Glossary

A

Accommodations

Accommodations include any room or rooms and any lodgings in a commercial hotel, motel, inn, university memorial union, university residence hall, tourist camp, or tourist cabin.

Defined in: Taxes

Account

Used to organize and catalog financial data. An account number identifies a specific pool of funds that are set aside for a specific purpose. All accounts at IU are seven digits, unique, and chart specific.

Defined in: Fiscal Officer Reporting Tools

Account Number

The account number identifies a pool of funds assigned to a specific organizational entity for a specific purpose. Accounts are the fundamental building blocks of KFS transactions since one or more of them are always associated with a transaction. Accounts can have unique attributes such as specific start and end dates as with grant accounts or may exist for an unlimited amount of time as with a department's general fund account.

Defined in: Fiscal Officer Reporting Tools

Accrual

Accrual accounting is a method that records revenue when it is earned and records expenses when they are incurred, not when the cash is received.
Different than cash accounting, this method provides a more realistic understanding of income and expenses and helps with long term projections.

Defined in: Accounting and Financial Statements Overview

Accrual Accounting

Accrual accounting is the matching of revenue and expense. The revenue/expense should be recorded in the period that the event happened. The revenue and expense that are correlated to each other should be recorded in the same period. If there is not any revenue generated by the expense then the expense should be recorded when it occurs not when the cash is paid.

Defined in: Accounting and Financial Statements Overview, Assets

Accrual Method

Accrual accounting is a method that records revenue when it is earned and records expenses when they are incurred, not when the cash is received. Different than cash accounting, this method provides a more realistic understanding of income and expenses and helps with long term projections.

Defined in: Accounting Close

Accrual Voucher

An Accrual Voucher is a KFS document used to post accrual, adjustment, and recode entries.

Defined in: Accounting Close

Accrual Vouchers

An Accrual Voucher is a KFS document used to post accruals, adjustments, and recode entries.

Defined in: Accounting Close

Actuals

The total of all actual activity for a given balance line of the selected fiscal year. Only transactions that have posted to the General Ledger are included in the Actuals calculation.

Defined in: Fiscal Officer Reporting Tools

Adjusted Base Budget (BB)

The Adjusted Base Budget is defined as the initial July 1 budget load adjusted throughout the year through the use of base budget adjustments. The adjusted base budget is the basis for budget construction for the upcoming fiscal year.

Defined in: Accounting and Financial Statements Overview

Affiliated Organization

A legal entity operating substantially for the benefit or under the auspices of the university that operates in such a way that it could enter into a foreign source arrangement where part or all of the benefit of that arrangement is intended for the university. Significant Affiliated Organizations to IU include, but are not limited to, the following: Indiana University Foundation, Riley Children’s Endowment, IU Medical Group Foundation, and Regenstrief Institute, Inc.

Defined in: Revenue and Receipts

Agency Funds

Funds held by an institution as custodian or fiscal agent for others such as student organizations, individual students, or faculty members. The agency fund is divided between internal and external fund recording.

Defined in: Chart of Accounts and General Ledger

Aging Report

An accounts receivable aging report is a record that shows the unpaid invoice balances along with the duration for which they’ve been outstanding.

Defined in: Accounting Close

Appropriately Credentialed

The employee has the education, experience, training, and expertise appropriate to their financial role within HR framework and the size and complexity of their areas of financial responsibility.

Defined in: Internal Controls and Roles & Responsibilities

Approver

Person who is responsible for reviewing and approving a non-exempt staff member’s recorded hours in a university-managed timekeeping system. The Approver should have direct knowledge of the non-exempt staff member’s hours worked and attendance; typically, the Approver is the non-exempt staff member’s direct supervisor.

Defined in: Payroll

As of Date

The As of Date is the date specified in the parameters and shows the cut-off date of the information provided.

Defined in: Fiscal Officer Reporting Tools

Asset

An asset is defined as any resource of value that can be used to generate future economic value.

Defined in: Accounting Close

Asynchronous

Recording time worked at the end of the workday in an approved electronic timekeeping system.

Defined in: Payroll

Auxiliary Enterprise Funds

Auxiliary enterprise funds furnish goods or services either internally or externally and charge a fee directly related to the cost of the goods or services. The auxiliary enterprise fund at IU is broken out between auxiliary funds and service funds.

Defined in: Chart of Accounts and General Ledger

Auxiliary Funds

The auxiliary fund is an enterprise that furnishes goods or services to students, faculty, or staff and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. This means that the entity is self-supporting.

