VIII.4. Financial Vocabulary
Similar to any institution, NIU uses some financial vocabulary that chairs must know to process related paperwork and communicate easily with Business Managers. Listed below are some terms commonly used in budgeting and accounting transactions at NIU:
- Fund source – refers to the type of revenue source and is usually designated by a two-digit code such as 02, 04, etc. The different funding sources are explained in the next section.
- Cost Center – refers to a particular budget assigned to a department or project. This is usually a 7-digit alphanumeric code such as AB12345.
- Subclass codes – these are three-digit alphanumeric codes such as 01A, 02A, etc. The first two digits refer to type of activity such as instruction, organized research etc., as defined by IBHE’s classifications, and the third digit refers to a particular subclass within an activity. More information about the subclass codes can be found on the following websites:
- Account Number – refers to particular expense items such as personnel salaries (640), commodities (670), travel (830), equipment (880), etc. A complete list of account numbers and their explanations can be found on the following website: http://www.niu.edu/accounting/reference/index.shtml
All transactions should include the fund source, cost center, subclass code, and account number to indicate where a particular charge should be recorded.