| Fiscal Operations Policy & Procedures Manual |
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Terms used in the Fiscal Operations Policy & Procedure Manual or general accounting practices are defined as follows:
Academic Support
Expenses incurred for administrative and support services such as in the Deans' offices, academic departments and divisions, educational media services, and centers/departmental administrative offices that benefit common or joint departmental activities.
Account Code
The third element of a FOAPAL accounting string used to identify specific financial transactions. Account codes define the type of activity taking place, such as revenues, expenses, and transfers in the Operating Ledger, and assets, liabilities, and fund balances in the General Ledger.
Accounts Payable
An expense that has been incurred but not check has not been issued.
ACH
Automated clearing house. This is a method of electronically moving funds from bank to bank, similar to a wire transfer. It is a mechanism used for domestic transactions, as opposed to international transactions.
Accounts Receivable
Any person, organization or agency that incurs charges, fines, or penalties at Oregon State University establishes an accounts receivable at OSU. An account becomes past due when not paid by the due date. Payment due dates are stated in each bill. Specific payment deadlines for students are listed in the Schedule of Classes. For financial reporting purposes, accounts receivable is revenue earned but not received by the close of the fiscal year. Revenue has been earned if goods were sold or services were provided, either completely or substantially in full, by the close of the fiscal year.
Acknowledgements
Acknowledgements are sometimes issued by vendors to confirm their receipt of an order. Data appearing on the acknowledgement form should match order information on BANNER-FIS PO and/or in your pending file to verify that the vendor has recorded the order correctly. Note any discrepancies and vendor comments. Acknowledgements, as well as packing slips, work orders, quote sheets, etc. may show unit prices but are never used as invoices. These are documentation for files only.
Activity Code
The fifth element of a FOAPAL accounting string. These codes are available to the department to facilitate more detailed reporting and tracking.
Address Changes
Forward all notifications of vendor remittance, correspondence, or order address changes to the Accounts Payable Office. Employees should contact their department with changes, and students should go to the web, or kiosk to change their address.
Advertising
There are two kinds of advertising, Classified and Display. Enough information should be on file to verify the ad contents and date of publication. A tear sheet (printed copy of the advertisement) should be kept in departmental files.
Beware of con artists who, without your knowledge or approval, reprint an ad that validly appeared in a different publication, then "invoice" you for the bogus ad. OSU is under no obligation to pay for unsolicited advertising. Examples include Employment Digest, Military Digest, Professional Employer, Chronicle of Science, and National Employment Advertiser.
Agency
An external entity that utilizes the university's accounting system in the pursuit of its own mission and purpose. Monies placed in agency funds are not the property of the university. The university, however, acts as the custodian of the funds. Examples include officially sanctioned student groups, employee deductions payable to another entity, conferences managed by OSU Conference Services for another entity, and the OSU Alumni Association.
Appropriation
An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and the time within which it may be expended.
Approvals Process
After a FIS transaction document is completed, it is subject to the approvals process. All BANNER invoices (except those having to do with hosting and travel account codes, and those paying with a fund and account) will route through department level approval queues before routing to the Business Affairs Accounts Payable office for final approval. The BANNER invoice label must be completed and attached to all payments. Forward the payable document to Business Affairs Accounts Payable office. Some documents will receive implied approvals. Other documents will be routed to reviewers through approval queue. Documents receiving approval may then be posted to the operating or general ledger. See also Disapproval.
The BANNER invoice label must be completed and attached to all payments. The BANNER document requires two people verifying the transaction - the person completing the document and the department budget approver.
Approval Queue
The approval queues route FIS documents to various individuals (approvers) for review in the approvals process. The FOAPAL elements and/or dollar amounts determine which queues are required. Once reviewed, the document is either approved and sent to posting, or is disapproved.
Assets
Property owned, such as cash, receivables, inventories, investments, land, buildings and equipment, intangibles, prepaid expenses, and anything that has a value to the owner or is available for the payment of a debt. The financial value of property or economic benefits that are owned. Typical assets include: Cash (A0xxx-A1xxx), Accounts Receivable (A3xxx), Inventories (A4xxx), and Prepaid Expense (A5xxx), Fixed Assets or Capitalized Assets (A8XXX).
Audit
The examination of documents, records, reports, internal control systems, as well as accounting and financial procedures. Audits may also include the examination of other evidence for the following purposes in accordance with generally accepted accounting principles of institutions.
Auto-Pays (Centralized Processing)
Selected vendors have been contracted by OSU to submit their billings centrally to Business Affairs Accounts Payables office for processing. See FIS 408: Centralized Processing of Expenditures for more information.
Auxiliary Enterprises - Enterprise Operations
A non-academic, institutional support or service activity, specifically established to furnish goods or services to students, faculty, or staff primarily for personal use, rather than to units/departments of the institution. Enterprise operations charge a fee directly related to, although not necessarily equal to, the cost of the goods or services provided. The distinguishing characteristic of enterprise operations is that they are managed as self-supporting activities that can establish and maintain operations reserves. Examples include dormitories, residence halls, dining halls, college unions, parking facilities, student health services, and intercollegiate athletics.
