CPE Data Guidelines - Appendix C: Financial Data Terms and Definitions by Category

General

Accrual Accounting
Data are to be reported using the accrual basis of accounting. Revenues should be reported when earned and expenditures when materials or services are received. Included in expenditures are (1) all expenses incurred, in accordance with generally accepted accounting principles, (2) expenditures for the acquisition of capital assets, including library books, to the extent expended, and (3) expenditures for annual debt service requirements. Expenses incurred as of the balance sheet date should be accrued, and expenses applicable to future periods should be deferred. Certain deferrals and accruals, such as investment income and interest on student loans, may be omitted if the omission does not have a material effect on the financial statements.

Affiliated Corporation
A corporate entity which is not a public agency and which is organized pursuant to the provisions of KRS Chapter 273 over which an institution exercises effective control, by means of appointments to its board of directors, and which could not exist or effectively operate in the absence of substantial assistance from an institution. (See Table 25 for a list of affiliated corporations.)

Agency Funds
Funds held by the institution acting as custodian or fiscal agent.

Athletic Fee
A separately identified fee created by board action or student vote. Revenue generated should be reported as revenue on form FD-11, Intercollegiate Athletics.

Computer/Technology Fee
A fee charged to all students where revenue is dedicated to the use, purchase, and upgrade of student-accessible computers and technology.

Current Funds
The economic resources of a college or university that are expendable for performing the institution's primary missions (instruction, research, and public service), not restricted by external sources, or designated for other than operating purposes by the governing board. “Current” refers to resources to be used in the near term for operating purposes.

Direct Support
Support specifically designated for a program, including salaries and wages, fringe benefits, and operating expenses.

Encumbrances
An obligation incurred via an order, contract, or similar commitment that establishes a claim against a particular fund balance in anticipation of a future expenditure. Liabilities are recognized when goods are delivered or services rendered.

Endowment Funds and Similar Funds
Includes:

• Endowment Funds: Donor- or externally-stipulated funds where the principal remains intact in perpetuity and only income may be used.
• Quasi-Endowment Funds: Funds designated by the governing board to function like endowments.
• Term Endowment Funds: Principal may be used after a set period or event.
  State funds from the Endowment Match Program (Bucks for Brains) must be reported on the institution’s balance sheet, even if held by affiliated or non-affiliated corporations/foundations.

Foundation
See Affiliated Corporation.

Indirect Support
Support not specifically identified for a program but budgeted in support of it, such as shared costs from operations, maintenance, libraries, student services, etc.

Interdepartmental Transactions
Transactions between institutional service departments and other departments should not be reported as service department revenues, but as reductions of expenditures. These are considered internal cost transfers. The billed price should be treated as an expenditure of the receiving department as if purchased externally.

Interinstitutional Transactions
Certain transactions between institutions are to be reflected as revenues and expenditures. Example: milk sold by the dairy department to dining halls is both revenue and expenditure. Auxiliary enterprise sales to departments (e.g., catering or college store) are treated similarly.

Life Income
Funds received under agreements where the institution pays the donor or other individuals periodic income from the assets, usually for the beneficiaries’ lifetimes.

Loan Funds
Resources available for loans to students, faculty, and staff, derived from sources such as federal, state, or local appropriations or private donors.

Mandatory Student Fees
Fees assessed to all full-time students, regardless of degree level or program. These include health services, building use, activity, computer use, athletic, and auxiliary fees. Excludes program-specific or situational fees like lab, late registration, or room and board.

Plant Funds
Used to account for:

• Unexpended funds for acquiring long-lived assets
• Funds for renewals and replacements
• Retirement of indebtedness
• Investment in institutional plant

Restricted Current Funds
Funds with external limitations or stipulations on their use provided to the institution.

Transfer Versus Loans Among Funds
If the movement of funds between groups is permanent, classify as a transfer. If temporary with repayment expected, classify as interfund borrowing and establish a liability.

Revenue

Budgeted Fund Balance as Support
Includes funds brought forward from previous fiscal years and budgeted in the current period to fund current funds expenditures.

