MAA Glossary

a
A-110

The Federal Office of Management and Budgeti (OMBi) Circular that establishes uniform regulations for each federal agency to follow to administer projects sponsored by the federal government. Formally known as CFR Title 2, Volume I, Part 215i.

A-21

The Federal Office of Management and Budgeti (OMBi) Circular that establishes cost principles for determining allowability of costs applicable to grants, contracts, and other agreements (also known as sponsored research) with institutions of higher educational. Formally known as CFR Title 2, Volume 1, Grants and Agreements, Part 220.

Acquisition Cost

Cost of a piece of equipment including calibration, installation, freight, trade-in value, and sales and excise tax.

Advance

An authorization to establish a budget number prior to the actual receipt of an award. The Office of Sponsored Programs (OSPi) will verify that the award has been funded and then forward an eFA to GCAi. Normally this is done only when the granting agency has notified the UW that the award letter will be issued late.

Allocable Cost

A cost is allocable to an activity if it is chargeable or assignable to that activity according to the relative benefits received or other equitable relationship (see also Unallowable Costsi)

Allocate

Assignment of an item of cost, or a group of items of cost, to one or more cost objectives. This includes both direct assignment of cost and the reassignment of a share of costs from indirect cost pools.

Allowable Costs

Costs specified in OMBi Circular A-21i that can be directly charged to Federal grants and contracts or included in facilities & administrative rates.

Amortization

See Depreciationi or Use Allowance.

Auxiliary Enterprise

A large, university-wide unit that provides services primarily to external users. An example of an auxiliary enterprise is University Parking Services.

Average Paid FTE

Average paid FTE, as used in effort reporting, is determined by dividing the sum of earnings contributing to the full time rate by the full time rate for the FEC cycle. This calculation does not include earnings without FTE attached such as clinical, ADS or ENS. This percent may differ from the faculty member's appointment FTE.

Award

See Grant and Contract glossary definition of award.

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Billable Units

The number of units of activity that are expected to be sold in a given time period. Common units are number of hours, number of tests, or number of users.

Budget

There are three primary definitions of a budget at the University:

1. The schedule of anticipated expenditures required to perform a specified activity or project, as outlined in a proposal to a sponsor.
2. The amount of spending authority awarded by outside funding sources that the University has a legal claim to spend on a sponsored project.
3. The account in the University's accounting system where the revenues, expenditures, and transfers associated with a specific activity, function, or entity are recorded.

Budget Period

The intervals of time into which a multi-year period of assistance (project period) is divided for budgetary and funding purposes. Budgeti periods are usually 12 months long but may be shorter or longer, if appropriate.

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CA

See definition of CAi (College Administration) in the F&A Space Functional Use Definitions document.

Capital Lease

A lease that transfers substantially all the benefits and risks inherent in the ownership of property to the University. The criteria for a capital lease can be found at the State Administrative and Acoounting Manual website.

CAS

See Cost Accounting Standards.

Cash Sales

Sales to external users that pay with cash, check or credit card.

Central Stores

See University Stores.

CFR Title 2, Volume I, Part 215

Formerly known as OMBi Circular A-110i, Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. This document is now part of the Code of Federal Regulations.

Clinical Trial

See also Resources, Policies, Forms.

Cognizant Agency

The agency of the federal government with whom the University submits & negotiates Facilities and Administrative (F&A) rates.

Conflict of Interest

A situation in which a University employee is in a position to influence the conduct of a project for personal gain due to the employee's responsibilities or arrangements with the sponsor.

Consultant

A person, usually not an employee of the University, whose participation in a project does not require a sub-award or subcontract and who is paid via a personal services agreement.

Contract

A legal document specifying work, scope, budget, and time of performance. The sponsor often places more restrictions upon expenditures allowed for a given scope of work than are found in grant terms and conditions which represent unilateral agreements. Contracts usually result in a tangible product and are considered restricted funds.

Cooperative Agreement

An award similar to a grant. The sponsor anticipates having substantial involvement in research activities once the award has been made.

Cost Accounting Standards (CAS)

Federally mandated accounting standards intended to ensure uniformity in budgeting, allocating, and costing university activities. They apply to grants, contracts, and cooperative agreements at the University of Washington full description:

CASi 501: Consistency in Estimating, Accumulating, and Reporting Costs
CAS 502: Consistency in Allocating Costs Incurred for the Same Purpose
CAS 505: Accounting for Unallowable Costsi

The University's costing policy is contained in GIMi 23.
CAS 506: Consistency in Using the Same Accounting Period for Purposes of Estimating, Accumulating, and Reporting Costs

Cost Categories

Current fund expenditures with similar characteristics or purposes are grouped into common cost categories or "pools." Each current fund budget is classified as containing either direct costs or F&A costs. MAAi converts cost categories into cost pools defined by OMBi Circular A-21i to calculate F&A rates.

