Planning and Charging of the Enterprise Assessment

Planning for Enterprise System Assessment

The annual assessment rate and assessment methodology is reviewed annually by University Budget and Finance. The expected rate and the process by which the charges are assessed are outlined in Phase II and Phase III of the Annual Budget Instructions each year.

Departments should estimate the amount of the next fiscal year's Enterprise Assessment charges for their chartstrings during the budget prep process and budget the amount in each of their applicable fund-deptID-programs at that time. If new programs are established in the middle of a fiscal year to which the Enterprise Assessment applies, the 820201account code budget line should be added using a budget journal entry.

Charging of the Enterprise System Assessment

The assessment is charged to individual fund-deptID-programs through the general ledger allocation process. This monthly process applies a set percentage, currently set at 1.25%, against certain salary expenditures in specific funds and/or fund classes and creates an accounting transaction that is posted to the actuals general ledger.

• Assessment is on actual salary expenditures in the following fund classes, with a few individual fund-deptID-program exceptions:

  • State Appropriations, Tuition and Fees- fund 1000
  • Auxiliaries - funds 1100-1106
  • Other Unrestricted Funds - funds 1020, 1023, 1025, 1026
  • Restricted State Specials - funds 1801-1807 (this excludes LCMR fund 1800
  • Non-sponsored Other Restricted - Private Practice - fund 1030
• The account code used for the assessment charge is 820201 - Enterprise Assessment
• The account code used for collection of the charges is 820477 - Univ Assessment Contra-Expense.
• The assessment is charged at a fund-deptID-program level on a Journal Entry.
• Assessment occurs near the end of an accounting period based on actual salary expenses in that period. Both debits and credits to salaries are included in the assessment calculation.

Salary expenses used in the calculation include the following salary account codes. Note that the Workstudy salary accounts (700350 and 700450) are excluded.

• 700101 - Salaries-Faculty
• 700201 - Salaries-Professional & Admin
• 700301 - Salaries-Graduate Student
• 700302 - Salaries -Professional Student
• 700401 - Salaries-Undergrad Academic
• 700402 - Salaries-Undergrad Non-Acad
• 700501 - Salaries-Civil Service
• 700502 - Salaries-AFSCME
• 700503 - Salaries-Teamster
• 700504 - Salaries-Trades
• 700505 - Salaries-Other Bargaining Unit