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 2017 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 Comptroller's Year End Master data, which are used to prepare the University's Annual Financial Report. Units can confirm their assessable revenue by running DEMIS reports (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 the AOH invoice, are also subtracted from the assessable base. Units with KUCR vendor IDs can run a PeopleSoft query to check their KUCR credits (see instructions below on how to run the query).

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

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

Transaction codes:

  • REV- Interfund vouchers
  • COM- Telecommunications revenue
  • SOR- SOR, SOV, and related adjustments

Account codes:

  • 261300 Sales of investments
  • 264000 Sales tax
  • 266010 Operating Transfers in
  • 269090 but only amounts identified by Comptroller's Office for Federal Excise Tax

To Pay Your Unit's Administrative Overhead Assessment

Payment of the amount due should be made via SOV by the deadline.

 

Please use the following instructions for typing the SOV into PeopleSoft:

1) Make sure the invoice number is typed in. 
2) Use the correct Sales Department Name: AOH Assessment
3) Fill in the pertinent information in the Comments box. 
4) In the "Account" field, type 198020
5) Fill in the “Fund” and “DeptID” fields. 
6) Click “Buyer Information Complete.”

Pre-payments

Pre-payments (payments made by a Unit against FY 16 expense for FY 17 Administrative Overhead Assessment expense) will be subtracted from the total amount assessed in FY17.  The Budget Office will also provide the SOV/Check # to allow for the verification of the pre-paid amount.

Deadline

For the FY17 assessment (based on FY16 revenues), the deadline is December 1, 2016.

How AOH Assessable Amounts are Determined

To check revenues:
DEMIS Financials query:
Select Fiscal Year 2016.
Select Department or Cost Center(s).
Select Fund Code.
Select Budget Level 20000 - Revenues.
Select Report Breaks by Account and Description, and for units with certain cost centers that are exempt from AOH, by Cost Center
In Report Options, select Include detail transaction in report, and output to Excel.

To check KUCR credits:

PeopleSoft query:

Reporting Tools>Query Viewer>

Enter query name BMFS_”FY16”_KU_VENDRPAY_”Q1”_”Q2”

Enter query name BMFS_”FY16”_KU_VENDRPAY_”Q3”_”Q4”

Combine above

Run the query to Excel and enter the unit's 10 digit KUCR vendor ID at the prompt.

 

 


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