Cost Center

An organizational unit or activity that provides goods and services primarily to internal University operations. Cost centers charge less than $175,000 annually to federally sponsored programs AND less than $1,000,000 in total charges.

Cost Sharing

Financial contribution by the grantee (University) to fund a portion of a sponsored project. The cost share is the difference between the effort (or other costs) funded by the grant or contract and the additional amount of effort expended. See also GIMi 21.

Cost Transfer Invoice

A mechanism to move costs of services or supplies between budget entities at the University. A CTI is also used by non-proprietary fund budgets, such as departmental revenue or program income budgets, to record a sale. The Cost Transfer Invoicei (CTI) Web page provides additional information. Also see internal sales document.

CUMG

Clinical salary from Childrens' University Medical Group

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DA

See definition of DAi (Departmental Administration) in the F&A Space Functional Use Definitions document.

DCA

Division of Cost Allocation (DCAi) is the division within the Department of Health and Human Services (DHHSi) responsible for negotiating the University's F&A rates.

Deficit

Occurs when expenditures are greater than revenue and beginning fund balance.

Department Revenue Budget

A type of budget that provides services primarily to external users. A departmental revenue account is usually smaller than an auxiliary enterprise and more directly related to the core functions of instruction, research, and public service. An example of a departmental revenue account is the Radiology Revenue Account.

Departmental Research

Research, development, and scholarly activities that are not separately budgeted and accounted for. Departmental research is funded from budgets that are not restricted to a specific project. Departmental research does not:

1. require a proposal or other application to obtain funding,
2. have a defined scope of work associated with the project,
3. anticipate a deliverable result, or
4. require that periodic financial and progress reports be submitted to the sponsor.

Depreciation

The method for recovering the cost of a capital asset (building, equipment, etc.). The annual depreciation amount is calculated by dividing the cost of the asset by the number of years of its useful life. OMBi Circular A-21i specifies that for F&A cost calculations, assets are to be depreciated using the straight line method, and any federal funds used to purchase the asset must be deducted from the cost prior to the calculation. (See also GIMi 22A.)

DHHS

Department of Health and Human Services. DHHSi serves as the University's cognizant agent.

Direct Costs

Costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

Disallowance or Disallowed Cost

A charge to a grant that the federal awarding agency determines to be unallowable, in accordance with the applicable federal cost principles or other terms and conditions contained in the award.

Discretionary Funds

Gifts under the control of Deans, Directors and Department Chairs that have been designated as non-public funds. Discretionary giftts are accounted for in budgets numbered 64-xxxx and are sujbect to University and State policies and procedures.

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Effective Date

The beginning date of an award. Allowable project costs may not be charged to the project before this date unless specifically granted by the sponsoring agency.

Effort Percentage

The percent of time expended toward a particular budget based upon the total compensated FTE worked during the FEC cycle.

Effort Reporting

Documentation of effort expended on grants and contracts as required by A-21i on a Faculty Efforti Certification report (FEC).

Equipment

An article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the capitalization level ($5,000) established by the University for financial statement purposes.

Equipment Class

Defined by the state to categorize different types of equipment and their useful lives. The equipment classes and their useful lives are found at the State Administrative and Accounting Manual website.

Equipment Depreciation

A method to recover the cost of equipment costing more than the $5,000 capitalization threshold established by the University. Annual depreciation is calculated with the formula: (acquisition cost - residual value) / useful life. Also see Equipment Use Allowance.

Equipment Reserve Budget

A budget used to purchase equipment costing more than $5,000 and to record depreciation or use allowance of that equipment. An equipment reserve account is required to include equipment depreciation or use allowance in recharge rates.

Equipment Use Allowance

A method used to recover the cost of equipment costing more than $5,000. The annual use allowance is calculated with the formula: acquisition cost * 6.67%. The use allowance can be taken until the acquisition cost is recovered. Also see Equipment Depreciationi.

Expiration Date (Termination Date)

The ending date of a project. No charges may be incurred on a project after this date, unless there is a budget extension (also called a no-cost extension) or supplement (also called a supplemental award) in progress.

External User

Also called outside user. Any customer not using a UW budget number for payment. Also see Internal Useri.

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F&A

Facilities and Administrative.

