Allocated Costs are based on a formula driven by:
credit hours generated
net direct expenditures, and
Internal Charges: Principles & Process
In spring 2014, a committee was appointed to review the current policies and procedures for setting and approving internal charges to departments for university services. In particular the committee was asked to determine and make recommendations for improving these policies and procedures so that they better support the principles of RCM.
Support units attempting to increase their resources through new or increased fees is an issue at other RCM schools. Therefore, the committee developed a set of principles to protect the schools, colleges, and students from unwarranted charges and assessments and to keep costs both low and fair.
Each year we invite proposals for new internal charges or changes to existing charge to be reviewed by the Cost & Services committee. This is not an open call for proposals, rather a new charge or increase is always carefully scrutinized through the committee’s review. Internal charges should be set at a level that recovers actual costs only and does not generate profits. Actual costs would include all direct costs and any allocated indirect costs.
Proposals to introduce a new internal charge or to increase an existing charge will be considered based on the following:
- Generally approval will not be granted for a new internal charge to recover costs associated with an already existing function or service for which a budget exists.
- Reasons for considering increases may include rising costs of providing the underlying service or increased demand for services.
- Increases in internal charges to offset budget cuts will not be considered.
- Proposals that are not approved will be decided in time for the requesting department to apply for additional budget to cover the cost of the activities through their annual budget conference.