Finance 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

Financial Terms

A

Accessory Equipment: a moveable item which can be added in order to make an existing piece of equipment more useful or versatile and can be used with other similar equipment. 

Accumulated Depreciation: the total amount of depreciation expense that has been allocated to an asset since it was put in use. Depreciation reduces the book value of an asset over time and is recorded for financial statement purposes.

Acquisition Cost/Value: the value of an item at the time it is acquired. The value is determined by the invoice price prior to any reduction for a trade in. Also included are costs incurred to place the asset into service, for example, freight, installation, and testing. For donations/gifts of property the acquisition cost is $0 in the Fixed Asset Module but the fair market value at the time of donation is used for insurance purposes.

Additions: (in PPE) the acquisition of new assets, or improvements or modifications to existing assets, that increase the useful life or the service potential of the asset. Examples include an addition to a building or renovations to repurpose the space; adding a new part(s) or feature to an existing piece of equipment that increases functionality. Additions that cost over $5,000 or more are added to the original capital or non-capital equipment.

APC (Associated Program Costs): is a levy on the distribution from an endowment fund to cover costs incurred to support the endowed program but that are not charged directly to it.

Appraised Value: the estimated value of an asset based on the expertise of a qualified independent appraiser.

Assets: amounts reported in a balance sheet for the items an organization owns (e.g., cash, investments, property, etc.) or is owed (receivables).

Asset Number: a sequential number generated by the Fixed Asset System that is unique and assigned to each asset.

Audited Financial Statements: financial report of an organization, comprised of balance sheet, statement of activities, statement of cash flows, and accompanying footnotes prepared in accordance with generally accepted accounting principles (GAAP); audited by an independent accounting firm.

-Back to Top-

B

Balance Sheet: financial statement of an organization that presents its assets, liabilities, and net assets (for a for profit entity this last piece would be “shareholder’s equity”).

Balanced Budget: when revenues minus expenses are greater than or equal to zero.

Bar Code Tag: an asset identification tag assigned and affixed to an asset to assist in its identification and the physical inventory of equipment.

Baumol’s Cost Disease: an economic theory proposed by William Baumol and William Bowen in 1966 that postulates that in industries without productivity increases, when wages go up (to compete for employees) then prices go up faster than other industries.

Benefited Time: Paid Time Off that is eligible for benefited employees, such as holiday, winter break, bereavement, civic duty, jury duty, etc. 

Book Value: (in endowment) also known as Historic Gift Value is comprised of the initial gift plus any gift additions to a permanent endowment.  (in PPE) the difference between the acquisition cost and accumulated depreciation. At the time of acquisition, book value equals acquisition cost. For donations/gifts of property the acquisition cost is $0 in the fixed asset system but the fair market value at the time of donation is used for insurance purposes.

Budget: a plan used to decide the amount of money that can be spent and how it will be spent; listing of an entity’s planned revenues and expenditures for a given period of time, usually a fiscal year.

Budget Committee: a standing committee chaired by the Provost.  The purpose of the Budget Committee (BC) is to provide feedback on the parameters, timeline, and process for the production of the annual budget; to receive an overview of Dartmouth's financial performance and long-range forecasts; to provide cross-campus perspective on resource needs and priorities.

Budget Model: set of rules that allocates a (typically large) fraction of the budget; remainder of budget allocated according to discretion of leadership.

Building: a roofed facility intended for the permanent or temporary shelter of persons, animals, plants, or equipment.

Building Component: equipment items designed and installed as an integral part of a structure. Building components differ from fixed equipment in that they are not separate from the building structure. Useful life of building components may differ from that of the building. Note: building components are only capitalized as part of a CIP project, all other purchases are considered repair and maintenance expenses.

Business Model: set of fundamental operating principles that generate the financial activities of an organization, typically includes the products the organization produces, the markets it serves, its value proposition for stakeholders, its sources of capital, its governance and corporate form, and its revenue and cost generating activities.

-Back to Top-

C

Capital Asset: an item that is tangible, permanent, with a life of more than one year that is held for purposes other than investment or resale and has a value of $25,000 or greater. (Exceptions; land - no threshold). There are five types of capital assets: land, land improvements, buildings, building improvements (as part of a capital project/CIP), and equipment (moveable only unless part of a capital project/CIP).

