The University of Minnesota began using a new budget model in FY07 that directs the majority of revenue (tuition, gifts and donations, and research funding (including indirect cost recovery) to colleges and units. To ensure that the University of Minnesota continues to run efficiently and effectively, colleges and units are then “billed” for the central services they use. These cost allocations are calculated in a variety of ways, based on the type of service provided.
There are 9 Cost Allocation Pools:
- Facilities – Operations & Maintenance
- Utilities
- Debt & Leases
- Office of Information Technology
- Administrative Service Units
- Research
- Libraries
- Student Services
- General Purpose Classrooms
Each of these cost pools can be classified into one of three categories: Consumption Based Allocation, Cost Driver Based Allocation and Common Good Allocation.
For details, click here. |
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HOW FM IS FUNDED IN THIS BUDGET MODEL
In this model:
FM Operations & Maintenance is a Cost Driver Based Allocation. The cost is allocated based on relative share of identified cost driver variable. The variable acts as a “proxy” for use; there is no measurement of actual use, and no direct incentive toward any behavior.
Units are charged for facility-related services on a square foot basis.
Utilities are a Consumption Based Allocation. The cost allocated is based on actual measurement of use. This allocation type creates a direct incentive toward desirable behavior.
Building Systems Automation Center (BSAC). Charges are allocated as part of System-wide Administrative Service Unit cost pool. |
