- What type of cost allocation models do central finance organizations use to determine how much to charge Auxiliary, Enterprise and Self-Support operations for central administrative services?
- What methodology is used for allocating benefits costs to organizational units on campus?
- With which stakeholders do central finance administrators communicate about allocation models?
Under Executive Order XXXX, university system finance administrators must recover all costs for central administrative services that institutions provide to auxiliary units. This brief examines the cost allocation models finance administrators use to determine how much to charge auxiliary, enterprise, and self-support operations for central administrative services and benefits costs. This brief also includes discussions on the advantages of different cost allocation models and how finance administrators communicate models to institution stakeholders.