Grants & Revenue - Glossary
A
Administrative Service Charge - Purpose is to recover overhead costs incurred by the institution on behalf of accounts which are not directly funded by either state appropriations or sponsored grants and contracts.
Auxiliary Enterprise Funds - Auxiliary enterprise funds are those current operating funds which generate revenue from an established auxiliary enterprise. An auxiliary enterprise is a separately organized University unit or activity established to sell products or services on a continuing basis. The auxiliary enterprises generally support the instructional, research or public service activities of the University. An auxiliary enterprise charges fees directly related to, although not necessarily equal to, the cost of the products or services. Sales of by-products of instructional, research or public service activities are not classified as auxiliary enterprises. See definition of designated funds. Examples of auxiliary enterprises include Residence Life, Intercollegiate Athletics and Stores.
C
Capital Equipment - an item of non-expendable, tangible, personal property which has an aggregate acquisition cost or fair market value of $5,000.00 or more, is free standing, movable, is complete in it self, does not lose its identity when affixed to or installed in other property and has a useful life greater than one year. This also includes chairs, desks, conference tables or other equipment used in the typical business office.
Criterion - A standard on which a judgment or decision may be based.
Consultant Expense - Charges for a consultant's lodging or travel expenses, where payment is made directly to the third party
Cooperative Agreement - The legal instrument when the principal purpose is to carry out a public purpose of support authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and substantial involvement is expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.
D
Designated Funds - Current operating funds that have been limited for a specific purpose by specific action of the Board of Regents or by an administrative unit of the University authorized by the Board to designate funds. Gifts are considered designated funds if the funds are available for current operating expenditures by one or more organizational units of the University and the donor has not restricted the use of the funds to a specific activity or purpose.
Delivery/Shipping - Costs incurred for postage, express shipping companies (FedEx and DHL) for business related communication used by University personnel.
E
Equipment Repair & Maintenance Services - Costs such as lubrication, cleaning, adjustments, and painting incurred on more or less a continuous basis to keep assets in normal, usable condition. These costs, however, do not add materially to the value of the asset nor do they appreciably prolong the life of the asset.
Employee Related Expense (ERE) - The expenses the University is responsible for as an employer. ERE is comprised of FICA, Retirement, Unemployment Compensation, Worker's Compensation, Liability Insurance, Health/Dental/Life Insurance, and Dependent Care Assistance. http://www.fso.arizona.edu/fso/ere/ Also referred to as Fringe Benefits.
F
Facilities and Administrative (F&A) Costs - F&A costs is a new term for an old concept. In May 1996, the federal government revised OMB Circular A-21, and, among other changes, substituted the term "F&A" costs for "indirect" costs. They believed that the public was confused by the term "indirect" costs and that "F&A" was more descriptive. Either term represents real costs necessary to provide the infrastructure for our research program. Indirect costs are composed of eight cost pools. Our on-campus research indirect cost rate of 51.5% is broken out as follows:
Equipment Use |
5.10 |
Building and Interest |
7.50 |
Operations and Maintenance |
11.90 |
Student Services |
0.80 |
General Administration |
7.00 |
Departmental Administration |
15.00 |
Sponsored Projects Administration |
2.20 |
Library |
2.00 |
ON-CAMPUS RESEARCH RATE |
51.50% |
Fringe Benefits - See Employee Related Expenses
G
Grant - Funds to an institution or an individual to subsidize a project or program.
Guideline - A description of how to make decisions or take steps that may support the implementation of policy.
I
In-kind Contributions - A percentage of faculty time devoted to the project, not funded by the sponsor. Another name for in-kind contribution is "cost sharing." "Matching" is another form of University contribution to a project, which most people think of as a ratio, e.g., 1:1 match, 20% match. Federal regulations do not distinguish between cost sharing and matching, but define both as that portion of project or program costs not borne by the Federal Government.
Indirect Costs - Costs that are incurred for the common benefit of more than one direct activity, and therefore are not easily or specifically identifiable with any particular activity. Examples include expenditures for utilities, insurance coverage, and administrative services, such as the Financial Services Office, Purchasing, Personnel, Payroll, Institutional Finance, Management Analysis and Research and Administrative Information Systems.
Indirect Cost Recovery - Under current Federal rules, we have no obligations to spend ICR money in any particular way. The University has generally reallocated ICR money to support areas based on their relative contribution to the overall pool of indirect costs. The Federal government negotiates our ICR rate after a review of costs incurred, applying the principles of OMB Circular A-21.
M
Mandate - An authoritative instruction or command.
N
Non-capitalized Computers, Equipment & Furniture - Charges for desktops, laptops, servers, and workstations costing between $1,000 and $5,000. Charges for office and household furnishings, such as desks, chairs, file cabinets, couches, beds and tables, which do not meet the criteria for capitalization.
O
Outside and Professional Services - Services rendered at the request of and for the benefit of the University, provided by a corporation, partnership or individual who practices an independent trade, occupation, profession, or business for a fee and possibly related expense reimbursement. The service typically involves some form of study, research, consultation, or lecture.
Office Supplies - Charges for the purchase of office supplies, such as envelopes, stationery, forms used for office use, pens, pencils or scissors.
Operating Supplies - Costs associated with items used in the day-to-day operations of the University, which are not Office Supplies.
Overhead - Amount calculated to recover some costs associated with a grant; operating expenses excluding labor and materials
P
Policy - A definite course or method of action to guide and determine present and future decisions.
Procedure - A series of steps followed in a regular definite order; a traditional or established way of doing things.
Process - A series of actions, changes or functions that achieve an end or result.
R
Regulation - A principle, rule, or law designed for controlling or governing behavior.
Rentals - Facilities/Building - Charges for the rental of land, facilities or structures which are either permanently attached to a site or movable, such as a mobile home. Facilities may include rented conference rooms.
Revenue - Income
Renovation & Remodeling - Cost for c onstruction in progress regarding renovation and remodeling of an existing structure where the work is performed by a company, individual external to the University or Facilities Management. Costs include the replacement or installation of carpets, blinds and drapes.
Royalties/Copyrights - Costs of royalties and/or copyrights which must be paid by the University in exchange for the use of certain publications or movies.
S
Sales Taxes Payable - Amounts owed to the State of Arizona Department of Revenue for sales taxes collected. Sales tax is collected on sales of tangible personal property to entities outside the University for consumption (not resale) within the state of Arizona . Sales tax is not collected if the products are sold primarily to other units within the University, and the selling department paid sales tax at the time the items were purchased for resale.
Sponsored Project - A project is considered a "sponsored project" if it meets any one of the following criteria:- the proposed project binds the University to a specific scope or area of work
- progress, technical, or final reports or other deliverables are required
- billing, separate accounting procedures, or report of expenditures are required
- unexpended funds must be returned to the sponsor at the end of the project
- the project involves disposition of property, whether tangible or intangible, that may result from the project (e.g., equipment, inventions, copyrights, or rights in data)
- the project has a specified performance period or completion date
- the project has budgeted indirect costs
- the contract contains intellectual property terms
T
Technical Consultants - Fees paid to specialists brought to the University in an advisory capacity (for example, consultation for grant development or statistical analysis) and reimbursement of related lodging/travel expenses.
Telecommunications/Networking - Costs associated with installing data/connecting communication equipment, such as, Ethernet, telephones and faxes. Also costs associated with the rent of telephone and data communication equipment, toll calls, and any other expenditures related to communications.