| Approved by: | Board of Trustees/President | |
| History: | Issued -- March 14, 2002 | |
| Revised -- November 3, 2008 | ||
| Last Reviewed -- | ||
| Related Policies: | ||
| Additional References: | ||
| Responsible Official: |
Vice President for Finance and Treasurer tel. 202-319-5606 |
|
I. Introduction
Generally accepted accounting principles require the university to allocate certain costs to functional categories. This policy sets out the university's policy on the allocation of costs.
This policy applies to all university financial records and statements and to all staff in preparation of those statements.
II. Functional Categories
The University allocates costs to these functional categories:
- Instruction and Departmental Research
- Sponsored Research
- Public Service
- Libraries
- Student Services
- Institutional Support
- Auxiliary Enterprises
III. Costs Allocated
The University allocates the following costs to functional categories:
- Operations of plant - including facilities management, custodial services
- Utilities - including both purchased services and operation of power plant
- Insurance on buildings and other assets
- Depreciation on buildings, equipment and vehicles
- Debt interest on buildings
- Faculty and staff tuition benefits
- Public Safety
IV. Basis of Allocations
Allocations related to the operation of buildings and plant (e.g. maintenance, utilities, insurance, interest, and depreciation) are allocated based upon the utilization of usable square footage.
Allocations related to compensation (faculty and staff tuition benefits) are allocated based upon the salary expense for each area.
V. Timing of Allocations
Allocations are recorded on a monthly basis.
VI. Changes to Allocation Methods
Changes to allocation methods are subject to review and approval by the Vice President for Finance and Administration.
VII. Allocation Entries
The Office of the Controller shall be responsible for making all allocation entries to the financial system.