Capital Equipment: a single piece of moveable equipment or an equipment system with a value of $25,000 or more. Multiple pieces of equipment that individually cost less than $25,000 but work together to be operational are considered a system. 

Capital Improvement: refers to expenditures over $50,000 which should be set up as a CIP that create an addition or expand a physical space, create an increase in capacity or efficiency, replace a major component or structural part of the property, and/or adapt a property to a new or different use.

Capital Investment: usually a relatively large expenditure for the acquisition, creation or renovation of a long-lived asset, such as a building or piece of major equipment. 

Capitalize: to record a cost as an asset on the balance sheet for the purpose of amortizing (depreciating) the cost over its estimated useful life rather than as an expense in one accounting period.

CIF (Capital Investment Fund): Dartmouth’s Capital Investment Fund was established to fund expenditures to acquire or improve property that is used by the College, including land, buildings, machinery, and equipment.  The fund raises external capital through issuance of debt instruments.  Any excess earnings on its assets are also recycled and lent out for approved projects.  The goal of the fund is to provide capital to various areas of the college at a lower cost.

CAGR (Compound Annual Growth Rate): an annual year-over-year constant growth rate over a specified period of time. Each professional school and Central has an uncommitted reserve.

Chart String: six segments that define an account in the General Ledger, used to record financial transactions; each segment in the chart string holds a piece of information about the transaction.

CIP (Construction in Progress): construction, additions, renovations, improvements, fabrication, or customization project where capital costs are expected to be greater than or equal to $50,000.

Collectible: items of value or interest acquired for display. Collectibles are not tracked in the Fixed Asset System unless required by contractual agreement. See Special Collections definition.

Comp Time: appropriate for a supervisor to manage a non-exempt employee’s work schedule within a workweek. For instance, sending an employee home early on Friday to avoid incurring overtime liability. May only be used during a specific “workweek”; it is not appropriate to offset hours worked in one workweek against hours worked in any other workweek, regardless if they are in the same “pay period”.

Council on Institutional Priorities: the purpose of the Council on Institutional Priorities (CIPr) is "To formulate, articulate, and promote Dartmouth Faculty priorities in relation to the allocation of resources, the objectives on which resource allocation is based, and those commitments or expenditures that have significant budgetary effects. To participate in budgetary discussions concerning Dartmouth Faculty and the institution as a whole."

CPI (Consumer Price Index): rate of change over time in the prices paid by consumers for a market basket of consumer goods and services.

CUR (Central Uncommitted Reserve): a central controlled and managed reserve that is the most flexible institutional reserve.

Custodian: Faculty or staff member designated by a department/ division as responsible for assets within their control. 

Cy pres: Latin for as near as possible. The cy pres doctrine permits a court to modify an endowment fund's charitable purpose or use restriction if the purpose or restriction has become "unlawful, impracticable, impossible to achieve, or wasteful." RSA 292-B:6, III. Cy pres modifications must be consistent with the charitable purposes reflected in the original gift instrument.

-Back to Top-

D

DCF (Dartmouth College Fund): annual giving to the undergraduate part of Dartmouth College

DDAF (Dartmouth Donor Advised Funds): a vehicle that allows Dartmouth to receive, invest, and make distributions to Dartmouth and other charitable organizations on a donor's behalf.  Operating somewhat like a private foundation, the DDAF is an increasingly popular vehicle among philanthropic individuals and families.

Debt Financing: borrowing from a lender in order to acquire, construct, or renovate a long-lived asset; or borrowing in order to provide cash to pay bills. Debt financing requires repayment and is accompanied by a cost to borrow, known as interest expense.

Depreciation: method for allocating the cost of buildings and equipment over time. Generally accepted accounting principles and federal regulations dictate that the value of capital assets must be expensed over the estimated useful life of the asset.

Direct Costs: sponsored research costs that can clearly be linked to one project (e.g., researcher salaries, travel costs, lab supplies or equipment).

Disposal: when college property, assets, and moveable equipment is scrapped, recycled, or salvaged.

Disposition: refers to the sale, exchange, abandonment, or involuntary termination of college property, assets, and moveable equipment and their removal from fixed assets inventory.

