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Glossary Terms Directory

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TermFilterDefinitionFilter
Account code
Six-digit accounting code representing a revenue or expense classification type, such as academic salary expense or travel.
Account number
The 16-digit account number that appears in print on the front of all valid credit cards.  The number is one of the card security features that should be checked by merchants to ensure that a Card Present transaction is valid.
Accountability
The obligation to account for or be answerable for one’s actions. One of four critical policy activities.  Ensures that a person who has been delegated responsibility for a task has the knowledge and skills needed to perform the job duties appropriately and is actively involved in the task being performed.
Accrual
Accounting method used to report income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid.
ACH
An abbreviation for Automated Clearing House, a widely used system for processing automated electronic deposits directly into and withdrawals from bank accounts. 
Activity code
Six-digit accounting code that, at the option of a campus department or program, may be used to classify financial transactions in ways useful to the department or program.
Approve
To agree that a transaction has been authorized, and that the document recording it is accurate and consistent with relevant University policies and procedures. The person agreeing must have the delegated authority to perform that function.
Asset custody duties
A person who has access to cash, safes, lock boxes, file cabinets, etc. where cash, returned checks or other assets are stored.
Audit Logs
A registry that shows the identifier, date, and time that the stored data is accessed.
Authorization
The process by which a card issuer approves or declines a credit card purchase.  Authorization occurs automatically when you swipe the magnetic stripe of a payment card through a card reader.  See also: Voice Authorization Center
Authorization duties
Duties that are normally performed by a supervisor, office manager, or department head and that include the review and approval of transactions - especially unusual transactions such as voids, refunds and cash transfers.
Authorize
To agree to the commitment of funds for a specified use; authorization can only be given by a person who is responsible for the funds in question.
Background check
A process conducted on volunteers and final candidates for critical staff/student position.  The process includes an investigation of state and Federal criminal history through the California Department of Justice (DOJ) Live Scan Fingerprinting process.  Contact Staff Human Resources to schedule a background check.
Call or Call Center
A response to a merchant's authorization request indicating that the card issuer needs more information about the card or cardholder before a transaction can be approved; also called a referral response.
Card expiration date
See: Good Thru date
Card security features
The alphanumeric, pictorial, and other design elements that appear on the front and back of all valid credit and debit cards.  Card-Present merchants must check these features when processing a transaction at the point of sale to ensure that a card is valid.
Card Verification Value 2 (CVV2)
A fraud prevention system used in card-not-present transactions to ensure that the card is valid.  The CVV2 is the three or four digit value that is printed on the back of credit cards.  Card-not-present merchants ask the customer for the CVV2 and submit it as part of their authorization request.  For information security purposes, merchants are prohibited from storing CVV2 data.
Cardholder
The person to whom a credit card is issued.
Cardholder Information Security Program (CISP)
A program that establishes data security standards, procedures, and tools for all entities - merchants, service providers, issuers, and merchant banks - that store cardholder account information.  CISP compliance is mandatory.
Card-Not-Present
A merchant, market, or sales environment in which transactions are completed without a valid credit card or cardholder being present.  Card-not-present is used to refer to mail order, telephone order, and Internet merchants and sales environments.
Card-Present
A merchant, market or sales environment in which transactions can be completed only if both a valid credit card and cardholder are present.  Card-Present transactions include traditional retail - department, grocery, and electronics stores as well as boutiques, etc. - cash disbursements, and self-service situations, such as gas stations and gorcery stores, where cardholders use unattended payment devices.
Cash
A term used in the UC cash handling policy that includes checks, currency, coin, e-commerce/ACH, money orders, securities, travelers checks, or other property easily converted to currency.
Cash handler
There are two definitions for the term 'cash handler'.  First is a generic definition that identifies any person who handles/processes cash as a cash handler without regard to frequency or dollar amount. 
 
In addition, the term, as used in the UC Cash handling policy, identifies specific persons who frequently handle cash, process payments and prepare deposits to a main cashiering station.  In general, this person operates cash handling equipment, e.g. a cash register.  In BUS-49, a unit with this level of activity is called a sub-cashiering unit.
Cashier
As used in the UC Cash handling policy, this term refers to a person who works in a main cashiering station.  The primary function of this individual is cash handling, payment processing and preparing deposits that go directly to the bank.
Change fund
Cash fund used by a campus department to provide customers with change for transactions involving cash sales of departmental products or services.
