Financial Services Manual (FIN)

Effective: 3/18/1985

Revised: 7/1/2009

FIN 206: Administrative Services Charge

Purpose

To assess administrative services charges on university expenditures

Sources

Arizona Board of Regents Policy Manual - 3–101

University policy

Policy

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.

---

Specific Exemptions to the Administrative Services Charge

The exemptions below apply to the Auxiliary Enterprises and internal service departments.

1. All goods purchased by a unit for resale and reported on the university’s accounting records as inventory purchases.
2. All services provided for a unit by an off-campus contractor when the cost of the service is billed separately and the service is a major source of revenue for the unit, e.g., lab fees billed to students by Campus Health Service. Expenditures that are not billed separately are not exempt from the administrative services charge.
3. Repair part purchases required for billable repair services, e.g., Office Machine Rental and Repair, Fleet Service repairs. This does not include supplies, tools, or machinery used in the course of providing a service.
4. Vehicles or machines purchased by a service unit for rental to other units. Although the acquiring service unit codes these purchases to a capital object/sub-object, i.e., 7810 XX, Financial Services does not assess the administrative services charge on such purchases.
5. Vehicles or machines purchased by a service unit for resale to other acquiring university units coded as Cost of Sales, 7010 XX. Subsequent purchases of these resale items by other acquiring university units purchases are recorded as capital purchases. The administrative services charge is assessed to the acquiring university unit unless exempted above, e.g., State General Operating Funds.
6. Artist fees.
7. Guarantees paid for Intercollegiate Athletics.
8. Food services purchased by Residential Life and billed as a board charge.
9. Bus service payments for shuttles (West and Polytechnic campuses and USB) coded to Cost of Sales, 7010 27.

  skip navigation bar

---

FIN manual | ASU policies and procedures manuals | Index of Policies by Title | FIN manual contact | Financial Services Web site

Back to Top