Distribution Rate: withdrawal from an endowment fund expressed as a percentage of endowment market value at the beginning of the fiscal year to which the withdrawal applies. Endowment distribution rates often range from 4.5% to 6.5%.

Donated: gifted or given to Dartmouth by a third party voluntarily, without charge or expectation of anything in return.

DPC (Direct Program Costs): consists of the remaining distribution from an endowment fund available to be spent by the endowed program.  DPC is the Endowment Distribution less Associated Program Costs (APC) and Infrastructure Renewal Distribution (IRD). 

-Back to Top-

E

Earned Time: Vacation and Personal Paid-Time Off. 

ECI (Employment Cost Index): a quarterly report from the U.S. Department of Labor quantifying changes in employee compensation in the form of wages and benefits. Calculated based on a fixed basket of occupations. Considered by some to be an indicator of inflation.

EFLP (Expendable Funds Liquidity Pool): an investment pool that is managed by the Investment Office.

Endowment: a pool of money owned by a nonprofit organization that is permanently invested to generate an annual return for the support of the organization’s operations. Often, but not always, the money has been contributed by a donor and may come with restrictions regarding its usage. Usually, the endowment is structured so that the original principal amount is kept intact while the investment return is available for use annually in perpetuity. Endowment expenditures and investment decisions are managed according to state law known as the Uniform Prudent Management of Institutional Funds Act (UPMIFA).

Endowment Distribution: dollars provided to an institution’s operating budget annually from the endowment.   Also see APC, DPC, Infrastructure Renewal Distribution (IRD), and Distribution Rate.

ERP (Enterprise Resource Planning): a type of software used to manage day-to-day business activities such as accounting, human resources, sponsored projects, procurement & payables, receivables, project management, risk management and compliance. ERP systems tie together a multitude of business processes and enable the flow of data between them. By collecting an organization’s shared transactional data from multiple sources, ERP systems eliminate data duplication and enhance data integrity.

Equipment Onboarding: equipment received by Dartmouth through a transfer, gift, donation, loan, award, sub-award, lease, lease buyout, or P-Card purchase which are not subject to the standard purchase process through the office of Procurement Services.

Equipment or Asset Trade-In: equipment or an asset that is conveyed to a vendor as payment or in exchange for a discount on another piece of equipment or asset.

Executive Budget Committee: the purpose of the Executive Budget Committee (EBC) is to review Dartmouth's recent financial performance and the long-range forecast of its financial position, in order to provide guidance on the development of the framework and key parameters for the annual budget process and for long-term financial plans.

Exempt Employees: these employees are exempt from the FLSA's minimum wage and overtime pay requirements. These employees are paid monthly. 

Expensed Equipment: equipment type items with a value of less than $5,000. Examples include most computers, file cabinets, calculators, chairs, printers, pictures, etc. Equipment under the $5,000 threshold is not tracked in the Fixed Asset Module and is not subject to periodic inventory unless otherwise required by a contractual agreement, such as a grant.

Expenses: amount incurred to buy goods or services.

Export Control: a complex set of Federal laws and regulations that govern how physical items, technology, information, and data may be exported from the United States or shared with foreign persons within the United States. Export controls are designed to protect U.S. national security, to further U.S. foreign policy goals, and to maintain U.S. economic competitiveness.

-Back to Top-

F

Fabricated Equipment: equipment that is assembled or manufactured by Dartmouth using purchased materials, and in-house machinery, tools, and labor. 

Facilities & Administrative (F&A) Costs: sponsored research costs related to research facilities and administration that cannot be easily billed to any one project (e.g., electricity, shared equipment, admin efforts).

FASB (Financial Accounting Standards Board): a private, non-profit organization standard setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public's interest.

Fixed Asset/Surplus Property Administrator: the individual in Procurement Services who is responsible for the overall completeness of Dartmouth moveable equipment records. This individual is responsible for making sure all equipment new to campus is tagged and entered into the Fixed Asset Module; that changes in location, transfers, sales, or disposal of equipment are recorded in the Fixed Asset Module; and that a biennial physical inventory is done for all equipment.

Fixed Equipment: equipment permanently affixed to a building but separate from the building itself. Examples include building systems, light fixtures, and flooring.

