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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

June 19, 2012
June 19, 2012
Costing and Analysis

 

Part 10. Costing - Table of Contents


10.3.6. TYPES OF SERVICE CENTERS

A. Introduction

The type of service center is determined by the revenue threshold amount, whether the service is provided to internal or external users, and other factors.

Type Definition Annual Revenue Threshold Amount
Internal Ongoing activity providing goods and services internally. $50,000
Internal and External Ongoing activity providing goods and services to internal and external users. Rates are developed to ensure internal users do not subsidize expenses for services provided to external users. $50,000
Institutional Ongoing activity providing goods and services to internal and external users. University departments generally are not able to decline services, such as telecom services. Services are differentiated between core (institutionally paid with 14-, 19-, or 20-account funds) and noncore (billable) services. Rates for noncore (billable) services are developed to ensure internal users do not subsidize expenses for services provided to external users. $50,000
Specialized Service Facility Ongoing activity providing goods and services to internal and external users. Involves the use of highly complex or specialized facilities not readily available from an outside vendor. Rates are loaded with applicable expenses (fully burdened). $1,000,000

B. Activities Not Included as Service Centers

  • Clearing and pass-through activities are included in the service center 18-account group but are not considered service centers.
  • conference and workshop fees/training
  • academic advising
  • publications/ journals/ pamphlets/ brochures
  • lease costs
  • food services
  • parking
  • clubs/ organizations

 

 

Part 10. Costing - Table of Contents