Budget 101

What is a budget?

A budget is a financial plan that compares the expected costs of a set of activities to the income those activities are projected to generate. It helps an organization assess its financial health by forecasting whether it will end a specific period with a surplus (when income exceeds costs) or a deficit (when costs exceed income). By creating a budget, organizations can make informed decisions, allocate resources effectively and monitor financial performance over time. 

Budget Basics

The University of Nevada, Reno’s budget is primarily funded through state appropriations, which include the state general fund, student registration fees and tuition. These tuition and fee structures are governed by policies outlined in NSHE Chapter 7, which provides standardized financial guidelines across institutions within the Nevada System of Higher Education. Additional revenue sources may include grants, donor contributions, and miscellaneous funds.

To support transparency and informed decision-making, the University offers access to DataDen, a centralized portal for institutional data and analytics. DataDen provides interactive dashboards and reports on enrollment, student success, faculty, and financial metrics, with access tailored to user roles.

This page provides a general overview of account types, key terms, and available training resources. If you have any questions, please feel free to contact your Budget Liaison with any questions or concerns.

How is state (FD121) funding allocated?

At the University of Nevada, Reno, we have nine state appropriations.  These include the State Instructional fund, (FD121), the Medical School, (FD110), Intercollegiate Athletics (FD122), Statewide Programs (FD123), Agricultural Experiment Station (FD103 and FD135) Cooperative Extension (FD105, FD106, and FD134), University Press (FD113), Business Center North (FD114), and the State Health Lab (FD111).

For the State Instructional fund (FD121), an Incremental Budgeting Model is utilized for the annual state budget allocation. This approach uses the prior year’s budget as a baseline, with adjustments made for academic promotions, staffing changes, approved new funding needs, fringe benefit rate adjustment (increases or decreases), etc.

This model offers a stable and predictable framework, enabling colleges and units to plan effectively while incorporating necessary modifications. Once the final budget is determined within the state budget allocation matrix, then the budget authority is assigned to the individual units, each unit will have the autonomy to re-allocate it down to their departments.

This approach allows colleges, schools and administrative units to manage their own resources while they are responsible for aligning their budgets with institutional goals and maintain a balanced operation.

For the other appropriations, the units are in control of their own allocations.

 

Account Types and Funding Sources

Every account (worktag) has one unit, one cost center, one fund and one function.  The units are the individual colleges and administrative areas.  The cost centers work as departments inside each unit. The fund relates to the funding source.

Within the University there are several types of funding sources, generally distinguished by their fund. Fund numbers will always start with “FD.” The primary fund types include:

  • FD1XX: State Funds: Funds from the state government that support public colleges operations, financial aid, and programs. Appropriations provided by the state government of Nevada and Student Fees and Tuition.  Revenue generated from student registration fees and tuition, which is a major part of the budget.  
  • FD2XX: Self-Supporting Funds: Self-supporting funds at the University of Nevada, Reno are financial resources designated for specific programs and activities that generate their own revenue, rather than relying on state appropriations. These accounts are approved by the NSHE Board of Regents and are used to manage operations that are expected to be financially independent.  Funding sources for these accounts include student fees, sales and service income, investment income or indirect cost recovery.
  • FD4XX: Gift Funds: Donor-designated funds are contributions held by universities for specific purposes like scholarships, research or operations. They may be spendable for immediate use or endowed, with only earnings used over time. These funds are managed in accordance with donor intent and University policies by the University of Nevada, Reno Foundation.
  • FD5XX: Grant Funds: Research grants are competitively awarded funds from government agencies, foundations or corporations to support original research projects. They cover expenses like salaries, equipment and supplies. Recipients must report progress and submit a final report to the funding agency.

The function relates to the intended purpose of the account.  Function numbers will always start with the “FN”.  The functions include:

  • FN10 – Instruction
  • FN20 – Research
  • FN30 – Public Service
  • FN40 – Academic Support
  • FN50 – Student Services
  • FN60 – Institutional Support
  • FN70 – Operations and Maintenance
  • FN80 – Scholarships and Fellowships
  • FN90 – Auxiliary Enterprises

Budget Expense Categories and Definitions

  • Personnel Expenses: These are the salaries, stipends, allowances and other payroll-related expenses.
  • Fringe: Refers to the non-cash compensations or benefits like health insurance, retirement contributions and tuition benefits. These are calculated using a fringe rate—a percentage of an employee’s salary—which is applied to funding sources to cover the full cost of employment. View fringe rates.
  • Operations: Costs related to day-to-day business activities, such as office supplies, equipment, utilities and other non-personnel expenses necessary for running operations.
  • Travel: Expenses incurred for work-related trips, including transportation, lodging, meals and incidental costs.
  • Hosting: Costs for organizing or hosting events, meetings, or conferences, including venue rental, catering and related services.
  • Recharge: Internal costs allocated for shared services or resources provided by other departments within the organization or by external industry partners.
  • Transfers: Movement of funds between accounts, projects or departments, typically for budget adjustments or cost allocations.

 

Account Oversight by Fund Type

For more information on this account type, please visit the entity’s official webpage.

 

Want to learn more?

For more information, please refer to our training page, FAQs and policies. If you have additional questions, feel free to reach out to pbamailbox@unr.edu.