administration fee definition
“ By far the most costly item among the administrative expenses was the services of a particular clerk, who for exorbitant fees would gather information on anyone we needed to check out, anywhere. What level of reserve ratios is typical for an insurance company to protect against ... In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... The Administrative Fee is used by the State to defray the additional costs associated with soliciting, awarding and administering statewide contracts. At the completion of each quarter, the contractor reviews all sales under their contract in preparation for submission of their Usage Report. The contractor identifies all sales receipts transacted by members of the State Purchasing Cooperative and assesses one percent (1.0%) of this amount in their Usage Report. In accordance with ARS § 41-2633 the Department of Administration, State Procurement Office includes an Administrative Fee, in the majority of its Statewide contracts – multiple agency, multiple government, cooperative contracts. The Administrative Fee is the responsibility of the contractor. The Administrative Fee is a part of the contractor’s unit prices and is not to be charged directly to the customer in the form of a separate line item. Further, Statewide contracts maintain one set of pricing for all customers and not separate prices for State agency customers and State Purchasing Cooperative customers. Costs such as management and clerical compensation, facility cost are allocated across departmental lines and reported under the general category of administrative expenses of the organization. DEFINITION of 'Administrative Charge'. A fee charged by an insurer or other agency responsible for administering a group employee benefit plan to cover expenses related to record keeping and/or other administrative costs; also referred to an an administrative fee. Next Up. For example, central costs for payroll processing, accounts payable services, information technology, liability insurance, etc., are incurred which support such activities. To recover a portion of the costs deemed to benefit these outside activities, an administrative fee is charged to all designated funds. YES NO 9 people found this helpful. “ As they were looking to cut costs, one area where they thought they may be able to cut was administrative expenses. They thought they spent too much on supplies and other non essential items and could save there.
A part of the contractor’s unit prices and is not to be charged directly to the customer in the form of a separate line item.