Endowment Income
Includes: unrestricted income of endowment and similar funds; restricted income of endowment and similar funds to the extent expended for current operating purposes; and income from funds held in irrevocable trust by others.

Fund Balances
Fund balances consist of unrestricted and restricted balances brought forward from prior fiscal periods.

Governmental Appropriations – Federal, State, Local
Include those funds received from or made available to an institution through acts of a legislative body. Governmental appropriations should be categorized on the basis of the governmental level (federal, state, or local) of the legislative body providing the appropriation. They do not include governmental grants or contracts. These sources of revenue include all unrestricted appropriations and all restricted appropriations to the extent expended for current operations. If the institution can change the intended use of the funds during the reporting period without legislative approval, the funds should be considered unrestricted.

Governmental Grants and Contracts – Federal, State, Local
Include revenues from governmental agencies received or made available for specific projects or programs such as research or training. Should be categorized by the governmental level of the agency providing the funds. Revenues include only the portion supporting expenditures during the year. Unspent restricted funds remain as restricted current fund balances and are recognized as revenue when spent. Indirect cost reimbursements should be reported separately as unrestricted revenue.

Indirect Cost Reimbursement
Includes amounts recovered for the indirect support of federal, state, local, and private grants and contracts.

Investment Income
Includes current funds revenue, interest, and dividends not reported under endowment or other non-expendable fund income.

Other Revenue
Includes all sources of current funds revenue not classified elsewhere. Examples include gains/losses on investments in current funds, miscellaneous rentals and sales, expired term endowments, and terminated annuity or life income agreements, if not material.

Private Gifts, Grants and Contracts
Includes amounts from individuals or nongovernmental organizations.

• Private Gifts and Grants: Funds received with no legal obligation to provide specific goods or services in return.
• Private Contracts: Funds received in exchange for specific deliverables.
  Includes unrestricted and restricted gifts, grants, and contracts to the extent that revenues are expended in the year received.

Sales and Services of Auxiliary Enterprises
All revenues from auxiliary enterprise operations, including those assigned to debt service. Auxiliary enterprises provide goods/services to students, faculty, or staff and charge fees related to costs. They are managed as self-supporting units and may serve the public incidentally. Examples include food services, residential facilities, student health services, intercollegiate athletics, and college stores.

Sales and Services of Educational Activities
Revenues from the sale of goods or services incidental to instruction, research, or public service. Examples include testing services, university presses, teaching clinics, and dairy product sales. Excludes hospital revenues, which are reported separately.

Sales and Services of Hospitals
Net revenue generated by a hospital operated by an institution. Includes revenue from patient services, special and other services, and health clinics within the hospital. Excludes revenue from research or purpose-restricted grants, gifts, and endowment income.

Tuition and Fees
Includes all student charges related to:

1. Applying for admission
2. Enrolling in the institution or specific courses (e.g., lab fees)
3. Graduation or transcript services

Revenue is recorded regardless of collection expectation. Remissions or waivers should be recorded as expenditures under scholarships/fellowships or staff benefits based on the expenditure category. Room, board, and services rendered by auxiliary enterprises are not included.

Expenditures and Transfer

Academic Support
Includes funds budgeted or expended primarily to provide support services for the institution’s primary missions: instruction, research, and public service. This category includes the subprograms of museums and galleries, audio-visual services, academic computing support, ancillary support, academic administration, academic personnel development, and course and curriculum development.

Auxiliary Enterprises
Includes all budgeted and actual expenditures and transfers associated with the operation of auxiliary enterprises. An auxiliary enterprise is an entity that exists to furnish goods or services to students and that charges a fee directly related to, though not necessarily equal to, the cost of the goods or services. This category includes subcategories for auxiliary enterprises: student, auxiliary enterprises: faculty/staff, intercollegiate athletics (essentially self-supporting only), and mandatory transfers/auxiliary enterprises.

Capital Outlay
The exchange of values involved in acquiring land, buildings, equipment, or other permanent properties, or in their construction, development, or permanent improvement.

Debt Service
The amount of money required to pay the interest, principal, and required contributions to accumulate moneys for future retirement of lawfully incurred debt.

