The University of Massachusetts Amherst

Administrative Overhead (AO) defined

The Administrative Overhead Rate is charged to revenue and student fee operations to recover some of the central service costs generated in support of the operation which are paid for with central General Operating Funds.  In compliance with State law, every revenue operation must be self-supporting and bear an allocable share of the direct and indirect costs of central services provided by the campus.

Examples of these central services are:

Budget Office Human Relations Procurement
Bursar's Office Human Resources Public Affairs
Controller's Office Institutional Research Public Safety
Equal Opportunity and Diversity New Office Space Management
Financial Cost and Analysis President's Office (Campus Share)  

The rate is calculated as a campus-wide ratio of applicable indirect costs to the respective revenue and student fee operation direct costs.

Administration & Finance Websites