| Average Cost Valuation Method |
The Average Cost inventory valuation method assigns a cost to inventory items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced. |
| Auxiliary Enterprise Fund |
Auxiliary enterprise funds furnish goods or services either internally or externally and charge a fee directly related to the cost of the goods or services. The auxiliary enterprise fund at IU is broken out between auxiliary funds and service funds. |
| Auxiliary Fund |
The auxiliary fund is an enterprise that furnishes goods or services to students, faculty, or staff and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. This means that the entity is self-supporting. |
| Contra Asset |
A contra asset object code is an offset to another asset code (i.e. accounts receivable or capital assets) and typically acts as a reserve to reduce the associated asset code. |
| External Agency Fund |
This fund group is in direct relationship with the university mission and acts as reimbursement to the university for use of university property or service. This fund is managed by individual campuses and fiscal officers. |
First In, First Out (FIFO) Valuation Method
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The First In, First Out (FIFO) method of inventory valuation is based on the assumption that the sale or usage of goods follows the same order in which they are bought. In other words, under the First In, First Out method, the earliest purchased or produced goods are sold and expensed first. Therefore, the most recent costs remain on the balance sheet, while the oldest costs are expensed first. |
| Fund Accounting |
Fund accounting is an accounting and reporting system commonly employed by independent colleges and universities to keep track of resources whose use is limited by donors, granting agencies, law, other outside individuals or entities or by governing boards. A fund is maintained for each specific purpose. |
| Generally Accepted Accounting Principles (GAAP) |
US Generally Accepted Accounting Principles (US GAAP) is the combination of authoritative standards (requirements) and the commonly accepted ways of recording and reporting accounting information. |
| Governmental Accounting Standards Board (GASB) |
The organization responsible for establishing accounting and financial reporting standards for state and local governments and those entities that are funded by state and local government. |
| Internal Agency Fund |
The internal agency fund acts as the fiscal agent or trustee for the university. For financial reporting purposes, this fund group balance is reported as unrestricted at fiscal year-end. Common uses of this fund include withholdings for taxes for employees and sales tax. This fund group is managed internally by UCO. |
| Last In, First Out (LIFO) Valuation Method |
Last In, First Out (LIFO) is an inventory valuation method based on the assumption that assets produced or acquired last are the first to be expensed. In other words, under the Last In, First Out method, the latest purchased or produced goods are removed and expensed first. Therefore, the old inventory costs remain on the balance sheet while the newest inventory costs are expensed first. |
| Recharge/Service Center |
Furnishes goods or services to another Indiana University department for the convenience of the university and charges a fee directly related to providing the goods or services, and not more than the allowable costs. |
Retail Inventory Valuation Method
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The Retail Inventory valuation method calculates inventory value by comparing the cost of the goods to their retail prices, using a cost-to-retail ratio. This measures the cost of inventory relative to the price of the goods. |
| Service Fund |
Service fund is an enterprise that furnishes goods or services to other internal university departments and charges a fee directly related to, and equal to, the cost of the goods or services. This means that the entity is self-supporting but is not allowed to make a profit. |
| Specific Identification Valuation Method |
The Specific Identification inventory valuation method calculates cost of goods sold by keeping track of each specific item in inventory and assigning costs individually instead of grouping items together. |
| Uniform Guidance |
Uniform Guidance is a set of authoritative rules and regulations about federal grants from the Office of Management and Budget (OMB).
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