Chargeback
A transaction that is returned as a financial liability to a merchant bank by a card issuer, usually because of a disputed transaction.  The merchant bank may then return or "charge back" the transaction to the merchant.
CISP
Cardholder Information Security Program developed by Visa and applicable to all merchants who accept Visa credit cards.
Code 10 call
A call made to the merchant's voice authorization center when the appearance of a card or the actions of a cardholder suggest the possiblity of fraud.  The term "Code 10" is used so calls can be made without arousing suspicion while the cardholder is present.  Specially trained operators then provide assistance to point-of-sale staff on how to handle the transaction.
Copy request
A request by a card issuer to a merchant bank for a copy or facsimile of a sales receipt for a disputed transaction.  Depending on where sales receipts are stored, the merchant bank either fulfills the copy request itself or forwards it to the merchant for fulfillment.  A copy request is also known as a retrieval request.
Cost sharing
Program or project costs not paid by the sponsoring agency. Usually represents costs associated with a sponsored award that are paid by using matching funds provided by UCSC.
Cost transfer
After-the-fact reallocation of costs, either salary or non-salary costs, to another FOAPAL within a 120 day period from the close of the month in which the original charge posts to the ledger.
Cost, unallowable
A cost not directly chargeable to a federally-sponsored award or includable in the UCSC indirect cost pool calculation.
Credit receipt
A receipt that documents a refund or price adjustment a merchant has made or is making to a cardholder's account; also called a credit voucher.
Cross Shredding
The process of using a shredder to cut paper both vertically and horizontally to more completely destroy documents.
Currency
A form of money in actual use as a medium of exchange.
Degaussing
One way of completely removing information from electronic media so that it can no longer be retrieved.  Degaussing demagnetizes the media, which erases the data.
Delegation of Authority (DoA)
Division of authority and powers downwards to the subordinate. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.
Departmental cash handler
A person who only occasionally handles cash or processes deposits to a main cashiering station.  Examples of the types of funds that may be received and processed include gifts, donations, and telephone or photocopy reimbursements.
Depreciation
The systematic annual reduction in the value of a long-lived asset costing more than $5,000 from wear-and-tear or obsolescence. For recharge units, depreciation represents the method by which funding is set aside to establish equipment replacement reserves.
Direct cost
Costs specifically associated and identified to a particular project, program or activity.
Disclosure
Merchants are required to inform cardholders about their policies for merchandise returns, service cancellations, and refunds.  How this information is conveyed, or disclosed, varies for Card-Present and Card-Not-Present merchants, but in general, disclosure must occur before a cardholder signs a receipt to complete the transaction.
Dual custody
The involvement of at least two individuals in critical cash transactions to check each other and reduce the risk of a loss occurring.
Effort reporting
Process of recording and certifying personal effort devoted by a faculty or staff member to a sponsored research grant or contract.
Encrypted data
Data converted to a code for security purposes
Encumbrance
In a departmental budget, an encumbrance expense, indicates that a service or product will be paid from a certain FOAPAL but has not yet been paid.
Endorse a check
To sign, stamp, or imprint the back of a check as evidence of the legal transfer of its ownership.
Entertainment, exceptional
An entertainment, meeting meal or refreshment expense that exceeds the per-person maximum spending rates for events such as employee morale, retirement, holiday employee receptions and fundraisers that include a cash contribution in the registration/meal fee. 
Entertainment, standard
Entertainment or meeting meal or refreshment expense that does not exceed the per-person maximum spending rate, and is not classified as exceptional in nature
Equipment, inventorial
Equipment, costing $5,000 or more, having a useful life of one year or more.
Expense
Cost incurred for engaging in activities that generate revenue, such as instruction and research.
External Scans
A process performed by a PCI-certified assessment partner to scan the IP address of the Web portals that accept credit card information for vulnerability in firewalls, virus protection, software, and security.  UCSC uses Trustwave to conduct these scans and administer PCI questionnaires.
Fabrication
Creation of a piece of inventorial equipment constructed by combining or assembling pieces to make one system.  Work is usually performed by campus personnel in a campus shop or laboratory.
