This section of the book is dedicated to providing policies, standards, and resources for recharge and service centers on the proper allocation of costs to internal and external activities.

When billing other university accounts, recharge or service centers can only recover allowable costs. In situations where the activity of a recharge or service center is intertwined with external activity, a thorough analysis and allocation of total costs between internal and external accounts must be conducted. It is crucial to understand the importance of separating internal and external activities. By maintaining this separation, IU ensures compliance with regulations and guidance, such as Uniform Guidance. Additionally, funding for allowable direct costs associated with internal activities should be fully covered by the recharge or service account, promoting transparency and accountability in financial management. This understanding is essential to upholding financial integrity and compliance standards.

Policies

Review the below policy related to allocating costs to internal and external activities:

• FIN-ACC-400: Recharge and Service Center Activity

Standards

Review the below standard related to allocating costs to internal and external activities:

• Allocating Costs to Internal and External Activity

Checklists

There are no checklists related to this portion of the book at this time. Please check back in the future!

TRAINING MATERIALS

Review the below training materials related to allocating costs to internal and external activities:

• Calendar Year Effort View Report Training Video
• Compensation Management on Sponsored Projects Training Path

OTHER RELATED MATERIALS

Review the below other material related to allocating costs to internal and external activities:

• Salary and Wage Rate Allocation Examples
• Unallowable Expenses
• Salary Expense Transfer (ST) Document
• Distribution of Income/Expense (DI) Import Template

IU Financial system reports and procedures

There are no IU financial system reports and procedures related to this portion of the book at this time. Please check back in the future!