Defined in: Chart of Accounts and General Ledger, Recharge and Service Center Units

Average Cost Method

The Average Cost inventory valuation method assigns a cost to inventory items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced.

Defined in: Recharge and Service Center Units

B

Balance Sheet

A balance sheet, also known as the statement of financial position, is a financial statement that reflects the overall financial position of an organization at a specific period in time.

Defined in: Accounting and Financial Statements Overview, Accounting Close

Balance Sheets

A balance sheet, also known as the statement of financial position, is a financial statement that reflects the overall financial position of an organization at a specific period in time.

Defined in: Accounting Close

C

Cash

Cash is money in coins or notes, as distinct from checks, money orders, or credit.

Defined in: Accounting and Financial Statements Overview

Cash Basis

Accounting method which records revenues and expenses only when monies are exchanged.

Defined in: Accounting and Financial Statements Overview

Cash Basis Method

Accounting method which records revenues and expenses only when monies are exchanged.

Defined in: Accounting Close

Cash Equivalent

Cash equivalents are short-term assets that are easily and readily converted into a know amount of cash.

Defined in: Accounting and Financial Statements Overview

Cash Flow Statement

A cash flow statement, also known as a statement of cash flows, is a financial statement that summarizes the amount of cash and cash equivalent entering and leaving an entity.

Defined in: Accounting and Financial Statements Overview, Accounting Close

Cash Flow Statements

A cash flow statement, also known as statement of cash flows, is a financial statement that summarizes the amount of cash and cash equivalent entering and leaving an entity.

Defined in: Accounting Close

Chart of Accounts

A chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in the general ledger of a company broken down into subcategories. The chart of accounts can be expanded and tailored to reflect the operations of the company.

Defined in: Chart of Accounts and General Ledger

Chart of Accounts Code

The two-letter chart code associated with the account.

Defined in: Fiscal Officer Reporting Tools

Clearing and Rotating Funds

The clearing and rotating fund group is specific to IU and is used to record interim accounts that should be closed out (net to zero) at the end of the fiscal period. To post to this fund group, please reach out directly to the UCO cash accounting team prior to posting entries.

Defined in: Chart of Accounts and General Ledger

Close Payroll

The process of payroll closing includes finalizing a pay period by locking in all data so that payroll can be accurately calculated and processed. It involves gathering final timesheets, making any necessary adjustments, and ensuring all deductions and withholdings are accounted for before the paychecks or direct deposits are issued.

Defined in: Payroll

Compound Annual Growth Rate (CAGR)

The compound annual growth rate (CAGR) is the average rate of return a fund has earned over the preceding defined number of years.

Defined in: Fiscal Officer Reporting Tools

Consolidated Object Code

Similarly grouped object levels used for reporting purposes.

Defined in: Fiscal Officer Reporting Tools

Consolidation

An object consolidation is a grouping of object levels for reporting purposes.

Defined in: Accounting Close

Constituent Reporting Unit (CRU)

A defined segment (organization or grouping of organizations) within Indiana University that have revenues, expenses, or net assets over a predetermined threshold as defined by the Office of the University Controller closing procedures.

Defined in: Internal Controls and Roles & Responsibilities, Accounting Close

Constituent Reporting Unit (CRU)s

Constituent Reporting Unit (CRU) a defined segment (organization or grouping of organizations) within Indiana University that have revenues, expenses, or net assets over a predetermined threshold as defined by the Office of the University Controller closing procedures.

Defined in: Accounting Close

Construction Fund

The construction fund is a subset of the plant funds and used for the acquisition of plant assets.

Defined in: Chart of Accounts and General Ledger

Continuation Account Number

The continuation account is the account that accepts transactions being processed in KFS on the account after the account expiration date.

Defined in: Standard Operating Procedures

Continuation Chart of Accounts Code

The continuation chart of accounts code is the chart that accepts transactions being processed in KFS on the account after the account expiration date.

Defined in: Standard Operating Procedures

Contract and Grant Funds

Sources of funds include federal grants and contracts, state grants, special appropriations, and gifts and grants from private sources. Restricted C&G funds should not be recorded in this fund group until the terms of the agreement under which they were given to the university have been met. C&G funds are subject to Uniform Guidance.

Defined in: Chart of Accounts and General Ledger

Contracts

Any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties. This includes all revenue generating contracts, not contracts where IU incurs the expense.

Defined in: Revenue and Receipts

Credit

A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Defined in: Accounting and Financial Statements Overview

Current Budget (CB)

The Current Budget is loaded along with the base budget load on July 1 and adjustments through the use of current budget adjustments are reflected for the current year only.

