Budget
- Last updated 12/12/2025
- Systemwide Budget Amendment Request Form
Functions and Definitions
The functions and definitions that follow should be used as the basis for assigning function costs in the Common Book. The sub-function definitions that are included may help to clarify function definitions.
These definitions are based upon the expenditure classification guidelines appearing in sections 332 through 343 of the Financial Accounting and Reporting Manual for Higher Education, published by the National Association of College and University Business Officers (NACUBO). UW System (UWS) departures from NACUBO definitions are documented in Attachment 1. In all other cases, the NACUBO definitions appear verbatim or are paraphrased. The function and sub-function definitions are supplemented by additional instructions which list specific items included or excluded.
Existing policies on UW System Administrative Policy 322, Physical Plant Service Chargebacks should be carefully reviewed prior to preparation of the annual budget, as should the policy on UW System Administrative Policy 316, Auxiliary Enterprises Support Services Chargebacks. In addition, as described in Attachment 2, costs of certain general support services (duplicating, printing, clerical, telephone, external mail, fleet, and administrative data processing) should be distributed to the benefiting function. All other general support services should be included under the function which is descriptive of the service provided and not reflected as a cost to the user of the service. An appropriate charge for the use of academic computing services should be made to the Research and Public Service function; the decision to charge instructional departments for academic computing services is an institutional prerogative.
Where an operating department provides an administrative service to the entire institution, the cost of providing that service should be included under the appropriate administrative function. For example, if an academic data processing department is responsible for all purchasing services related to computers, the associated costs should be identified with the function within which the purchasing function is included.
Student employment should be budgeted in the employing function, not as financial aid.