Costing Corner: Break-even Basis
Do you have a 3E self-supporting fund? Do you know that your fund must break even over time, and any accumulated over/under recovery must be included in your rate calculation?
The University of Illinois System is a non-profit institution and service centers must operate on a break-even basis. Policies and regulations require all service centers to break-even over a period of time. It is not appropriate to generate profit from internal users.
In addition, to help service centers work towards breaking even over time, System Government Costing provides guidelines and training on the proper way to determine the over/under recovery to be included in the next year’s rate calculation(s). For assistance, access the System Government Costing website for guidelines, training, and resources.
Contact
If you have questions about service center rates feel free to consult System Government Costing’s Who to Ask, in the Search box on the top right of the page type “System Government Costing” to find the list of experts who can help.
