Current through all regulations passed and filed through September 16, 2024
(A)
Policy statement. The university is committed to
financial accountability. In certain instances, chargebacks provide an
effective method by which to ensure financial accountability and the
appropriate allocation of costs.
(B)
Purpose. To
establish a policy to create, modify and authorize chargebacks and related
processes.
(C)
Definitions. "Chargeback" - the allocation of costs by
charging departments for certain goods or services that have been provided by
another department. Chargebacks are a way to control and allocate costs and not
a mechanism for increasing the operating budget for departments providing goods
and/or services.
(D)
Parameter.
(1)
Certain departments on campus need resources to perform
certain functions, to provide specific services and/or materials. In some
cases, resources are provided to departments so that they may provide goods
and/or services to other departments. The cost of certain goods and/or services
may be charged back (i.e., billed) to the departments that request the goods
and/or services.
(2)
Chargebacks for auxiliary overhead and employee fringe
benefits are excluded from this policy.
(3)
Authorized
chargebacks shall be included in the university's operating budget as adopted
by the board of trustees.
(4)
The vice president for finance and administration shall
establish procedures and guidelines for chargeback processes.
(5)
The establishment
of new chargebacks and the modification of existing chargebacks should be
approved prior to implementation and as part of the annual budget
process.
(6)
Chargebacks may be assessed only by departments that
have been approved and designated to do so. Only the financial managers of
these departments may authorize chargebacks.
(7)
A chargeback may
be assessed when the goods and/or services are requested by the department
receiving the goods and/or services. A chargeback also may be assessed when
essential services are provided, even for services not explicitly requested
(i.e., police security services for an event on campus).
(8)
Chargebacks
should reflect the direct cost of the goods and/or services provided. The
department providing goods/services should be able to clearly demonstrate and
document how the chargeback is calculated.
(9)
Exceptions to
this policy may be approved by the president.
Replaces: 3356:1-1-13-17