Facilities & Administrative (F&A)
See "Indirect Cost"
Fiduciary
  1. Any person responsible for the custody or administration, or both, of property belonging to another, as, a trustee.
  2. Of, relating to, or being a trustee or trusteeship.
  3. Held in trust.
  4. One such as an agent of a principal or a company director, that stands in a special relation of trust, confidence or responsibility in certain obligations to others
Firewall
A security tool that blocks access from the Internet to files on a merchant's or third-party processor's server and is used to ensure the safety of sensitive cardholder data stored on a server.
Fiscal year
The twelve-month accounting period ending on June 30 upon which the University's annual financial reports are based.
FOAPAL
Acronym standing for the Fund-Organization-Account-Program-Activity-Location accounting code string used to account for each financial transaction.
Function code
First two digits of an organization code, which represents a specific type of institutional activity, such as instruction, research, departmental administration, public service, institutional support.
Fund code
Five-digit accounting code, each representing a specific type of funding that may be used for a particular purpose.
Fund custodian
A person who has been assigned responsibility for administering either a petty cash or change fund.
General ledger
Central accounting record of an organization that contains the accounts that make up the entity's financial statements.  Separate accounts exist for individual assets, liabilities, fund balances, revenue and expenses.  In some cases, control accounts summarize detail appearing in a subsidiary ledger (for example, vendor balances tying into the accounts payable account).
 
Official book of record for the UCSC campus consisting of balance sheet-related account balances, such as accounts receivable and accounts payable.
GL
An abbreviation for General Ledger (See above)
Good Thru date
The date after which a bankcard is no longer valid, embossed on the front of all valid credit cards.  The Good Thru date is one of the card security features that should be checked by merchants to ensure that a Card-Present transaction is valid.  Also known as the Card expiration date. 
Guest, official
The person who renders a service to UCSC or attends a meeting, conference, or event at the invitation of the host.
High-risk merchant
A merchant that is at a high risk for chargebacks due to the nature of its business.  High-risk merchants include direct marketers, travel services, outbound telemarketers, inbound teleservices, and betting establishments.
Host
An employee serving as official UCSC representative at a meeting, conference, or event who certifies to the business purpose of the gathering.
Indirect cost
Costs incurred for a common or joint purpose benefiting more than one cost objective and which cannot be readily assigned to a particular project, program or activity.
Individual accountability
For financial control purposes, individual accountability is the delegation of authority to qualified persons to initiate, approve, process and review business transactions and the holding of those persons responsible for the validity, correctness and appropriateness of their actions. 
 
Each individual's involvement who touched a transaction can be identified by computer ID, cashier ID on a cash register, handler ID on an endorsement stamp, signature or initials any of which uniquely identify the individual.  
Individual Taxpayer Identification Number (ITIN)
A tax processing number issued by the Internal Revenue Service to people who are not eligible to receive a Social Security Number (SSN). An ITIN begins with "9" and has the same format as a SSN (###-##-####).
Internet Protocol address
A unique number that is used to represent individual computers in a network.  All computers on the Internet have a unique IP address that is used to route messages to the correct destination.
Invoice
A formal request for payment submitted to a customer or client when requesting payment for services or goods delivered. It usually consists of a written record of a transaction. Also known as a "bill" and, occasionally, as a "statement" on the supplier's letterhead, addressed to UCSC with terms and remit address.
Key-entered transaction
A transaction that is manually keyed into a point-of-sale device.
Location code
One-digit accounting code representing the UC campus location; Santa Cruz campus is "7". Not typically used by UCSC departments.
Magnetic stripe
The black stripe on the back of every credit card.  The stripe contains magnetically encoded personal information of the cardholder as well as the credit card number.  Comparing the credit card number on the magnetic stripe to the raised credit card number on the front of the card may identify a fraudulent card.  A point-of-sale device electronically reads the information on a payment card's magnetic stripe when the card is swiped through the reader.
Mail order/telephone order (MO/TO)
A merchant, market, or sales environment in which mail or telephone sales are the primary or a major source of income.  Such transactions are frequently charged to customers' bankcard accounts.  See also: Card-not-present
Main Cashiering Station
A campus unit who deposits directly to a bank.  At UCSC there are two main cashiering stations:
  -  The main cashier's office (102 Hahn)
  -  University Extension office (UNEX)
Meals and incidentals (M&IE)
Maximum spending rate that employees traveling on UCSC business can claim per day for meals and incidental expenses, such as tips. It applies to travel within the continental United States for a period of 29 days or less.