Fringe Benefits: portion of compensation that is provided by an employer as a benefit to employees but not paid directly to the employee in the form of salaries and wages; includes items such as access and subsidy for medical care, pension and retirement funds, vacation, disability insurance, wellness programs, etc.

FRO (Flexible Retirement Option): a retirement option for eligible faculty members who desire to make a gradual transition from full-time employment to retirement over a period of years. FRO is designed to provide a gradual transition from full-time employment to full retirement.

FTE (Cumulative): a Cumulative full-time equivalent (FTE) represents the workload effort or employment status worked over a time period. For example, a full-time employee working 40 hours for nine months out of the year is considered 0.75 FTE. Typically, historical FTE rollup totals are restated based on the current organizational structures. Temporary employees are excluded.

FTE (Factbook): a Factbook FTE reflects a point-in-time workload effort on November 1st of each year. Historical FTE rollup totals are not restated based on the current organizational structures. Temporary employees are excluded.

FTE (Point-in-time): a Point-in-time FTE is a measurement to represent the workload or employment status of an individual as compared to a full-time employee. A full-time employee, for example, working 40 hours per week is considered a 1.0 FTE, while a part-time employee working 20 hours is considered 0.5 FTE. Typically, historical FTE rollup totals are restated based on the current organizational structures. Temporary employees are excluded.

Fund Accounting: type of accounting that government and non-profit organizations use to track money according to the level of donor or legal restriction that governs the use of the money. 

Funded Budget: when revenue minus expense is less than zero, but an organization has existing cash reserves to pay for the deficit.

Fungible: the ability of a good or asset to be interchangeable with other another good or asset.

-Back to Top-

G

GAAP (Generally accepted accounting principles): a set of rules that encompass the details, complexities, and legalities of accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.

Gift-in-Kind: donation of a tangible or intangible asset other than cash or securities. Can be something consumable, such as office equipment or supplies; or something with a longer duration, such as books, artwork, or copyright interests.

Gift-in-Kind, Capital, or Non-Capital Asset: donation of a tangible asset other than cash or securities that has a useful life of more than one year and a value of $5,000 or more. 

GL (General Ledger): the financial system of record for the institution for financial transactions. 

Government/Corporate Property Control Tag: special tag affixed to an asset to indicate the asset’s ownership by a government or corporate entity.

-Back to Top-

H

HEPI (Higher Education Price Index): an inflation index issued annually by Commonfund Institute designed specifically to track the main cost drivers in higher education. HEPI is a more accurate indicator of changes in costs for colleges and universities than the more familiar Consumer Price Index as it measures the average relative level of prices in a fixed basket of goods and services purchased by colleges and universities each year through current fund educational and general expenditures, excluding research.

Honoree: a non-Dartmouth employee who is providing services for an academic activity and for which fees are not traditionally required, nor invoiced.

Honoraria (plural) Honorarium (singular): a payment or payments made to an Honoree.

Hyperion: a colloquial term for the Oracle EPM budget and analysis tools.  These tools are cloud based and offered via a web based application and as an excel add-in.

-Back to Top-

I

Improvement (Land or Building): refers to expenditures under $50,000 that will create an addition or expand a physical space, create an increase in capacity or efficiency, replace a major component or structural part of the property, adapt a property to a new or different use. This includes land improvements which are modifications to an outside area, other than repairs.

In-Service Date: for purchased equipment or items, the in-service date is the date the unit(s) became operable. For CIPs, the in-service date is the date of Substantial Completion

Income Statement: financial statement of an organization that presents a fiscal year measure of revenues and expenses. Dartmouth as an internal management operating statement and a GAAP statement of activities including endowment, operating, and non-operating activities.

Independent Contractor: an Independent Contractor is a worker who provides services to Dartmouth and Dartmouth does not have the right to control the details of how the worker’s services are performed. Independent Contractors are hired through Procurement Services and paid through Accounts Payable. Dartmouth does not report income or withhold and pay income taxes, Social Security and Medicare taxes, or unemployment taxes for Independent Contractors.

Inflation: the average change in the price level of goods and services or a change in the purchasing power of the standard unit of currency.

Intangible Asset: asset not having physical substance (examples: a patent, good will).

IRA: Institutional Reporting and Analysis is the Oracle reporting system used to access Dartmouth’s data warehouse of institutional financial information, student data, philanthropic giving and other important data.

