Models of Internal Cost Allocation for Auxiliary Organizations

At a University System

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

This is a preview of restricted content.

  • If you are an EAB member, please log in.
  • If you are logged in and still see this message, the content is outside your membership portfolio, and we invite you to learn more by contacting us.
  • If you are not an EAB member and wish to learn more, please contact us.

Research Questions

  • 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?

Summary

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.