Defined in: Accounting and Financial Statements Overview

Custodial Funds Coordinator

A Custodial Funds Coordinator is a designated employee from the Office of the University Controller or the Indiana University Indianapolis Budget Office.

Defined in: Assets

D

Data Plan

In this instance, a data plan includes the provision of internet service via a mobile provider or a traditional home internet service provider.

Defined in: Payroll

Debit

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account.

Defined in: Accounting and Financial Statements Overview

Deferrals

A deferral often refers to an amount that was paid or received, but the amount cannot be reported on the current income statement since it will be an expense or revenue of a future accounting period. In other words, the future amount is deferred to a balance sheet account until a later accounting period when it will be moved to the income statement.

Defined in: Accounting Close

Designated Fund

The designated fund is the use of unrestricted funds for institutional designated purposes such as a specific activity or project. Most designated funds are now budgeted and most have a multi-year life. The designated fund includes several major sub-fund such as continuing education, public services, etc.

Defined in: Chart of Accounts and General Ledger

Designated Reporting Unit (DRU)

University administrative offices with significant activities or responsibilities that may impact foreign gift reporting compliance. DRUs include, but are not limited to, Bursar, Office of Research Administration, Indiana University Foundation, Kelley School of Business, and Internal Audit.

Defined in: Revenue and Receipts

Document Type Code

Identifies the document initiating a transaction.

Defined in: Fiscal Officer Reporting Tools

Drill Down

When available, allows users to further investigate a specific financial statement balance through linking of additional detailed reports and KFS. Drill down detail can go as far as the document reference in KFS, provided the user continues to click on the desired linked balance.

Defined in: Fiscal Officer Reporting Tools

E

Electronic Funds Transfer

Electronic Funds Transfers (EFT) are electronic transfers between bank accounts using the Automated Clearing House (ACH) network.

Defined in: Payroll

Employment Life Cycle

The employment life cycle begins with an employee’s initial start of employment with IU, continuing throughout their employment with confirmation/approval of hours and time off (including the timekeeping process), and ends upon the employee’s separation from IU.

Defined in: Payroll

Encumbrances

A main concept of government accounting, an encumbrance is is a restriction placed on the use of funds to ensure there are enough funds for future expenses/obligations such as salary, loan payments, etc.

Defined in: Accounting and Financial Statements Overview

Endowment Funds

Endowment funds are funds with respect to which donors or other outside agencies have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity and invested for the purpose of producing present and future income which may either be expended or added to principal.

Defined in: Chart of Accounts and General Ledger

Equivalent Original Receipts

An equivalent original receipt is IU’s standard practice that receipt documentation be submitted electronically as a PDF file for supporting documentation. The submission attests the submitted document is the equivalent of original receipt documentation. The submission attests the paperwork will not be submitted for any other reimbursement or disbursement.

Defined in: Taxes

Exclude 01* Accounts

The university has 01* accounts that may need to be excluded in certain circumstances. These accounts are associated with contract and grant beginning balance amounts. These accounts reside in the sub-fund group: Other Designated: IU Initiative (SDCI).

Defined in: Fiscal Officer Reporting Tools

Exclude Campus Consolidation Accounts

These 23* accounts are used to record adjusting entries to the balance sheet for internal activity that is consolidated at the university-wide financial statement level. The university has eight designated fund accounts (one for each campus) that are used to record the university consolidation entries in preparation for the annual financial audit. Depending on the type of reporting, it is not uncommon to exclude the following accounts for internal reporting purposes.

BL 2320013
EA 2367013
IN 2371013
FW 2362013
KO 2363013
NW 2360013
SB 2355013
SE 2350013
UA 2310013

Defined in: Fiscal Officer Reporting Tools

Expense

Expenses are defined as the cost incurred to do business or the outflow of resources associated with the general operations of an entity.

Defined in: Fiscal Officer Reporting Tools

External Agency

This fund group is in direct relationship with the university mission and acts as reimbursement to the university for use of university property or service. This fund is managed by individual campuses and fiscal officers.

Defined in: Recharge and Service Center Units

External Agency (EXTAGY)

This fund group is in direct relationship with the university mission and acts as reimbursement to the university for use of university property or service. This fund is managed by individual campuses and fiscal officers.

Defined in: KFS Resources & Financial Processing Documents

External Agency Fund

This fund group is in direct relationship with the university mission and acts as reimbursement to the university for use of university property or service. This fund is managed by individual campuses and fiscal officers.

