askus icon

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


A. Preliminary Approvals

  • Review the items to consider when determining whether to propose a service center.
  • Download and complete the appropriate service center forms.
  • Obtain approval from the dean or vice president for the prospective service center proposal.

B. Rate Reviews of New and Existing Service Centers

All service center rate proposal packages must be submitted to for review and approval.

  • New service centers require additional reviews by the director of financial services and associate vice president.
  • Existing service centers must submit rate proposals at the following times:
    • on a biennial basis
    • if new services or goods are added or removed
    • when budget increases are requested
    • if significant changes are made to the rate methodology

C. Significant Changes to Existing Service Centers

The criteria below are provided to assist you in determining what constitutes a significant change to an existing service center. Contact C&A at if you need further clarification or assistance.

  • Changes impacting the distribution base(s) and/or cost pool expenses to calculate the rate(s).
  • The service center adds or expands services that were not previously approved by C&A.
  • Any change that may have a financial policy implication and/or cost accounting concern.
  • Elimination or merger of a service center.

D. Rate Proposal Package

Submit a complete rate proposal package to for review. The package, including the justification and all cost pool expenses, is reviewed to ensure they are reasonable and necessary to the operations of the service center.

The package consists of the signed rate proposal form, the service center description form, salary and wage schedule, equipment depreciation schedule, consumables schedule, rate calculation form, and income by user form.

Once approved by a dean or vice president, all service center rate proposal packages must be submitted to the C&A analyst for review and establishment.

E. Service Center Approval Criteria Used by C&A

  • Proposal meets the approved thresholds.
  • The services or goods are in demand by multiple users.
  • Activity will be ongoing and is not a one-time distribution of expenses.
  • Activity does not interfere with normal department functions.
  • Goods or services are not currently offered by an existing service center at the university.
  • Redundancy or duplication of goods or services does not occur.
  • Services are identifiable (e.g., machine shop, glass blowing) and not general.
  • Rates are stated in measurable units of goods or services.
  • Does not compete with outside vendors if services are offered to external entities.
  • Proposal is in concert with the mission of the university and/or the goals of department.
  • Rates are based on actual or historical costs.
  • Rates are structured to break-even annually.



Part 10. Costing - Table of Contents