Revenue and Expenses

All tuition revenue is managed within the General Fund. The Distribution of Tuition Revenue diagram illustrates the distribution of tuition revenue.

Facilities and administrative cost recovery revenue generated from sponsored funding is managed both within the General Fund and outside the General Fund. The Facilities and Administrative Cost Recovery Revenue Distribution diagram illustrates the distribution of indirect cost recovery revenue.  Facilities and Administrative (F&A) Cost Recovery Revenue is managed within and outside of the General Fund.  These two options are further expanded upon below.

As reflected in the General State Appropriation flow diagram and described below, the general state appropriations provide funding for the Resource Management Fund, resident undergraduate student financial aid, and University Administration and Support strategic funds. The Resource Management Fund is used to provide funding to support general operations of the Resource Responsibility Centers. The distribution of this fund is not formulaic but is distributed at the discretion of the President and Senior Vice Presidents.

Iowa State University receives funding from directed state appropriations to support unique aspects of its mission. Iowa State University also receives funding from federal appropriations to support its land grant mission.

Revenue Generated by student fees provide a distinct resource to maintain and enhance student experiences and is distributed directly to the relevant units.

Direct expenses are those expenses that are attributable directly to a resource unit. These expenses primarily include compensation, fringe benefits, services, supplies, travel, utilities, equipment, financial aid, and maintenance and operation. 

University-Wide Services (UWS) are the expenses associated with Administrative Service Centers.  These expenses are pooled into separate cost pools and allocated to Resource Responsibility Centers based on various allocation proxy measures.

Administrative charges are recognized as a negative expense as opposed to revenue. The purpose of the administrative overhead charge is to recover part of the costs of providing central support services. Business units of the university that generate external income (and that are not subject to F&A cost recovery) may require their cost centers to pay a fee. Generally, the charge is based on a percentage of the external revenue generated, but in some cases the fee is a predetermined fixed fee.