Self-supporting funds classified under the 3E – Service and Storeroom Activities fund type are managed as businesslike operations with the objective of breaking even over time and generating sufficient revenue from sales to finance all costs associated with the activities. Each department is responsible for the management of its service activities, including performance of regular rate calculations with supporting documentation.
Service center personnel operating and maintaining these service or storeroom funds have defined responsibilities and must familiarize themselves with policies, procedures, and regulations they are required to follow.
Service Center Managers (or those personnel holding similar positions) are responsible for:
- Maintaining a working knowledge of service activity policies, regulations, and procedures necessary to run a service activity operation and compile compliant rate calculations.
- Exercising sound business practices necessary to run a breakeven service activity operation.
- Preparation of an annual budget and year-end fact sheet.
- Calculation of user fees or markups every 2 years at the operating ledger (OL) level and justification for interim rate adjustments, if any.
- Maintenance of current Banner Fixed Assets records of equipment used in service activities, in accordance with BFPP Section 12 Property Accounting.
- Review and reconciliation of monthly Banner financial statements.
- Physical inventory of merchandise for resale and any adjusting entries made to Banner in accordance with BFPP Section 5 Receivables.
- Performing timely billings (recommended monthly) and providing adequate supporting documentation.
- Maintenance of records.
To access the applicable OBFS Business and Financial Policies and Procedures –see 22 Self-Supporting/Revenue Generating Activities – Service and Storerooms and other helpful resources.
Contact
If you have questions about calculating service and storeroom activity rates feel free to consult System Government Costing’s “Who to Ask” list to find an expert who can help.