E&G Custodial Services and General Maintenance Expense
The current funds expenditures for custodial services and general building maintenance of educational and general facilities.

E&G Minor Maintenance and Repair Expense
The current funds expenditures for minor maintenance and repair of educational and general facilities—items that are low in cost to correct and are normally included as part of the annual operation and maintenance funding.

E&G Non-recurring Capital Projects
The expenditures for non-recurring capital projects less than $400,000 that were not funded through regular budgeted maintenance sources. Funding for direct costs of facility deficiencies resulting from normal deterioration and usage—individual projects of a magnitude in scope and cost whereby funding is normally established on an individual basis.

Grants, Loans, or Benefits
Expenditures for any grant, aid, loan, or relief payment to individuals, organizations, or jurisdictions not otherwise classified.

Hospitals
Includes all budgeted and actual expenditures and transfers associated with the patient-care operations of a university-operated hospital. Expenditures for those activities that take place within the hospital but are more appropriately classified as instruction or research are excluded. This category includes subcategories for direct patient care, health care supportive services, administration of hospitals, physical plant operations for hospitals, and mandatory transfers/hospitals.

Institutional Financial Aid
Expenditures on student aid programs funded by institutional funds.

• Institutional Financial Aid from Restricted Resources: Expenditures for scholarships and fellowships received from private sources (e.g., businesses, foundations, individuals, foreign governments) that used restricted-expendable net assets of the institution.
• Institutional Financial Aid from Unrestricted Resources: Expenditures for scholarships and fellowships from unrestricted net assets of the institution. The institutional matching portion of federal, state, or local grants is reported here. Athletic scholarships are also included here.

Institutional Support
Includes funds budgeted or expended for those activities carried out to provide for both day-to-day functioning and the long-range viability of the institution as an operating institution. Subcategories include executive management, fiscal operations, general administration and logistical services, administrative computing support, and public relations/development.

Instruction
Includes all funds budgeted or expended for credit and noncredit courses for academic, vocational, and remedial purposes in regular, special, and extension sessions. Expenditures for departmental research and public service that are not separately budgeted are also included. This category includes subcategories for general academic instruction, occupational/technical instruction, summer and special session instruction, community education, and preparatory/adult basic education.

Libraries
Includes all funds budgeted or expended for all activities that directly support the collection, cataloging, storage, and distribution of published materials in support of an institution’s academic programs. To be included in this activity, a library should be separately organized and serve more than one academic department or activity.

Mandatory Transfers
Includes transfers from the current funds group to other fund groups arising out of binding legal agreements related to the financing of educational plant and/or grant agreements that require matching funds. This category includes subcategories for provision for debt service on educational plant, loan fund matching grants, and other mandatory transfers.

Nonmandatory Transfers
Includes those transfers between the current funds group and other fund groups made at the discretion of the governing board to serve a variety of objectives, such as additions to loan funds, additions to quasi-endowment funds, general or specific research.

Operating Expenses
Expenditures directly attributable to the operation of the institution and not otherwise classified.

Operation and Maintenance of Plant
Includes all funds budgeted or expended for the operation and maintenance of the physical plant, net of amounts charged to auxiliary enterprises, hospitals, and/or independent operations. This category includes subcategories for physical plant administration, building maintenance, custodial service, utilities, landscape and grounds maintenance, and major repairs and renovations.

Other E&G O&M Maintenance Expense
The current funds expenditures for maintenance of educational and general facilities—net of general maintenance expense, custodial services and building maintenance expense, and utilities expense. Items in this category must be specified.

Personnel Costs
Includes all funds budgeted or expended for salaries, wages, benefits (including, but not limited to, employer’s share of FICA, retirement contributions, insurance, unemployment insurance, workers’ compensation), and payments to persons awarded personal service contracts.

Public Service
Includes funds budgeted or expended for activities established primarily to provide non-instructional services beneficial to individuals outside the institution. This category includes subcategories for community service, cooperative extension service, and public broadcasting services.