Defined in: Chart of Accounts and General Ledger, Recharge and Service Center Units

External Encumbrance (EX)

External Encumbrances are reservation of funds to cover obligations arising from external activities such as when a purchase order is approved to reserve funds payable to a vendor. Encumbrances project future expenditures and provide fiscal officers with a more accurate representation of an accounts available balance.

Defined in: Fiscal Officer Reporting Tools

F

Federations

Federations are fundraising agencies that normally conduct fundraising campaigns within a single metropolitan area or some part of a particular state, and allocate part of the net proceeds to each participating organization on the basis of the donors’ individual designations and other factors.

Defined in: Payroll

Financial Balance Type Code

Identifies different types of transactions (i.e. Current Budget, Actuals, Encumbrances, etc).

Defined in: Fiscal Officer Reporting Tools

Financial Document Number

A unique number to identify each document in KFS.

Defined in: Fiscal Officer Reporting Tools

Financial Object Codes

Object codes are detailed, four digit identifiers for Income, Expense, Asset, Liability and Fund Balances. They are unique to a chart of account.

Defined in: Fiscal Officer Reporting Tools

Financial Object Level Codes

Object level codes, or levels, are less specific than object codes. Levels are made up of similarly grouped object codes. See the Understanding Reporting Levels chart for more details.

Defined in: Fiscal Officer Reporting Tools

Financial Sub-Object Codes

Sub-object codes allow a department to specify a more detailed breakdown of an object code.

Defined in: Fiscal Officer Reporting Tools

First In, First Out (FIFO) Method

The First In, First Out (FIFO) method of inventory valuation is based on the assumption that the sale or usage of goods follows the same order in which they are bought. In other words, under the First In, First Out method, the earliest purchased or produced goods are sold and expensed first. Therefore, the most recent costs remain on the balance sheet, while the oldest costs are expensed first.

Defined in: Recharge and Service Center Units

Fiscal Officer

A person who is trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a unit, and is responsible for ensuring that processes and related controls have been established to achieve the organization’s mission and objectives.

Defined in: Payroll

Fiscal Period

A fiscal period at Indiana University is broken out into 12 separate periods based on months in the calendar year. Period one is equivalent to July during the fiscal year.

Defined in: Accounting and Financial Statements Overview

Fiscal Periods

A fiscal period at Indiana University is broken out into 12 separate periods based on months in the calendar year. Period one is equivalent to July during the fiscal year.

Defined in: Accounting Close

Fiscal Year

A fiscal year at Indiana University spans from July 1st through June 30th of the subsequent calendar year. The last day of the fiscal year is June 30th.

Defined in: Accounting and Financial Statements Overview

Food or Beverages

This includes food sold in a heated state or heated by the retail merchant or if two or more food ingredients are mixed or combined by a retail merchant for sales as a single item (IC 6-9-12). It also includes food or beverages served by a retail merchant off the merchant’s premises.

Defined in: Taxes

Foreign Source

(A) A foreign government, including any agency of a foreign government; (B) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states; (C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and (D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source.

Defined in: Revenue and Receipts

Fund Accounting

Fund accounting is an accounting and reporting system commonly employed by independent colleges and universities to keep track of resources whose use is limited by donors, granting agencies, law, other outside individuals, entities, or by governing boards. A fund is maintained for each specific purpose.

Defined in: Chart of Accounts and General Ledger

Fund Balance

Fund balance is essentially the difference between assets and liabilities. In general, it is the balance remaining after the assets have been used to satisfy the outstanding liabilities.

Defined in: Accounting and Financial Statements Overview

Fund Group

Fund Groups are a way to organize accounts based on shared activity or objective, e.g. general fund accounts, contract & grant funds, etc.

Defined in: Chart of Accounts and General Ledger

G

General Fund

General funds are primarily unrestricted funds of the university. The general fund is budgeted annually and the main sources of funds are student fees and state appropriations with matching expenditures.

Defined in: Chart of Accounts and General Ledger

General Ledger

The general ledger (GL) acts as a repository of all financial and budget information. The GL contains all the financial transactions that are created via Kuali Financials documents, fed in from external systems, or created during batch processing.

Defined in: Chart of Accounts and General Ledger

Generally Accepted Accounting Principles (GAAP)

US Generally Accepted Accounting Principles (US GAAP) is the combination of authoritative standards (requirements) and the commonly accepted ways of recording and reporting accounting information.

