Glossary

Academic Mission Fund (AMF)

The Academic Mission Fund represents a pool of funds available for use at the discretion of the Provost to support the university's academic mission and goals, especially where model allocation would not produce sufficient funds. In the initial model year(s), the Academic Mission Fund is likely to be used to support Hold Harmless for schools.

Academic Units

Academic units are defined in the model as the seven core academic schools: School of Humanities, Jones Graduate School of Business, Wiess School of Natural Sciences, School of Social Sciences, Brown School of Engineering, Shepherd School of Music, and School of Architecture. While Glasscock is also a school, it is treated differently in the model based on the unique nature of the continuing studies business model.

Allocatable Funds

Refers to the remaining funds from the General Fund after deductions for the Strategic Fund and Academic Mission Fund.

Allocation

Allocation refers to the revenue and expenditures assigned to each unit to execute on strategic goals of both the unit and the University as a whole.

Auxiliary Units

Provide services to the campus community but primarily function as individual entities, including Housing and dining, Parking and transportation, and Athletics.

Budget Model

A budget model describes the algorithm used to allocate the funds and expenses of the University to its units. In the new incentive-based budget model, we are able to incorporate our strategic goals and University values into the allocation process. More information on budget models can be found here [link to "What is a Budget Model?" page].

Designated Funds

Designated funds refer to funds set aside for a specific purpose. Historically, units could transfer money into a designated fund throughout the year or put their carry-over from the previous year into a designated fund to use as a reserve. These funds would then be earmarked for use by that specific unit.

Discretionary Funds

Funds reserved to support the University's mission without a specific purpose; Examples include the Strategic Investment and the Academic Mission Fund.

Distributive Charges

Distributive charges refer to the charge for a variety of overhead costs typically paid by auxiliaries and other units that function as "tubs on their own bottoms"

Endowed Chair

An endowed chair is a title awarded by the University to outstanding faculty members in a specific discipline or inter-disciplinary area. Endowed chairs typically result in funds to cover a designated faculty member's salary and benefits being supplied by a donor interested in the faculty member's area of scholarship.

Endowment

The endowment is a fund comprised of money and other financial assets that have been donated to the University. The endowment is managed by Rice Management Company, which oversees the investments. About forty (40) percent of the operating budget is supplied by endowment distributions.

F&A Recovery

F&A Recovery refers to funds derived from the application of a negotiated indirect cost recovery percentage to grant and contract expenditures for the facility and administrative costs associated with research. Facility expenses can include costs of equipment depreciation, utilities, and maintenance and repair of research buildings. Administrative costs can include the cost of Research Cost Accounting, central offices and dean's office administration.

Fiscal Year (FY)

A fiscal year (FY) is the 12-month accounting period used by an entity for financial and tax reporting purposes. The Fiscal Year at the University begins on July 1 of each year and ends on June 30 of the following year.

Fringe Benefits

Fringe benefits are the additional compensation provided by the University to employees beyond direct wages. Examples of fringe benefits include health insurance, and retirement plans.

General Fund

The General Fund is an element of the new budget model and combines revenues from tuition as well as the unrestricted endowment.

Hold Harmless

Hold harmless describes the policy of allocating at least the same amount of funds to the units for the fiscal year in which the model will be implemented as in the previous year. When the budget model is implemented in FY2025, all units will be held harmless, receiving at least the same amount of funding that they did in FY2024. This will allow us to ensure stability while adjusting the model as needed.

Incentive-Based

This is a decentralized budget model in which units are allocated much of the revenue and expenses they generate to encourage strategic priorities as well as efficient use of funds and campus resources. Incentive-based models reward specific actions, such as instruction (credit hours), degrees awarded, research, and operational excellence that are core to the University's mission.

Net Tuition Revenue

Net Tuition Revenue is the total revenue received from undergraduate and graduate tuition, less financial aid, tuition waivers and tuition remission.

Restricted Funds

Restricted funds refer to funds that are earmarked, typically by donors, for specific uses (e.g., for a particular program or by a specific school or department)

Space use charges

Space use charges refer to the allocation of the overhead expenses associated with operating the space a unit uses. These expenses may include utilities, maintenance, custodial and groundskeeping costs, among others. Units are expected to be allocated expenses based on the proportion of space they occupy on campus, incentivizing efficient space use and stewardship.

Strategic Fund

A strategic fund refers to allocating funds to support campus efforts that are aligned to institutional leaders’ (e.g., President) strategic goals. Strategic investment allocations are not necessarily expected to exist in perpetuity. A strategic fund could, for example, provide seed investment for a new interdisciplinary research initiative that does not produce significant revenue in the near term.

Support Units

Support units refer to the non-revenue generating units that provide services/support to the academic, hybrid and auxiliary units of the University.

Unrestricted Endowment

This refers to the portion of the endowment returns that the University receives annually that has no stipulations on its use.

Unrestricted Funds

Donations to and revenues generated by the University can be used for any purpose as long as they serve the University's interests and objectives.

Unrestricted Pool

An unrestricted pool is a combination of two or more sources of revenue that have no requirements for a specific use. In the new model, the General Fund is a pool of unrestricted revenue.