AWARDS - see also Employee Recognition Awards
Per Dictionary: Something that is conferred or bestowed, usually on the basis of merit.
Per IRS: An award must be included as gross income unless it is transferred to charity or, if for employee achievement, the employer's cost for the award does not exceed the amount allowable as a deduction for the cost of the award.
Per OUS: Student Employee Awards, account code 10507, are amounts awarded to student employees in recognition of special service or accomplishments. These amounts are subject to income tax and social security/Medicare withholding and must be included in the employee's gross income for year-end W-2 reporting.
An award may also be a reward for achievement or performance that is generally more specific than the other categories, and is often given at the end of a school year. Awards, also called prizes, are usually small ($200-$500) and may be non-monetary (a plaque, etc.). Monetary awards may impact financial aid recipients, and processing must be handled through the Office of Financial Aid and Scholarships. The Scholarships & Awards Authorization for Payment (SAAP) form and instructions may be obtained online at the Business Affairs website.
Bad Debt Allowance
A bad debt expense is assessed to all departments submitting charges to be billed through accounts receivable. The individual funds record the applicable SIS accounts receivable, as well as an allowance for bad debt. The allowance is based on the balance of the accounts receivable on June 30. Currently, the allowance is approximately 12% of the accounts receivable. The University is moving towards establishing the allowance based on the bad debt history of the individual fund, rather than a single rate for all funds. The calculation is done by the Office of Business Affairs, and is adjusted annually.
Bankruptcy Notices and Assignments
Forward bankruptcy and assignments notices to Business Affairs Accounts Payable office. Bankruptcies and Assignments usually involve issuance of the check to a financial intermediary rather than the vendor providing the goods and/or services.
Building Use Credits
Building Use Credits are funds that are set aside from Facilities and Administration (F&A)/Indirect Cost recoveries on sponsored grants and contracts. The requirement to reserve these funds and how they are to be expended is found in OMB Circular A-21; section J.12. See FIS 1404-01: Building Use Credits.
Cancelled (Cashed) Check Copies)
Copies of checks that have been cashed require a Vendor Inquiry Form to be completed. A final or cleared check shows an "F" by the check number in FOIDOCH.
Send a Vendor Inquiry Form to Business Affairs Accounts Payable office to obtain a copy of the check and endorsement to provide proof of payment.
Capital Outlay
Purchases of equipment, buildings, major remodeling, or improvements other than buildings (such as art work, outside lighting systems, sidewalks, etc.) that meet the dollar threshold and other criteria for capitalization. Results in the acquisition of or addition to fixed assets, and investment in plant. Term includes both capital construction and capital improvements.
Capitalized Equipment
Capitalized, non-expendable assets. Tangible, personal property that is loaned, leased, controlled, or possessed by an institution and that meets the following criteria:
There is one exception to the threshold of $5000 - vehicles licensed for road use are capitalized regardless of the value.
Carryover - Designated Operations
Uncommitted funds from one fiscal year to the next is limited to $20,000 or 20% of the annual revenue credited to the fund, whichever is greater. The Director of Business Affairs and the OUS Controller must approve any amount in excess of this. Excess uncommitted funds at year-end not approved for carryover are credited to the Current General Fund of the University.
Centralized Processing - See Auto Pays
Chart of Accounts
Code in Banner that indicates the institution within OUS. Oregon State University's chart code is "C".
Closing of the Books
A process completed at fiscal year end to close all revenue and expense accounts. An additional fiscal period (accrual period 14) is opened in July for any adjustments needed after period 12 is closed. No changes can be made to the financial records in FIS for the fiscal year after closing.
When a student leaves OSU owing money, his/her receivable account balance is placed in collection status. A collection fee is assessed and collection procedures are initiated. Collection procedures are also performed for non-student receivables. Typically, collection fees are not assessed to A/R accounts. However, if the account in collection is assigned to an outside agency, that agency may assess fees.
Compliance
To ensure expenditures are conducted in accordance with all applicable laws, regulations, policies, procedures and sound business practices.
Contract
Per FASOM, the written agreement, including OUS's or any of its institution's solicitation document and the accepted portions of a bid or proposal, between OUS or any of its institutions and the contractor describing the work to be done and the obligations of the parties. Depending upon the goods and services being procured, OUS or any of its institutions may use "contract" as meaning a purchase order, price agreement, or other contract document in addition to OUS's or any of its institution's solicitation document and the accepted portions of a bid or proposal.
Contributions
The Oregon University System has no authority or obligation to make disbursements for voluntary contributions, donations or funds solicited for various causes.
Credit Memo
A document issued by a vendor to adjust a previous invoice, to refund an overpayment or adjust for returned merchandise.
DAS
Department of Administrative Services (State of Oregon).
Debt Service
All payments in connection with funds borrowed by an institution: principal payments, interest charges, trustee's service charges, legal expenses and other items related to indebtedness.
Departmental Research
Research, development and scholarly activities that are not sponsored research. That is, they are not separately budgeted and accounted for. See the OSU Research website for information on sponsored research.
Depreciation
Depreciation expense for capital assets is measured by allocating the net cost of the depreciable assets over their useful lives. Depreciation is calculated using the straight-line method. The equipment depreciation process is run monthly.
