Glossary of Terms

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Cost Element Group
A grouping of a set of similar or like Cost Elements used to select transactions for reporting.

For example, the Cost Element Group of "6XXXXX" contains all Cost Elements from 600000 to 699999. Selecting this group on the initial screen of a report will generate a report showing any activity posted to all expense Cost Elements.

Another example, the Cost Element Group of "HSRPT", is comprised of many other Cost Element Groups and contains all Cost Elements for revenue and expenses, grouped specifically the way a Duke Health System company code needs to analyze revenue and expense. Selecting this group on the initial screen of a report will generate a report showing all revenue and expense activity grouped into subtotals for Health System reporting, such as Inpatient Revenue, Outpatient Revenue, Total Patient Revenue, etc. Each subtotal is a Cost Element Group as well.

The Cost Element Group of "DUKE_CE" is also comprised of many other Cost Element Groups and contains all Cost Elements for revenue and expense, grouped specifically the way that Duke University areas need to analyze revenue and expense. Selecting this group on the initial screen of a report will generate a report showing all revenue and expense activity grouped in subtotals. This group is intended more for University reporting, but can be used by the Health System as well.
Cost Object
The term Cost Object defines the "owner" of or responsible department for revenue, expense, or project related expense/revenue in financial modules.

Cost Objects are further defined by the following categories / terms:

Cost Center
Defines the owner of general operating expenses, allocated, loan, endowment, and agency cost objects.

Profit Center
Defines the owner of general revenue. For DUHS companies, the Profit Center also collects information from the corresponding cost center and WBS element, which allows DUHS to see revenue, expenses, and capital acquisitions in the Profit Center report.

WBS (Work Breakdown Structure) Element
Defines the owner of revenues and expenses for a project. Typically, projects have a limited duration of life, but can cross multiple fiscal years. A project for Duke includes restricted funds (research projects and clinical trials), plant funds (construction projects and DUHS capital acquisitions).

NOTE: DRH is not using PS for restricted funds and RCH does not have restricted funds.

All these terms replace the term "fund code" and "department number" used by various Duke companies in the past.

The Duke University Health System cost object number contains 9 digits:

* The first 2 digits represent the last two digits of the company code (e.g., 30 for Duke Hospital)

* The same 9 digit number is used for a department's Cost Center and Profit Center, so there is now just one code to remember for revenues and expenses. There is a different WBS Element number for each Project, except for DUHS Capital Acquisitions prior to July 2000. NOTE: Duke Hospital and DUAP departments may still need to use the old seven digit fund code for some systems until they are converted to the SAP format.

The Duke University cost object number contains 7 digits:

* The cost object is either a Cost Center (expense collector for seven-digit funds beginning with 15x, 168,180, 190, 4xx, 5xx, 6xx, 8xx, and 9xx), Profit Center (revenue collector for seven-digit funds beginning with 11x and 14x funds), or WBS Element (expense and revenue collector for Project seven-digit funds beginning with 3xx or 7xx); and has the same digits and meaning as before SAP was implemented, except without the dash.
Cost Reimbursement Award

An award made on a cost-reimbursement basis refers to an award where the sponsor makes a commitment to award/obligate a specified amount but the actual money is not received by Duke until after the Office of Sponsored Programs (OSP) bills for the expenses incurred on the project. On a cost-reimbursement award, the Principal Investigator is allowed to spend the amount awarded/obligated and need not be concerned with the timing of when the actual money is received. For 30X through 38X WBS Elements, the amount awarded/obligated will be indicated in the AWARD column of the fund statement (SAP PDT Plan column). *

Cost Sharing
That portion of total project costs not borne by the Federal government

Cost Sharing- Mandatory:
The portion of the University's contribution to a sponsored project, which is required by the terms of the project: it must be included or a proposal will receive no consideration by the sponsor.

Cost Sharing - Voluntary:
Resources offered by Duke in sponsored project proposals, which are not a specific sponsor requirement.

Cost Sharing - Voluntary Committed:
Resources that are committed and budgeted for in a sponsored agreement: salary amounts in excess of the NIH salary cap are considered voluntary committed cost sharing. The fringe benefits associated with that portion of the salary amount in excess to the NIH salary cap are also considered voluntary committed cost sharing.

Cost Sharing - Voluntary Uncommitted:
Expenses that are over and above that which is committed and budgeted
An example of voluntary uncommitted non-effort cost sharing is expenses that are incurred above the awarded amount. This overdraft is generally moved by the Office of Sponsored Projects to a departmental discretionary account using object code (G/L account) 6967 (696700) or 6968 (696800) as a lump sum.
Voluntary uncommitted effort is where unanticipated expert assistance is used. This type of effort is not charged to the Organized Research Base. In accordance with OMB Circular A-21 interpretations, voluntary uncommitted effort is included in effort certification, but not identified with a specific project.
Cost Transfer
A cost transfer is a movement of cost associated with a transaction between two cost objects, of which at least one must be a federal sponsored project. This includes salary and non-salary costs. One exception is allocating charges from an allocated or non-restricted cost object to a federal sponsored project. These are considered original or initially recorded charges if they are timely.

For corrections, involving non-federal sponsored projects refer to the GAP below.
Current Restricted Funds
Represent funds received by Duke University subject to outside agency restrictions which specify the manner in which the funds are to be used in current operation. Examples of these funds include gifts designated by the donor for scholarship and fellowship purposes; grants from foundations, industries, individuals, and governmental bodies for research projects; and income from investment of endowed funds which has been restricted by the donor as to its use.
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