The Centralized Services Assessment is necessary to recover central administrative unit costs (e.g. HR and payroll, Accounting Services, procurement, etc.) incurred in support of external revenue- generating activities by auxiliaries and revenue-producing operations in funds 128 and 136. The previous model used prior year expenditures less sales credits. Other reductions such as segregated fees, financial aid, and building additions were applied to arrive at the assessment base. The change to a revenue-based assessment model ensures compliance with Uniform Guidance.
This policy applies to all campus units that receive external revenue in funds 128 and 136.
It is the policy of UW–Madison to charge the Centralized Services Assessment on external revenue received by Fund 128 auxiliary operations and Fund 136 operations. Effective fiscal year 2020-21 the rate is 7%. This assessment rate will continue until amended by the VC of Finance and Administration. Madison Budget Office (MBO) is responsible for the Centralized Services Assessment.
The Centralized Services Assessment applies to all external revenue received from the sales and services of auxiliary enterprises, and other external revenues in Funds 128 and 136, including but not limited to revenue received from sales, services, media and marketing opportunities, fees to individuals, royalties, license fees, fee for service revenue from outside sources, and rent. The Centralized Services Assessment does not apply to tuition and segregated fees, GPR (General Purpose Revenue), investment income, gifts, grants, budget transfers. The amount received by campus is used to offset the central administration costs incurred in support of external revenue-generating activities.
A list of revenue sources by account code that are subject to or excluded from the assessment is included in Appendices A - C.
For FY21 only, data from FY20 will be used to determine the assessment base for the annual billing. Divisions will provide coding to MBO to process the FY21 journal entries in JET. Each division determines how it will distribute the assessment to its departments, sub-departments or projects.
Beginning July 1, 2021, current year data will be used to determine the assessment base by UDDS and project number for a quarterly billing. The quarterly billing will be processed at the beginning of the month following the end of the quarter (e.g., the Q1 billing will be based on July – Sept data and will post in early October). For Q4, the billing will include period 13 and will post after close of year end.
Divisions have two options for the quarterly journal entry in JET:
Under either option, divisions may redistribute the assessment among its departments, sub-departments, and projects.
The Centralized Services Assessment is not an allowable expense for rates charged to federal grants. In order to prevent the Centralized Services Assessment from being included in rates for services provided to federal grants, care must be taken when divisions pass the assessment through to operations that have both internal and external sales.
Divisions must ensure all external revenue sources are recorded in the correct chart string. All external revenues are recorded beginning with the 91XX SFS account codes.
External customers must, per Regent Policy Document 12-1, be charged direct costs plus a surcharge at least equal to the campus F&A rate, intended to cover the cost of campus overhead including the Central Services Assessment.
Periodically, central campus administrative unit costs will be analyzed, and the Centralized Services Assessment rate will be adjusted accordingly, subject to the VC of Finance and Administration’s approval.
The following units are not subject to the Centralized Services Assessment:
Case by case exemptions may be granted by the VC of Finance Administration for unusual circumstances. Requests for exemption must be approved by, and come to MBO directly from, the Dean or Director of the division. Requests must be sent to firstname.lastname@example.org. Please enter “Request for CSA Exemption” in the subject line.
The following information must be contained in the request:
|9102||Summer-Special Course Fees 1||9323||Study Abroad Fees 1|
|9112||Sem 1-Special Course Fees 1||9341||Athletic Events|
|9122||Sem 2-Special Course Fees 1||9342||User Fees Miscellaneous|
|9151||Special Course Fees 1||9343||Membership Fees|
|9179||Prior Year Special Course Fees 1||9345||Advance Room Deposit|
|9114||Sem 1- Business Masters Surcharge||9346||State Owned Housing Fee-Empl|
|9130||Fees Clearing Account||9348||Camps & Clinic Fees - Summer|
|9132||Application Fees-Pharmacy||9357||Residence Housing|
|9136||Application Fees-Grad School||9364||Misc Guest Rental|
|9138||Application Fees-Med School||9365||Vending Machine Commissions|
|9150||Fees Administrative-Misc||9366||Laundry Receipts/Commissions|
|9160||Cont Ed-Informal Instruction||9370||Parking Services #1|
|9181||Forfeited Admission Deposits||9373||Parking Permits|
|9182||Miscellaneous Fees||9375||Parking Services #2|
|9200||Misc Revenue & Deposits||9376||Parking Services #3|
|9204||Unredeemed Bad Checks||9377||Parking Services #4|
|9210||Rebates - P Card and Other Ven||9400||Sales of Materials|
|9211||Housing Refunds - COVID||9405||Tax Exempt Sales|
|9212||Meal Plan Refunds - COVID||9415||Textbook Sales|
|9213||Confer & Event Refunds - COVID||9416||Textbook/Software Rent UG Sem1|
|9214||Parking Fee Refunds - COVID||9417||Textbook/Software Rent UG Sem2|
|9215||Program Fee Refunds - COVID||9418||Textbook/Software Rent UG Sum|
|9216||Other Refunds - COVID||9419||Textbook/Software Rent UG PY|
|9217||Service Fee Refunds - COVID||9419||Textbook/Software Rent UG PY|
|9250||Revenue Default Account||9450||Sales Copy Service|
|9260||Penalty-Late Registration||9460||Publication Sales|
|9261||Penalty-Late Payment||9464||Various Sales #1|
|9280||Student Health Fees||9465||Various Sales #2|
|9281||Student Services Fees||9466||Various Sales #3|
|9300||Services||9467||Various Sales #4|
|9301||Services-Other State Agencies||9468||Various Sales #5|
|9302||Services - Fleet Cars||9469||Various Sales #6|
|9303||Rental Income-Other||9473||Various Sales #10|
|9304||Meeting Room Rental||9480||Various Sales #17|
|9310||Services Athletic Admin||9483||Various Sales #20|
|9312||Write-off A/R Balances||9488||Food Service-Catering|
|9314||Refund-Payment A/R Balances||9489||Food Sales-General|
|9321||Conference, Institute, Workshop||9940||Surplus Property Revenue|
|9322||Field Trip Fees||9950||Building Corp Drawdowns|
|1 if not remitted through Bursar|
|9050||Sales Credits-Internal||9224||State Sales Tax Collections|
|9055||Intern Sales Credit Rfnd COVID||9264||Delinquent Loan Late Charge|
|9102||Summer-Special Course Fees 2||9292||Sem 1 - Seg Fees|
|9112||Sem 1-Special Course Fees 2||9294||Sem 2 - Seg Fees|
|9122||Sem 2-Special Course Fees 2||9297||Summer - Seg Fees|
|9151||Special Course Fees 2||9298||Seg Fees Prior Year|
|Prior Year Special Course Fees 2||9315||Cash Over/Under|
|9201||Sales Tax Refund Revenue||9323||Study Abroad Fees 2|
|9220||County Sales Tax Collections||9800||Earnings-Investment Fund Share (fund 128 interest)|
|2 must be remitted through Bursar|
|9901||Misc Amort Transfer to Fnd 123 3||3 will not be included as a reduction to the assessment base beginning FY22|
|9941||Transfer between Funds 4||4 transfers will not be included in assessment base|
|9942||Trfs-Same Funds/Same Unit 4, 5||4 transfers (including budget transfers) will not be included in assessment base 5 9942 should not be used for revenue that is collected by one division and passed through to another division. The original revenue code should be used per Accounting Services.|