Allocations

Self-Insurance is for general and professional liability. The annual premium is distributed based on the original budget for cost centers. Equipment and scholarships are excluded from the calculation. Self-Insurance is posted in December. 

Building and Content (Property) Insurance is for replacement coverage of property. The annual premium is distributed based on building valuations updated annually by Facilities Management and equipment maintained in the SAP Fixed Asset System. Building and Content insurance is posted in December. 

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 affected Chancellor and Vice Chancellors. This assessment provides funding for strategic initiatives and ensures that the costs of operating the University are borne by both State and auxiliary resources. The 5% Administrative Fee came into effect 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 
• Other State agencies 
• Other colleges or universities 
• Private companies 
• Non-profit organizations 
• 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.  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. Internal sales are defined as: 

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

Internal sales postings:

• 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. 

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 G/Ls, 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 posted to move allocations if a cost object will be closed or locked before the next quarter’s allocation is posted.

Allocations for Workers’ Compensation are processed identically to Unemployment except salaries on student G/Ls are not excluded.

Allocations to cover graduate health insurance costs for eligible students are made once during the fall and spring semesters. Because allocations are not processed during the summer, the spring allocation is higher to compensate for the lack of summer allocation.

The allocations are calculated as follows:

1. Student Accounts provides a list of health costs for eligible students.
2. For students on the list, appointment data is pulled from SAP to determine what cost centers fund each student's payroll (September funding splits are used for the fall allocation and March for spring.)
3. The total amount due for health is split between the identified cost objects using the same split as payroll, with grad health charges posting in October and March.

Allocations to cover tuition for eligible graduate students are made once during the fall and spring semesters, typically in October and March. Currently there are no allocations made for summer tuition.

The allocations are calculated as follows:

1. Student Accounts provides a list of tuition costs for eligible students.
2. For students on the list, appointment data is pulled from SAP to determine what cost centers fund each student's payroll (September funding splits are used for the fall allocation and March for spring.)
3. The resident remission for each student is split between their identified cost objects using the same split as payroll, with grad tuition remission charges posting in October and March. This is a direct distribution of their remission, and no longer a pooled allocation.