Facilities and Administrative (F&A) Costs

The F&A rate is a mechanism used to reimburse the University for the F&A or indirect costs incurred to support sponsored research & instruction. It is a percentage normally charged to the sponsored project's modified total direct costs. F&A rates at the University are negotiated with Health and Human Services, Division of Cost Allocation, San Francisco office.

Faculty Effort

The time faculty spend on University activities including research, instruction, administration, public service and clinical activitiy.

FASTRANS

A system by which recharge and cost centers can issue internal sales documents automatically into the financial accounting system (FAS). Contact MAAi to receive an Excel template to facilitate the use of FASTRANS. Additional information is provided at the FASTRANS website.

Fellowships

At the University, graduate fellowships and traineeships are merit-based awards to pursue research. Each fellowship and traineeship will have its own set of guidelines and restrictions, usually set by the funding agency.

Fringe Benefits

Employee benefits paid by the employer (e.g. FICA, worker's compensation, health insurance, etc.).

Full Time Equivalent (FTE)

The percentage of full-time employment shown as a decimal. For example, a person appointed to work 20 hours per week, or at 50%, would be shown as 0.5 FTE.

Fund Balance

The fund balance is calculated by taking revenues less expenditures and adjusting for any revenues or costs that have occurred, but have not yet recorded on the budget (accruals).

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GA

See definition of GAi (General Administration) in the F&A Space Functional Use Definitions document.

GC1

Form submitted to the Office of Sponsored Programs (OSPi) along with the proposal which contains the budget, institutional signatures, basic proposal information, addresses and policy issues.

GC1 Addendum

Form which identifies and describes how cost sharing will be completed, including names of personnel performing cost share, dates during which the cost sharing will be performed and information on non-faculty effort cost sharing.

GCA

Office of Grant and Contract Accounting.

General Operating Fund Budget

A budget funded from the state general fund and student oeprating fees used to pay general operations of the University.

GIM

Acronym for Grants Information Memoranda. GIMs can be accessed online at the OSPi website. They define the policies and procedures associated with grant and contract awards/budgets.

Grant

See Grant and Contract Accounting glossary definition of Grant.

Grant Period

The time period between "effective date" and "expiration date" during which expenses may be incurred against the grant or contract.

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IDC

Indirect Costsi. See Facilities and Administirative (F&A) Costs

Indirect Cost Rate

See Facilities & Administrative (F&A) Rate.

Indirect Cost Rate

Research Assistant.

Indirect Costs

See Facilities & Administrative (F&A) Costs.

Institutional Base Salary

Institutional base salary represents compensation paid by the University of Washington (UW) for an employee's apppointment, whether that individual's time is spent on research, instruction, administration, service or clinical activity. Institutional base salary excludes any income that an individual is permitted to earn outside of their duties for the UW as well as incidental UW compensation such as Excess Compensation and Temporary Supplements. See GIMi 35.

Institutional Overhead

Rate calculated by the Budgeti Office to reimburse the University for costs paid centrally such as rent, light and heat, etc. Institutional overhead is charged on all sales to external users. See Administrative Policy Statement D33.2 for additional information.

Institutional Review Board (IRB)

See the University of Washington Health Sciences Research Studies Seeking Volunteers Definitions of Commonly Used Research Terms web page defintion of Institutional Review Board (IRB).

Instruction

The teaching and training activities of an institution, including sponsored instruction and departmental research. At the University, instruction excludes research training.

Intergovernmental Personnel Agreement (IPA)

Allows the temporary assignment of employees between federal agencies and state, local, and Indian tribal governments, institutions of higher learning and other eligible organizations. (See Fact Sheet.)

Internal Sales Document

Used exclusively for recording the sales of services or products by recharge or cost centers and auxiliary enterprises to other University entities. The Internal Sales Documenti (ISD) Webpage provides additional information. Also see Cost Transfer Invoicei (CTI).

Internal User

Also called inside user. Any custormer who pays with a UW budget number is considered an internal user. Also see External Useri.

Internal User Rate

The rate charged to internal users, it cannot exceed the cost of provided the goods or service.

Inventory Budget

Used by recharge or cost centers that have non-capital inventories of $25,000 or more at fiscal year end. The inventory account is a separate budget from the operating account that is used to record the annual change in inventory. An example of a center with an inventory account is a stores center.

m
MAA

Office of Management Accounting and Analysis.

Modified Total Direct Costs (MTDC)

The aggregated direct costs for a given University activity, such as organized research, excluding certain costs specified by A-21i. Costs excluded from MTDCi include equipment, capital expenditures, tuition remission, stipends, and that portion of a sub-contract in excess of $25,000.

