University of Minnesota  Administrative Policy

Assessing Units for Institutional Business Systems

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.


Primary Contact(s)Arcelia Detert [email protected]
Overall ProcessFinancial Help Line612-624-1617[email protected]
Responsible Individuals
Responsible Officer Policy Owner Primary Contact
  • Vice President for Finance and Operations and Budget Director
  • Vice President for Finance and Operations and Budget Director
  • Arcelia Detert
    Director of Debt Management


Salary Account Codes

Specific numeric codes that identify the nature of a transaction in EFS as compensation for specific employee groups.

Salary Expense

Combination of all salary and wage compensation including paid leaves, any premium pay, compensation for travel time, and severance pay, charged to specific salary account codes.

Work Study

A Financial Aid program in which the state or federal government pays a percentage of a student's wages.


University Budget and Finance

Budget the estimated enterprise assessment revenues. Review the cost allocation parameters, submit the cost allocation request process, and monitor the journal entry created in the financial system. Monitor the actual revenues against the forecast. Transfer revenues annually to cover applicable enterprise expenses and/or existing deficit(s).

Accounting Services

Prepare, run, and reconcile the enterprise allocation for each accounting period. Provide a summary of the allocation journal entry to University Budget and Finance.

Resource Responsibility Center Manager

Understand the policy. Forward information received in the annual Budget Instructions to departments within their college or administrative unit.

University Departments

Understand the policy. Budget the assessment expense in relevant accounts on an annual basis. Set external sales rates factoring in the Enterprise Assessment expense.

Related Information

There is no related information associated with this policy.



December 2014 - Comprehensive Review, Minor Revision. A21 reference changed to Uniform Guidance 2.CFR 200 in Statement.


June 2014 – updated account codes in procedure and removed them from definitions in the policy. Clarified that there will be no assessment on the 27th pay period accrual.


March 2010 - Clarified Policy Statement, definitions, responsibilities and procedure. Updated account codes in procedure and definitions. Added sentence that Federal Stimulus funds 1613 and 1614 are excluded from the assessment in procedure.


July 2008 - Updated to reflect Enterprise Financial System (EFS) rollout. Updates made in Policy Statement, Contacts, Definitions and Responsibilities sections plus procedure.


March 2007 - Updated Policy Owner and contact information; eliminated Appendices and outdated related information; condensed history.


October 2002

The Board of Regents approved the original enterprise systems project plan, budget, and financing proposal in December 1997. The Enterprise Assessment was one element of the total financing of the Enterprise Systems Project.

The assessment was first implemented in fiscal year 1997-1998 at the rate of 0.7% of actual salary expenditures, excluding workstudy. Though the assessment was suspended in fiscal year 1998-1999, it was reinstated beginning fiscal year 1999-2000. The effective rate for the upcoming fiscal year is re-evaluated each year during the annual budget process.

The process for assessing units has not changed since the initial implementation though the rate was increased in FY01 and again in FY14. The following is a summary of the rates charged each fiscal year:

Enterprise Assessment Rate History
Fiscal YearRate Applied to Actual Salaries
1997-1998; 1999-20000.7%
1998-1999Assessment Suspended
2000-2001 and FYs through 20131.25%
FY 20141.75%