Handbook of Business Procedures
June 19, 2012
June 19, 2012
Costing and Analysis
10.3.11. CLOSING A SERVICE CENTER
A service center will be closed if there is no income generated due to lack of demand or need for the services or goods provided, the service center becomes too inefficient or costly to operate, or the service center department initiates a request to terminate services.
Before closing, the service department is responsible for ensuring:
- Salary appointments to the service center account are removed.
- Expenses are disencumbered
- Institutional loans are fully paid
- Surplus balances greater than one month’s operating costs are refunded back to the service centers users on a pro rata basis. The refund is allocated to users charged within the last 12 months of operation. C&A can assist in determining the user base.
- Surplus balances greater than one month’s operating costs can be retained by the department and moved to a Designated Funds 19-account.
- If a deficit balance exists, the balance is the responsibility of the department and is transferred to the guarantee account listed on file.
- If equipment used in the service center is no longer needed by the department, the equipment must be disposed of following the policies outlined in the Handbook of Business Procedures, (16.3. Removal of Equipment from the Inventory).
- In addition, the following policies apply to equipment being sold or transferred:
- Proceeds from equipment sold or transferred to another university department or state agency must be credited back to the original account used to purchase equipment. Equipment purchased with service center funds can be credited back to a Designated Funds 19-account.
- Transfer of equipment with a remaining useful life to another university department nonservice center account requires the removal of the service center identifier in *DEFINE.
To close a service center, the service center department must send an email to C&A email@example.com and include the following information:
- Name of service center (8-digit budget group)
- Reason for terminating services
- Effective date for termination of services