Background

The administrative services overhead charge is intended to provide for an equitable distribution of certain central administration costs to areas of the campus that are separately funded or self-supporting.  It allows the University to recover part of the cost of providing institution-wide support services.

What types of costs are being recovered through the administrative overhead charge?

The central departments whose costs are being recovered include departments in the President's Office and the Vice President for Finance and Operations (examples:  accounting, treasury operations, billing, human resources, purchasing, diversity office, university relations, public, safety, etc.).

How is the charge calculated?

The administrative overhead charge is calculated by applying the overhead rate to direct expenditures of the account being charged.  The rate is recalculated every year but historically it has remained near 2.5%.  Finally, it should be noted that there is a two-year lag in the charge.  For example, FY19 administrative charges are based upon FY17 expenditures, and therefore monthly FY19 charges will remain constant.

How will I recognize the administrative overhead fee on my TDR (Transaction Detail Report)?

The journal description is UNIV ADMIN SERV.

Questions?  Contact Ted Welter at (319) 353-2027 or ted-welter@uiowa.edu