Defined in: Accounting and Financial Statements Overview, Accounting Close, KFS Resources & Financial Processing Documents

Generally Accepted Accounting Standards (GAAP)

US Generally Accepted Accounting Principles (US GAAP) is the combination of authoritative standards (requirements) and the commonly accepted ways of recording and reporting accounting information.

Defined in: Recharge and Service Center Units

Gifts

The voluntary transfer of money or property by a foreign source made without consideration.

Defined in: Revenue and Receipts

Gift Card

A physical or electronic card, code, credential, or similar product that entitles the recipient to receive goods or services of a specified value from the issuer. This includes products not traditionally described as gift cards, such as prepaid meal cards, electronic gift codes, arcade or game cards, and other stored-value products.

Defined in: Internal Controls and Roles & Responsibilities

Governmental Accounting Standards Board (GASB)

The organization responsible for establishing accounting and financial reporting standards for state and local governments and those entities that are funded by state and local government.

Defined in: Accounting and Financial Statements Overview, Accounting Close, KFS Resources & Financial Processing Documents

Governmental Purpose

The governmental purpose of a university is to provide teaching, conduct research, and engage in service activities. For more information, please see Indiana Sales Tax Bulletin #68.

Defined in: Taxes

I

Income Statement

An income statement, also known as the statement of revenues, expenses, and changes in net position, is a financial statement that summarizes the revenue streams, expense categories, and overall profitability of an entity.

Defined in: Accounting and Financial Statements Overview, Accounting Close

Income Statements

An income statement, also known as the statement of revenues, expenses, and changes in net position, is a financial statement that summarizes the revenue streams, expense categories, and overall profitability of an entity.

Defined in: Accounting Close

Internal Agency

The internal agency fund acts as the fiscal agent or trustee for the university. For financial reporting purposes, this fund group balance is reported as unrestricted at fiscal year-end. Common uses of this fund include withholdings for taxes for employees and sales tax. This fund group is managed internally by UCO.

Defined in: KFS Resources & Financial Processing Documents, Recharge and Service Center Units

Internal Agency Fund

The internal agency fund acts as the fiscal agent or trustee for the university. For financial reporting purposes, this fund group balance is reported as unrestricted at fiscal year-end. Common uses of this fund include withholdings for taxes for employees and sales tax. This fund group is managed internally by UCO.

Defined in: Chart of Accounts and General Ledger, Recharge and Service Center Units

Internal Encumbrance (IE)

Internal Encumbrances are a reservation of funds to cover obligations arising from internal activities that are chargeable to, but not yet paid from, a specific account (i.e. salary commitments, faculty travel, etc). Encumbrances project future expenditures and provide fiscal officers with a more accurate representation of an accounts available balance.

Defined in: Fiscal Officer Reporting Tools

Investment in Plant Fund

The investment in plant fund is a subset of the plant fund whose funds used for the purchase of capital assets. The fund is also used to record bonds and notes payable.

Defined in: Chart of Accounts and General Ledger

IU Object Code

A group of similar object codes consolidated for external reporting.

Defined in: Fiscal Officer Reporting Tools

J

Jobs and Roles That Are Considered to Have an Employment Relationship with IU

The jobs and roles include, but are not limited to, staff, faculty, student worker, part-time, appointed, and salaried employees.

Defined in: Payroll

K

KFS Benefit Type Code

Kuali Financial System field which defines the benefit pool applicable to an employee pool.

Defined in: Recharge and Service Center Units

KFS Exception Role

Users who can serve as fiscal officers, account manager, account supervisor or allowed to be delegates as exception to policy.

Defined in: Fiscal Officer Reporting Tools

L

Last In, First Out (LIFO ) Method

Last In, First Out (LIFO) is an inventory valuation method based on the assumption that assets produced or acquired last are the first to be expensed. In other words, under the Last In, First Out method, the latest purchased or produced goods are removed and expensed first. Therefore, the old inventory costs remain on the balance sheet while the newest inventory costs are expensed first.

Defined in: Recharge and Service Center Units

Level

An object level is a grouping of object codes for reporting purposes.

Defined in: Accounting Close

Liability

A liability is a debt or obligation that arises from past events.

Defined in: Accounting Close

Life Estate Funds

Life estate funds are funds contributed to an institution subject to the requirement that the institution periodically pay the income earned to designated beneficiaries.

Defined in: Chart of Accounts and General Ledger

Liquidity

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets while tangible items are less liquid.

