Administrative Full Costing and External Customer Surcharge

Administrative Full Costing

Effective July 1, 2009, the administrative full costing fee on external funds received from the sales and services of educational activities, auxiliary enterprises, agency activities, service enterprises, and other operating revenue increased from the current 4% to 7%.

Administrative full costing is necessary to reimburse central campus departments for administrative costs (e.g. disbursements, police, cashiering, systems support, accounting services, etc.) incurred in support of external revenue-generating activities. On a monthly basis, General Accounting processes an administrative assessment to the applicable IST activities and credits an unrestricted Chancellor’s fund which is used to offset the central administration costs incurred in support of external revenue-generating activities.

For more information regarding Administrative Full Costing, please go to http://campuspol.chance.berkeley.edu/policies/adminfullcosting.pdf

External Customer Surcharge

As indicated by Campus Recharge Policies, recharge services provided to outside consumers should include a surcharge to recover campus indirect costs. An external user is an entity or person over whom the University has no fiduciary responsibility regardless of the user’s relation to the University’s mission (e.g. students, staff and faculty acting in a personal capacity, other Universities (non UC), commercial entities, and public at large). IST currently charges a 58% surcharge to external customers.

For more information regarding External Customers, please review Section O (pages 21-22) of the Recharge Policy document at http://controller.berkeley.edu/recharge/Policies/Rechargepolicy.pdf