Changes in Internal Service Center Procedures

Per the presentation at the Fiscal Agent’s Network Group on May 7, 2008, changes are being implemented in the policies and procedures regarding the establishment of and accounting for Internal Service Centers (ISCs), effective July 1, 2008.

The highlights of these changes are as follows:

• Two categories of ISC are being defined:
1. Major (at least $100,000 of estimated annual operating expenses)
2. Minor (less than $100,000 of estimated annual operating expenses)

• Major ISCs submit rates to Financial Services by March 15 for upcoming FY.
• Minor ISCs develop rates, but do not submit to Financial Services.
• Defined accounting process for copy centers that are not ISCs.
• Defined process and new account code (0699) to use for “non-ISC” units making infrequent internal sales.
• Requirement to include prior year deficits/surpluses in new year’s rates.
• Provisions for accumulation of operating and capital reserves.
• ISCs will be subject to NSF checking by Banner, effective January 1, 2009.

Sept. 25, 2008 ISC Rate Workshop Presentation

Internal Service Center (ISC) Procedures.

ISC Questionnaire.

Internal Service Center Rate Development Workbook.

Internal Service Center Tools:
        ISC Status Worksheet
        ISC Surplus-Deficit Calc_1

You can view the Power Point presentation that was shown at the Fiscal Agent’s meeting by clicking here.

Policy revisions have been submitted, and will be presented for review through the normal process.  In the meantime, the new procedures will take effect July 1.