Auxiliary Standard Operating Procedures


SUBJECT:

Definition of Auxiliary and Service Center Accounts

SOURCE:

Auxiliary Accounting, Financial Management Services

DATE ISSUED:

March 2006

DATE OF LAST REVISION:

December 2014

ASOP NO:

1.0 

RATIONALE:

To aid fiscal officers, account managers, and account supervisors in understanding the appropriate use of funds pertaining to the Auxiliary Enterprises fund group.

ASOP:

Auxiliary Activity

 

An auxiliary activity is one that furnishes goods or services to any non-Indiana University department and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. This includes sales to students, faculty and staff for non-IU business, or the general public. An auxiliary activity is an entity that is regularly carried on and is managed with the intent to be self-supporting.

 

Activities that involve Instruction, Research, Public Service, or Student Services are typically not considered auxiliary activity.

 

Service Center Activity

 

A service center activity is one that furnishes goods or services to another Indiana University department and charges a fee directly related to, and equal to, the cost of the goods or services. Service center rates cannot exceed the rate charged to an external customer. Fundamentally, a service center unit is managed as a self-supporting activity that is to operate at breakeven.

 

A service center unit is also commonly referred to as a recharge center.

 

Service center (internal) activity should be separated, at the account level, from external activity.

DEFINITIONS:

Auxiliary Enterprises Fund Group – The AuxiliaryFund group includes: auxiliary enterprise accounts (60* accounts), medical laboratory services, practice plans, medical services & hospital support funds (61* accounts), auxiliary computer services (63* accounts) and service center accounts (66* accounts).

 

External Activity- An activity that furnishes goods or services a non-Indiana University department. This includes sales to students, faculty and staff for non-IU business, or the general public.

 

Fund Group – The familiar title of a particular group of funds. Some examples include general funds, designated funds, sponsored research funds, loan funds, etc.

 

Instruction: This includes both credit and non-credit courses offered by the institution; as well as, non-credit offerings that are part of a continuing education program.

 

Internal Activity: An activity that furnishes goods or services to another Indiana University department.

 

Public Service: Activities established primarily to provide non-instructional services for the benefit of those external to the institution.

 

Regularly Carried On: Refers to income producing activities that are (or could be) conducted on a year round basis or where a substantial portion of the year is spent preparing for a seasonal activity. An activity should not be considered as regularly carried on if it is: on an infrequent basis; performed for a short period of time during the year; or, without competitive and promotional efforts.

 

Research: The research classification includes all expenses for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organization unit with the institution.

 

Student Services: Activities that exist to contribute to the student’s emotional and physical well-being, and intellectual, cultural and social development outside the context of the formal instruction program. Examples include: student activities, cultural events, student newspapers, intramural athletics, Indiana University student organizations, intercollegiate athletics and health services (if the program is not operated with the intent of being self-supporting) and non-academic counseling and guidance.

CROSS

REFERENCE:

Accounting Administration Policy FIN-ACC-I-120

Recharge and Service Center Activity FIN-ACC-I-400

Auxiliary Financial Standards FIN-ACC-I-600

Frequently Asked Questions

OMB Uniform Guidance (PDF)

RESPONSIBLE

ORGANIZATION:

 

Auxiliary Accounting, Financial Management Services