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Internal Service Centers
EFFECTIVE JULY 1, 1997
Revised January 2008
PURPOSE: To establish a comprehensive University policy that governs Service Centers to ensure compliance with applicable ASU, Board of Regents, State, and Federal regulations. Internal Service centers are revenue producing enterprises of $100,000 or more annual sales that provide services/products primarily to University Departments.
Recharge centers having less than $100,000 of annual sales are also required to follow this policy in regards to cost calculations (Section IV).
The College of Liberal Arts and Sciences has developed a beneficial rate calculation model that is also available for other areas to use. The use of this costing calculation model should help other areas of ASU in calculating internal recharge rates.
The link to this model follows: Rate Calculation Tool/Model
1. DEFINITIONS
2. ESTABLISHING AN INTERNAL SERVICE CENTER
A. Criteria for establishing an Internal Service Center/Specialized Internal Service Facility
B. Documentation for establishing an Internal Service Center/Specialized Internal Service Facility
C. Type of Service Center
3. INAPPROPRIATE SERVICE CENTER ACTIVITIES
A. Competition with private enterprise; unrelated business
B. Harmful inefficiencies or internal competition
A. Accounting practices
B. Cost centers
C. Costs included in billing rates
D. Basis for direct charges
E. Separate billing rates
F. Capital usage factors
G. Internal Service Center overhead
H. Frequency of billing rate calculations
I. Break-even operation
J. Revenue or expenditure transfers
K. Exceptions
L. Service Centers are responsible for computing of their rates
A. Separate budgeting and accounting
B. Official financial records
C. Record keeping procedures and systems
D. Identification of equipment
E. Stock inventories
F. Schedule of billing rates
G. Billings to university departments
H. Billings to the public
I. Capital renewal and replacement accounts
J. Institutional overhead
K. Administrative service charges
L. Exceptions
