Budget Management Terms & Definitions

Appropriation and Transfers (190XXXX)
Represents 1) an assignment by the Board of Trustees of a portion of the unrestricted revenue of the Current Unrestricted Fund or 2) the reallocation/reclassification of revenue or accumulated surplus from one fund to another.

Auxiliary
Enterprises that function in a subsidiary capacity providing services, materials or facilities to University and non-University elements. Generally speaking, they cover their own expenses. Examples are DUAA, DUFS, Golf Course, Press, etc.

Budget and Financial Reporting (BFR) Codes
The BFR code is a series of ten digit codes within the General Ledger that provides a five level organizational hierarchy structure. Every position and cost object at Duke will be linked to a BFR code at some level in the hierarchy.

Budget Incentive Agreement/Formula
Series of agreements established by the Provost's Office, Medical Center, or President in conjunction with the Executive Vice President, whereby a school/organization will share any surplus to budget, consequently the school will also be held accountable for any deficit to budget.

Budget Process

1. Prepare forecast to test assumptions and establish tuition and enrollments.
2. Give departments an opportunity to request funds and set rates according to department's operational requirements.
3. Give Senior Officer's the flexibility to evaluate requests and shift resources according to priorities established by each sector.
4. Consolidate the Budget. If bottom line problem exists, turn back over to Senior Officer for resolution.
5. Present balanced budget to the Board of Trustees for approval.

Direct Codes
Costs directly attributable to a specific project or activity. Examples are salaries & wages, supplies, equipment, personnel benefits, etc.

Distributed Expenses
The process by which the costs incurred by components of the University (while providing a service) are charged to the components receiving the benefit.

Expense Cost Center (CURRENT UNRESTRICTED)
Cost Centers in the 15xxxxx thru 180xxxx series.

Financial Full-Time Equivalent (FFTE)
A FFTE is the revenue dollars divided by a particular school's/organized activities tuition/fees. Depending on the number of part-time students, this number may be quite different from a "head-count". This equivalent is calculated by the Budget Office to monitor variances and utilized by the Cost Allocation & Analysis department to distribute expenses.

Forecast
Process that assists in the preparation of a balanced budget. Budget Office utilizes the current budget and extrapolates a projection of this into the future based on inflators and data received from various departments and offices.

Full-Time Equivalent (FTE)
One FTE equals one full-time position or two half-time positions, etc. The FTE representation is used during the budget process and manpower analysis.

Indirect Costs
Research related costs not directly attributable to a specific project but incurred for the general support and management of research. Examples are research costs associated with utilities, plant operations, general administration, depreciation, etc.

Payroll

1. Exempt: Monthly paid employees who are not subject to the Fair Labor Standards Act (G/L accounts 600xxx & 601xxx)
2. Nonexempt: Hourly paid employees who are subject to the Fair Labor Standards Act (G/L accounts 605xxx, 606xxx, 607xxx)

Position Management
Position Management is handled though the HR web tools and is a concept of position ownership by departments or major units, allowing them to better track and manage positions. Every position at Duke will have a unique identifying number known as a "position management number" which will stay with the position throughout its "life" and is independent of the employee who may be filling the position. The HR web tools will be used for the processes of creating, modifying, deleting or reorganizing a position.

Proganal
A computer generated monthly summary of a department's or organization's codes developed by the Budget Office. It includes three sections: fund summary, details, and G/L account summary. Extremely useful instrument to more effectively manage a department's budget. Submit requests to the University Budget Office.

Revenue Fund (Current Unrestricted)
Profit Centers in the 111xxxx thru 140xxxx series.

Service Compnent
Departments/activities within the University that charge for services they provide. Examples are Office Products/Services, Bulk Mail, Medical School Labs, NMR Facility, Computer Science Lab, etc.

Spread Codes
Factors selected by the department and applied to the budget by G/L account within cost object; factors determine how the budget is calendarized throughout the fiscal year. Calendarization is reflected in PROGANALS.