Designated Operations
The 05xxxx series of funds used to account for self-sustaining activities related to instruction, testing, and public service. For more information, see FIS 1403-03: Designated Operations.
Detail Codes
Detail codes are used by the Banner accounting system to process accounts receivable charges and credits; including but not limited to course fees. All charges to accounts require the use of a detail code, and they must be established before charges can be processed. Departments seeking to put charges on a student A/R account should request a detail code by submitting the index, account number, billing description, and the intended use of the detail code to the Dean of the College and then to Business Affairs for their review and setup. Detail Code Request Forms may be obtained online.
Direct Costs
Those expenses which can be charged directly as part of the cost of a service department or operating unit, as distinguished from overhead and other indirect costs which must be prorated among several services, departments or operating units.
Disapproval
See also approval process. After a FIS transaction document is completed, it is subject to the approvals process. A document may be disapproved if it contains errors or fails to meet all applicable requirements. Disapproved documents become coded as incomplete and the person who originated the document will receive a BANNER message telling them why it was disapproved. The originating user may then make the corrections and re-complete the document or delete it.
Discounts - Vendor Invoices
Vendors may give a cost discount for prompt payment. Discount terms are usually counted from the date the invoice or the merchandise is received, whichever is later. Check each invoice and purchase order for discount terms and take the maximum discount offered. Take the discount only on the value of the items purchased, not on handling and transportation charges. See FASOM 13.01: Purchasing -- Purchasing and Accounts Payable.
Emergency Loans
Short term loans to be paid back by the end of the term. Students must be admitted to the University, enrolled at least half time, and be in good financial standing to be eligible. Students may borrow up to $250 per term. Students may appeal a denial of an emergency loan with the Department of Business Affairs.
Employee Recognition Awards
An award given by departments to honor employees for outstanding achievements, length of service and retirement. See FASOM 13.01: Purchasing -- Purchasing and Accounts Payable.
Encumbrance
A dollar amount reserved for some future budgetary expense. The HRIS Payroll system, FIS On-line Purchase Orders and Accounting Encumbrance Journal Vouchers create encumbrances.
Endowments
Endowments are donations from a donor where the donor specifies that the principal (or corpus) cannot be expended.
Equipment Replacement Reserves
Separate funds created for the purpose of setting aside money to be used for the purchase of replacement equipment. The amount of the reserve is equal to the accumulated depreciation. Only Auxiliary Enterprises and Service Departments are authorized to have these funds. See Section 701 for specific details.
FASOM
Financial Administration Standard Operating Manual - this manual is used by OUS to set accounting/operating guidelines for the universities in the OUS system. This manual is currently being revised and the revised information is being placed in a new manual called the OUS Fiscal Policy Manual.
Federal Perkins Student Loan
A federally funded loan co-administered between the Office of Business Affairs and the Office of Financial Aid and Scholarships. OFAS administers the application process and recipient selection. The Office of Business Affairs maintains the promissory notes and processes the repayment schedules. See the Financial Aid & Scholarship website for information on Financial Aid.
Fellowships
Generally, an amount paid for the benefit of an individual to aid in the pursuit of study or research, usually at the graduate level. See the Graduate School website for Graduate School institutional allowance policy. See FIS 1402-06: Post Doctoral Fellowship Administration Fee.
This category includes awards of aid and actual disbursement to students. It includes PELL grants, Supplemental Education Opportunity Grants (SEOG), Oregon Opportunity Grants, Federal Perkins loans, Federal Direct loans, institutional loans, university and non-university scholarships, fellowships, special awards, and tuition remission waivers. It does not include Financial Aid administration or counseling, or graduate assistant fee remissions (which is connected with employment). All student payments, including cash awards, are processed through Financial Aid using the Scholarship Awards Application form.
FIS
Fiscal Year
A twelve-month period of time to which the annual budget applies, and at the end of which an institution determines its financial position and the results of its operations. Oregon State University's fiscal year extends from July 1st to June 30th of the following year. The fiscal year for the federal government runs from October 1st to September 30th of the following year.
Fixed Asset - See Capitalized Equipment
FOAPAL
Acronym for the six chart of accounts elements used to process financial data. FIS term standing for fund, organization, account, program, activity and location codes.
Full-Time Equivalent Positions (FTE)
Position FTE is a four-digit decimal fraction representing the proportion of full-time for which an individual is employed in the position indicated in their position number. Position FTE indicates one of two things:
Fund Accounting
A method of recording financial information that groups resources into funds based on their source and any limitations on use.
Fund Balance
Fund balances are the excess of the assets of a fund over its liabilities. The term net equity is often used to mean fund balance.
Fund Code
The first element in FOAPAL, and the source of revenue/budget. Examples: general funds, grant funds, gift funds, agency funds, service department funds, designated operations funds, inventions/royalties funds, auxiliary funds, student loan funds, endowment funds, plant funds.
General Ledger
A balance sheet made up of Asset, Liability, Fund Balance, and Control Accounts.
Gift
The receipt of cash or other resources from a donor with no expectation of anything in return. A gift may be unrestricted or restricted as to use.