MTDC

See Modified Total Direct Costsi.

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NIH

National Institutes of Health.

No Cost Extension

Extension of the project period, approved by the sponsor, without additional funding. Normally, unless specified otherwise in the request to the agency for the extension, the terms and conditions of the award apply to the no cost extension. This includes commitments of effort, both paid and cost shared.

No Cost Extension

Extension of the project period, approved by the sponsor, without additional funding. Normally, unless specified otherwise in the request to the agency for the extension, the terms and conditions of the award apply to the no cost extension. This includes commitments of effort, both paid and cost shared.

Non-Reimbursable Costs

See Unallowable Costsi.

NSF

National Science Foundation.

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OASIS

The University's equipment inventory database. The data in OASISi (e.g. equipment cost, tag #, department #, and location on campus) are used in the F&A rate calculation. This data should also match the recharge or cost center depreciation or use allowance schedule. Additional information is provided at the OASIS website.

Off-Campus

See GIMi 13 definition of Off-Campusi Programs.

OIA

See definition of OIAi (Other Institutional Activities) in the F&A Space Functional Use Definitions document.

OMB

Office of Management and Budgeti.

ONR

Office of Naval Research.

Operating Budget

The recharge center or cost center's main budget used to record the revenue and expenditures associated with providing the center's goods or services.

Operating Lease

Rental of an asset over a term of more than one year that does not also meet the definition of a capital lease.

Operations and Maintenance (O&M)

Expenses incurred for the administration, supervision, operation, maintenance, preservation, and protection of the institution's physical plant.

OPHS

Office of Public Health and Science.

Organized Research

All research and development activities of the institution that are separately budgeted and accounted for. This includes Sponsored Researchi, University Researchi, and Sponsored Research Trainingi. Organized research projects require:

1. a proposal or other application to obtain funding,
2. have a defined scope of work associated with the project,
3. anticipate a "deliverable" result, and
4. require that periodic financial and progress reports be submitted to the sponsor.

OSET

Online Salary Expense Transferi. See Salary Transfers

OSHA

Occupational Safety and Health Administration.

OSP

Office of Sponsored Programs. Previously called Grant and Contract Services (GCS).

Other Institutional Activities (OIA)

Includes all activities of the institution except: (1) instruction, departmental research, organized research, and other sponsored activities identified separately and (2) F&A indirect cost activities. Other institutional activities include operation of residence halls and other faculty and student housing, dining halls, hospitals and clinics, student unions, intercollegiate athletics, bookstores, theaters, museums, and other similar auxiliary enterprises.

Other Salary Source - Other sources of support from non-sponsored accounts, generally from state or local budgets. Budgeti numbers can include 01 to 07-xxxx, 74 and 75-xxxx.

Other Salary Sources

The term "other salary sources" as used in effort reporting refers to any non-sponsored funding paid to a faculty member. This may include sources such as state fudning, departmental funds, gifts and endowments, clinical salary paid through the UW and clinical practice plan income paid through UWPi and CUMGi.

Other Salary Sources

The term "other salary sources" as used in effort reporting refers to any non-sponsored funding paid to a faculty member. This may include sources such as state funding, departmental funds, gifts and endowments, clinical salary paid through the UW and clinical practice plan income paid through UWPi and CUMGi.

Other Sponsored Activities

Sponsored programs and projects financed by federal and non-federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples include health service projects, public service projects, clinical trials, and public service conferences.

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Principal Investigator (PI)

An academic staff member whose project is being sponsored and who is responsible for directing the research and for ensuring that all terms and conditions of a sponsored agreement are met.

Program Income

See Grant and Contract Accounting glossary definition

Program Income Budget

A type of budget that generates revenue as a result of a research activitiy and is tied to a specific grant or contract. These types of activities require prior approval from the agency that sponsored the original research. An example of a program income activity is the Primate Center Program Incomei Account.

Proposal

A new proposal is a request for external funding for a project or activity that is not currently receiving sponsored support. Proposals normally contain all information necessary to describe project plans, staff capabilities, and budget requirments. (See Proposal types.)

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Reasonable Cost

A cost may be considered reasonable if the nature of the goods or services acquired or applied, and the amount involved, reflect the action that a prudent person would have taken under the circumstances.

Recharge Center

An organizational unit or activity that provides goods and services primarily to internal University operations. Recharge centers charge more than $175,000 annually to federally sponsored agreements OR more than $1,000,000 in total charges.

Residual Value

The value of a capitalized asset at the end of its useful life.