Merchant agreement
The contract between a merchant and a merchant bank under which the merchant participates in a credit card company's payment system, accepts credit cards for payment of goods and services, and agrees to abide by certain rules governing the acceptance and processing of credit card transactions.  Merchant agreements may stipulate merchant liability with regard to chargebacks and may specify time frames within which merchants are to deposit transactions and respond to requests for information.
Merchant bank
A financial institution that enters into agreements with merchants to accept credit cards as payment for goods and services; also called acquirers or acquiring banks
Merchant location
Any university business unit that accepts credit cards as a form of payment (i.e. legal tender), including retail and web-based operations.
Operating ledger
Official book of record for the UCSC campus consisting of revenue and expense balances.
Organization code
Six-digit accounting code representing a UCSC department, program, or activity.
Payment Card Industry (PCI)
The association of credit card providers.  PCI is also the association's abbreviation for the security requirements applicable to all merchants as the standard for protecting credit card information.
Payment gateway
A system that provides services to Internet merchants for the authorization and clearing of online credit card transactions.
Per diem
Daily spending rate for both meals and lodging for employees traveling on official UCSC business outside of the Continental United States. Rates will vary depending on the destination and amount of time on travel status.
Personnel Action Report (PAR)
Form used to certify the correct allocation of salaries and wages charged to federally funded projects.
Petty cash
A fund of money used to allow employees or students to make an immediate purchase of a low-value good or service from an outside vendor in situations where other campus purchasing alternatives cannot be used. Note: Some restrictions apply regarding the items that may be purchased.
Physical inventory
Process used to verify the existence, condition, and physical location of inventorial equipment maintained by each department or program. 
Physical security
One of four critical policy activities.  Requires that the safety of people, cash and other assets is maintained and controlled.
Pick-up response
This response indicates that the card issuer would like the card to be confiscated from the customer.  However, UCSC Employees should not attempt to pick up credit cards, even when the card issuer requests this action, as this could potentially cause confrontation and safety issues.
Point-of-sale terminal (POS terminal)
The electronic device used for authorizing and processing bankcard transactions at the point of sale.
Postdate
To affix a date on a check that is later than the date the check is actually written.  The campus policy is to deposit all checks when received without regard to the check date.
Principal investigator (PI)
The Principal Investigator is the person, normally a member of the faculty or a researcher, primarily responsible for the financial management and control of project funds in accordance with University and sponsor policies and procedures. The PI bears the main responsibility for ensuring the validity and appropriateness of each direct cost charged to an award.
Printed number
A four-digit number that is printed below the first four digits of the printed or embossed account number on valid credit cards.  The four-digit printed number should be the same as the first four digits of the account number above it.  The printed four-digit number is one of the card security features that merchants should check to ensure that a Card-Present transaction is valid.
Pro-card
A purchasing card issued to an authorized employee for the purpose of making low cost purchases of routine supply items.
Purchase order
Written authorization for a supplier to provide a product or service at a specified price, becoming a legally binding contract once the supplier accepts it.
Recharge
Process used by a campus unit to fully recover the costs of providing a product or service to another campus unit.
Reconciliation
One of four critical policy activities.  A variety of comparing or reconciling functions performed by unit personnel or  Accounting Office staff to ensure that transactions are properly documented and approved, and assurance that appropriate individuals are involved. 
 
Process used to confirm the accuracy of a balance appearing in a particular operating or general ledger account by comparing the balance to that which appears in another related, but independent data source, such as a bank statement balance or subaccount ledger summary total.
Record keeping duties
This includes all duties that result in the creation and maintenance of department records of revenue, expenditures and inventories.  These records may be paper records or records maintained in an automated computer system.
Remittance
A payment sent in the mail.
Representment
A chargeback that is rejected and returned to a card issuer by a merchant bank on the merchant's behalf.  A chargeback may be re-presented, or redeposited, if the merchant or merchant bank can remedy the problem that led to the chargeback.  To be valid, a representment must be in accordance with Payment Card Industry Operating Regulations.
Requisition
A written request to order a product or service.
Revenue
Income from the sale of products or services.
Review
Process of examining an account balance or a financial transaction for validity, appropriateness, reasonableness, accuracy, sufficient funding, timely recording, proper accounting coding, and/or authorization.
Sales receipt
The paper or electronic record of a bankcard transaction that a merchant submits to a merchant bank for processing and payment.  In most cases, paper drafts are now generated by a merchant's POS terminal.  When a merchant fills out a draft manually, it must include an imprint of the front of the card.
