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Budget Terms & FAQs

Accounting Codes

What are Accounting Codes and how are they used at the University of Richmond?

Accounting Codes are an important aspect of the Chart of Accounts, in that they serve as a classifier for how the transaction should be treated. The University of Richmond uses Account Codes to determine where to post specific transactions, and to identify where they should be displayed on financial reports. Frequently Used Accounting Codes

Annual Fund

What is an Annual Fund and how does the University of Richmond use the Annual Fund?

An Annual Fund consists of an organized effort to obtain gifts on a annual basis to support, or at least in part, general operations of an organization.  At the University of Richmond, the Annual Fund is a way for the loyal community of friends, faculty, staff, students, and parents to support daily operations.  Every year, gifts to the Annual Fund cover the university's biggest priorities, including scholarships, student life programming, and technology upgrades.  

Auxiliary Units

What are Auxiliary Units and how are Auxiliary Units handled at the University of Richmond?

Auxiliary Units are self-supporting entities that exist primarily to furnish goods or services to students, alumni, faculty, and staff acting in a personal capacity, and charge a fee for the delivery of goods or services. Examples of auxiliary units at the University of Richmond are units such as Campus Services and Facilities.

Budget Amendment

What is a Budget Amendment?

At the University of Richmond, budget amendments reflect a revision to an adopted budget as well as changes that occur throughout the fiscal year.  After the working budget commences, all other budget adjustments are performed as an amendment.  

Budget Rule Class Codes

What are Budget Rule Class Codes and how are they used at the University of Richmond?

Budget Rule Class Codes are abbreviations that will help budget stakeholders understand the transactions posted in a Financial Accounting System.

The University of Richmond uses Budget Rule Class Codes as a short-cut to describe the type of transaction (Temporary, Continuing, Permanent).

Rule Class Description Purpose
Historical New
BD01 (document type L) BD10 Permanent adopted budget Continuing budget approved by the Board
BD01 (document type J) BD20 Permanent budget adjustments Continuing budget adjustment
NA BD30 Temporary adopted budget Temporary (one-year) budget approved by the Board
BD02 BD40 Temporary budget adjustments Temporary (one-year) budget adjustment
BD03 BD03 Accounts Payable Encumbrances Temporary budget adjustment to increase budget for prior year encumbrances
BD04 BD41 Temporary carryforward budget adjustment Temporary budget adjustment to increase budget for approved carryforward
BD99 BD99 Original Budget - Batch Temporary budget adjustment process to increase budget for available cash at the end of the year in current restricted funds
Budget Reports

What is a Budget Report and how can I receive one?

The University of Richmond provides its budget stewards with a monthly budget report reflecting informational data regarding the units monthly financial transaction history. Budget Reports are emailed to the assigned steward and reconciled on a monthly basis.   

If you would like to receive a budget report or if you would like to make a change to your current budget report distribution process, complete the Monthly Budget Report request form and please email it to Within your email please include the fund, org, and activity (if applicable).

Capital Budget

What is the University of Richmond Capital Budget?

The University of Richmond's capital budget consists of a plan of noted capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from long-term work programs.

Continuing Budget

What is the University of Richmond Continuing Budget?

University of Richmond's continuing budget plans for expenses that would continue on an annual basis.

Cost of Attendance

How is the Cost of Attendance at the University of Richmond determined?

The University of Richmond's cost of attendances is an estimate of the total costs of attending for one year.  This figure includes all reasonable expenses such as tuition, room and board, books and supplies, personal expenses, and transportation.  Students may have higher actual costs due to additional fees, meal plan selection, etc.

Discount Rate

How is the Discount Rate applied at the University of Richmond?

The discount rate is a calculation of the amount spent on total aid funded by the university divided by gross tuition and fee revenues at the University of Richmond.


What is an Encumbrance and how is it used at the University of Richmond?

An encumbrance is a budgetary commitment and estimate of the salary and benefit expenses which will occur for the future. Budget stewards will typically see an encumbrance commitment on their budget report, and may use it as a predictor of budgetary commitments for position management.

Endowment and Endowment Fund

What are Endowment Funds and how does the University of Richmond manage the Endowment?

Endowment Funds are funds placed in a special account that are established in order to generate revenue that will be used for a specific purpose. Funds of this type are sometimes established to create a revenue stream to fund research projects, provide scholarships to qualified applicants, or even to supply aid to individuals who apply to the fund for financial help. An endowment fund is designed to function in perpetuity, making it possible to provide financial support over the long-term.

