Overview

Sacramento State ensures that both direct and indirect costs incurred by the CSU Operating Fund are recovered in a consistent and transparent manner, in accordance with the CSU Fiscal Authority and Responsibility policy. Each year, the University’s Vice President/CFO prepares a Cost Allocation Plan that identifies reimbursable costs and explains how recovery amounts are determined.

Effective October 2025, the campus has implemented an updated Cost Allocation / Reimbursement Plans for the CSU Operating Fund Policy that uses a percentage-based methodology to recover the cost of indirect campus services provided to auxiliary and self-support organizations beginning with expenses incurred starting July 1, 2024. This policy will initiate a billing process for all campus services that will take place once per year. The updated cost allocation approach aligns with the and supports the University’s commitment to fiscal transparency and accountability.

Additionally, beginning in August 2025, management of the Cost Allocation program at Sac State has transitioned from individual division management to a centralized cost allocation approach under Budget Planning & Administration (BPA) for the campus. BPA will provide leadership and management of the cost allocation program moving forward.

Direct administrative costs will continue to be billed based on the actual cost of goods or services provided. These costs are documented through established processes such as work orders, chargebacks, Memoranda of Understanding (MOUs), or contracts, and are outside the scope of the annual cost allocation plan.