Research
Includes funds budgeted or expended for activities specifically organized to produce research outcomes, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Subject to these conditions, it includes funds budgeted or expended for individual and/or project research as well as those of institutes and research centers. Funds for departmental research that are separately budgeted specifically for research are included in this category.

Scholarships and Fellowships
Includes funds budgeted or expended for scholarships and fellowships in the form of outright grants to students selected by the institution and financed from current funds, restricted or unrestricted. Should also include trainee stipends, prizes, and awards, except trainee stipends awarded to individuals who are not enrolled in formal coursework, which should be charged to instruction, research, or public service, as appropriate. When services are required in exchange for financial assistance, as in the College Work-Study program, the charges should be classified as expenditures of the department or unit to which the service is rendered. Aid to students in the form of tuition or fee remissions should be included in this category. However, remissions of tuition and fees granted because of faculty or staff status should be recorded as staff benefit expenditures in the appropriate expenditure category.

Student Services
Includes funds budgeted or expended for those activities whose primary purpose is to contribute to the student’s intellectual, cultural, and social development outside the context of the formal instruction program. This category includes subcategories for student services administration, social and cultural development, counseling and career guidance, financial aid administration, student admission, student records, student health services, and intercollegiate athletics. Intercollegiate Athletics is categorized as a student services “educational and general” expenditure unless it is operating as a self-supporting activity and, therefore, reported as an auxiliary enterprise operation. Examples of intercollegiate athletics expenditures are salaries of coaches and trainers, officiating, travel, student financial aid, ticket sales, and advertising. Excluded from intercollegiate athletics are those activities that relate to intramural athletics.

Utilities
Includes fuel, electricity, water, and sewage. The operation and maintenance of institution-wide production and distribution systems, such as central heating and cooling plants and electrical, water, and sewage distribution systems, should be considered as part of utility operations.

Endowment Match Program

Active Licenses/Options Executed – The cumulative number of licenses/options overall years that had not terminated by the end of the fiscal year.

Cash Gifts Added – The amount of cash gifts added to the corpus of the fund during the most recently completed fiscal year, including state appropriated Bucks for Brains program distributions, private matching funds, unmatched private gifts, and unexpended earnings from prior years added to the corpus of the fund.

Cumulative Earnings – The sum of current year earnings and unexpended earnings from prior years.

Current Year Earnings – Includes dividends, interest earnings, and other spendable proceeds that accrued during the most recently completed fiscal year as a result of invested university and foundation endowment assets. It does not include appreciation of asset value.

Current Year Expenditures – The amount of current year earnings, unexpended prior year earnings, or appreciation of asset value on university or foundation endowments expended during the most recently completed fiscal year.

Endowment Assets – The total of all long-term financial assets, including those held for university benefit by others. In assessing the level of assets, we are interested in the total of all financial assets(and other assets that are likely to be converted into financial assets, such as real estate held in the endowment) that are intended for long-term support. For most independent institutions, these long-term financial assets reside entirely in their endowment fund. (We exclude current fund and plant fund financial assets, as well as, any pension funds. Data on annuity and life income funds are collected separately.) Publicly supported, and some independent institutions may have endowment assets held for their benefit by others, often in foundations. These assets and the support they generate should be included.

Estimated Depletion of Principal – A calculated field that yields estimated depletion of endowment principal that occurs when current year expenditures exceed the sum of cumulative earnings and appreciation of asset value.

Extramural R&D Expenditures – The amount of current fund separately budgeted R&D expenditures in the sciences and engineering commissioned by an agency external to the institution. External agencies include the Federal Government, state and local governments, industry, and all sources other than the institution.

Federally Financed R&D Expenditures – The amount of current fund separately budgeted R&D expenditures in the sciences and engineering commissioned by the Federal Government.

• Current funds are expenditures of funds available for current operations. Such expenditures include all unrestricted gifts and restricted current funds to the extent that such funds were expended for current operating purposes.
• Separately budgeted research and development (R&D) expenditures include all funds expended for activities specifically organized to produce research outcomes and commissioned by an agency either external to the institution or separately budgeted by a unit of the organization. Included are expenditures for research equipment purchased under research project awards from current fund accounts. Also included are research funds for which an outside organization, educational or other, is a subrecipient. Excluded are training grants, public service grants, demonstration grants, and departmental research expenditures that are not separately budgeted. Also excluded are any R&D expenditures in the fields of education, law, humanities, music, the arts, physical education, library science, as well as other non-science fields.

