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CSU POLICY

Section 3000 Policies

Policy Number:  3552.01

Policy Title: Cost Recovery

Policy Effective Date: April 1, 2011

Last Revision Date: April 1, 2011
(see revision history)

POLICY OBJECTIVE

It is the policy of the California State University (CSU) to recover costs incurred in providing services, products and facilities to other funds, auxiliary organizations and system headquarters. Both direct and indirect costs must be recovered. Recovery of direct costs must be based on actual costs incurred. Recovery of indirect costs must be based on an allocation plan approved annually by the Campus Chief Financial Officer (CFO). Each campus must prepare procedures that implement this policy.

POLICY STATEMENT

The cost allocation plan:

• Must describe the methodology used to identify indirect costs subject to recovery and the basis for allocation.
• The plan should be allocating expenses to those areas that receive indirect benefits.
• Must identify how costs will be recovered. As a result of a(n):
• cash payment
• exchange of value
• permanent budget transfer

Recovered costs must be recorded such that intra-agency and inter-agency transactions can be eliminated for purposes of campus and CSU GAAP financial statements. 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

• FOA Guidelines for General Fund Cost Allocation Plans
• Systemwide Guideline Cost Recovery and 485 Reporting Guideline
  http://www.calstate.edu/sfo/
• RMP Document #5 Campus Service Providers
  http://www.calstate.edu/bf/rmp/

Related Principles:

 

Sound Business Practices:

• Excel matrix of reciprocal transactions

Laws, State Codes, Regulations and Mandates:

• Government Code (GC) Sections 11010 and 11270
• Executive Order 1000