Rate is the annual dollar commitment to a budget position for the current fiscal year which will be carried forward to the following fiscal year.
Cost is the actual dollars expended within a budget position during the fiscal year.
Academic rate savings will remain within the respective division for salary and wage use. Non-academic rate savings will return to the campus at the end of each year for use by the campus. Natural cost savings are generated by the hiring or replacements at salaries lower than the budgeted salaries. Intentional cost savings are generated by not filling an open position, not authorizing overlap staffing in a position, and delayed filling of a position. These funds can not be transferred to expense and equipment accounts for expenditures.