Cost Allocation / Reimbursement Plans for the
California State University (CSU) Operating Fund
It is the policy of California State University, Sacramento (University) that the costs incurred by the CSU Operating Fund for services, products, and facilities provided to CSU enterprise programs/activities/funds (University self-supporting funds), auxiliary organizations and entities external to the University are properly and consistently recovered with cash and/or a documented exchange of value. Allowable direct costs incurred by the CSU Operating Fund shall be recovered based on actual costs incurred. Allowable and allocable indirect costs shall be recovered according to a cost allocation/reimbursement plan that utilizes a documented methodology for identification of indirect costs and a basis for allocation. Allocation/reimbursement of joint use costs to the CSU Operating Fund from an auxiliary organization or University self-supporting fund is independent of whatever indirect costs (i.e. Federal Facilities and Administrative costs) may be recovered from external grants and contracts.
It is the responsibility of each division that is funded by the CSU Operating Fund and provides services, products or facilities to Auxiliary Organizations and/or University self-supporting funds to develop and document a cost allocation methodology for the division. The respective Provost/Vice President or designee has the responsibility to annually review, update and forward their division’s cost allocation plan to the University’s Chief Financial Officer (CFO) or designee.
The University’s CFO or designee is responsible for reviewing and approving the cost allocation methodology developed by each division. The divisions’ annual plans will be consolidated into one University cost allocation plan for each Auxiliary Organization and University self-supporting fund. The University’s CFO or designee is responsible for approving and implementing the University’s annual cost allocation plan by collecting the reimbursement and allocating the reimbursement to the appropriate University departments.
This policy applies to all University divisions funded by the CSU Operating Fund that provide services, products or facilities to Auxiliary Organizations and/or other University self-supporting funds.
Cost Allocation Plan Process and Methodology
Resources and Reference Materials
Integrated California State University Administrative Manual, Policy 3552.01; Executive Order 1000
Approved: Alexander Gonzalez
Date: August 13, 2012