80% of funds equivalent to base undergraduate tuition is transferred from the Faculty in which the student is registered to the Faculty providing the instruction. This teaching allocation (adjustment) is applied to the revenue associated with each Faculty. Affiliated and Federated Institutions of Waterloo (AFIW) teaching is covered by the equity agreement. A positive Inter-divisional Teaching Allocation is an increase to the Faculty’s revenue, a negative Inter-divisional Teaching Allocation is a decrease.