for terminated, and “D” for deleted. There are some other specialized status codes used only by SPA and Contracts and Grants. KFS uses the terms of open and closed in combination with the expiration date to identify account status.
AGENCY FUND – The funds in this group belong to someone or a group of persons affiliated with the university. The funds do not belong to the university and are neither an asset of the university, nor are they available to the university to spend. The funds are held by the university, the university acting as custodian, for the purpose of collection and expense for the benefit of the group and to facilitate the group’s use of university services.
AIS – Administrative Information Systems. The group of legacy systems organized for administrative and accounting purposes. AIS systems include modules of the legacy Financial Systems, some of which have been retired and replaced, but some of which are still active for archived data only. Data included: the General Ledger, the Budget Administration System, Financial Accounting Sub Ledger (FASL), Financial Investment Sub Ledger (FISL), WIZ, Cashiers, Purchasing, Accounts Payable, and the Payroll and Personnel System (PPBS). This group does not include SIS, or Student Information Systems.
BUDGET – The plan set by a center for the expenditure and the earning of funds. This plan can be altered according to policies and procedures, and is divided among accounts, budget control groups, and object codes.
BUDGET CHANGE – A change in the current budget for an account, processed using the Kuali general budget change process. KFS classifies budget changes into two types: budget change and budget amendment. Legacy systems also included another type, budget modification. Budget changes are approved by the department in KFS, and a budget amendment in KFS is approved by the department and then also by the Office of the Comptroller. Budget changes must occur within the same subfund group.
BUDGET REALLOCATION – Changes in the current budget for sponsored projects accounts are generated using the KFS SPA Budget Reallocation process.
BUDGET CONTROL GROUP – A group of object classes which are grouped together to indicate a relationship in general purpose. These groups are used to help monitor budget performance, change budgets, and control expenditures. Compensation and current expense are the two main budget control groups at the university.
BUDGET VS. ACTUAL – In the Financial System, these terms used together refer to contrasting transactions according to whether they were changes in the plan (budget) or changes in expenditures or revenue (actual.) When funds are transferred in or out of an account, the transaction is “actual“, and can happen when cash or checks are deposited, when checks are issued from the account, or when a debit or credit is generated by a journal voucher. If the budget of an account is altered in any way, whether increased or decreased or simply shifted between object codes, this represents a “budget” transaction. Both actual and budget transactions effect the balance of an account. Financial reports often separate budget transactions from actual transactions.
CHECK REQUEST – Legacy System term only. Used for certain disbursements in
COMMITMENT – Legacy System term only, referring to a departmental internal encumbrance – no longer used in KFS.
COST TRANSFER – A term usually used in reference to contract and grant accounts meaning the transfer of an expense from one account to another, either from one sponsored project to another, or between a sponsored project account and an unrestricted account. Most cost transfers require approval of the Sponsored Projects Accounting department (SPA) and/ or Contracts and Grants.
CURRENT FUNDS – Refers to fund groups where accounting activity is aligned with the fiscal year or a contract year.
ENCUMBRANCE – A lien placed on an account to hold funds for future approved disbursements. Encumbrances can be external or internal, and are generated through the process related to the disbursement. (See also lien)
EXPENDITURE CARD – Legacy System origin – Existing cards are still used by some departments for imprinting their approval on paper internal requisitions. A plastic card with the university logo and the approver’s name and WEBBA operator code. Cards are no longer issued – other approval methods should be used.
EXPENSE – Funds spent for any purpose that appears as a charge to a general ledger account. It shows up in the account as a debit.
FRINGE BENEFITS – Employee benefits and the associated costs of these benefits. Whenever an account is charged for salaries or wages in specific categories, an accompanying fringe benefit cost is also charged to that account to pay for the benefits. The university has specific rates used to calculate this fringe benefit charge, and it is set by account and object code. Budgets for salaries and wages also include the appropriate fringe benefits costs.
FUND BALANCE – The total amount that a particular fund has in its accounts. Since a fund is a self-balancing separate entity with its own set of accounts, the fund balance is the net result of assets and liabilities for that particular fund.
GOVERNMENT UNALLOWABLE EXPENSES – Expenses which are not included in the calculation of overhead for the purposes of recovery of indirect costs from government contracts and grants.
G-RECEIPT – Legacy system term only. A receipt from the Cashier’s Office that indicated the university general ledger account to which the deposit was credited. Replaced by Kuali cashiering edocs.
