STAR: Standardized Administrative Rate | Budget, Financial Planning and Analysis

SBU's Standardized Administrative Rate (StAR)

Stony Brook University's current payroll assessment has created inconsistencies in expense accounting, particularly for personnel expenses across funding sources, causing units to either pay assessments or undertake resource-intensive expense journaling processes that complicate institutional reporting and create administrative challenges. To address this issue, the institution is considering implementing a Standardized Administrative Rate (StAR) that would establish a single rate per fund category for all state-appropriated payroll costs — including Revenue Offset cost centers, General Income Fund Reimbursable (IFR) cost centers, and SUTRA cost centers — and equalize these through a University-wide subsidy. This initiative would also impact Dormitory payroll assessment by aligning it with other self-sustaining funds like Hospital and Veterans Home, representing a significant strategic shift to resolve current inconsistencies without infringing on the official NYS federal and state fringe benefit rates established by the NYS Division of Budget.

Current State

Future State

Our Timeline

FAQs/Feedback

Current State

Our current process of assessing University rates has led to inconsistencies in how we account for expenses - particularly personnel expenses - across funding sources, leading units to stray from natural employee classifications. Some units pay the assessments and other units embark on a labor-intensive, expense journaling process to bypass the payroll assessments which creates a significant audit risk for our institution, and makes reporting difficult.
To address this issue, we are considering changes to how SBU transacts payroll assessments and overhead among state appropriated funding. Specifically, we are exploring moving towards a Standardized Administrative Rate (we would call this StAR). StAR will create a single rate per fund category that will be assigned to all state-appropriated payroll costs, including Revenue Office cost centers, General Income Fund Reimbursable (IFR) cost centers and SUTRA cost centers, equalizing these rates through a University-wide subsidy.
The Dormitory payroll assessment would also be impacted. The StAR program would bring Dorm in line with the other self-sustaining funds like Hospital and Veterans Home. This change to create equivalency marks a significant strategic shift, and will address current inconsistencies and inefficiencies in our existing processes.
Please note that the NYS Division of Budget sets the standard fringe benefit rates for both federal and state-funded projects. The StAR initiative makes no infringement on the official NYS federal and state fringe benefit rates. StAR is a Stony Brook University initiative to normalize campus assessments across the Academic Enterprise.

Proposed Future State

Standardizing Administrative Rates for Greater Flexibility
SBU is exploring the potential implementation of the StAR initiative. If pursued, this strategic implementation would coincide with the New Economic Framework (NEF) rollout, as both initiatives represent fundamental transformations in the University's financial structure and business operations.

What is the Standardized Administrative Rate (StAR)?
The Standardized Administrative Rate (StAR) is a reduced, uniform percentage applied to employee salaries across state appropriated funding sources in the Academic Enterprise at Stony Brook University (including Revenue Offset [State Purpose] cost centers, IFR cost centers, and SUTRA cost centers).

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Key Characteristics

It would replace the current inconsistent payroll assessment rates (0% for state purpose dollars, 67.05% for General IFR funds, and 29.7% for SUTRA dollars)
It would function as an assessment that will also replace the IFR/SUTRA administrative overhead rate
If implemented, it will be applied automatically to salaries entered in the WolfieONE planning system
It would be calculated by multiplying the applicable rate on all components of an employee’s regular salaries and wages
It would be monitored annually by BFP&A in partnership with the Office of the Controller
It does not supplant the New York State Division of Budget (NYS DOB) official fringe benefit rates. StAR is a Stony Brook University campus initiative to normalize assessments. It in no way reflects the actual costs to NYS of employee fringe benefits. Grants that endeavor to reimburse the State of New York for faculty’s research effort should continue to reference the official fringe benefit rates published on the NYS DOB website.

Benefits of Using a Standardized Administrative Rate

1. Simplified budget development
With the current method, developing a budget requires looking up every staff person's benefit costs (health, retirement, etc.) to determine anticipated charges for the year. With the new method, the Standardized Administrative Rate will automatically be applied when a salary is entered in our future state planning system in WolfieONE.

