Glossary

Term

Definition

Amortized Debt

Debt service includes payments towards principal and interest

Capital Project

A construction project to build, improve, or maintain a physical asset

Credit Rating

An assessment by one or more credit rating agencies of an institution's creditworthiness, measuring the likelihood of it defaulting on its debt

Current liabilities

All liabilities that are payable within the next fiscal year

Debt Capacity

An estimate of how much debt can be issued within existing credit ratings

Debt Service

Payments of principal and/or interest on outstanding bonds

Equities

Publicly-traded stock issued by corporations

Fixed Income

Fixed income is a class of assets and securities that pay out a set level of cash flows to investors, typically in the form of fixed interest or dividends. Government and corporate bonds are the most common types of fixed-income products.

Interest-only Debt

Bonds with debt service consisting only of interest payments that need to be refinanced at maturity

Internal Bank

Mechanism to fund departmental capital projects at a predictable, blended interest rate (internal loans)

Maturity

The end date of a bond when the final payment is due

Moody's

Credit Rating Agency

Noncurrent liabilities

Liabilities that are due to be paid beyond the next fiscal year

Restricted assests - expendable

Resources that are available for expenditure by the University

Restricted assests - nonexpendable

Resources that have been set aside and invested as required by the provided of the resources

Standard & Poors

Credit Rating Agency

State Appropriations

Funding from the State to support University operating costs

State Paid Fringe

Funding from the State to support some of the University fringe benefit costs

Unrestricted assets

Available to the institution for any lawful purpose