Key Terminology | Hybrid Budget Management at Northeastern University

Bad Debt
Bad debit is a reduction in tuition, room and board revenue for bad debt losses. At the close of the fiscal year, the actual bad debt is allocated out to the RCs. The bad debt amount is posted on the undergraduate or graduate tuition row in the hybrid budget model template.

Bridge Seed Funding
Funds provided by the Provost for strategic initiatives for the fiscal year. Bridge Seed Funds are posted as both revenue and expense so the bottom line is not affected.

Buy/Sell
See Undergraduate Courses in and Undergraduate Courses out.

Combined Majors
Combined majors include at least nine courses associated with each of two participating disciplines. No more than two courses may count for both disciplines, i.e., there must be at least sixteen courses in the combined major. All tuition and buy/sell calculations are split equally between the colleges that “own” the programs.

Cost Center
A central support unit whose costs are allocated out to the RCs.

Credit Card Fees
Effective 7/1/13, the University does not accept credit cards from full-time undergraduate day students, graduate students in the Doctor of Pharmacy and Doctor of Physical Therapy programs, School of Law students, and students in the N.U.in, U.S. Sino Pathways, and American Classroom programs. Units will be assessed the actual credit card fees at true-up, including those associated with EMBANET and Orbis. In addition credit cards associated with deposits and collections will be attributed to the enrolling college at true-up.

Current Fund Allocation
Funding from the University Contribution (see definition) pool allocated selectively to RCs by the Provost or Sr. V.P. to advance strategic initiatives and institutional priorities. In other RCM models, the term “subvention” is utilized.

Designated Revenue
Designated (ledger 3) and restricted (ledger 6) revenue of the RC for the current year. The designated revenue is subject to the University Contribution.

Direct Other Expenses
All other operating (ledger 2) expenses excluding salaries & benefits, and tuition waivers.

Direct Salaries & Wages
Salary and benefits (ledger 2) expenses for the RC.

Gift & Endowment Revenue
Designated (ledger 3) and restricted (ledger 6) revenue received in the form of expendable cash gifts (not gift pledges) of the RC. It also includes expendable interest generated by endowments. This revenue is not subject to the 20% University Contribution.

Graduate Financial Aid
Graduate financial aid awarded by the colleges is charged to the instructing college as a discount to revenue. All enrolling RCs now have two average discount rates; one for doctoral students and one for all other graduate students. Central Graduate Aid (MLK, Double Husky, Yellow Ribbon) administered by the Office of Financial Aid is calculated as an average discount on all graduate revenue (except CPS and SOL). This discount rate is reviewed annually in the University budget planning process.

Graduate Revenue
Graduate tuition is credited per course to the college teaching the course.
This is the gross tuition received from all graduate students taking courses (graduate or undergraduate level courses) in a college regardless of the college of their major. Revenue from undergraduates taking graduate courses in a college is reflected as undergraduate revenue under “Undergraduate Courses In”.

Hybrid Budget Model
A managerial framework used at NU to carry out internal budgeting and financial reporting activities based on Responsibility Center Management (RCM). (RCs) are the key decision making units in the Hybrid Budget Model. RCs include colleges, schools, and auxiliary units. RCs receive all revenue for their division and are responsible for all expenses.

Indirect Cost Recovery
When the University performs work for others such as the federal government through grants, contracts, and other agreements, Northeastern’s policy requires it to recover the “full cost” associated with such projects, including all direct and indirect costs. Direct costs are the costs directly identifiable to individual projects. Indirect costs, also known as Facilities and Administrative costs, are assigned to projects as a percentage of direct costs. The indirect costs paid to the University by project sponsors in this fashion are referred to as “indirect cost or overhead recovery”, and represent the recovery of costs incurred by the University to provide the facilities and operational support for the project. The hybrid template includes the indirect cost recovery obtained by the principal investigators in the RCs for that fiscal year including splits for interdisciplinary PIs.

International Study Programs
Tuition from NU International Study Programs is credited 75% to ISP and 25% to the home college.

Net Graduate Revenue
Gross Graduate Revenue minus Graduate Financial Aid.

Net Undergraduate Revenue
Gross Undergraduate Revenue minus NU Undergraduate Financial Aid.

Responsibility Center “RC”
A responsibility center may be a school/college or an auxiliary operation (Parking, Residential Life, etc.)

Space
Space costs including utilities, lease costs, depreciation, facilities administration, maintenance, custodial, debt and related central costs are assessed based on the square footage categorized by type (research and non-research) assigned to the RC. Cost Centers’ space charge is indirectly allocated out the RCs.

Sponsored Research Direct Revenue
Sponsored Program expenses for the RC for the fiscal year.

Stat Date
Official census date for enrollment reporting. The date is tied to the last day to drop an undergraduate course without financial or grade penalty.

Total Indirect Cost Recovery
The total of indirect costs (also known as ICR, indirects or overhead) received from grants obtained by principal invesdigators in a college for the current year.

University Contribution
The charge assessed to all RCs calculated as a percentage of all revenues, except direct grant funding, pass-through revenue, and gift/endowment income. The UC flows to a central pool that enables the President and Senior Leadership Team to award funding for the current fund allocations and/or strategic initiatives that support NU’s priorities.

Undergraduate Courses In
The portion of the tuition the instructing college earns for teaching undergraduate majors from other home colleges. The instructing college will receive 50% of 1/16th of the full-time undergraduate tuition for each credit hour taught.

Undergraduate Courses Out
The portion of the tuition a college pays to another college for the courses they teach to the home college student majors. This is calculated as 50% of 1/16th of the full-time undergraduate tuition for each credit hour taken.

Undergraduate Financial Aid
The average NU financial aid awarded to all undergraduates regardless of College.

Undergraduate Tuition
The gross tuition received from undergraduate students majoring in a college, regardless of the college in which they take their courses. Undergraduate tuition is credited per student to the college of their major. At the close of the fiscal year, the actual bad debt amount based on a University-wide blended rate is posted on the undergraduate tuition row in the hybrid budget model template.