The University of Richmond endowment fund grows when donors or the Board of Trustees specify that a gift is to be invested and only the income earned on that gift may be spent for a specific purpose.  The University of Richmond's endowment was valued at more than $2.1 billion as of March 31, 2014.  The endowment provides significant annual income that supports the university's operations, thereby reducing Richmond's dependence on tuition, fees, and other revenue.

Excess Salary

What is Lapse Salary?

Your department may have excess salary funds if your area has vacant positions. This may come from a positon that your area does not anticipate filling immediately. For additional information on how to use your lapse salary funds please view this policy.

FOAPAL and Chart of Accounts

What is a FOAPAL?

A FOAPAL is Banner's six element structure equivalent of a departmental hierarchy standing for fund, organization, account, program, activity, and location. 

Below is a table describing each segment.




Where did the money come from?

Organization (Org)

Whow is responsible for the money?


What kind of transaction is taking place? What is the money being spent on?


How does this transaction compare to other universities? How is the transaction being reported?


Used for tracking specific activities that cross funds/orgs (not required)


Identifies the location of equipment (Fixed Assets)

**This field is not currently used by the University**


Although not part of the FOAPAL it plays a large role in data entry. It is a convenience tool, replacing the need to enter the entire FOAPAL string, generally, with the exception of account

Fringe Benefits

What are the University of Richmond's fringe benefits?

University of Richmond's fringe benefits are labor commitments or payments to a worker that are in addition to salary or wages. Fringe benefits account for items such as health insurance, pension plans, and paid vacations.

Financial Aid Terms

What is HEPI?

HEPI is an acronym that describes The Higher Education Price Index (HEPI).  HEPI is a measure of the inflation rate applicable to higher education in the United States.  Like many of other universities, The University of Richmond uses HEPI to measure the average relative level in the prices of a fixed market basket of goods and services typically purchased by colleges and universities through current-fund educational and general expenditures, excluding expenditures for research.


What is an Index and how can I monitor my index activity?

The University of Richmond uses the term "index" as a term to describe the short-cut to the FOAPAL. The Index is connected to the department's organizational code. Budget stewards may monitor index/org information in Banner, Bannerweb, and on their monthly budget report. Request for reporting and Banner access can be made by completing the Monthly Budget Report request form and forwarding it to  Within your email please include the fund, org, and activity (if applicable).

Macro Budget Forecast

What is the Macro Budget Forecast and how does the University of Richmond utilize the MBF?

The macro budget forecast represents a plan for spending based on the entirety of an organization's budgeted resources. The University of Richmond uses the macro-budget forecast to manage macro-budgetary activities that include the annual budget deficit, as well as spending allocations that are provided to an organization's stakeholders in the form of appropriations.

Net Tuition Revenue

What is Net Tuition Revenue and how does the University of Richmond use Net Tuition?

Net tuition revenue is the income from tuition and fees less institutionally funded spending on financial aid.  The University of Richmond manages all tuition and fees as well as the net of all institutional grant-aid provided to students as a portion of its unrestricted budget.

New Funding

New Funding request should cover new operating and position expenses in the upcoming fiscal year.  The funding requests are differentiated as continuing or temporary.

  • Continuing: Expenses that would continue on an annual basis
  • Temporary: Expenses that are expected to incur in one fiscal year only, such as funding to create a new marketing brochure

The budget request workbook should be used to request additional funding in excess of the fiscal year budget. Detailed instructions can be found within the template distributed annually. The vice president or dean will submit a narrative to OPB, along with the budget request workbook. The workbook consolidates all departmental requests for new funding into one Divisional request, ranked in order of importance. All requests for new funds/position should be added to the budget request workbook.

As you consider new money requests and planning for the future, we suggest the following principles:

  • Faculty & staff salaries are a top priority.
  • The University budget must remain in balance.
  • The University must maintain a modest growth in net revenue by growing revenue and carefully monitoring expenses.
  • The budget should reflect the actualization of our plans, most notably the priorities articulated in The Richmond Promise.

Budget requests are not-to-exceed figures and final funding is subject to adjustments up to the approved amount.

The division should strive to reallocate resources in order to achieve as many of our strategic objectives as possible. To assist with this review, a reallocation report with further instructions will be sent directly to each personnel with budget responsibilities.

New Funding (New Position)

Complete the New Positions Request Form for either faculty or staff along with a written justification for any new position. In addition, please complete a Position Description Form, as Human Resource Services must review and grade new positions.

