Glossary of Terms


Search Glossary:

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
All

 

Commitment Item
A commitment item represents the functional aspects (expenditure and revenue structures) within the Financial Management module. In other words, a commitment item in FM is the equivalent of a cost element in CO. Each cost element in CO must be assigned to a commitment item in FM, to ensure that FM receives the transaction information occurring for that cost element (e.g., cost element 646000 is linked to commitment item 646000).
Company Code
A company code is a four-digit code corresponding to an independent accounting or business unit within Duke. The company code is a division that maintains the accounting balances separately (separate set of books) and creates the legally required Balance Sheet and Profit & Loss Statement.
Composite Color Proof
Proof that shows all type and images as they will be printed. Generally limited to four-color process and several representative colors for spot colors.
Consistency
Consistency, allocability, allowability and reasonableness are the main factors affecting the determination of a direct cost. Per government regulation (OMB Circular A-21 section D) costs incurred for the same purpose in "like" circumstances must be treated consistently as either direct or Facilities and Administrative (F&A) costs. Where an institution treats a particular type of cost as a direct cost of sponsored agreements, all costs incurred for the same purpose in "like" circumstances shall be treated as direct costs of all activities of the institution.
Contract (Payroll)
Two-digit designation, this field designates an employee's eligibility for benefits. The options noted on the forms are as follows:
01 Full Time
02 30-39.9 hours per week
03 20-29.9 hours per week
04 less than 20 hours per week
06 not eligible
Contract (Sponsor)
An agreement between the University and another entity to provide an economic benefit for compensation paid. The agreement is binding and creates a quid pro quo relationship between the University and the entity. The Sponsor may require an accounting of the use of funds and/or a specific deliverable(s).
Controlling Area
Identifies the organization used for cost accounting purposes. All companies associated with Duke belong to the controlling area "DUKE". It is possible to carry out common controlling for more than one company code in a controlling area. Having all company codes in the same controlling area allows various assessment and allocations across companies. All companies must have the same fiscal year to be in the same controlling area.
Cooperative Agreement

A federal award similar to a grant and subject to grant regulations , but in which the sponsor may be actively involved in proposal preparation, and anticipates having substantial involvement in research activities once the award has been made.

Corporate Card
The Corporate Card provides an efficient method for making many business related purchases. Purchases are charged directly to the department's designated cost object and Duke issues one monthly payment for all Corporate Card purchases. The card may be used for most purchases up to $1,500 and travel related expenses up to $3,000. The Corporate Card cannot be used for the following purchases:
-Capital equipment
-Payments to individuals
-Leases and long-term rentals
-Animals
-Weapons and ammunition
-Controlled substances
-Medical/Surgical supplies used in hospital or clinical patient care areas
-Non ENERGY STAR compliant appliances and electronics
Total charges per card are subject to daily and monthly limits.
Corpus
The Historic Dollar Value of gifts made to the endowment fund, plus any income and/or realized gains or losses that have been reinvested in the fund. The endowment corpus must be preserved in perpetuity; thus, the University is strictly prohibited from spending (or, "invading") a permanent endowment fundís corpus. The endowment corpus may also be generally referred to as the fundís Principal or Book Value.
Cost Accounting Standards
Duke University and other educational institutions receiving federal funds are required to comply with the Cost Accounting Standards (CAS) set forth in Sections C.10 through C.14 and Appendix A of the Office of Management and Budget (OMB) Circular A-21 (Cost Principles for Educational Institutions).

Four standards and disclosure statement (DS-2) define the CAS requirement. The standards apply to all sponsored projects (contracts, grants, and cooperative agreements) and are defined in GAP 200.340, Cost Accounting Standards (CAS) on Sponsored Projects. The DS-2 requirement applies to all institutions receiving sponsored projects totaling $25 million or more. The standards are listed below:
-CAS 501: Consistency in Estimating, Accumulating, and Reporting Costs by Educational Institutions
-CAS 502: Consistency in Allocating Costs Incurred for the Same Purpose by Educational Institutions
-CAS 505: Accounting for Unallowable Costs - Educational Institutions
-CAS 506: Consistency in Using the Same Accounting Period for Purposes of Estimating, Accumulating and Reporting Costs - Educational Institutions
Cost Center
Previously referred to as "Fund Code", the Cost Center defines the owner of costs or general operating expenses. Cost centers are organized by areas of responsibility. The Cost Centers are briefly outlined by Company Code as follows:

* In Company Code 0010 have seven-digit cost centers beginning with 15x, 168, 180, 190, 4xx, 5xx, 6xx, 8xx, and 9xx (such as example 157-3124). Some of DCRI's Cost Centers contain additional digits.

* Company Codes 0020, 0030, 0040, 0050 and 0060, have nine-digit Cost Centers (such as example 306060025).
Cost Center Group / Standard Hierarchy
A Cost Center Group is a grouping of one or more individual Cost Centers into areas of responsibility for reporting purposes. Each Cost Center Group is then grouped into other Cost Center Groups to ultimately create the Standard Hierarchy which includes all company codes for Duke (like an organizational chart for reporting with a top node value of "DUKE_CCA"). Each company code's Cost Center Groups are organized within the Standard Hierarchy as follows:

In Company Code 0010, the Cost Center Group "10" contains other Cost Center Groups, organized by ten-digit BFR (Budget Financial Responsibility) codes, and then by seven-digit fund code for within each BFR code.

In health system related Company Codes from 0020 - 0060, the top Cost Center Groups for each Company Code are the last two digits of each Company Code (e.g., Company Code 0030 is a Cost Center Group of "30"). These Cost Center Groups for each company are organized by areas of responsibility or service lines into eight digit Cost Center Groups, which contain other eight digit Cost Center Groups or individual nine-digit Cost Centers. All eight digit Cost Center Groups ultimately "roll-up" to the two digit Cost Center Group (last two digits of the Company Code).
Cost Distribution
On forms, this is the field used to indicate the distribution for the payroll and related expense. The distribution is either all company 0010 University or all Health System. Funding sources entered must total 100%.
Cost Element
A six-digit code that defines and classifies revenue or expenses/costs (usually equals Duke's old four-digit Object Code + two zeroes). The term "Revenue element" is also seen in the CO module to refer to codes for revenue.

Cost elements fall into two categories:

1. Primary Cost Elements = Used for initial postings of revenue and expense, and have corresponding G/L Accounts.
2. Secondary Cost Elements = Used for allocations (movement of an initial posting to other "owners") of revenue and expense, and do not have corresponding G/L Accounts.
-- Page 2 of 3 --