Intra-University Billings Policy
At Northern Michigan University (herinafter the University), the General Fund is maintained to account for those transactions related to academic and instructional programs and their administration. These programs and their administration are funded through a State of Michigan appropriation, student tuition and fees, and incidental departmental revenue. Therefore, departments in the General Fund are funded at a level adequate to provide services to the University community without additional departmental charges.
In certain departments, the University has provided for separate fees for services as a means of charging the individual user and/or as a method of controlling costs. Examples of these fees are: transcript fees, library fines, and parking registration fees. These fees are charged to individuals and approved by the President's Council and approved by the President or designee.
Occasionally, departments are asked, or may want to provide services to the University community that are not included in their Operating Budget. If the cost of these services is not material, the department is expected to absorb the cost within their budget. However, if the cost is material and the department cannot provide the services without an increase in budget, the department may:
1. Request a budget adjustment through their vice president.
2. If funds are not available, the department may request to charge for services provided to individuals. If the services are provided to other University departments, the department may request to chargeback for services. To establish these charges, the procedures to follow are:
Departments wanting to charge individuals for their services must prepare a written request to the President's Council which defines the new service to be provided, the amount of the service charge requested, and the basis for the service charge. If the Council Member approves, the request will be submitted, if necessary, to the President for his approval.
Departments funded in the General Fund, wanting to charge-back other University departments for goods and services must submit a written request to their President's Council member which includes the following:
1. A definition of the new or extended services that are recommended.
2. A proposed schedule of charges which includes the basis for the charge and an analysis of why the cost cannot be absorbed in the department's current budget. Costs already budgeted cannot be included in the rate structure.
3. The proposed effective date of the service and charge. Charges may not be instituted retroactively.
If the Council member approves the request, it is then necessary to secure written concurrence of the other Council members. Once the approvals are secured, the department must contact the Accounting Department to establish the procedures for processing the charge-backs.
|Oversight Unit:||CONTROLLERS OFFICE|