  • For Faculty Positions: If requesting a new faculty position, complete the Recruitment Authorization Form (RAF) and submit to the Provost Office
  • For Staff Positions: If requesting a new staff position, a position description form does not need to be submitted to HR until after the position has been approved by the P&P Committee.  However, HR must be consulted regarding the expected salary range for any staff position requested as a new funding request. 
  • For Student Positions: If requesting a new student position, your request will be submitted to the financial aid office (Lisa Williams-Nash) by OPB for review.  If funds can be reallocated by Sue Young, it will be approved and you will be notified by OPB.  If funds cannot be reallocated, your student position will be presented to P&P for consideration.

The Obligatory Budget Request template should be used to request an increase to your division's base budget as required by obligations that significantly limit the unit's ability to continue current activities due to:

  • Compliance mandates (i.e. unit accepting credit cards requires software to be legally compliant)
  • Contractual obligations (i.e. renewing software license)

Detailed instructions can be found within the template. OPB should receive the obligatory request workbook by October. Obligatory budget approvals will be communicated by mid-November.

Operating Budget vs. Capital Budget

What is the difference between Operating Budget and Capital Budget?

University of Richmond's operating budgets involve the university's ongoing, year-to-year operations and are primarily funded through tuition revenue; a.k.a. the Unrestricted Budget.  The Capital Budget is a plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from long-term work programs.

Position Budgeting

What is Position Budgeting?

Position budgeting at the University of Richmond is a process used to manage funds used to budget, reallocate, and fund additional personnel costs by position.  The position budget is created for a specific position that is needed for a department or school.

HR Forms

Faculty Recruitment Authorization Form

Staff Recruitment Form

Steps Regarding Requests for Funding


A budget reallocation request is to modify or establish the current budget of an account. Reallocating implies that there is an existing current budget in an area that is being adjusted, with the intended result being a decrease of current budget in one location, with an increase to the current budget in another location.

Reallocation Types

  • Annual Reallocation Request – annual review by departments to realign budgets with goals and spending
  • Ad hoc Reallocation/Budget Amendment – allocation to move budget to meet current year needs
    • BD20 – Continuing budget adjustment
    • BD40 – Temporary budget adjustment

What does the term reconciliation mean and how does it relate to budget reporting? 

When budget stewards receive the monthly budget report or view funds in Banner Finance (FGIBDST), it is a common practice to reconcile the report or transaction history. The University of Richmond recommends that budget report recipients review the organization's current budget, revenues, expenditures, commitments (encumbrances) and available balances to identify errors, irregularities, or opportunities to reallocate funds.  

Where do I look?

  • Bannerweb-Finance
  • Monthly Budget Report

What is a a Reserve?

The University of Richmond's reserve is an account set aside to meet any unexpected costs that may arise in the future as well as the future costs of upkeep.

Restricted Revenue

What is the Restricted Revenue?

The restricted revenue at the University of Richmond includes all contributions which are not expendable by the organization.  Restricted revenue consists of contributions with donor-imposed restrictions which limits the use of the funds.  Restriction can be purpose-restricted or time-restricted.  An example of restricted revenue is a gift to a particular scholarship fund at the University of Richmond.


What is ROADS?

ROADS is best described as the Universities data warehouse reporting system or a centralized repository for the Universities data. This data warehouse is designed to facilitate query and analysis, and is complimentary of the existing operational system, Banner. Analytical in nature, ROADS also contains the same transaction level data as Banner. For this reason, The Office of Planning and Budget has determined that it is in the University’s best interest to migrate budget reporting to ROADS.


Operational &




Temporary Budget

What is the Temporary Budget?

University of Richmond's temporary budget plans for expenses that are expected to incur in only one fiscal year, such as funding to create a new marketing brochure.

Transfer of Funds

What are Transfers of Funds?

University of Richmond's transfer of funds is an accounting transaction that includes a reclassification of item(s) incorrectly charged or movement of actual expenses between restricted/unrestricted funds. Payments may also be received via electronic funds transfer.

Unrestricted Revenue

What is Unrestricted Revenue and how do we account for it at the University of Richmond?

The unrestricted revenue at the University of Richmond is the money given to a non-profit organization by a donor, and the organization is free to use the resource at will or as they deem appropriate. 

Contact Us

Maryland Hall, G-17                    Our goal is to reply to your request no later than the end of the following business day.  Please feel free to call us at (804) 289-8880 if you need immediate assistance.