IRD (Infrastructure Renewal Distribution): the IRD is a distribution from the endowment equal to 0.5% of the endowment market value at the beginning of the fiscal year which is applied to all endowment funds unless specifically prohibited by the donor.  The IRD was approved by the Board in 2021 specifically to fund upgrading and modernizing housing, energy and information technology.  The distribution began in 2022.  Also see Infrastructure Renewal Fund (“IRF”).

IRF (Infrastructure Renewal Fund): a designated reserve for each facility owner (Geisel, Thayer, Tuck, Irving, and Central/Arts & Sciences/Guarini/Auxiliaries) that holds the IRD until it is spent. 

-Back to Top-

L

Land: solid part of the earth’s surface improved or unimproved.

Lease Buyout or Purchase: an option to buy a leased asset at the end of the lease term.

Lease, Finance: installment payment agreement made to acquire property, asset(s), or moveable equipment. A lease is considered a finance-type lease under any of the following circumstances: ownership transfers to lessee at end of lease; lease contains bargain purchase option; lease period is a major portion of the asset’s useful life; present value of lease payment equals or exceeds the asset’s fair market value; the asset is so specialized that there is no alternative use to the lessor at the end of the lease term.

Lease Liability: a lessee is required to measure and record a lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the lessee’s incremental borrowing rate), pursuant to ASC 842.

Lease, Operating: installment payment agreement that does not meet the criteria of a finance lease.

Liabilities: amounts reported on a balance sheet for amounts an organization owes to others (i.e., employees, vendors, lenders).

Limited Engagement: a category of services performed by an Independent Contractor in the U.S., for which there is low risk of personal injury or property damage and either: 1) the fees paid do not exceed $5,000 per calendar year; and 2) the engagement is either a one-time event or limited period engagement(s), such as guest lecture, guest speaker, presenter, or performer which would be executed with the Limited Engagement Agreement form or an artist, writer/editor, photographer, etc. which would be executed with the Limited 'Works for Hire' Agreement form. 

LIT (Life Income Trust): a charitable gift annuity that establishes a contract between a donor and Dartmouth where in exchange for assets irrevocably transferred to Dartmouth for its eventual use, the donor and/or another beneficiary receive regular fixed payments for life.

LRF (Long Range Forecast): or Long Range Plan, which forecasts Dartmouth’s operating and capital budgets usually in increments of 3, 5, or 10 years.

-Back to Top-

M

Maintenance: activities related to the repair and upkeep of an asset, with the intent of preserving the original useful life and function. Maintenance is expensed in the fiscal period the maintenance activity is performed.

Market Value: (for endowment) consists of the endowment fund’s original Book Value (gifts) plus any reinvested earnings and any market appreciation (or less any market losses). (for PPE) cost to acquire an item in its current condition through an arm's-length transaction. Also referred to as “fair market value.”

Moveable Equipment: item that is neither permanently affixed to nor part of a building or building system. Examples include boats, centrifuges, microscopes, vehicles, etc.

-Back to Top-

N

Net Assets: amounts reported in a balance sheet as the difference between the assets and liabilities of a nonprofit organization; net assets may be unrestricted as to use or may be restricted temporarily or permanently as to use by donor or law.

Net income: revenues minus expenses, known as “surplus/deficit” or "margin" for non-profits.

Non-Capital Property/Moveable Equipment: includes all equipment that is not permanently affixed to a building (either a single piece or a system), has a useful life greater than one year and has a unit cost at the time of purchase of $5,000 to $24,999 (if donated or gifted, the fair market value when received). This equipment is not capitalized, but it is recorded as equipment in the Fixed Asset System for tracking and inventory requirements. This is necessary for government compliance and F&A cost proposal purposes.

Non-exempt Employees: these employees are not exempt from the FLSA's rules on wages and overtime. They are entitled to minimum wage for each hour worked and overtime pay for working more than 40 hours in a work week. These employees are paid biweekly. 

Non-operating Funds: amounts in the financial statements that are not associated with the recurring annual activities of the organization, including, but not limited to facility renewal funds.

-Back to Top-

O

Obsolescence: factor to consider when determining the disposition of assets. Assets are obsolete when no longer useful to Dartmouth.

