Glossary

DEFINITIONS

Academic Support Activity (Activity) - A recharge or income activity within an academic unit or academic support unit that provides, at an approved rate and on a regular basis, goods or services to a specific group of users. Examples include testing services, computer services, and illustration services. Typically, an academic support activity may have a combination of recharges and income.

Capital Costs - Costs of fixed assets, such as equipment, building and certain building improvements, which provides benefit for an extended period.

Control Unit - The larger unit within which individual ANR units fall. Example includes the Office of the Assistant Vice President for Programs (for Academic Support Units and Statewide Programs).

Direct Costs - Costs that can be consistently and specifically identified with the provision of goods or services by an activity. Examples of such costs are salaries, benefits and cost of materials, maintenance agreements, and supplies.

Depreciation- Depreciation is an accounting term that recognizes that a capital asset’s value is spread out over its useful life. The asset is “consumed” over an extended period of time, typically several years. This period is called the useful life of the asset.

The activity should use the UCOP recommended useful life tables to calculate depreciation.

Equipment Replacement Reserve Fund - The accounting mechanism used to segregate and accumulate funds needed for future equipment acquisitions.

Facilities and Administrative (F&A) Cost Rate - (See Indirect Costs below).

Income - Revenue received by a unit from the sale of goods or services to an organization not affiliated with the University or to individuals regardless of their affiliation.

Income Activity - An ANR unit that provides, at approved rates, goods or services to an organization not affiliated with the University or to individuals regardless of their affiliation.

Indirect Costs - Costs that are incurred for common or collective institutional objectives. In OMB Circular A-21 (and particularly when related to sponsored activities), these costs are also called Facilities and Administrative (F&A) costs. This is sometimes also referred to as “overhead.”

Miscellaneous Sales Activity - Any ANR recharge or income activity not classified as an academic support activity. Examples include real property rental or lease activities, crop sales, publications sales, orientation programs, conference programs and field days.

Non-University Differential (NUD) - An amount added to an approved recharge rate to recoup certain indirect costs from Non-University entities.

Non-University Entity - An entity or person over whom the University has no fiduciary responsibility, regardless of the user’s relation to the University’s mission; e.g., staff personnel and academic staff acting in a personal capacity, other Universities (non-UC), commercial entities, and the public at large.

Recharge - The assessment and collection by one University unit of an approved fee for goods or services furnished to another University unit. In general, a recharge reflects the sale, at approved rates, of goods and services by one unit to another.

Recharge Activity - An ANR unit that provides, at approved rates, goods or services to other University units.

Rate Review Committee - ANR Rate Review Committee is advisory to the Associate Vice President. The Committee reviews new activities for compliance with Federal regulations and University policies and makes recommendations for approval to the Associate Vice President. The committee also reviews proposed rates submitted by ANR units to ensure compliance with University and Federal policies and regulations. The Committee also functions to review on an ongoing basis the policies and procedures contained in this document to assure that they are current and relevant and updates them as necessary.

Unrelated Business Income - A type of income resulting from sales of goods or services to individuals or non-University entities. If sales are not substantially related to University educational, research or public service purposes, proceeds from the sales are considered unrelated business income and are subject to Federal income tax reporting requirements. Examples are machine shop services and computing services to non-University entities.