Restricted Funds

Funds whose use is specified or restricted by grant, contract, gift instrument, policy, or regulation.

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Salary Sources

All budgets with Institutional Base Salary i(IBS) earn types that had payroll activity during the FEC period. Salary sources are grouped by "Sponsored Programs" and "Other Salary Sourcesi." (See FEC, Sponsored Programs and Other Salary Sourcesi)

Salary Transfer

Process to initiate and document adjustments and corrections to salary expenditures. Salary transfers are used to bring payroll in line with accurate effort.

Sale

Recorded when goods or services are provided to others and the original nature of the costs have changed. With a sale, a rate is developed and billed as one unit. An example of a sale is when an instrument shop manufactures instruments used in research. The billed amount to users includes salaries, service contracts, supplies, and perhaps equipment depreciation which are the inputs into the final product or service. Also see, Transferi.

Sales Tax

State tax on sales to external users for sales of "tangible personal property" and some services.

SPA

See definition of SPAi (Sponsored Projects Administration) in the F&A Space Functional Use Definitions document.

Sponsor

The individual, institution, or agency that provides funding for a project.

Sponsored Instruction and Training

Specific instructional or training activity established by grant, contract, or cooperative agreement.

Sponsored Program

A University activity, typically research, instruction or service, sponsored by federal and non-federal agencies and organizations. See Sponsored Researchi and Sponsored Instructioni.

Sponsored Research

All research and development activities that are sponsored by federal and non-federal agencies and organizations. This includes activities involving the training of individuals in research techniques (commonly called research training). (See Organized Researchi.)

Sponsored Research Training

Activities involving the training of individuals in research techniques where the training is in the same facility as other research and development activities. (See Organized Researchi.)

Stipend

A payment made to an individual to provide for living expenses during the training period of a fellowship or other training project.

Suitable Means of Verification

Suitable means of verification in effort reporting includes participation in or close supervision of the faculty member's activities or a written confirmation from the faculty member, either in an email or memo, that the effort was performed as documented on the FEC

Surcharge

Additional amount charged to non-UW, non-federal users in excess of internal rate, not including sales tax or institutional overhead.

Surplus

Occurs when revenues are greater than expenditures in excess of the working capital amount. Ordinarily, surpluses in excess of the working capital amount should be incorporated into the next year's rate proposal.

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Transfer

A means to allocate costs to different budgets through pro-rating or apportionment of actual benefit received. A cost transfer is used when the nature of the activity/costs has not changed from one entity or another or when costs are transferred in the categories in which they are charged (e.g. salaries, supplies, etc.). An example of a cost transfer is copier expense charged to one budget and allocated to all benefiting budgets. Also see Salei.

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Unallowable Costs

Costs defined in section J. of OMBi Circular A-21i as "unallowable." These costs cannot be charged directly to federally sponsored projects or indirectly through F&A costs or rates.

University Research

All research and development activities that are separately budgeted and accounted for by the institution under an internal application of institutional funds. (See Organized Researchi.)

Unrecovered Facilities and Administrative (F&A) Cost Sharing

Sometimes the University's F&A rate is higher than the rate agreed to on an award. As a result, the University is reimbursed for fewer overhead costs by the sponsor. In this situation, the University ends up with a shortfall called "unrecovered Facilities and Administrative (F&A) costs". Some sponsors allow this shortfall to be applied as a cost share contribution. When a budget has cost sharing that includes unrecovered Facilities and Administrative (F&A) cost, Grant and Contract Accounting (GCAi) adjusts the calculated cost sharing on a quarterly basis.

Unrelated Business Income Tax (UBIT)

A tax to which the recharge or cost center may be subject. This occurs when external users are charged more than cost AND the activity is a trade or business, it is conducted regularly, and it is not substantially related to the University's exempt educational or scientific purposes.

Unrestricted Funds

Funds having no requirements or restrictions as to use. Grants, contracts, and cooperative agreements typically are considered to be restricted funds.

Useful Life

The number of years an asset costing more than $2,000 ($5,000 for recharge/cost centers) is expected to remain in service. The useful life is employed in calculating annual depreciation. (State equipment classes and their useful lives are found at the State Administrative and Accounting Manual website.)

UWP

Clinical salary from University of Washington Physicians.

v
Voluntary Uncommitted Cost Sharing

Effort over and above what was committed in the proposal. This effort is not separately documented and applies only to faculty salaries and effort.

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Working Capital

An amount up to 60 days of expenditures to ensure the recharge center can fund operations during fluctions of revenue and expenditures.

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