2. More accurate financial planning
Our ability to plan for our financial future depends on accurate data. Using natural classifications will better position us for future planning at Stony Brook. This would also eliminate audit risk associated with journalizing equivalent transfers.

3. Alignment with the New Economic Framework (NEF)
Our New Economic Framework (NEF) will work most effectively with a Standardized Administrative Rate across State purpose funds, IFR, and SUTRA accounts. As we build and test a new economic framework, this would be the ideal time to implement such changes.

4. Following best practices
Using a Standardized Administrative Rate method aligns with practices at most research universities, including our AAU peers.

5. Enhanced transparency
The Standardized Administrative Rate would allow for more transparent cost structures in all budgeting processes and operating reports.

6. Consistency and strategic decision-making
This method would bring more accurate financial modeling and accounting to Stony Brook, creating consistent budgeting across the University and enhancing strategic decision-making capabilities.

7. Reduced administrative burden
This change would significantly reduce the administrative workload for those responsible for developing and maintaining budgets and financial planning at SBU.

Suggested Timeline

Building the StAR
This is a tentative timeline subject to change as we explore this initiative depending on actual project task completions. Please revisit this website periodically for updates and the latest version.

StAR Development

Spring 2024 - Winter 2025

SUNY and Stony Brook are collaborating to explore redefining administrative rates at the campus level.

Broadening Campus Awareness

Spring 2025

Executive Sponors to share information about the potential change to administrative rates. Additionally, the Office of Change Management (OCM) team would work with all impacted departments to educate and guide the campus community via efforts such as road shows, town halls, enewsletters, surveys, etc., should the StAR program be implemented. Visit the OCM website for more information

Exploring Technical Components and Modeling

Spring 2025

The Budget Architecture and Implementation Team to explore methodologies and potential modeling tools for use during the parallel view year FY 25/26 (July 2025-June 2026).

Potential Implementation

July 2026

If pursued, after concluding the parallel view year, the StAR could be considered as a part of the New Economic Framework (NEF) go-live for July 1, 2026 (for FY 26/27 budget year).

FAQs and Feedback

The StAR program would be calculated by multiplying the applicable rate on all components of an employee’s salary and wages. Should StAR be implemented, it would be the same rate across Revenue Offset [State Purpose], General IFR and SUTRA funds. The Dormitory payroll assessment would also be impacted. The StAR program would bring it in line with the other self-sustaining funds like Hospital and Veterans Home.
This is the very reason StAR would be best implemented with the New Economic Framework effective FY26/27. Implementing StAR within a new financial infrastructure creates a more equitable fiscal environment. It eliminates the inequities of certain units paying fringe benefits while other units were not. Finance & Administration is modeling on a comprehensive transition plan, should StAR be implemented, to ensure a smooth adaptation with consistent messaging regarding the financial impact.
The Standardized Administrative Rate would be:
- Potential Implementation during FY 2026/27 (July 2026-June 2027)
Comprehensive training would be provided for all business officers and budget planners, including workshops, online resources, and documentation. Training would begin in advance of the implementation year to ensure everyone is prepared.
BFP&A, the Office of the Controller, and DoIT would develop reports illustrating the details around the StAR assessment and adjustments. This would include details on how to identify these transactions.
The StAR creates more predictability in personnel costs. While the standardized rate may be higher than previous rates for some funding sources (like State purpose dollars; it would be significantly lower for IFR, SUTRA and Dormitory funds), and would provide consistency for planning purposes. With the WolfieONE implementation, we expect greater transparency in operating reports.
SBU's Office of Changement Management will lead a dedicated support team to address questions about the NEF and StAR implementation. In the meantime, questions can be submitted using the Feedback form here.
Yes, we will provide regular updates through multiple channels including this website, town halls, direct communications to business officers, and e-newsletters. A detailed communication plan is being developed to ensure everyone stays informed throughout this inclusionary process. We thank you for your collaboration and feedback.

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