Handbook of Business Procedures
June 18, 2012
June 18, 2012
Costing and Analysis
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 in support of sponsored research programs or academic needs. A service center can provide services to internal and external users. A service center must meet the following criteria:
- Operate on a break-even basis.
- Act as an ongoing activity, not a one-time distribution of expenses.
- Comply with both university accounting policies and federal guidelines published by OMB, Circular A-21, Section J., General provisions for selected items of cost.
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 Costing and Analysis (C&A) at email@example.com to determine how services and/or service centers below the $50,000 threshold should be classified and operated. If $10,000 or more is charged to sponsored projects, a service center must be established.
Service centers with charges to sponsored projects of less than $10,000 per year are not subject to the following procedures/guidelines.