FIN 206: Administrative Services Charge
To assess administrative services charges on university expenditures
Arizona Board of Regents Policy Manual - 3–101
The administrative services charge allows local agency/orgs to share in the cost of university administrative services that benefit local agency/orgs. These services include accounting, affirmative action, budgeting, campus security, facilities planning, fiscal transactions processing, human resources, legal, payroll, and purchasing services. The administrative services charge can fluctuate from year to year; the administrative services charge at the date of this procedural update is 8.50 percent of expenditures.
This charge is made to all agency/orgs, both budgeted and nonbudgeted, except for those in the following areas: State General Operating Funds, Sponsored Projects, Student Loans/Financial Assistance, Plant Funds, selected Agency Funds, Special Class Fee/Deposit Accounts, Eminent Scholars Accounts, Technology and Research Initiative Funds (TRIF) accounts, and General Administrative Common Service Units, e.g., local agency/orgs funded from the administrative services charge.
All payments for Student Financial Assistance (object codes 7700 and 7750) are exempt from the assessment of administrative service charges. Specific additional expenditures of the Auxiliary Enterprises and internal service departments exempted from the administrative services charge are listed below.
Agency/orgs subject to the administrative services charge include Auxiliary Enterprises, Summer Sessions, gifts, departmental sales and services, conferences and seminars, off-campus courses/correspondence study, research incentives, and graduate support. For the most part, these are agency/orgs whose third digit of the agency code is a 2, 4, or 5. All agency/orgs not specifically exempted are subject to this charge. The administrative services charge is made weekly through an automated process based on actual expenses for the week.
All donations and contributions are assessed the administrative services charge as the funds are spent. If the donation or contribution stipulates that an administrative services charge is prohibited, the department will be responsible for providing additional funding to cover the associated administrative services charge.
Regents’ policy requires that university funds be deposited only to bank accounts authorized by the regents. This means that all deposits must flow through Financial Services. It is a violation of regents’ policy for any department to bypass the administrative services charge by depositing funds directly into an unauthorized bank account.
The exemptions below apply to the Auxiliary Enterprises and internal service departments.
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