Overhead Allocation

Chapter 2

Section: 2:100

Overhead Allocation

Established: 2004

Revised: 07/02/2024
Responsible Office: Division of Finance and Business Services

Overhead Allocation

Effective July 1, 2024, the Full Costing Allocation will be replaced with an Overhead Allocation.

External revenue received by the University increases the scope of support required of University administrative infrastructure. The Overhead Allocation will provide the needed funding to assist with the cost of this infrastructure.

Grants are charged a facility and administrative (F&A) cost, and gifts are charged a gift fee as a means for support of these types of additional revenue.

Basis of Allocation:

The Overhead Allocation will be applied to the fund groupings of auxiliary (0100-0699), service operation (0700-0899), and non-endowment agency (6015) and be based upon external revenue in the account groupings of sales & services, net patient revenues, and misc. revenue. Attached are listings of the funds and accounts that had activity in FY23.

Overhead Allocation – Revenue Summary

Overhead Allocation – Fund Summary


The overhead rate for FY2025 will be 5% and will be applied to external revenue up to $100 million annually at the CSD level. The overhead rate and annual threshold amount will be reviewed annually to determine if adjustments are needed.