Graduate Research Assistants (GRA)
Research assistants provide duties related to the research function of the University. Graduate research assistants on .49 FTE appointments are expected to perform 255 hours of duties during the 13-week term (at least .20 FTE is required to be on this appointment). Graduate research assistants at other FTE levels are expected to provide proportional levels of service. They are also required to enroll for 12 hours of course work. Students meeting the requirements do not pay the instruction fee portion of tuition, but do pay the mandatory enrollment fees. Since research assistants ordinarily use research under their appointment as part of a thesis, the responsibility for determining work for which they are paid salary and work for their thesis rests with the sponsoring department. Fee remissions are assessed at resident rates and are charged to the index that pays the GRA stipend, unless the index is associated with a sponsored agreement where the sponsor does not authorize this cost in their policy. In that case, the fee remission is cost shared by the University.
Graduate Teaching Assistants (GTA)
Graduate teaching assistants are expected to provide duties related to the university's instructional program (e.g., teaching laboratories or discussion sections, grading papers, advising). Graduate Teaching Assistants are required to enroll for 12 hours of course work, and work at least .20 FTE, but no more than .49 FTE. Students meeting the requirements do not pay the instruction fee portion of tuition, but do pay the mandatory enrollment fees. Fee remissions are assessed at resident rates and are charged to the index that pays the GTA stipend.
Grant
An instrument of commitment from an outside source for a project. Resources provided by a unilateral agreement signed by the grantor and issued to a grant recipient or grantee. Expenditures are governed by general rules covering all agreements issued by the grantor. The agreement also includes the grantee's obligation to use the resources for the purposes stated in the grant and subject to the conditions of the grant. See Grant, Contract, and Gift Accounting Policy & Procedure Manual.
Gurfeed
An electronic transfer of data from independent cost accounting systems (Printing and Mailing, Facilities Services, Transportation Services, Chemistry Stores) to transfer data into Banner/FIS. An interface process is completed from the source location to FIS, and the documents post to the identified indexes.
HRIS
Human Resources Information System.
Implied Approval
See also approvals process. Completed FIS transaction documents are subject to the approvals process. Some documents will receive implied approvals, which occur when the person completing the document has also been given authorization in the approval queue to bypass further approvals within a certain dollar limit. Documents receiving implied approval may then be posted. These documents are subject to audit after posting. A gurfeed is also an implied approval since the data is transferred directly to FIS electronically.
Incomplete Document
A document is incomplete if it needs to be corrected for account code, amount or other corrections, and then re-completed, or deleted. If the document needs to be deleted because the payment has already been made or the payment was disallowed, do so following the instructions in the FIS Fundamentals manual. This includes $0 documents.
Index
Combines the appropriate Fund, ORG, and Program codes. Indexes are used when processing invoices and journal vouchers in the Operating Ledger. Indexes are not used on General Ledger entries because there is no ORG or Program codes on these.
Indirect Costs
Amounts charged on transactions to cover overhead costs, such as administrative support, utilities, that are not specifically charged to any fund. Also known as facilities and administrative costs. See Grant, Contract, and Gift Accounting Policy & Procedure Manual.
Infrastructure
Long-lived capital assets that are part of a network of assets that can have service potential for an extended period and are normally stationary. Includes streets and roads.
Institutional Support
Expenses associated with units that provide support to the entire University. This includes the President's office, Provost, Vice Provost for Academic Affairs, Vice Provost for Research, Business Affairs, Business Services, Legal Counsel, Budgets, Institutional Research, Human Resources, and Information Services.
Instruction
The teaching and training activities of the University, whether it is for credit towards a degree or on a non-credit basis.
Interest Paid on Overdue Accounts
Interest is paid on overdue private vendor accounts when a claim has not been paid within 45 days and the vendor presents a bill for the late payment charge. The 45-day period begins when the invoice is received. Interest may begin to accrue on the 46th day. Late payment charges are limited to 2/3 of 1% per month or 8% per year and cannot exceed the vendor's usual charge. Late payment charges are recorded with account code 28911 (Late Charge - Vendor Payments). See FASOM 13.01: Purchasing -- Purchasing and Accounts Payable, OAR 15-045-02 and ORS 293.462.
Internal Management Directive (IMD)
Oregon State Board of Higher Education Internal Management Directives (IMDs) identify the policies established by the Board and those delegated as responsible for implementation of the policies.
Either 09xxx account codes or 79xxx account codes are used to record reimbursement for sales and services to other entities within the institution depending upon what entity/fund is providing the service. 09xxx account codes are used as the credit (revenue) for all Designated Operations (05xxxx funds), Service Centers (09xxxx funds) and Auxiliaries (1xxxxx funds). A fee must first be established in the internal fee book, which lists the fees the institution charges within the institution. Internal Sales Reimbursements are discussed further in FASOM 02.16: Account Codes -- Internal Sales Reimbursement (79000-79999).
Intra-Departmental
Referring to something that is internal within a single department/unit.
Referring to transactions between different departments/units.
Invoice
An accounting document used to process payments to a vendor for commodities and/or services.
Inter-Institutional Journal Vouchers
For transactions taking place between OSU and another institution in the Oregon University System or the Chancellor's Office.
IOTB
See Real Property Improvements (Other than Buildings) definition.
