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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

June 18, 2012
September 17, 2014
Federal Reporting


Part 10. Costing - Table of Contents

10.3.1. PURPOSE

The purpose of this document is to establish the mechanism for defining, establishing, and closing service center activities and for developing, requesting, and implementing rates for these activities. These procedures provide for consistent operational practices among the various service center activity units, to ensure compliance with both University of Texas at Austin accounting policies and government regulations, including the Office of Management and Budget (OMB) Circular A-21 and Cost Accounting Standards (CAS) to ensure equitable treatment of all clients regardless of the funding source.

A service center (18-account) provides goods or services at approved rates that are essential in supporting The University of Texas at Austin’s teaching and research functions.

The primary purpose for establishing a service center is to allow the university to recover costs incurred for goods or services used and required. A service center can provide services to internal and external users. A service center must meet the following criteria:

Internal charges for goods or services to sponsored projects must not be greater than the actual costs of those goods or services, and federally sponsored projects must not be charged more than other users, internal or external.

Contact Federal Reporting at to determine how services and/or service centers below the $50,000 threshold should be classified and operated.



Part 10. Costing - Table of Contents