Administrative Overhead

Overview

The Administrative Overhead (AOH) assessment is an annual charge applied to units that generate some or all their budgets through income-producing or revenue-generating activities. The assessment helps ensure that the costs of University operations are supported by both state resources and restricted-use resources.

The FY 2026 assessment rate is currently 5.5%.

Assessments are calculated using revenue data from the prior fiscal year and are paid by units in the current fiscal year.

Revenue transactions are obtained from 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 those that generate income from external sources. Funds not subject to the assessment generally include those that generate income from transactions between campus units.

Transaction Codes Excluded

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

  • Transactions that do not have a Transaction Source of FITC - Journals, a Transaction Type of 056 DARBI Internal Receipts, or 016_FOM are excluded.

Account codes excluded:

  • 220212 – SUSPENSE
  • 412100 - SALES TAX DEPOSITS
  • 425010 - INTER-DEPARTMENTAL SALES
  • 441011 - INCOME, FEDERAL GRANTS
  • 441015 - INCOME, NOT FROM FEDERAL GRANT
  • 441020 - GRANT REVENUE - DIRECT
  • 461300 - INVESTMENT PROCEEDS
  • 462110 - RECOVERY OF CURRENT FY EXP
  • 462900 - RECOVERY OF DAMAGES
  • 469091 - VAT SALES TAX
  • 766010 - OPERATING TRANSFERS IN
  • 766020 - OPERATING TRANSFERS OUT
  • 766030 - RESIDUAL TRANSFERS IN
  • 766050 - FED SUBGRANT TRANSFER IN
  • 766070 - OP TRANSFER IN INTEREST ALLOC
  • 766080 - OP TRANSFER OUT INTEREST ALLOC
  • 773290 - INDIRECT COST REIMBURSEMENT

Your Unit’s Administrative Overhead Assessment

Notification of AOH: Information outlining the AOH process was provided to Budget Officers during the July 2026 Budget Officers’ meeting.

Review: The FY2027 AOH assessment, based on FY2026 revenues, will be charged after the August 2026 deadline for reviewing the spreadsheet that details AOH amounts.

  • Payment will be initiated centrally, based on the Revenue Fund - Cost Center - Chartfield1 combination, on behalf of all units through a FITC Journal Entry. No action is required by the School or Department.
  • The Journal Entry will charge the AOH to the same Revenue Fund - Cost Center - Chartfield1 combination that generated the AOH revenue.

How AOH Assessable Amounts Are Determined

Navigate to OAC>Financials>Administrative Overhead dashboard 

  • Select Fiscal Year 2026.
  • Select “Exclude” or “Include” under the AOH Indicator. “Exclude” will display both original and assessable revenue. “Include” will display only revenue that is assessable through the AOH process.
  • Select the applicable Primary ARSP, Secondary ARSP, Approp, or Cost Center(s).
  • Click Apply.
  • Select additional filters as needed to view more detailed information.
  • Note: The Oracle Analytics in the Cloud (OAC) AOH Revenue Assessment dashboard may show an AOH assessment amount as negative. Because these transactions reduce revenue, they will reduce the total AOH assessment applied to that ARSP/Approp. Examples of negative transactions include returned checks, JRCs that move revenue, refunds, collection commissions, write-offs, and related items.
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Expense Funding Combination determined for the AOH and Additional Annual Bills 

FY2027 AOH will be charged after the August 2026 deadline for reviewing AOH amounts.

Payment will be initiated centrally, based on the Fund - Cost Center - Chartfield1 combination, on behalf of all units through a FITC Journal Entry. No action is required by the School or Department.

The Journal Entry will charge the AOH expense to the same Revenue Fund - Cost Center - Chartfield1 combination that generated the AOH revenue.

The Budget Office will provide Budget Officers and Financial Managers with a spreadsheet to determine the Fund - Cost Center - Chartfield1 combination for the annual billable invoices. The spreadsheet is based on the funding combination used to pay the FY2026 billable invoice. Any change in payment method must be provided to the Budget Office by the deadline.

Deadline

For the FY2027 AOH assessment, based on FY2026 revenues, and for the billable invoices, the Journal Entry will not be posted to the system until the review process has concluded. The review period for Administrative Overhead amounts will run from August 1, 2026, through August 31, 2026. Review requests must be received by the Budget Office by the last day of August. Please send those requests to budgetoffice@ku.edu.

All review requests must include the information necessary for the Budget Office to research the request by the deadline.