SUBJECT:	Definition of Reporting Auxiliary and Service Centers
SOURCE:	Auxiliary Accounting Department, FMS
ORIGINAL DATE OF ISSUE:	July, 2004
DATE OF LAST REVISION:	September, 2007
ASOP NO:	2.0
RATIONALE:	To provide guidelines on when an Auxiliary or Service Center organization will be considered a Reporting Auxiliary and Service Center (RASC) by Financial Management Services.
ASOP:	Any Auxiliary or Service Center organization earning more than $250,000 in sustainable revenue for three consecutive years or at least $500,000 in any given fiscal year, and having expected continuing operations as determined by Campus Administration and FMS, is subject to the requirements outlined in this ASOP. Upon reaching the $250,000 revenue threshold, the appropriate campus administration will be notified by Auxiliary Accounting that the unit is to become a RASC. A RASC that earns less than $250,000 in revenue for two consecutive fiscal years will no longer be considered an RASC. Exceptions may apply as deemed appropriate by University Administration for units falling below the $250,000 threshold. Required tasks of RASCs include: Timely recording of financial transactions on an accrual basis. Timely recording of Auxiliary Vouchers at minimum on a quarterly basis however monthly entries are preferred. Completing a Quarterly Variance Analysis. Submitting detail backup for all balance sheet object code balances on an annual basis (See ASOP 16.0). Performing an annual physical inventory (units with goods for resale). Reconciling accounts on a monthly basis, as referenced in Policy I-1, Role of Fiscal Officer, Account Manager and Account Supervisor. Tasks performed along with Auxiliary Accounting: Undergoing a financial review performed by Auxiliary Accounting on a triennial basis. Detailed documentation of accounting processes performed by Auxiliary Accounting.
DEFINITIONS:	Account - Identifying number for a pool of funds assigned to a specific university organization, for a specific function. Auxiliary Account – An account (typically in the 60-xxx-xx or 61-xxx-xx range) that furnishes goods or services to students, faculty, staff, or the general public and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. Fundamentally, an entity managed as a self-supporting activity. Service Center account – An account in the 66-xxx-xx range that furnishes goods or services to other internal university departments and charges a fee directly related to, and equal to, the cost of the goods or services. Fundamentally, an entity managed as a self-supporting activity that is to operate at breakeven. Auxiliary and Service Center organizations – Indiana University Departments that are fully or primarily comprised of Auxiliary and/or Service Center accounts. Account Reconciliations –the review of monthly operating reports on a monthly basis to ensure that the revenue and expenditures posted to the account are those that were approved by the Fiscal Officer, or their delegate, and that they are allowable and appropriate.
CROSS REFERENCE:	See ASOP 10.0, Inventory; See Accounting Administration Policy See I-350, Accrual Accounting; See Accounting Administration See Policy I-1, Role of Fiscal Officer, Account Manager and Account Supervisor.
RESPONSIBLE ORGANIZATION:	Financial management Services