Budget glossary

Above minimum
The portion of budgeted salary that exceeds the minimum of the range of that title code.

6 digit code used to group financial transactions for a given unit or department. The first two digits of an account number represents the function of the unit or dept, such as instruction (40), research (44), public service (62), etc.

Adjustment or Budget adjustment
Augmentation or reduction of budget

TM1: Appropriation in the Account_Budget tab represents the permanent budget funds received in the prior fiscal year. Additional budget requests can be added, including amounts for salary increases, benefit increases and any other increases requested for new projects. It could also include temporary funds requested. The total appropriation requested for the next fiscal year minus projected expenditures should equal zero.
G/L - Budgetary provisions against which expenditure transactions are made. Transactions affecting appropriations appear as Type Entries 11, 12, 13, 14, and 15 on the Detail General Ledger.

Financial resources planned for particular activities during a specified period. Approved budget then becomes GL appropriation.

Budget call
Communication sent out to initiate the budget process with guidelines.

Budget transfer
Budget transfer are actions moving appropriation in a specific fund from one FAU to another.

Budget transfer type
Budget transfer types include A, B and 1-8. A: Salary Reconciliation, B: Other, 1: Detail budget worksheets, 2: Interlocation transfers, 3: Regents/President's
actions, 4:Merit (Academic), 5:Staff(Staff), 6: 7:range(Staff), 8: classification

Budgetary class
Budgetary class can only be "A" or "I". A is used for "Adjustment" while "I"-"Increment" is used for "permanent adjustment. Budget transfers with budgetary class "I" are only accepted from May through August and must have effective date as 7/1

Balance of an appropriation before encumbrance available for authorized expenditures.

Cost center
The cost center further divides a dept or unit's account into subunits. Once a cost center has been established by UCLA General Accounting, it has to be used for all transactions. UC Press uses cost centers for their Books and Journal activities.

Cost of living adjustment
Increases provided in state-funded programs that include periodic adjustments predetermined in state law

Cost transfer
See expense transfer

CY OP Regents Approved Permanent Budget
TM1: In the S&E tab, represents the permanent budget amount approved and received in the current fiscal year.

A negative financial balance, i.e. appropriations minus expenditures [in many formulas encumbrances are also subtracted] equals an amount less than zero.

Organization hierarchy that oversees a group of sub-divisions

A commitment of UC funds to an outside entity, not yet paid. Also known as a lien or open commitment. At the time of payment, the encumbrance is reduced by the amount of the expenditure.

Expenditures accruals and deferrals
By using a reversing journal (Type 14) at year end, it allows the dept to recognize an expense for services rendered in one fiscal year but the payment is actually paid in the previous/next fiscal year. Accruals record expense in current fiscal year, but financial transaction occurs in next fiscal year. the journal nets the amount in the next fiscal year. Deferrals net the expenditure in current fiscal year and expense is recorded in new fiscal year.

Expenses are a subset of expenditures. Expenses are payments made specifically for consuming goods and services, while expenditures include payments made to buy assets,for instance, acquiring capital equipment.

Expense transfer
A transaction moving costs from one FAU to another, e.g. to correct an erroneous recording. There are separate processes for payroll expense transfers and nonpayroll expense transfers.

Full accounting unit
The FAU is comprised of up to eight fields including: location, account, cost center, fund, project, sub-object and source. Each field of the FAU represents a different kind of information about the transactions that occur. Each part of the FAU should be used consistently to ensure the integrity of the information.

Full time equivalent
A full time employee is represented as 1.00 FTE; fractional FTE indicates less than 100% effort, for instance, on a particular fund source

5-digit code used to identify source and type of funding, it is a discrete monetary source. The fund source is allocated for the purpose of meeting certain programmatic or contractual objectives.

Funding stream
Starting FY1112, Campus generated funds (Ed Fees, Indirect Cost Recovery, Patent revenues) will be retained at the source campus. UC established a campus assessment fund to support UCOP.

General and employment liability
General and employment liability insurance are assessed as a percentage of actual salaries to every account. The rate is established annually by Risk Services and UCOP budget office

General assistance
Same as subaccount 2. Actual overtime salaries and salaries of positions not permanently budgeted are recorded as general assistance.

General Ledger
The organization's official accounting record. UCOP uses a subset of the UCLA General Ledger, and is recorded within Location "M".

GL appropriation
Authorization to expend funds from a Full Accounting Unit, as recorded in the ledger.

External revenue received in a specific year

Next FY Requested Permanent Budget
TM1 - In the S&E tab, permanent budget amounts being requested for the next fiscal year, by projected expenditure category.

Overhead expense
Indirect cost recorded for contracts and grants funds.

Expenditures of actions performed by external non-profit entities.

Permanent adjustments
Budget adjustments can be permanent (recurring) or temporary (non-recurring). Permanent adjustments impact an account's base budget not only for the current fiscal year but also for future budget years.

Permanent appropriation
Same as permanent budget

Permanent budget
Approved on-going resources/appropriation for a particular activity in a full accounting unit (FAU). Amounts in the permanent budget system are automatically entered in the ledger at the beginning of the next fiscal year.

Permanent budget system
The common system used by all UC campuses and UCOP for tracking and reporting the permanent budget.

Prior FY approved budget
TM1 - Total funds (both temporary and permanent) approved by account/fund for expenditures in the current fiscal year

Prior FY Expenditures
Expenditures from the most recently completed 12-month period July 1 through June 30.

Proposed budget
TM1 - Funds requested by each unit at the fund/account level for projected expenditures in the next fiscal year. At the stage where it is still open to be reviewed by the Budget office.
G/L - Proposed budget is not available in the G/L, only the current fiscal year budget.

When used in conjunction with staffing lists, "provision" refers to an unfilled/vacant position. Department establishes a provision to hold budget for this unfilled position

Carryforward recorded in the GL

Departments that provide specific or ongoing services to other departments uses the recharge process to recoup expenses incurred in providing that service, based on an approved recharge rate. Recharge income is recorded in Sub 9, object code 3900. Recharges should not be confused with expense transfers.

Regents approved permanent appropriation
TM1: In the Account_Budget tab represents the permanent budget funds received in the prior fiscal year, one of the fields in the Appropriation section. See TM1- Appropriation.

Restricted fund
As used in the UCOP/TM1, restricted funds incl. and not limited to grants and contracts, gifts, endowment, tuition fees and recharges, sales and services.

Salary increase/ Salary/benefits increase
Projected merit or equity increases in the year being budgeted

Special items
Sub 05 and Sub 07 are not designated for any specific purposes, but they can be used for specific non-payroll purposes at dept's discretion. Departments can track travel, consulting/professional services or specific projects in these subs.

A surplus occurs when a recharge activity's actual revenues exceed the actual costs of the year

Temp Labor
Object code: 3530. Hourly labor obtained with contract through a vendor and/or UCOP TOPs

Temporary appropriation/adjustments
Proposed/requested temp augmentation for the budget year

UCOP Service Budget Category
UCOP categorizes its services as core, central administration and systemwide initiatives. Core administration incl. OP local HR, Budget Office, BRC and Building Services while central administration are support units of UC wide functions.

Unallocated funds
Budgeted appropriations not designated to a particular expense category

Unexpended balance
The unspent portion of a budgeted amount available for authorized future expenditures.

Unrestricted fund
General Funds, Common Funds, Opportunity Funds, Education Fees, Educational Funds and Searles Funds