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Business and Financial Policies and Procedures

Section 22.4 - Storerooms and Service Facilities

Stores and services activities are established primarily to meet the programmatic needs of the academic community, and usually provide goods or services to multiple internal users, State of Illinois agencies, and organizations affiliated with the University. They are distinguished from activities that serve a single or small number of users, auxiliaries, and departmental activity accounts that are established for services provided primarily to non-University users.

Federal cost guidelines require that stores and services are to operate on a break-even basis. Rates are established by stores and services to recover allowable costs. Each unit is responsible for the management of its stores and services activities, including the establishment and documentation of each user fee or markup as needed, or at least annually. Inventory and equipment is to be funded by working capital, not generally an allowable charge to the activity.

Established rates must be uniformly charged to all University users. Where preferential rates or free services are provided to some users (students and certain faculty members) rate calculations are based on billing at the full cost, and the resulting under recovery must be subsidized by unit funds and not otherwise recovered through increased rates.

Any exceptions to these guidelines must be approved in advance by the Assistant Vice Presidents for Business and Finance and the relevant responsible administrator under whose jurisdiction the stores or services activity resides.


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Last Updated: March 23, 2008 | Approved: Senior Associate Vice President for Business and Finance | Effective: September 1995

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