Secure location
BFB BUS-49 defines the requirements of what constitutes a secure location based upon the amount of cash routinely stored.  Up to $1,000 can be stored in a locked desk, filing cabinet, etc. (Note: Avoid S-100 locks which are common on campus).  Amounts of $1,001 up to $2,500 must be stored in a safe.  Larger amounts must be stored in a safe that meets the requirements stated in the policy (pg. 9) and an appropriate alarm system installed to alert campus police.  Only staff who have cash handling responsibilities should have access (via key or combination lock) to the secure location.
Self-Assessment
The PCI required annual review of procedures and processes to ensure compliance with current security standards.  UCSC uses Trustwave to administer the self-assessment questionnaire.
Separation of duties
One of four critical policy activities.  A division of responsibilities for the functions that make up a process among various staff members to ensure that inappropriate transactions do not occur and that any errors are noticed and corrected.  Duties that are separated include: record keeping, authorization, asset custody and reconciliation.  Frequently refered to as Segregation of duties.
Skimming
The replication of account information encoded on the magnetic stripe of a valid card and its subsequent use for fraudulent transactions in which a valid authorization occurs.  The account information is captured from a valid card and then re-encoded on a counterfeit card.  The term "skimming" is also used to refer to any situation in which electronically transmitted or stored account data is replicated and then re-encoded on counterfeit cards or used in some other way for fraudulent transactions.
Split tender
The use of two forms of payment, or legal tender, for a single purchase.  For example, when buying a big-ticket item, a cardholder might pay half by cash or check and then put the other half on his or her credit card.  Individual merchants may set their own policies about whether or not to accept split-tender transactions.
Sponsored award
Externally-funded activity in which a formal written agreement, i.e., a grant, contract, or cooperative agreement, is entered into between UCSC and a sponsoring organization.
Sub-cashiering
As used in UC cash handling policy, a campus unit who frequently handles cash and routinely processes deposits to a main cashiering station.
Third party
A company or individual that has a relationship with the University to supply goods and/or services.  For purposes of this policy, the third party must have access to cardholder information either directly or indirectly.
Third-party processor
A non-member organization that performs transaction authorization and processing, account record keeping, and other day-to-day business and administrative functions for issuers and merchant banks.
Top level approval
An entertainment or meeting meal or refreshment expense, or a situation that meets one of the following criteria requiring approval by an authorized top level approver:
  1. Exceeds the per-person maximum spending rates for entertainment
  2. Involves an event in which the spouse, partner or family member of the event host or official guest is invited
  3. Involves an employee morale-building event, such as retirement, holiday gatherings
  4. Involves the purchase of tickets for concerts, sporting events, or other similar venues
Transaction
Any event or condition recorded in the official book of record (operating or general ledger).
Transaction
The act between a cardholder and merchant that results in the sale of goods or services.
Transfer of Expense (TOE)
Process used to transfer a previously recorded expense from one FOAPAL to another. Different forms and processes are used for a non-payroll transfer of expense (TOE) and a transfer of payroll expense (TOPE).
Transfer of funds (TOF)
Process used to transfer budgeted funds from one FOAPAL to another.
Travel advance
Cash obtained by a traveler either through a UCSC Travel Card ATM withdrawal or through the submission of a request to the FAST Office before travel expenses are incurred. Travel advances must be fully accounted for upon completion of travel.
Travel card, corporate
A revolving charge card made available to UCSC business travelers for use in obtaining business travel cash advances and paying for business travel expenses.
Trip number
Reference code assigned to travelers by the Financial Administrative Services and Transactions (FAST) Office to use in tracking travel expenses for a specific UCSC business trip.
Truncated data
Data shortened for security purposes
Unsigned card
A seemingly valid credit card that has not been duly signed by the legitimate cardholder.  Merchants cannot accept an unsigned card until the cardholder has signed it, and the signature has been checked against a valid, government-issued Photo ID, such as a driver's license or passport.
Voice authorization
An authorization obtained by telephoning a voice authorization center.
Voice authorization center
An operator-staffed center that handles telephone authorization requests from merchants who do not have electronic POS terminals or whose electronic terminals are temporarily not working, or for transactions where special assistance is required.  Voice authorization centers also handle manual authorization requests and Code 10 calls.
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