IPEDS
Integrated Post secondary Education Data System survey. Conducted by the National Center for Education Statistics; US Dept of Commerce Bureau of the Census.
Journal Voucher (JV)
A document used to record debit(s) and credit(s) to be posted to the Operating and/or General Ledgers, reflecting a transaction or adjustment made between or within departments at OSU. JVs are also used (in the form of Inter-institutional JVs) for transactions between OSU departments and those of other universities in the Oregon University System (OUS) or the Chancellor's Office.
Liabilities
The financial value of obligations owed.
Location Code
Assignment of building location for fixed assets.
Lost Books
The individual responsible for a book's safekeeping is charged for its loss. Charges cannot be made to institution funds for lost books. See FASOM 13.01: Purchasing -- Purchasing and Accounts Payable.
Materiality Threshold
The value at which a transaction is considered to be significant to the financial records. OSU's materiality level is $300.
Minor Equipment (FASOM 08.04 A2)
Equipment that is valued at less than $5,000 and will not be consumed in the course of business and lasts a year or more. Exceptions include books, periodicals and reference materials that are part of The Valley Library holdings or Potts Guin Library holdings, and property held for resale (e.g. bookstore merchandise).
Moving Expenses
New employees may be reimbursed for house hunting and moving expenses when reimbursement is necessary to employ qualified personnel. The agreement to pay house hunting and moving expenses should be indicated in the new employee's letter of offer. New employees teaching summer session only, may be reimbursed for travel expenses associated with one round trip when reimbursement is necessary to employ qualified personnel. See OSU Travel Manual and FASOM section on Compensation -- Fringe Benefits -- Moving Expenses for details of allowable costs and account codes.
Net Investment in Plant Fund
Fund used to account for the acquisition value of the University's capital assets; including land, buildings, equipment, improvements other than buildings, libraries, and museums. Excludes assets of auxiliaries and service centers, which are self-sustaining. These assets are included in net investment in plant fund under the specific fund.
Non-Sufficient Funds (NSF)
A check returned from the bank because of any irregularity or non-sufficient funds. A fine will be assessed for all NSF checks.
One-Time Vendors Payment System
One-time vendors are refunds of workshop registrations/workshops that have been cancelled that have been paid, and parking citations that have been appealed and reduced. Basically, it is revenue paid to OSU that is being refunded, and not used for the purpose paid.
Qualifications for one-time vendors:
Parking citations and refunded Key deposits are considered one-time vendor payments.
OPE
Other payroll expenses (fringe benefits). These include retirement, Medicare, FICA, and benefit contributions.
Operating Ledger (OPAL)
The financial record of the day-to-day business (revenue, expenditures and transfers) of the University over a given time period, by fiscal year.
Operation and Maintenance of Physical Plant
Expenses, which have been incurred for the administration, supervision, operation, maintenance, preservation, and protection of the University's physical plant (buildings, grounds, and equipment).
Organization Code (ORG)
The second element of FOAPAL identifies the budgetary unit within the University responsible for the budget, such as a department.
Oregon Administrative Rules (OAR)
Agency rules adopted under the Oregon Administrative Procedures Act.
Oregon Revised Statutes (ORS)
Statutes of the State of Oregon.
Oregon State University Institutional Loans
The OSU Financial Aid Office awards OSU Institutional Loans to qualified students. The OSU Student Loan Office in Business Affairs is responsible for the disbursement of the funds that have been awarded. See the Financial Aid & Scholarship website for information on Financial Aid
Other Institutional Activities
Other activities of the University (auxiliaries and service departments), which are in the University's financial statements.
Other Sponsored Activities
Programs and topics separately funded by Federal and non-Federal agencies and organizations, which involve the performance of work other than, sponsored, basic or applied research.
Overdrafts
A deficit fund balance as determined after considering recorded receivables and outstanding payables. Any deficit as of June 30th must be eliminated by transferring funds from other Current General Funds. See Year End Closing instructions for correct account codes to use to eliminate overdrafts.
Passport Expense
Visa and passport expenses are reimbursable if the travel is required for doing university business. Use account code 24999. See FASOM 11.02: Travel -- Meals and Incidental Expenses, Lodging, and Miscellaneous Expenses.
Past Due
Amounts on vendor invoices to OSU are considered past due when not paid by the due date, and on which Oregon State University may impose penalties. Student's accounts that are past due are referred to as in-house collection accounts. See Collections definition.
Past Due Balance
The total of past due amounts, including fees, charges, prior interest and penalties, less payments and credits received to date. The past due balance does not include any new charges added to an account since the last billing or to charges assigned future due dates
Plant Construction or Improvements
This category includes acquisition, construction, or renovation of University land or buildings large enough to be capitalized (the value of assets increased).
Posting
The official recording of a transaction (document) on a ledger (OPAL or GL). In FIS, the "posting process" is a background batch job that generally runs several times an hour. It takes approved documents and performs the appropriate accounting ledger updates. Once posted, documents will then appear on the transaction listing forms of FGITRND or FGIGLAC.
