Quarterly Allocations

The 5% Administrative Fee is a quarterly assessment to units that generate all or some of their revenues from external sales and services. The assessment is distributed among the operations of the affected Chancellor and Vice Chancellors. This assessment provides funding for strategic initiatives as well as ensuring that the costs of operating the University are borne by both State and auxiliary resources. The 5% Administrative Fee was implemented July 1, 2014.

When it is assessed

• Quarterly -- October for Q1, January for Q2, April for Q3 and July for Q4
• Quarters 2, 3 and 4 are calculated on a cumulative basis to account for adjustments

What is included in the assessment

Revolving and auxiliary cost centers that have external revenue, including external revenue from Service Centers, are included in the 5% administrative fee assessment.

1. External sales
   All external sales revenue should be posted to a 45xxxx g/l account. External sales are defined as:
   • Sales to students, faculty, or staff
   • Sales to other State agencies
   • Sales to other colleges or universities
   • Sales to private companies
   • Sales to non-profit organizations
   • Sales to the general public

2. Service Centers
   
   • Only external sales from Service Centers will be assessed.
   • External rates should be increased accordingly
   • 5% Administrative Fee cannot be included in the internal breakeven rate calculation
   • The 5% Administrative Fee will be posted to a reserve cost center

What is excluded from the assessment

1. Miscellaneous Revenue
   

   Student fees, royalties, insurance proceeds, and residual balances on sponsored activities will not be assessed. These include:

   • Student fees posted on g/l accounts 442000-442999
   • Royalties – posted on g/l accounts 453300 – 453399
   • Insurance proceeds – posted on g/l account 455600
   • Residual balances as posted by Sponsored Programs

2. Internal sales

   Internal sales are not assessed.

   Cost centers that begin with a ‘22’ should post internal sales revenue to a 59xxxx g/l account.
   Cost centers that begin with a ‘23’ should post internal sales revenue to a 48xxxx g/l account.

   Internal sales are defined as:

   • Sales to other University departments
   • Sales to other University campuses

For questions, please email Erica Radach, eradach2@unl.edu, Director of Accounting & Finance.

Unemployment allocations are processed quarterly against eligible cost objects. Unemployment costs for State-aided cost objects are paid centrally so no allocations will be assessed against individual State-aided cost objects. Grants with an end date more than three months old will not receive allocations.

The allocations are calculated as follows:

• A salary extract from SAP is run to collect the salaries and wages posted to each cost object. Examples of salaries not included in this process are those charged to student GL's, fellowships, professorships and internships.
• An allocation percentage is derived based on the amount needed to cover unemployment costs based on the total eligible payroll. This percentage is then applied against the total salaries on eligible cost objects to determine the amount allocated to each cost object.
• Each quarter, the allocation process calculates a year-to-date amount per active cost object for the current rate and then subtracts any allocations already posted for the fiscal year. This process automatically corrects for instances where payroll has moved or the rate has changed since the previous quarter. PJ’s should only be processed to move allocations if a cost object will be closed or locked before the next quarter’s allocation is posted.

For questions, please email Marilyn Fenton, mfenton1@unl.edu.

Allocations for Worker's Compensation are processed identically to Unemployment except that salaries on student GL's are not excluded.

For questions about Workers' Compensation allocations, please email Marilyn Fenton, mfenton1@unl.edu.