Defined in: Accounting and Financial Statements Overview

Loan Funds

The loan funds consist of loans to students, faculty, or staff, and of resources available for such purposes. Many are temporary and require repayment of principal and interest while some specify forgiveness of repayment under certain conditions. These funds are derived from private and governmental gifts and grants, federal borrowing, and unrestricted allocations. Interest revenue is returned to this fund as an increase to the available fund balance. Examples of loans included in the loan fund include Federal Perkins Loans, health professional loans, nursing loans, and institutional loans.

Defined in: Chart of Accounts and General Ledger

M

Manage the Department P-Card

For this purpose, management of the department procurement card includes administrative duties such as the maintenance of the procurement card transaction log and the security of the physical card.

Defined in: Internal Controls and Roles & Responsibilities

Materiality

Highlights any variance that meets the specified materiality threshold specifically for the income statement. Materiality is set at 10% of the associated revenue stream.

Defined in: Accounting Close

Monthly Budget (MB)

Monthly budgets allow departments to spread their annual budget into 12 different buckets. This is important when entities have revenue and expense lines that are not earned or incurred evenly over the 12 months of the fiscal year.

Defined in: Accounting and Financial Statements Overview

N

Negative Balance

A negative balance is the opposite of the natural balance of the asset or liability. For example, cash is an asset and has a natural debit balance. Cash with a credit balance would be considered negative.

Defined in: Accounting Close

Non-Employee Hotel Expenses

Non-employees are generally individuals who are not employed by or studying at IU, who are traveling on IU-funded business.

Defined in: Taxes

Non-Exempt Employee

Employees who are subject to the minimum wage, overtime pay, recordkeeping, and youth employment standards of the Fair Labor Standards Act of 1938, as amended. The term includes part time, temporary work-study, support and service staff, and professional overtime-eligible staff.

Defined in: Payroll

Non-Operating Expenses

A non-operating expense is a business expense that is not related to an organization’s core operations. Examples include, but are not limited to, interest expense and inventory write-offs.

Defined in: Fiscal Officer Reporting Tools

Non-Operating Revenues

A non-operating revenue is a business revenue that is not related to an organization's core operations. Examples include, but are not limited to, profits from investments and sale of assets.

Defined in: Fiscal Officer Reporting Tools

Non-Routine

An isolated transaction that will not recur on a regular basis.

Defined in: Internal Controls and Roles & Responsibilities, Accounting Close

Nonaccountable Plan

A nonaccountable plan is an arrangement that does not meet one or more of the three requirements (business connection, substantiation, return of funds) of the accountable plan. Amounts paid under this arrangement are included in the employee’s gross income, must be reported as wages or other compensation on the employee’s Form W-2, and are subject to withholding and payment of employment taxes. Amounts for non-employees are reportable on a Form 1099-MISC.

Defined in: Taxes

O

Object Code

An object code is used to organize and catalog financial data. An object code classifies a financial transaction as income, expense, asset, liability, or fund balance.

Defined in: Accounting Close

Object Code Name

Identifies the descriptive name of the object code.

Defined in: Fiscal Officer Reporting Tools

Object Level

An object level is a grouping of object codes for reporting purposes.

Defined in: Fiscal Officer Reporting Tools

Object Sub Type Code

Designation assigned to similar groups of object codes e.g. AR - Accounts Receivable, CA - Cash, DR - Depreciation etc.

Defined in: Fiscal Officer Reporting Tools

Object Type Code

Identifies object code as income, expense, asset, liability or fund balance.

Defined in: Fiscal Officer Reporting Tools

Off-Cycle Payroll

Any payroll payments made outside of the on-cycle payroll process.

Defined in: Payroll

On-Cycle Payroll

Biweekly or monthly payroll payments processed and issued on the regularly scheduled payroll dates established by University Payroll.

Defined in: Payroll

Organization Code

The organization code is unique within the chart to which it belongs and identifies the organization the report is being run for.

Defined in: Fiscal Officer Reporting Tools

Organization Hierarchy

The organizational hierarchy presents the financial data based on organization code and provides a high level review of the data at a more consolidated level. In many cases an organization reports directly to another organization. By selecting the organization hierarchy, users will be able to see all data from the selected organization plus any organizations that report to the selected organization.

Defined in: Fiscal Officer Reporting Tools

Origin

The country to which a gift is attributable, the country of citizenship, or if unknown, the principal residence for a foreign source who is a natural person, and the country of incorporation, or if unknown, the principal place of business, for a foreign source which is a legal entity.

Defined in: Revenue and Receipts

Other Restricted Funds

Other restricted funds are expendable for operating purposes, but restricted by donors or other outside agencies as to the specific purpose for which they may be expended. Commonly used other restricted funds include fellowships, scholarships, and special state appropriations.

