Optimizing Resource Allocation Model

The Optimizing Resource Allocation Model (ORAM) was implemented in FY21 to promote administrative efficiencies and eliminate the majority of recharge transactions for central services.  A single bill is issued to each control point in place of generating recharge assessments to each fund source that used or benefited from the central services. 

Each control point decides how they will allocate the ORAM assessment to departments.  SOM has adopted the following allocation methodology which is consistent with the campus approach:  historical base + clinical growth and inflation + new services added to ORAM.   

The ORAM assessment is allocated on a monthly basis to a single COA of each department's choice.  The department may further allocate their assessment to other department COAs.

The ORAM assessment is generally not allowable on fund sources that generate facilities & administration (F&A) or indirect expenses.  Under special circumstances and where there is sponsor approval, departments may opt to allocate some of the ORAM assessment to those fund sources.  In those instances, departments could use the following allocation rates:

Human Resources Shared Services
Cost per headcount; allocation based on FTE, up to what's allowable on funding source

Pre-award Shared Services
Cost per PI; allocation based on PI portfolio, up to what's allowable on funding source 

Unified Communications Recharge
Cost per phone line; allocation based on number of lines, up to what's allowable on funding source