Historic Dollar Value of Fund – The aggregate of the original gift corpus plus subsequent donor contributions to the fund and other additions as required by the donor or by law. It does not include increases or decreases in the funds due to investment results or inflation.

Invention Disclosures Received – Includes the number of invention disclosures, no matter how comprehensive, that are made in the year requested and are counted by the institution.

License Income Received – Includes license issue fees, payments under options, annual minimums, running royalties, termination payments, the amount of equity received when cashed-in, and software and biological material end-user license fees equal to $1,000 or more, but not research funding, patent expense reimbursement, a valuation of equity not cashed-in, software and biological material end-user fees less than $1,000, or trademark licensing royalties from university insignia. The license income also does not include income received in the support of the cost to make and transfer materials under material transfer agreements.

Licenses/Options Executed – The number of license or option agreements that were executed in the year indicated for all technologies. Each agreement, exclusive or non-exclusive, should be counted separately. Licenses to software or biological material end-users of $1,000 or more may be counted per license, or as 1 license, or 1/each for each major software or biological materials product (at manager’s discretion) if the total number of end-user licenses would unreasonably skew the institution’s data. Licenses for technology protected under U.S. plant patents (US PP) or plant variety protection certificates (US PVPC) may be counted in a similar manner to software or biological material products as described above at manager’s discretion. Material transfer agreements are not to be counted as licenses/options.

• A license agreement formalizes the transfer of technology between two parties, where the owner of the technology (licensor) permits the other party (licensee) to share the rights to use the technology. An option agreement grants the potential licensee a time period during which they may evaluate the technology and negotiate the terms of a license agreement. An option agreement is not constituted by an option clause in a research agreement that grants rights to future inventions, until an actual invention has occurred that is subject to that option.

Market Value of Fund Assets – The value of gross investments of endowment funds, term endowment funds, and funds functioning as endowments for a university and any of its foundations as determined in the market at a specific point in time.

New U.S. Patent Applications Filed – The number of new U.S. patent applications filed is a subset of total U.S. patent applications filed. It does not include continuations, divisional, or reissues, and typically does not include CIPs. A provisional application filed during the fiscal year may be counted as new. If a provisional application is converted to a regular application during the fiscal year, then that corresponding regular application should not be counted as new. A PCT application counted in total U.S. patent applications filed where the PCT application is a first filing and where the U.S. is designated may be counted as new.

Start-Up Companies – Companies that were dependent upon licensing the institution’s technology for initiation. If technology was licensed to an existing company, that company should not be considered a startup company.

U.S. Patent Applications Filed – Includes any filing made in the U.S. during the survey year, including provisional applications, provisional applications that are converted to regular applications, new filings, CIPs, continuations, divisional, reissues, and plant patents. Applications for certificates of plant variety protection should also be included. U.S. patents filed should also include PCT applications where the PCT application is the first filing where the U.S. is designated. A PCT application that follows a previous U.S. application would not be included.

U.S. Patents Issued – Includes the number of U.S. patents issued or reissued to your institution in the year requested. Certificates of plant variety protection issued by the U.S.D.A. should be included.

Unexpended Earnings from Prior Years – Accumulated unexpended earnings from prior years available for expenditure in the most recently completed fiscal year. It includes residual earnings maintained in reserve accounts and carry-forward balances. It does not include unexpended earnings that have been added to the corpus of the fund.

Voluntary Support Received – Includes all contributions actually received by an institution (or its foundation) during the fiscal year, in the form of cash, securities, company products, and other property from alumni, non-alumni individuals, corporations, foundations, religious organizations, and other groups. The face value of the deferred gifts received during the fiscal year should also be included. Not included in the total are public funds, earnings on investments held by the institution, and unfulfilled pledges.