Strategic Budgeting, Resources

Resources
Key Terms
Account Classification

Identification of financial data from the general ledger as a specific revenue or expense.

Allocation Variable or Driver

Percentage of which allocated revenues and expenses are distributed to the Revenue Units. Example allocation variables include credit hours, direct expenses, and square footage and are calculated as of the most recent, complete fiscal or academic year.

Allocation

May refer to a revenue or an expense. These activities are pooled and distributed via formula and include tuition and the AU Main Campus state appropriation.

Auxiliary Units

Units with ability to influence revenue generation by providing goods or services to students, faculty, staff, or the general public at a fee that may or may not be equal to the cost of the good or service provided. Generally, auxiliary units are expected to be self-supporting.

Central Units

Units which have limited ability to generate revenue through credit hour production or other means. These units generally provide core services to Revenue Units. Leaders within these units are primarily held accountable for managing expenses and providing optimal service levels.

Note: this term should be applied to all units not considered a Revenue Unit.

Central Unit Allocation

Also referred to as “allocated expenses”. The formula-driven method for funding the budgets of Central Units. Any revenue generated by a Central Unit decreases the amount funded by Revenue Units.

Direct

May refer to a revenue or an expense. These activities are generated or paid from the local source and not pooled or redistributed according to an allocation variable.

Division 1

Refers to Auburn University - Main Campus (AU).

Division 2

Refers to Auburn University - Montgomery Campus (AUM).

Division 3

Refers to the Alabama Agricultural Experiment Stations (AAES).

Division 4

Refers to the Alabama Cooperative Extension System (ACES).

Fund Classification

Identification of financial data from the general ledger as restricted or unrestricted.

General Ledger

Source for all financial data for all units within the Auburn University Banner financial system.

Governance

Broadly representative committees-including University Budget Advisory Committee, Central Unit Allocations Committee, and Space Management and Repair & Renovations Committee-who review various elements of the budget and make recommendations to senior leadership.

Income Statement

Ad hoc financial statement depicting budget or actual revenues and expenses for a unit.

Local Level

A specific Revenue, Central, or Auxiliary Unit

Mission Enhancement Fund

A pool of funds generated by assessing a participation rate on certain unrestricted revenues in non-auxiliary Revenue Units.

Organizational Classification

Identification of financial data from the general ledger as belonging to a specific unit (e.g. College of Agriculture).

Participation Rate

The percentage levied on certain unrestricted revenues in non-auxiliary Revenue Units to create the Mission Enhancement Fund.

Restricted Funds

Funds primarily from external agencies and individuals that are designated for specific uses, predominantly research and student financial aid; Received from local, state, federal, and private sources and used only as specified by the donor.

Revenue Units

Units which have substantial ability to influence revenue generation through credit hour production or other means. These units generally provide instruction (e.g. schools and colleges) or are auxiliary units with revenue generating capabilities (e.g. Intercollegiate Athletics).

Unit

See “Auxiliary Units”, “Central Units”, or “Revenue Units”

Unrestricted Funds

Current funds derived from state appropriations, student fees, institutional revenue and auxiliary operations. Monetary resources that are not subject to specific external guidelines or regulations and are expendable for any activities that promote the instruction, research, and extension missions of the University.

Last updated: May 13, 2021