Prepay
Some vendors require advance payment before providing goods or services. All prepayments require documentation for audit purposes, and clear communication to the vendor of the nature of the order. Documentation may be provided by one or more of the following items:
Deposits that are partial payments for a larger order or contract require a purchase order to avoid fragmenting the order. The purchase order also provides an encumbrance and liquidation history on partial payments. Use account code 40199 for partial payments of capitalized equipment (more than $5000).
Program Code
The fourth element of FOAPAL, program codes identify the type of activities for which dollars are spent, such as Instruction, Administrative, Research and Public Service.
Progress Payments
Contractor requests for progress payments and accompanying architect or engineer certificates must be checked for proper signature prior to approval. In accordance with ORS 279.354, the Contractor and every subcontractor shall submit written certified statements (Wage Certifications) with the Owner's Authorized Representative, on the form prescribed by the Commissioner of the Bureau of Labor and Industries, certifying the hourly rate of wage paid each worker which the Contractor or the subcontractor has employed on the Project and further certifying that no worker employed on the Project has been paid less than the prevailing rate of wage or less than the minimum hourly rate of wage specified in the Contract, which certificate and statement shall be verified by the oath of the Contractor or the subcontractor that the Contractor or subcontractor has read such statement and certificate and knows the contents thereof and that the same is true to the Contractor or subcontractor's knowledge. The certified statements shall set out accurately and completely the payroll records for the prior week including the name and address of each worker, the worker's correct classification, rate of pay, daily and weekly number of hours worked, deductions made and actual wages paid. Certified statements for each week during which the Contractor or subcontractor has employed a worker on the Project shall be submitted once a month, by the fifth day of the following month. The Contractor and subcontractors shall preserve the certified statements for a period of three (3) years from the date of completion of the Contract.
Quasi-Endowment
Any individual donation or gift that equals or exceeds $100,000 in total market value, regardless of the type of gift or the accounting periods in which it is received, shall be designated a quasi-endowment. The principal (corpus) can be moved to a gift fund for expenditure with approval of OUS Controller's Division. For more information, see Oregon State Board of Higher Education policy as delineated in IMD 6.140 (6).
Rate Codes
Rate codes are assigned to every student upon admission to the University, and may vary from term to term. They are an important element in determining the correct tuition and fee assessment. Initial assignment of the rate code generally reflects the residency and educational level of the student. A number of rate codes are later assigned by Business Affairs to effect special billing provisions, such as teaching assistants, study abroad, and national student exchanges.
Real Property Improvements (Improvements OTHER THAN BUILDINGS)
A fixed asset, which is a permanent improvement. Only improvements other than buildings, land or infrastructure assets that meet the capitalization policy should be included.
Reasonable
A cost may be considered reasonable if the nature of goods and services reflects prudent action. Generally, charges for good or services that foster or support the on going missions of the University are considered reasonable as long as they comply with the regulations by which the University is governed.
Deposits made as a reduction of expense are very limited under Oregon Executive Department rules. It is used for the return of goods and services or a discount given from the vendor after the bill has been paid. In both instances, both the return and the discount are with the original vendor. If the vendor was overpaid and a refund is received, the refund is credited to the fund and account code to which the purchase was charged. It is not a reduction of expense when the University is reimbursed for an expense from someone other than the original vendor. In that case it is income and should be recorded as income by using income account codes (0xxxx). Contact Office of Business Affairs if there are questions about which type of account code to use.
Outside entities may reimburse the campus, pay a service provider directly, or reimburse an employee for travel expenses related to OUS business. If the reimbursement is made to the campus, it should be accounted for as a reduction of expense. See the OUS FASOM 11.01: Travel -- Administration for additional information.
Contact Office of Business Affairs if there are questions about which type of account code to use.
Refunds
A repayment of expenditures that were overpaid or where we are otherwise entitled to receive money back from the vendor. This could be the result of:
The amount refunded should be deposited (credited) against the original expenditure account code. These are instances where we have not received value (e.g. no goods or services were received) and, therefore, no expenditure has occurred. This is the only time that funds received would be credited against an expenditure account code on your deposit sheet.
Registration Holds
To be eligible to register for a future term, the student's receivable balance must be below a predetermined amount that is published in the Schedule of Classes. That amount is determined by the Vice President of Finance and Administration in conjunction with the Registrar. A registration hold is placed on the student's account when the balance exceeds the maximum limit. If the student is not currently enrolled, his/her account must be paid in full in order to register.
Reimbursements
These are reimbursements to OSU that can occur as a result of a staff member officially representing the University in the course of their job. It could also occur whenever an outside entity reimburses OSU, whatever the reason, for expenditures OSU has incurred. Examples include:
Reimbursements Involving Grant Funds
Renewal and Replacement Funds
Used by service departments and auxiliary enterprises, these funds reflect resources set aside in accordance with OUS policy on a systematic basis to fund future equipment purchases and building repairs. Housing, Memorial Union, Printing and Mailing, and Student Health Service are examples of organizations that maintain such funds.
Reserves
An account which records a portion of the fund balance which is segregated for some future use and which is, therefore, not available for further appropriation of expenditures. Budgeted Reserves are moneys set aside for contingencies and are not yet allocated for expenditure. Reserves differ from renewal and replacement funds in that reserves are general fund monies and are for any contingency rather than just to fund future equipment purchases and building repairs.