INDIRECT COSTS – Another term for overhead. Expenses that are not directly managed by any revenue center at the university. These include support and service functions provided by university administrative centers. Examples of some services funded through the allocation of indirect costs are building maintenance, library operations, payroll, and the registrar’s office.
INTERDEPARTMENTAL INCOME (ID INCOME) – Income received from another university department, not originating from an outside source. It is not considered revenue to the university, and is therefore treated as a contra-expense (negative expense), and recorded in an expense account. Its purpose is to record funds charged to other centers that help offset expenses incurred for services or goods provided.
INTERNAL REQUISITION – Legacy System term – still in use. A paper document with an assigned number used to document a transaction between two departments. Payment is provided through a Kuali journal voucher. Internal requisitions provide the information about the request for goods or services as well as the account number and object code to be used when charging the receiving department. They are signed or have the expenditure card imprinted to indicate approval by the department.
JOURNAL TYPE – A code used to help identify the kind of transaction. There are some legacy journal types that are no longer used in KFS. In KFS the document type is similar to the journal type in the legacy systems.
JOURNAL VOUCHER (JV) – The accounting mechanism for the debit of one account and the credit of another, total debits and credits being equal. Legacy JV’s were done online and on paper. KFS journal voucher edocs are assigned different document types and JV numbers to assign the correct approval workflow.
LIEN – The generic term for the process by which funds have been identified in an account for future expenditure for a specific purpose. A lien reduces the available balance for spending and is therefore a mechanism for controlling a budget. It insures that the funds are not expensed for other purposes once a commitment is made. The funds are still in the account, and have not yet been expensed, but are not available for spending except for the committed purpose. See also ENCUMBRANCE.
LOGIN CODE – Legacy Systems only. A unique identifying code used when a user accesses one of the AIS systems. The login code has a unique pattern that identifies the system that the user is accessing, and it also will have letters or numbers that further identify the individual. Most login codes do not change once they are assigned to an individual. Different systems require different login codes. Each login code has an accompanying login password that is assigned by the user after they have logged in the first time. The login code is used in the first step of the login process, and is different from the operator code.
OPERATOR CODE – Legacy system use only. The unique code that identifies both the individual and the processes that the individual has access to. Used as part of the login process. Used in WEBBA, BA, FAS, and BDS legacy systems.
OVERHEAD – Several kinds of expenses incurred during the general operation of a business that cannot be directly identified and associated with one group or department, and cannot therefore be specifically calculated as to who incurs that expense. The term used most often for overhead at the university is “indirect costs.”
PERFORMANCE PROJECTION REPORT – From the legacy WIZ system. A report that is distributed monthly to the SBO for each center. The report forecasts the year end financial results of each center based upon previous year and current year data combined with specific formulas used to calculate the expected actual performance to the end of the fiscal year. The SBO supplies information to the Office of the Comptroller for changes to the projected information.
PROGRAM CODE – Legacy system term, also used by TARA. In KFS it is referred to as the Organization Code. REVENUE – Income or money brought into the university from outside sources. It can come in the form of a donation, tuition, fees, grant, contract, be payment for services, or income from sales. Revenue reported at the university on the Financial Report does not include income from other departments at the university, called interdepartmental income, or money received as a reimbursement for expenses, called a reduction of expense.
LABOR ENCUMBRANCE – Refers to a hold on the funds expected to be spent for labor in an account. In the legacy systems this was referred to as a Salary Lien.
SENIOR BUSINESS OFFICER (SBO) – The financial officer of a revenue or administrative center, acting in most financial matters as the contact person and financial approver on behalf of the dean or director of the center. In KFS the SBO is also often the fiscal officer.
SERVICE CENTER LIEN – Legacy System term only, no longer used. This has been replaced by the Internal Encumbrance placed by the Internal Billing process in KFS.
STUDENT LOAN FUNDS – Funds to be lent out to students and funds collected as repayment from student loans. These funds can be used only for that purpose.
TRANSACTION TYPE/CODE – Legacy System term only. Used in WEBBA transactions in addition to the journal type to help identify the nature of the financial transaction.
VENDOR CODE (VENDOR ID, VENDOR NUMBER) – Legacy System use only. A unique number that identified a vendor being paid by Purchasing or Disbursement Control.
Last updated, CLM, 11/28/16