The administrative process to charge the overhead assessment to each auxiliary unit takes place once per year. The previous year’s actual expenditures are accumulated at the end of the first quarter of the current fiscal year. The annual overhead assessment is then calculated using the steps below.
Step 1. Establish the Institutional Support functions whose annual costs should be allocated to UGA’s Auxiliary units, including the UGA Athletic Association, through this Administrative Overhead Assessment.
Step 2. For each function identified in Step 1, determine the percent of its annual expenditures that will be allocated across all campus programs and activities by estimating what portion of the annual expenditures of these functions are for:
1. Fixed costs - those that do not vary based on volume of support provided
2. Variable costs - those that increase proportionally to volume of service provided
The estimated variable costs are then allocated to all campus programs and activities.
Step 3. For each function in Step 1, determine the appropriate measure to allocate overhead costs to all campus programs and activities.
Step 4. For each Auxiliary Enterprise, determine if any of the functions identified in Step 1 should be excluded/adjusted from the overhead assessment to determine what overhead components should be allocated to each individual auxiliary unit.
Step 5. Use the measures identified in Step 3 to determine which share of the functions identified in Step 4 will be allocated to each auxiliary unit.
Step 6. The previous fiscal year’s actual expenditures and headcount figures will be used to develop the overhead assessment for which each auxiliary unit will be billed in the current fiscal year. All other measures (% of campus acreage, % of building area, other estimates) will be reviewed and updated every 3 years beginning with the FY 2009 Overhead Assessment.
The measures and calculations are reviewed for reasonableness. Each unit is notified of its annual assessment and provided time to review for reasonableness. The assessment is facilitated via a journal voucher process.
Responsible University Senior Administrator: Vice President for Finance & Administration
Responsible University Administrator: Associate Vice President for University Business and Accounting Services
Policy Owner: Accounting
Policy Contact: Chad Cleveland
Policy Contact Phone Number: 706-542-1197
Citation or Reference: Institutional Cooperation and Relations Records
For records related to administrative overhead assessment, records may include but are not limited to working papers, drafts, final reports, and all other documentation and correspondence.
Retention: Seven (7) years