Office Furniture & Fixtures: modular components that make up a work area. Examples include panels, work surfaces, drawers, and overhead shelves. Individual components that cost less than $5,000 are not tracked in the Fixed Asset System and should be expensed when purchased. Individual components costing $5,000 or more should be identified with a bar code tag and tracked as a piece of moveable equipment.

On-Campus: location that is Dartmouth-owned, operated, or affiliated. All Dartmouth facilities have an assigned location code in the Fixed Asset System.

Operating Expenses: costs associated with the annual recurring activities of an organization.

Operating Funds: amounts in the financial statements that are associated with the recurring annual activities of the organization, including the generation of operating revenues and expenses.

Operating Revenues: earnings associated with the annual recurring activities of an organization. 

Operating Surplus (Deficit): operating revenues minus operating expenses.

OGA (Oracle Grants Accounting): is a financial accounting system specifically designed to address the unique reporting and management needs of sponsored projects.

OSP (Office of Sponsored Projects): an acronym used to describe the Office of Sponsored Projects at Dartmouth.

Overtime: Generally, any hours in excess of 40 hours in a work week, including hours worked and paid time off.* 1½ times regular pay. *Subject to collective bargaining agreement provisions.

Owner’s Equity: invested capital and retained earnings; known simply as net assets or reserves for non-profits because there are no “owners.”

Ownership Tag: identification tag affixed to equipment with an acquisition cost below $5,000. These items are not subject to physical inventory requirements. Note: Collectibles are not required to be tagged.

-Back to Top-

P

Pay Period: The periods between paydays. At Dartmouth, the pay periods are monthly for exempt employees, biweekly for non-exempt employees and student employees. 

Payslip: also referred to as paystub is a document that summarizes an employee's earnings and deductions for a specific pay period. 

PTO (Paid Time Off): Compensated time away from work, such as vacation, personal time, holiday, winter break, bereavement, etc.

Post Implementation Stage: activities performed after asset acquisition. Includes data conversion, employee training/ travel, annual licenses and fees if related to a constructed asset, CIP.

Preliminary Stage: includes costs of planning and studies related to potential capital projects (constructed asset, CIP). This stage includes activities performed to explore opportunities for acquisition or construction of an asset.

PI (Principal Investigator): has primary responsibility for managing sponsored project awards. Responsibilities include managing the work of the project and responsible spending of project funds.

Property: any item, whether or not it is an operable or a complete unit, that was donated to Dartmouth or purchased with gift, grant, contract, or unrestricted general funds. Title is vested in Dartmouth unless there are specific provisions reserving rights for another party, such as when property is purchased with federal funds.

PTAEO (Project, Task, Award, Expenditure Type and Org): the account string used in Oracle Grants Accounting to track expenses. 

PwC (PricewaterhouseCoopers): the external firm which performs the annual audit of Dartmouth’s financial statements.

Purchasing Power: inflation-adjusted value of assets; expresses asset values in terms of amount of goods or services that an organization can buy.

-Back to Top-

R

Renewal: an expense on the internal income statement which contributes to a non-operating renewal fund. These renewal funds provide a funding source for construction projects.

Renovation: ccnstruction activity that changes and/or improves the function of all or part of a facility. May be capitalized if the actual cost is at least $50,000, or if the project adds usable space. Renovations costing less than $50,000 will be expensed in the current period as repairs and maintenance. 

Replacement: the substitution of a similar part for an original part. If the replacement does not significantly increase the capacity, efficiency, or economic useful life of the original item than these costs, regardless of dollar amount, should be recorded as repairs and maintenance expense, not added to the value of the original asset, or recorded as a separate asset.

Repairs expense: repairs and maintenance expenses are defined as any cost incurred to maintain the existing item that does not significantly increase the capacity, efficiency, or economic useful life of the original item. These costs, regardless of dollar amount, should be recorded as repairs and maintenance expense, and not added to the value of the original asset or recorded as a separate asset.

Reserves: another term used to describe the net assets of a nonprofit organization; typically, this represents the amount of cash available to spend.

Revenue: amount earned from investing or performing services.

RFM (Restricted Funds Management): Dartmouth’s classification system created to categorize endowment and current-use gift funds based on their degree of restriction from the donors. The ranking system has four levels, with Category 1 being least restrictive and Category 4 being most restrictive.

