Overview of Administrative Services Overhead Charge (ASO)
The Administrative Services Overhead Charge (ASO) allows central administration to recover costs for support services by allocating them to separately funded areas of the campus. Various costs are charged through ASO, with a focus on administrative, environmental health, personnel, and other services. The allocation of costs is based on billable and non-billable clients, with an emphasis on self-supporting units. Calculation of charges rates is determined based on a percentage of the total base for different service categories. The base is calculated consistently using the Modified Total Direct Cost (MTDC) method.
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Administrative Services Overhead Charge (ASO) TED WELTER CONTROLLER S OFFICE, FINANCE & OPERATIONS
Principles for Charging ASO 2 1. Allows central administration to recover part of the cost of providing support services 2. Charged to areas of campus that are separately funded or self-supporting 3. Provides for an equitable and consistent distribution of costs
What costs are charged through ASO? 3 Business Pool (Presidents Office, General Counsel, Internal Audit, State Audit, VPFO, Controllers Office, Business Services, ITS) 1. 2. Environmental Health (Radiation Safety, Occupational Safety, Biological Safety, Chemical Safety) 3. Mail Services 4. Personnel (Human Resources, EOD) 5. External Relations 6. UIHC Badge Program 7. Museums and Hancher 8. Public Safety(Space Costs related to UCC) Not Included: Provost, VP for Research, Shared Services, Grant Accounting, Tenant Property, Dept of Public Safety, Division of Student Life
How are costs allocated? 4 Administrative Costs are allocated to the entire base, but only billed to areas that are self-supporting Billable Clients UIHC and Affiliates, Athletics, Practice Plans, CDD, Hygienic Labs, Service Centers (Largest Tier 1), Facilities Management, General Stores, Laundry, Printing, Parking & Transportation, Residence Services, IMU, NADS Non-Billable Research Funds (500-510), Special Appropriated Funds, 240 Funds, GEF For FY20 billable is approximately 58% of the total base
How is the base calculated? 5 We are trying be consistent with the Modified Total Direct Cost (MTDC) used in the F&A calculation 36 Exclusion Rules Transfers, O&M, Interest, Cost of Goods Sold, Scholarships, Stores Services and Revolving Funds, Loan Funds, Endowment Funds, Plant Funds, Agency Funds Calculate the total base and each Clients individual base
Calculating the Charge Rate 6 Business Pool Environmental Health Mail Services Personnel External Relations UIHC Badge Program Museums and Hancher Public Safety Space 1.5% of total base, allocated to all units 0.098% of total base, allocated to all units 0.052% of total base, allocated to all units 0.283% of total base, allocated to all units 0.154% of total base, allocated to all units except UIHC and UIHC affiliates $86,000 allocated 100% to UIHC 0.109% of total base, allocated to all units $400,000 allocated only to billable clients less UIHC and affiliates (0.08%), $50,000 allocated to UIHC
Charge Rate 7 FY 2020 Rate = 2.28% Five year range 2.24%-2.43% FY 2020 UIHC Rate = 2.03% Five year range 2.02%-2.16%
8 Administrative Services Overhead Annual % Increase in Major Components 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% FY15 FY16 FY17 FY18 FY19 FY20 Charge
9 Administrative Services Overhead Annual % Increase in Major Components 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% FY15 FY16 FY17 FY18 FY19 FY20 Admin OH Charge
10 Administrative Services Overhead Annual % Increase in Major Components 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% FY15 FY16 FY17 FY18 FY19 FY20 NonBilled MTDC Billed MTDC Admin OH Charge
11 Questions?