Defined in: Chart of Accounts and General Ledger

P

Paycards

A paycard, also known as a payroll card, is generally a prepaid debit card. Typically, it functions similarly to a standard debit card, allowing employees to withdraw cash from ATMs, make purchases in-store and online, and potentially pay bills.

Defined in: Payroll

Paygroups

Paygroups consist of a three-character code used to identify specific groups of employees that are paid on the same cycles.

Defined in: Payroll

Payroll Administration and Oversight

University Payroll oversees regulatory compliance in conjunction with University HR and General Counsel; policy and procedure development; payroll system administration, access, and reporting; tax administration and withholding setup; deduction administration; payroll closing; and other centrally administrated payroll functions.

Defined in: Payroll

Payroll Processor

A person responsible for ensuring the completeness and timeliness of all time and attendance information. The Payroll Processor reviews the non-exempt staff members’ hours worked, benefit time taken, and earn codes used for compliance with university policies and procedures.

Defined in: Payroll

Pre-Encumbrance (PE)

An unofficial encumbrance, Pre-Encumbrances are used to reserve funds in anticipation of an official encumbrance created with a Purchase Order, Travel Authorization or salary transaction.

Defined in: Fiscal Officer Reporting Tools

Prepaid Expense

Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired.

Defined in: Accounting Close

Private:

Defined in: Accounting Close

Private: Contracting Unit

IU department receiving the service

Defined in: Taxes

Private: Contracting Units

Contracting units are IU departments receiving the service.

Defined in: Taxes

Proprietary Activity

Proprietary activity is defined by the State of Indiana as an activity that generates revenues for state colleges or universities from the general public and that is both customarily associated with the conduct of a private business enterprise and that is outside the scope of activities of governmental and educational functions as defined for state colleges or universities.

Defined in: Taxes

Proprietary Fund

A Proprietary Fund is used in governmental accounting to account for business-type activities that are financed in whole or in part by fees charged to external parties for goods or services.

Defined in: Accounting and Financial Statements Overview

Q

Quasi-Endowment Funds

Quasi-endowment funds are funds which the governing board of an institution or university management, rather than a donor or other outside agencies, have determined are to be retained and invested.

Defined in: Chart of Accounts and General Ledger

R

Reasonable Period of Time

The IRS has established “safe harbors” which can be used to ensure reasonableness. These safe harbors state, based upon a fixed date, an advance made within 30 days of when an expense is paid or incurred, an expense substantiated to IU within 60 days after it is paid or incurred or return date of trip, or an advance amount returned to IU within 120 days after an expense is paid or incurred, will be treated as having occurred within a reasonable period of time. Payments not meeting these safe harbor guidelines are considered taxable income to the individual unless extraordinary circumstances are documented.

Defined in: Taxes

Recharge/Service Center

Furnishes goods or services to another Indiana University department for the convenience of the university and charges a fee directly related to providing the goods or services, and not more than the allowable costs.

Defined in: KFS Resources & Financial Processing Documents

Reconcile

The review of operating reports monthly to ensure that the revenue and expenditures posted to the account are those that were approved by the Fiscal Officer, or their delegate, and that they are allowable and appropriate.

Defined in: Accounting and Financial Statements Overview

Renewal and Replacement Fund

The renewal and replacement fund is a subset of the plant fund whose funds are set aside for replacement of renewable property. An example of use of replacement funds is the purchase of computer replacements.

Defined in: Chart of Accounts and General Ledger

Reportable Items

Value of money or property received, or expected to be received at a future date, as a result of a gift from, or contract entered into with, a foreign source. Individuals paying tuition, room and board, and fees related to a student’s education are not generally considered reportable items, unless the individual is paying for multiple students and acting as an agent of a foreign source because they would not meet the threshold.

Defined in: Revenue and Receipts

Responsibility Center (RC)

An attribute assigned to organizations that represent schools or major administrative units to facilitate the responsibility center management budgeting model.

Defined in: Fiscal Officer Reporting Tools

Responsibility Center Code

Code assigned to organizations that represent schools or major administrative units to facilitate the responsibility center management budgeting model.

Defined in: Fiscal Officer Reporting Tools

Restricted Other

Derived from indirect cost recovery, educational and administrative allowances, unrestricted gifts, and revenues from intellectual property (patents, copyrights, royalties).

Defined in: Chart of Accounts and General Ledger

Retail Inventory Method

The Retail Inventory valuation method calculates inventory value by comparing the cost of the goods to their retail prices, using a cost-to-retail ratio. This measures the cost of inventory relative to the price of the goods.

