Allocating Central Administration Costs to Colleges and Schools

Topics: Budget Models and Cost Allocations, Budgeting, Administration and Finance

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Research Questions

  • What are the primary expenses that are categorized as central administration costs?
  • What types of cost allocation models do central finance administrators use to determine how much to charge colleges and schools for central administration services?
  • How do central finance administrators communicate to leaders at respective colleges and schools about the cost allocation models?


No uniform accounting method exists to allocate central administration costs, such as payroll or the library, to colleges and schools. Thus administrators determine contributions using a variety of considerations. This report outlines these considerations as well as what administrators categorize as central administration costs. Additionally, the report provides strategies for communicating allocation models to deans of colleges and schools.

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