Business and Finance.

Internal Service Center Policy

EFFECTIVE JULY 1, 1997
Revised January 2010

PURPOSE: To establish a comprehensive University policy that governs Service Centers to ensure compliance with applicable ASU, Board of Regents, State, and Federal regulations. Internal Service centers are revenue producing enterprises with annual budgets of $1 million or more that provide services/products primarily to University Departments at fully burdened rates.

Recharge Centers (subsidized Service Centers with budgets of less than $1 milllion, exclusive of subsidies, are also required to follow this policy.  Recharge Center oversight is through the OVPREA Executive Agent for Recharge Centers and Core Facilities.

  1. DEFINITIONS
  2. ESTABLISHING AN INTERNAL SERVICE CENTER
    1. Process for establishing an Internal Service Center with an annual budget greater than $1 million.
    2. Process for establishing a Recharge Center with an annual budget less than $1 million.
  3. INAPPROPRIATE SERVICE CENTER ACTIVITIES
    1. Competition with private enterprise; unrelated business
    2. Harmful inefficiencies or internal competition
  4. COST ACCOUNTING GUIDELINES 
    1.  Accounting practices
    2. Cost centers
    3. Costs included in billing rates
    4. Basis for direct charges
    5. Separate billing rates
    6. Capital usage factors
    7. Internal Service Center overhead
    8. Frequency of billing rate calculations
    9. Break-even operation
    10. Revenue or expenditure transfers
    11. Exceptions
    12. Service Centers are responsible for computing of their rates
  5. ADMINISTRATIVE GUIDELINES
    1. Separate budgeting and accounting
    2. Official financial records
    3. Record keeping procedures and systems
    4. Identification of equipment
    5. Stock inventories
    6. Schedule of billing rates
    7. Billings to university departments
    8. Billings to the public
    9. Capital renewal and replacement accounts
    10. Institutional overhead
    11. Administrative service charges
    12. Exceptions
Related Information
Appendix A Related Policies & Procedures