Restricted Funds
Used to identify resources that may be available for current operations, but that are to be used only for a specific purpose as directed by the donor, or the granting or contracting agency. Sponsored research, gifts for construction of a facility, or student aid are examples. Grants and contracts may be in operation for multiple years and these funds can be tracked on grants ledgers, screens in the financial system that are not limited to current fiscal year activity.
Retirement of Debt Funds
Used to account for funds set aside and disbursed to retire debts incurred to finance the acquisition, construction, or renewal of capital assets.
Revenue
Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, and/or using state resources such as employee time and effort, state facilities, state vehicles, etc., are deemed to be State of Oregon revenue and must be deposited into an OSU fund. An example would be proceeds from short course workshops and seminars.
Roll-Up
The ability in FIS to summarize data at various hierarchical levels, which allows you to query financial reports not only at the data-entry level, but also at higher levels that will combine the data as needed.
Sabbatical Leave, Supplement
Staff members may supplement their sabbatical salaries to a reasonable degree, provided that such supplementation strictly conforms to the stated and approved purposes of the sabbatical leave. Supplementation of sabbatical leave paid from grants and contracts must be set up as a secondary job and approved by the sponsoring agency. Route the Job Form through the Office of Post Award Administration for approval.
Safekeeping and Sundry Scholarships
Safekeeping is a custodial fund that receives funds and disburses funds to student accounts based on authorizations received from parents, grandparents, trusts and sundry scholarships. When a student receives funding from an organization, the organization sends the University an authorization specifying the cost they will pay on behalf of the student and for the period of time. Foreign students generally receive support from embassies, ROTC students receive support from the branch of service that the student has committed time with, while private support includes any corporation or state agency paying for employee training.
Safety Devices
When a department head considers a safety device a necessity, and the employee may not work without it, the expense may be paid from institution funds. Such devices include safety shoes and safety glasses. If the device is not required as a condition of employment, the employee bears its cost. Safety devices and other equipment purchased by the state remain state property whether used by one or several employees. It is recommended that the departments confer with Environmental Health and Safety to determine the benefits of the device, and the Office of Human Resources to determine if there are conflicts with the collective bargaining agreement and/or other University policies. See the Safety Manual for additional information on this subject.
Scholarship
Per OUS: Financial assistance that is usually awarded to undergraduate students. Recipients are not required to render service to or repay the institution as a consideration for their awards. The scholarship is awarded to a student to help defray educational costs. Many scholarships are awarded based on achievement or financial need. All scholarships are processed through the Office of Financial Aid, and scholarships are posted on the student's university account.
Per IRS: To be excluded from gross income, a "qualified scholarship" is defined as any amount received by an individual to the extent that, in accordance with the conditions of the scholarship, the amount was used for qualified tuition and related expenses (fees, books, supplies, and equipment required for courses at the educational institution). It does not apply to payment for teaching, research or other services by the student.
Selp Loans
Small Energy Loan Program loans that are sponsored by the Oregon Department of Energy. The loans are for the purposes of providing partial funding for energy conservation or energy efficient projects. The loan must be repaid from the energy savings.
Service Centers
An internal entity that provides a service to the various divisions of an institution. The service might be purchased from commercial sources, but, for reasons of convenience, control of cost, is more effectively provided through a unit of the institution. The primary function of a service center is to provide financially self-sustaining services to other departments of the institution.
Service Credits - See Internal Sales Reimbursements definition.
SIS
The University's Student Information System.
Sponsored Instruction and Training
Specific instructional or training activity established by a grant, contract, or cooperative agreement.
Sponsored Research
All basic or applied research that is separately budgeted and accounted for. This may also be called organized research.
Staff Tuition Rates
A reduced instruction fee is charged to OUS staff members taking courses at any OUS institution. See the Schedule of Classes or the Human Resources home page for the current rates. The staff rate is afforded to current and retired classified and faculty staff employed for at least 90 days. Temporary employees are not afforded the staff rate. A maximum of 12 credit hours may be taken at the staff rate per term, with the approval of the employing department. Staff fee privileges may not be used for Continuing Education courses, courses leading to a degree in veterinary medicine or Pharmacy. Staff fees are non-refundable. Staff taking courses at staff rates will also be subject to any applicable course fees, technology fee, or resource fees. Staff instruction fees are waived for audited courses.
Effective Fall Term 2000, employees of the Department of Higher Education eligible for staff fee benefits (as defined in ORS 580-022-0030) may transfer such privilege to family members or domestic partners. To qualify, an OUS employee must work at least one half time. A maximum of 12 credit hours per term may be taken at staff rates. See OSU Human Resources website.
Staff Tuition Taxable Benefits
Staff taking graduate credits using the staff fee privilege are taxed on the difference between the tuition instruction rate for graduate students and the staff rate. This amount is reported to the IRS on form W-2. The IRS code excludes undergraduate courses from this taxable compensation.
Stale Checks
A check that has not been cashed that is more than six months old. The bank the check was issued on may pay it, but is under no obligation to do so. OSU stale checks are turned over to the State Land Board at the end of Statute of Limitations - 2 years.
Stipend
A subsistence allowance for students, post doc's and participants to help defray general living expenses in support of those engaged in training or research programs.
