Administrative Assessment

The University of Montana's Administrative Assessment Report broken out by Billing Index Code and Executive Officer with correlating projected FY17 Assessment Amounts.

Administrative Assessment: Purpose, Definition & Use

Why is there an Administrative Assessment?
The Administrative Assessment is charged annually to designated, auxiliary, non-University of Montana Foundation gift accounts, agency accounts, and the Montana Forestry and Conservation Experiment Station in order to repay to general funds the cost of administrative services.  By assessing this charge, the University avoids inadvertent subsidy of non-Educational & General entities through the provision of administrative support (such as accounting services, insurance, human resources and other functions). The percentage charged is based on a calculation of proportional spending in these fund groups.

What is included in the assessment and what is excluded?
All expenditures in the fiscal year two years arear (e.g. FY17 administrative assessment based off FY15 expenses), excluding transfers, capital purchases, scholarships, and the assessment charged that year. Also, there is no assessment charged on scholarship, restricted (sponsored research), plant, loan, and payroll accrual funds.

What is Business Services’ role in charging the Administrative Assessment?
Business Services calculates the administrative support amount in the general fund and the total expenditures in designated, auxiliary, non-University of Montana Foundation gift, agency funds and the FCES in order to determine the percentage. Also, Business Services generates the billing statement for the administrative assessment, which is then uploaded onto the website.

Does Business Services benefit from the administrative assessment collected?
Business Services does not directly benefit from the administrative assessment. Administrative assessment is just one of many sources used to develop the overall general fund budget.

What is Administrative Assessment used for?
As with tuition, state appropriation, millage, student fees, and other sources that have no specific use, the same is true of administrative assessment. The total of all sources equals the total general fund budget. Expenditures are rarely tied to a revenue source.

What are the components of the general fund are used to calculate the percentage?
There are two general categories of Institutional Support expenditures used in the calculation. The first is General Administration and Oversight, such as the President’s Office, the Provost’s Office, the Offices for the Vice Presidents for Administration & Finance, Student Affairs and University Relations and Institutional Memberships.  The other category is the Business Operations such as Business Services, Human Resources, Campus Safety Administration, General Insurance, Internal Audit, Legal Counsel and OPBA to name a few.

What makes the percentage go up and down?
The calculation reflects the portion of the general fund used in administrative support compared to the total of the other funds.  As those proportions change, so does the administrative assessment percentage.

Are there exceptions granted?
Generally, there are no exceptions unless there is a fund that has expenses that are not appropriate for assessment, such as an inventory control accounts, GAAP accounts, pass through accounts, or resale operation such as the Chemistry Store.