6.17 Administrative Service Charge Policy

1. Who is charged? The Administrative Service Charge is assessed on accounts that fall within the Auxiliary and Designated fund groups.
   • Auxiliary fund group of accounts – All accounts assigned to Fund Group AX (Auxiliaries) in the Chart of Accounts.

   • Designated fund group of accounts – All accounts assigned to Fund Group DE (Designated) or DR (Designated – Service Centers) in the Chart of Accounts.

2. Where does the money go? The revenues generated from the Administrative Service Charge (ASC) are used specifically to support overhead costs (activities on campus which benefit the entire institution, but which are not easily assignable to any one unit, for example, utilities, processing payroll and purchase orders).

3. How is the charge determined?  The ASC rate is determined by the President's Cabinet and is 9.0 percent, effective July 1, 2009.

4. How is the charge assessed? The charge is assessed and automatically posted to UAccess Financials each month. Posting occurs on the last day of the monthly close, after all other transactions for the month have been processed. This method insures that all increases and decreases to current month revenues are accounted for prior to the assessment.

5. How is the charge calculated? Only revenues from external sources (such as, faculty, staff, and students) are used to calculate the ASC. The following revenues, identified as internal charges (by object code used), are excluded:
   • Revenues from interdepartmental billings and gifts.
   • Institutional fees (such as tuition, art fees, indirect cost, and utility pass-through charges).

6. How are corrections made to an account? If an error occurs, i.e., revenue is posted to an account in error, prepare a General Error Correction to move the revenue to the correct account. The ASC correction will automatically post on the last day of the monthly close.