Student Loans
Loans disbursed to students from Federal Direct Loan program, Federal Perkins Loan program, and University Loan program. The Federal Direct Loans are totally funded by the federal government, Federal Perkins Loans by repayments from former students, and University Loans by repayments from students and contributions.
Student Services
Expenses that have been incurred for the administration of student affairs and for services to students.
Taxes
State of Oregon agencies are exempt from paying federal taxes on purchases of gasoline, oil, etc. If an employee paid for a product and is seeking reimbursement, or if the product was purchased and possession taken in another state, taxes may be paid. Agencies are exempt from paying State, city or county taxes in some instances. OUS is subject to real and personal property taxes on property owned but not used for institutional purposes, such as miscellaneous rentals. State-owned property that is located within an irrigation district is subject to taxation by the district.
Tax Exempt Status of OUS
The Controller's Division occasionally receives a request from an institution for an IRS tax exemption status letter. The inquiry is usually in conjunction with a request from a donor. It is not possible to furnish such a letter, since it does not exist. OUS institutions, as agencies of the State of Oregon, are exempt from tax under IRS Code 115. The federal government does not issue tax exemption status letters for organizations exempt under this section of the code.
1098 T Statements
This is a Tuition Payment Statement that is provided to students to compute the Hope and Lifetime Learning that is prepared on form 8863 to be filed with a Federal tax return. Business Affairs Student Finance prepares these statements.
1099 Miscellaneous Statements
Reports of taxable income paid to individuals and companies by Oregon State University. They are produced every January for the prior tax year. Per IRS regulations, these statements must be mailed on or before January 31 or a penalty is assessed. The Business Affairs Accounts Payable office is responsible for producing the statements.
Transcript Holds
Requests for official transcripts are held for any receivable balance owing prior to the current term. Balances owing for prior terms must be paid in full before transcripts will be released. Exceptions to this policy may be made for employment or certification purposes.
Tuition Waiver
Refraining from collecting from graduate students the nonresident tuition differential (the difference between the resident graduate tuition and nonresident graduate tuition) when a student is put on a Graduate Assistantship appointment.
UBIT (UNRELATED BUSINESS INCOME TAX)
A tax imposed on a nonprofit exempt organization on income derived from an activity of a trade or business, regularly carried on, that is not substantially related to the organization's tax exempt purpose. For more information, see section 501 on Unrelated Business Income Tax.
Undistributed/Unearned Income
Represents cash received from a third-party in advance of earning the funds as revenue. Examples include such things as:
These receipts should be recorded as a balance sheet liability.
Unrestricted Funds
Used to identify resources with no specific limitations imposed by donors or external agencies. These types of funds represent the resources available for the general operations of the University. Included in this category is the general fund, with revenues primarily from state appropriations and student fees for tuition; income/expense funds, with revenues from student fees and/or departmental sales and services; and unrestricted gift funds.
Vendor
A company or person from which goods and/or services are purchased. Includes a company, individual, subcontractor or contractor.
Vendor Refunds
If a vendor was overpaid and a refund is received, the refund is to be credited to the Fund/Index and account code from which the purchase was originally paid. An overpayment may be the result of returning prepayments, a credit for early payment, or a refund for the return of defective merchandise. See Refunds definition.
Visa Petition Fee
The fee for visa petition to classify a non-immigrant as a temporary worker or trainee is an allowable expenditure. Payment cannot be made for any expenses the alien incurs while procuring a visa through the American Consulate, only the Visa fee itself.
Western Interstate Commission for Higher Education (WICHE)
An agreement established in 1953 allows students from several western states to pursue certain professional courses of study in member states and pay resident tuition rates. Member states include Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, Utah, Washington, and Wyoming. Approved courses of study include medicine, dentistry, veterinary medicine, physical therapy, occupational therapy, optometry, podiatry, osteopathic medicine, physician assistant, graduate library studies, law, pharmacy, graduate nursing, public health, and architecture.
Reference: ORS 351.770 through 351-840; OAR 580-010-0085.
Western Regional Graduate Program
The Western Regional Graduate Program is a program of the Western Interstate Commission for Higher Education (WICHE). WRGP status permits graduate students from eligible WICHE states to enroll in selected graduate programs and be assessed tuition at the resident graduate rate. See OSU Graduate School home page for complete details.
Western Undergraduate Exchange (WUE)
The Western Undergraduate Exchange (WUE) is a program of the Western Interstate Commission for Higher Education (WICHE). WUE allows selected students from eligible western states to enroll in WUE eligible majors at OSU and pay 150 percent of regular resident tuition plus any required student fees. Time attending OSU while enrolled in the WUE program cannot be used in establishing Oregon residency for tuition purposes. WUE recipients are not eligible to receive additional Provost, Tuition Grant, Presidential or Diversity Achievement awards. Recipients are selected on a competitive basis and awards are limited. Please see the OSU Financial Aid Office for further information.
Reference: OAR 580-010-0081.
Wire Transfer (Incoming and Outgoing)
Electronic transfer of funds from a private bank account to the Oregon State University state treasury account, or from OSU to a foreign account. Wired funds can be used for either a departmental payment or a student account payment, and are normally an international transfer.