Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

FINANCE
30.16
New 2-08
Finance and Administration
335-5524

Administrative Service Charge

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OVERVIEW

The University assesses administrative service charges on revenues collected by University units which charge for goods and/or services.

Administrative service fees are charged to provide funding for central University administrative service costs. In combination with other University funds, these fees partially offset overhead costs, which include personnel, payroll, accounts receivable and payable, purchasing, and other support services.

ADMINISTRATIVE SERVICE CHARGE

The University assesses an administrative service charge to service center units for revenue of any type in programs 01 through 10 (including object 21), 15, 16, 19, and 19B.

Administrative service charge revenues are deposited into the Local Dedicated Fund (148-05) and are allocated through the annual budget process.

The Vice President of Finance and Administration, in consultation with the President reviews and sets the administrative service charge rate periodically.

Service center units may include administrative service charges as operating costs in setting rates for goods and/or services. See below and 30.15.

Exempt Revenue Sources

Revenue sources exempt from the administrative service charge calculations include the following: