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Government Costing

Service Activities

Storeroom and services activities (service centers) are established primarily to meet the programmatic needs of the academic community, and usually provide goods or services to multiple internal users including sponsored programs administered by the University, 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.

Each service center is its own business operation and must calculate and charge rates for the services and/or products they provide. These rates are charged against various University funds including sponsored projects. As a result, the University must comply with federal costing principles as well as State and University guidelines for service centers. These service centers, whose main customers are internal University departments, track their revenue and expenditures in Storeroom and Service fund type 3E funds.

The Code of Federal Regulations (Uniform Guidance Title II CFR Part 200) provide guidelines that establish principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. It also outlines the general federal requirements for calculating service center rates. Federal agency Inspector General's audit plans have recently included reviews of service center costs. 

In addition, for our University service centers it is important to note that Section 3.2.0 of the Disclosure Statement (DS-2) requires information be completed relating to specialized service facilities and service centers. Service centers with $1 million revenue and/or $250,000 in federal sponsored project revenue are required to be reported on the DS-2. 

Last Updated: May 5, 2016

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