The Catholic University of America

Archived 11-3-08

Finance: Accounting
Allocation Policy

Approved by: Board of Trustees
History: Issued -- March 14, 2002
Revised --
Related Policies:
Additional References:
Responsible Official:

Treasurer and Vice President for Finance and Administration 202-319-5606

I. Introduction

Generally accepted accounting principles require the university to allocate certain costs to functional categories. The university follows these principles by allocating certain costs to functional categories. This policy sets out the university's policy on the allocation of costs.

This policy applies to all university financial records and statements and to all staff in preparation of those statements.

II. Definitions

III. Functional Categories

The university allocates costs to these functional categories:

  1. Instruction and Departmental Research
  2. Sponsored Research
  3. Public Service
  4. Libraries
  5. Student Services
  6. Institutional Support
  7. Auxiliary Enterprises

IV. Costs Allocated

The university allocates the following costs to functional categories:

  1. Operations of plant - including facilities management, custodial services
  2. Utilities - including both purchased services and operation of power plant
  3. Insurance on buildings and other assets
  4. Depreciation on buildings, equipment and vehicles
  5. Debt interest on buildings
  6. Faculty and staff tuition benefits
  7. College Work Study wages - the university's portion
  8. Public Safety

V. Basis of Allocations

Allocations related to the operation of buildings and plant (maintenance, utilities, insurance, interest, and depreciation) are allocated on a space utilization method.

Allocations related to compensation (faculty and staff tuition benefits, college work study) are allocated on a salary dollar method.

VI. Timing of Allocations

Allocations are recorded on a monthly basis.

VII. Changes to Allocation Methods

Changes to allocation methods are subject to review and approval by the Vice President for Finance, Budget Committee and Internal Auditor.

VIII. Allocation Entries

The Office of the Controller shall be responsible for making all allocation entries to the financial system.