Quarterly Allocations

5% Administrative Fee

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 cognizant Vice Chancellor’s and the Chancellor’s operations. 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 is effective July 1, 2014.

What is assessed:

  • External revenues
  • Revolving and auxiliary cost centers

When it is assessed:

  • Quarterly (October, January, April, June (period 13))
  • Quarters 2 -4 are calculated on a cumulative basis to account for adjustments

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

  • 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

Internal Sales are not assessed. Internal sales are defined as:

  • Sales to other University departments
  • Sales to other University campuses
  • Cost centers that begin with a ‘23’ should post internal sales revenue to a 48xxxx g/l account
  • Cost centers that begin with a ‘22’ should post internal sales revenue to a 59xxxx g/l account

External Sales are assessed. 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
  • All external sales revenue should be posted to a 45xxxx g/l account

Service Centers:

  • External sales will be assessed
  • External rates should be increased accordingly
  • 5% Administrative Fee cannot be included in the rate calculation
  • The 5% Administrative Fee will be posted to a reserve cost center

If you have any questions regarding this allocation, please contact Ben Mayeux, Director of Accounting & Finance, phone 472-3966.

Unemployment

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.
Workers' Compensation

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

For questions on these allocations, please contact Marilyn Fenton, phone 472-2982.