Administrative Overhead Assessment

Ed Poppell, Vice President for Finance and Administration

The University implemented an overhead assessment on Auxiliary and Miscellaneous Gifts and Grants (MG&G) accounts in July 1986 and April 1989, respectively. Since the implementation of this assessment, there have been only two rate increases, from 1.0% to 1.4% of expenditures effective July 1, 1994, and to the current rate of 2.0% of expenditures effective July 1, 1998.

The costs incurred by Finance and Administrative to support these functions continue to increase. The demand for additional services coupled with the cost to implement the new ERP system, UF Bridges, have necessitated an increase in the administrative overhead rate charged. The new rate, effective September 1, 2003, will be 2.5%.

Although the software for UF Bridges has been purchased, the University will continue to incur costs to fully implement and stabilize this system over the next several years as well as to maintain the system during its lifetime. Additionally, the change in the governance structure resulting in the devolution of many functions currently performed by other agencies and the addition of new functions will place even greater demands on the resources of this office. The Auxiliary and MG&G enterprises will be required to share in these costs. Accordingly, it is likely that the overhead assessment rate will increase to 3.0% in the 2004-2005 fiscal year.

Please contact this office if you have any questions.