ASA Fee Cost Allocation Framework

Basis of the New Framework

Key Definitions

• Cost Driver: a metric for evaluating relative service usage and distributing service center costs across assessed funds.
• Service Center: a state-funded department that provides a service or does work for other areas.

Cost Allocation Calculations

1. Service use will be assessed for funds that support primarily self-sustaining and auxiliary units (Fund Types 12, 13, or 31. Please visit the ASA Service Centers page for a full list of service areas and the associated cost drivers.
2. The model uses the average of two years of cost driver data reflecting each area's use of services relative to the whole university to smooth annual variation.
3. The prior fiscal year costs for each service department are allocated across auxiliary and self-supporting departments based on their relative use of services.
4. The ASA fee amount is the sum of allocated costs for all service departments. If the total is below $1,000, a fee won't be assessed for that fund.
5. The ASA fee will be assessed annually and charged as quarterly payments to provide consistency across the fiscal year.
6. The new model will initially assess the standard level of services provided to departments. This does not include specialized services provided to individual self-sustaining and auxiliary units. However, future iterations of the model will attempt to include these specialized services to replace existing service agreements.

Annual Assessment Cycle

The fee assessment process has been developed to provide areas with fee estimates a year in advance. The fee estimates will be based on service department budgets (expected expenses). Auxiliary and self-supporting areas will know their estimated fee for the upcoming fiscal year before they develop their fees and rates. This is especially important for areas that submit fees for the upcoming academic year to the Board of Trustees for approval in October. The fee that is charged will be based on actual cost allocations and confirmed with each department prior to the fiscal year of the charges. 

Implementation Plan

The new framework will be implemented in FY2027, following a phased-in approach over three fiscal years that will allow us to:

• Smooth out the impacts of this change on all areas, including the institution.
• More gradually incorporate the new charges into fees & rates, as needed.
• Evaluate existing MOU’s/agreements for aspects that can be incorporated into the ASA Fee to ensure areas are appropriately charged for services provided.
• Adjust the new model as needed. This may include changes to the cost drivers, service centers, and areas assessed to more accurately reflect how state support is provided to non-state funded units. 

The proposed fee for FY2027 will equal each area’s actual ASA charge in FY2025 plus or minus 30% of the new ASA fee amount. For each subsequent year, an additional 30% of the new fee will be added as we work toward full implementation in FY2029.

Exempt Activities

While not supported by state funds, the categories of services or activities listed below are foundational components of university operations or students’ educational experience and it is recommended that the associated funds are exempt from the ASA fee assessment. 

• Student recruitment, enrollment, and retention activities
• Fees that support state-funded academic programs (e.g., course fees)
• Registrar provided services (e.g., transcripts and graduation fees)
• Western Libraries
• Student Technology fee support (used to support academic mission directly)
• Career Services
• Pass-through funds and funds required for accounting or institutional purposes, including but not limited to:
  • Investment Services
  • Key deposits
  • Post Office
  • Student insurance premiums
  • Western Card Office
• If a fund is subject to indirect-cost recovery, the ASA fee is not assessed.
• Other*

* ASA exemptions can be requested in special circumstances, and a process will be developed as part of the ASA fee implementation plan.