Administrative Policy
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Policy Statement
The University has established a permanent systematic method of assessing units a fee to pay for the development, implementation, maintenance and replacement of institutional business systems. The revenues generated through the assessment are restricted to covering a designated set of enterprise business information technology costs.
All units at the University are assessed a charge on salary expense at the deptID-program level based on specified salary account codes in specified funds. Units are responsible for budgeting the assessment expense in relevant accounts on an annual basis.
In general, there are no academic or administrative units that are exempt from this assessment. Salaries paid for by the current unrestricted funds - State Appropriations and Tuition; Auxiliary Services; and Other Unrestricted - and the current restricted funds - State Specials; and Private Practice - are assessed this fee. Units should communicate any issues regarding this assessment when they submit their significant financial concerns during the annual budget process.
- Due to legal requirements, sponsored funds are excluded from this assessment because granting agencies do not allow such costs to be built into grant budgets.
- ISO funds are also excluded because the Uniform Guidance 2.CFR.200 does not allow internal assessments to be included as a cost that becomes part of an ISO rate.
- All other restricted funds are also excluded due to the restrictions placed on the accounts by the donor or funding agency.
The Enterprise Assessment is a cost of doing business. In cost reimbursement situations, whereby a unit will get reimbursed from an external entity for the exact costs of a particular activity, the unit should include the cost of the Enterprise Assessment whenever possible in the reimbursement agreement.
University Budget and Finance sets the assessment rate for any given fiscal year during the annual budget process.
Reason for Policy
The business systems are key to the University's plan to improve quality and decentralize services. It is essential to the long-term strategy to reduce the cost and scope of the administration of these systems. The Enterprise Assessment was created to recognize that all units should share in providing the resources to meet institutional business system needs and budgetary responsibilities.
Salaries were chosen as the appropriate assessment base because a portion of the assessment was being used to pay for the human resources/payroll enterprise systems and it was believed to be the most appropriate way to ensure a fair distribution of costs.