Right of Use Asset (Lease): a lessee is required to record a right-of-use asset equal to the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, and any initial direct costs incurred by the lessee (pursuant to ASC 842-10-30-9 through 30-10).

ROI (Return on Investment): net amount of earnings derived from the investment of cash in an activity or acquisition of an asset. ROI is typically expressed either as a net dollar amount or as a rate of return over a long period of time. 

RTM (Return to Market): when endowment earnings are not distributed to programs but are reinvested in the endowment and added to the market value, usually at the direction of the College.

RTP (Return to Principal): when endowment earnings are not distributed to programs but are reinvested in the endowment and added to the book value, usually at the direction of the donor.

Rounding: Reported time is rounded to the nearest quarter hour for all non-exempt and union biweekly employees, except non-exempt student employees. Time worked of 7 minutes or less of the quarter hour, will round down and 8 minutes or more will round up. 

-Back to Top-

S

Scrap (Recycled or Salvaged) Equipment: item that can be recycled or broken down into parts for disposal or salvage. The disposal process is managed by Materials Management.

Single member LLC (Limited Liability Company): a business entity where there is no separation between the business and its owner for tax purposes and the owner is protected from business liabilities.

Software: complete set of programs, procedures, and related documentation associated with a computer system. Software is considered intangible property and is not generally recorded in the Fixed Asset Module. The value of pre-loaded computer software may be included in the cost of the equipment recorded in the Fixed Asset Module when the cost of the software is not separately identified on the invoice.

Sole proprietor: someone who owns an unincorporated business by themselves.

Special Collections: works of art, rare books, historical treasures, or scientific specimens that are held for public exhibition, education, or research, rather than for financial gain. They are protected, preserved, and subject to a formal policy that recommends that the proceeds of items sold be used to acquire other items for collections.

Sponsored Research: research that is performed by an organization and which is funded by another party, such as federal or state agency, or a private corporation or foundation.

Substantial Completion: the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents and applicable permits and approvals so that the Owner can occupy or utilize the Work for its intended use, with only minor punch list items remaining.

Subvention: non-restricted funds allocated to support spending.

Support Costs: expenses incurred by a nonprofit organization on activities (such as administration, computing, libraries, etc.) that facilitate the activities that are directly associated with the primary mission of the organization, i.e., teaching research, community service. 

Surplus Equipment: item that is no longer needed or required. The disposal process is managed by Materials Management.

-Back to Top-

T

Transferee: entity or person who is receiving title or custody of property.

Transferor: entity or person who transfers or conveys property.

TTO: an acronym used to describe the Technology Transfer Office at Dartmouth.

-Back to Top-

U

Unrecorded Work: unallowable/not permitted - work that is performed by an hourly paid employee but not recorded or documented as paid time. If an employee performs unrecorded work, they should be instructed to record it and directed not to do so in the future.

Upgrades: a change, modification, or improvement made to a piece of equipment that improves capacity, capability, efficiency, or useful life. Upgrade costs of $5,000 or more are added to the original capital or non-capital equipment.

UPMIFA (Uniform Prudent Management of Institutional Funds Act): enacted in 2006 and adopted by the vast majority of US states, including New Hampshire, UPMIFA is a uniform law that provides guidance on investment decisions and endowment expenditures for nonprofit and charitable organizations.

Useful Life: period over which a capital asset has use to Dartmouth in performing the function for which it was purchased.

Utilization Score: a score from 1 to 10 based on various metrics to determine how effective a department is spending their reserve funds.  This score helps identify funds that are underutilized and could benefit from a more efficient spending plan.

-Back to Top-

W

WCM (Working Capital Management): the goal of Working Capital Management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses.

Weighted Average Overtime: the overtime rate of pay is calculated at the rate of one and one-half times the weighted average of the multiple hourly rates during the work period. 

Weighted Overtime: when an employee has multiple assignments and different pay rates, the overtime rate is calculated based on the number of hours for each job at the weighted average overtime rate.

Working Capital: non-endowment operating funds that are invested in a mix of short-term and long-term investments that match the expected use of the funds.

Work Week: Dartmouth’s work week begins Sunday at 12:00 AM ends Saturday at 11:59 PM.

-Back to Top-