Defined in: Recharge and Service Center Units

Retirement of Indebtedness Fund

The retirement of indebtedness fund is a subset of the plant funds and used for long-term capital financing and debt.

Defined in: Chart of Accounts and General Ledger

Revenue Recognition

Revenue recognition is one of the five basic accounting principles. This principle ensures consistency when recording revenue on an entity’s income statement. This principle is intended to eliminate and mitigate against any overstatements in revenue. IU uses accrual accounting where revenues are recognized when realized and earned. To properly recognize revenue under accrual accounting, users must ensure three criteria have been met: performance, collectability, and measurability.

Defined in: Revenue and Receipts

Riley Hospital Endowment Funds

Riley Hospital endowment funds contributed to IU are directly related to the Riley Hospital. Similar to quasi-endowment funds, interest income is reinvested at year-end.

Defined in: Chart of Accounts and General Ledger

Routine

Transactions that happen on a recurring basis.

Defined in: Internal Controls and Roles & Responsibilities, Accounting Close

S

Service Fund

Service fund is an enterprise that furnishes goods or services to other internal university departments and charges a fee directly related to, and equal to, the cost of the goods or services. This means that the entity is self-supporting, but is not allowed to make a profit.

Defined in: KFS Resources & Financial Processing Documents, Recharge and Service Center Units

Service Funds

Service funds are an enterprise that furnishes goods or services to other internal university departments and charges a fee directly related to, and equal to, the cost of the goods or services. This means that the entity is self-supporting, but is not allowed to make a profit.

Defined in: Chart of Accounts and General Ledger

Source Documentation

An agreement, contract or grant documentation, analysis conducted, calculations completed, emails, memos, receipts, etc. that supports the transaction.

Defined in: Accounting Close

Special State Appropriations

State appropriations are appropriations made to the university by the State Legislature. Income fund deposits are from tuition and other receipts deposited into the income fund for operating purposes.

Defined in: Chart of Accounts and General Ledger

Specific Identification Method

The Specific Identification inventory valuation method calculates cost of goods sold by keeping track of each specific item in inventory and assigning costs individually instead of grouping items together.

Defined in: Recharge and Service Center Units

Split-Interest Agreements

A split-interest agreement is when more than one beneficiary is involved. This means a donor is providing a gift that benefits a government and someone else (typically the donor, their spouse, or their children) so the benefit of the gift is shared.

Defined in: Chart of Accounts and General Ledger

Stale-Dated

Stale-dated checks are checks that are more than 180 days past the issue date.

Defined in: Expense and Payments

Straight Pay

Straight-time pay is an employee’s regular compensation for standard working hours

Defined in: Payroll

Sub-Account Numbers

An account within an account. Cannot be used without entering the Account number above.

Defined in: Fiscal Officer Reporting Tools

Sub-Fund Group

Optional Parameter to limit report to a specific Sub Fund Group.

Defined in: Fiscal Officer Reporting Tools

Supervisor

A supervisor must be an IU employee or work-study affiliate.

Defined in: Payroll

Synchronous

Recording time worked by clocking in and out of an approved electronic timekeeping system.

Defined in: Payroll

T

T-Accounts

A tool used to help identify the ending balance of a given asset, liability, revenue or expense. The left side is for debits and the right side is for credits.

Defined in: Accounting and Financial Statements Overview

Tangible Personal Property

Tangible personal property is an item that can be seen, weighed, felt, touched, or is perceptible to the senses in any other manner.

Defined in: Taxes

Transaction Post Date

Identifies the date a transaction has been posted to the general ledger.

Defined in: Fiscal Officer Reporting Tools

U

Unclaimed Property

Unclaimed property balances represent funds owed to an outside party that the university has not been able to contact. These funds are remitted to the state associated with the payee’s last known address.

Defined in: Expense and Payments

Unearned Revenue

Unearned revenue is a liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased.

Defined in: Accounting Close

Uniform Guidance

Uniform Guidance is a set of authoritative rules and regulations about federal grants from the Office of Management and Budget (OMB).

Defined in: Chart of Accounts and General Ledger, Recharge and Service Center Units

US GAAP.

US Generally Accepted Accounting Principles (US GAAP) is the combination of authoritative standards (requirements) and the commonly accepted ways of recording and reporting accounting information.

Defined in: Accounting Close

W

Work Study Agency Fund

The work study agency fund is used to track money received for federal work study and is managed internally by UCO payroll.

Defined in: Chart of Accounts and General Ledger