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The University has established a permanent systematic method of assessing units for the purpose of paying for the development, implementation, maintenance and replacement of institutional business systems. The revenues generated through the assessment are restricted to covering a designated set of business information technology costs.

The assessment is on salary expense in all units at the University based on specified salary account codes in specified fund groups.

The assessment rate for any given fiscal year is set during Phase II of the annual budget process.

Exclusions

In general, no academic or administrative unit is exempt from this assessment. Salaries paid for by the current unrestricted funds - State Appropriations, Tuition, and Fees; Auxiliaries; and Other Unrestricted - and the current restricted funds - State Specials; and Private Practice - are assessed. Though there is no formal process for requesting exclusions, Phase I of the annual budget process asks units to communicate any significant financial concerns. Assessment issues can be raised at that time.

Sponsored funds are excluded because granting agencies do not allow such expenditures to be built into grant budgets.

ISO funds are excluded because A-21 guidelines do not allow internal assessments to be included as a cost built into the ISO rate.

All other restricted funds are excluded due to the restrictions placed on the accounts by the external donors.

Special Situations

The Enterprise Assessment is a cost of doing business. In cost reimbursement situations, whereby a unit will get reimbursed from an external entity for the exact costs of a particular activity, the reimbursement agreement should include the cost of the Enterprise Assessment expense whenever possible.

The business systems are key to the University's plan to improve quality and decentralize services. It is essential to the long-term strategy to reduce the cost and scope of administration. The Enterprise Assessment on academic and administrative units was created to recognize that all units should share in providing the resources to meet institutional business system needs and budgetary responsibilities.

Salaries were chosen as the appropriate assessment base because a portion of the assessment was being used to pay for the human resources/payroll enterprise systems and it was felt to be the best way to ensure a fair distribution of assessment burden.

• Planning and Charging of the Enterprise Assessment

• Journal Entry

Subject	Contact	Phone	Fax/Email
Primary Contact	Carole Fleck	612-624-2858 612-625-4517	c-flec@umn.edu
Overall Process	FSS Help Line	612-624-1617	fsshelp@umn.edu

Academic Salaries

All salary and wage compensation paid to academic employees. Includes paid leaves, any premium pay, compensation for travel time, and severance pay. These salaries are charged to accounts 700101 and 700201 in the current financial system.

Academic Salaries-Students-Graduate/Professional

All salary and wage compensation paid to academic graduate students in non-professional schools and academic graduate students in professional school.s. Does not include academic undergraduate students. Includes job codes 9511, 9518-9519, 9521,9528-9529, 9531-9533, 9571-9575, 9535, 9538-9539, and 9553-9554 Compensation includes paid leaves, any premium pay, compensation for travel time, and severance pay. These salaries are charged to accounts 700301 and 700302 in the current financial system.

Civil Service & Union Salaries

All salary and wage compensation paid to civil service and union represented employees. Includes paid leaves, any overtime and premium pay, compensation for travel time, and severance pay. These salaries are charged to accounts 700501, 700502, 700503, 700504, and 700505 in the current financial system.

Salary Expense

Combination of all salary and wage compensation for academic, students, and civil service and union employees as defined by the salaries definitions shown in this section.

Undergraduate Student Salaries

All salary and wage compensation paid to undergraduate academic and undergraduate non-academic students. Includes job codes 9512-9514, 9822-25, 9547, and 2XXX. These salaries are charged to accounts 700401 and 700402 in the current financial system.

Work Study

Subsidized employment for eligible students as determined by the Office of Scholarships and Financial Aid. These salaries are charged to accounts 703150, 703250, 700350, 704150, 704250, 705250, and 705350 in the current financial system.

University Budget and Finance

Budget estimated revenues. Review allocation parameters, run request process, submit allocation request process, and monitor journal entry created in the financial system. Monitor actual revenues to fund forecast. Transfer revenues annually to cover applicable enterprise expenses or existing enterprise project deficit.

Resource Responsibility Center Manager

Understand the policy. Forward information received in Phase II and III Budget Instructions to departments within their college or administrative unit.

University Departments

Understand the policy. Budget expense in relevant accounts on an annual basis as necessary. Set external sales rates factoring in Enterprise Assessment expense.

There are no Appendices for this policy.

There is no FAQ related to this policy.

There is no Related Information for this policy.

Amended:

July 2008 - Updated to reflect Enterprise Financial System (EFS) rollout. Updates made in Policy Statement, Contacts, Definitions and Responsibilities sections plus procedure.

Amended:

March 2007 - Updated Policy Owner and contact information; eliminated Appendices and outdated related information; condensed history.

Effective:

October 2002

The Board of Regents approved the original enterprise systems project plan, budget, and financing proposal in December 1997. The Enterprise Assessment was one element of the total financing of the Enterprise Systems Project.

The assessment was first implemented in fiscal year 1997-1998 at the rate of 0.7% of actual salary expenditures, excluding workstudy. Though the assessment was suspended in fiscal year 1998-1999, it was reinstated beginning fiscal year 1999-2000. The effective rate for the upcoming fiscal year is re-evaluated each year during the annual budget process.

The process for assessing units has not changed since the initial implementation though the rate was increased in FY01. The following is a summary of the rates charged each fiscal year:

Fiscal Year	Rate Applied to Actual Salaries
1997-1998; 1999-2000	0.7%
1998-1999	Assessment Suspended
2000-2001 and FYs thereafter	1.25%

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.