Administrative Overhead

Brief Explanation of Administrative Overhead:

The Administrative Overhead (AOH) assessment is an annual charge for administrative services to units that generate some or all of their budgets from income producing or revenue producing activities. This assessment ensures that the costs of operating the University are borne by both state resources and restricted use resources.

The assessment rate for FY 2019 is currently 5.5%.

Assessments are based on the prior fiscal year's revenue data, and are paid by the units in the current fiscal year.

Revenue data are obtained from the Oracle Analytics in the Cloud (OAC) system. Units can confirm their assessable revenue by going to the AOH Revenue Assessment dashboard in OAC to view details (see instructions below).

Funds subject to the assessment include income generated from outside the campus and do not include income generated from charges between units on campus.

KU Center for Research payments to KU vendors, referred to as KUCR credits on previous AOH invoices, have been treated as internal revenue and not assessable. They will no longer be identified as a “credit” on the bill as in previous years.

Units with less than $1,000 of assessable income are excluded from the administrative assessment.

Note: The Oracle Analytics in the Cloud (OAC) AOH Revenue Assessment dashboard may denote an AOH revenue amount in the negative. The ARSP/Approp is not owed money by the University nor will a transfer from the University be initiated. The amount is indicative of revenue minus exclusions, thus creating a negative balance

The following revenue accounts and types of transactions are excluded from the assessable base:

Transaction codes:

  • PSFT-SOR
  • PSFT-PLS
  • PSFT-REV
  • PSFT-FOM
  • FITC - Dist Revenue
  • Distributed Revenue and selected Account “425010”
  • FITC – Journals
  • 056 DARBI Internal Receipts

Account codes:

  • 766010 – Revenue transfers
  • 412100 – Sales Tax Deposit
  • 469091 – VAT Sales Tax
  • 425010 – Interdepartmental Sales

To Pay Your Unit's Administrative Overhead Assessment:

The Administrative Overhead process utilizes the Departmental Accounts Receivable and Billing (DARBI) system as the central receivable and billing module for the University.

Please refer to Financial Systems Resource Center (FSRC) website under “MyCommunity” and click on “AP Invoice Manual” for instructions on how to initiate payment.

Go to MyCommunity

Enter the Financial System Resource Center (FSRC) site

Under “Documentation by System”, select “FITC P2P”

Select “AP Invoice Manual”

  1. Make sure the Customer Supplier is provided
  2. Make sure the Customer number is provided
  3. Please use Account number 526904 (Administrative Overhead)

Deadline

For the FY19 assessment (based on FY18 revenues), the deadline is January 31, 2019.

To Review Your Administrative Overhead Assessment Details

To view details of the AOH Revenue Assessment dashboard in OAC

  1. Log into the Oracle Analytics in the Cloud (OAC) website

    Report Criteria
  2. Select Fiscal Year 2018
  3. Select “Exclude” or “Include” under the AOH Indicator.  “Include” will show ONLY revenue assessable through the AOH process; “Exclude” will show original and assessable revenue.
  4. Select Primary ARSP, Secondary ARSP, Approp or Cost Center(s). 
  5. Click Apply.
  6. Additional filters can be selected for more detailed information. 

Note: If bookmarking the webpage for ease of navigation and access:

  1. Click gear symbol (in the upper right hand corner) 
  2. Select “Clear my Customization” to refresh the bookmark.  The action will ensure the bookmarked site has been updated to the latest version.

Additional Annual Billing

The annual billing process that is handled by the budget office includes the Administrative Overhead plus invoices for IT Centralization, Data Port, SSC, Adobe and the Change for Excellence (CFE).

IT Centralization, Data Port, and Shared Service Center (SSC) billable invoices are generated and billed through DARBI annually. These billable invoices were introduced to allow for units that did not have general use funds to “lift and shift” from a School/Department to Information Services or Shared Service Centers. IT Centralization is for information technology personnel being reassigned from the school/department to I.T. The data port access charge is related to the realignment of the voice and data port charges that are no longer charged to the school/department. The SSC invoices are related to the personnel being reassigned from Schools/Departments to selected SSC’s.

The Adobe billable invoice was created in CY 2014 in response to the University of Kansas signing an Enterprise Term Licensing (ETLA) Agreement with Adobe for Schools/Departments to utilize the Adobe Licensing Agreement and ongoing costs.

The Change for Excellence billable invoice was created in response to “a top-to-bottom review of every administrative process on all of our (University of Kansas) campuses” to create a more efficient University. The billable invoice shifts anticipated savings from purchasing contracts from selected Schools/Department to the University to continue the efficiency effort per agreement.


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