Facilities Home

Chargeback Information

CHARGEBACK OVERVIEW

Powerpoint Viewer is required to view this file type.

Background: Executive Order 847 (Supersedes EO 757) became effective January 10, 2003. It is issued pursuant to authority granted by Sections 1 and 2 of Chapter III of the Standing Orders of the Board of Trustees. It implements the Trustees' "full power and responsibility in the construction and development of any state university campus," (Education Code Section 66606).

The Executive Order indicates that in addition to having the responsibility of maintaining the campus facilities (routine, scheduled, deferred) and capital renewal of facilities, utility infrastructure, roads and grounds, the campus facilities department is responsible for providing non-maintenance services and improvements. Executive Order 847 indicates that:

"The campus general fund operations, or other appropriate funding sources, shall be reimbursed the actual direct costs plus indirect costs associated with requested non-maintenance services provided by the facilities department."

Facilities Services only receives budget allocations for maintenance work (definitions below). Any work provided by Facilities Services that is considered non-maintenance services shall be a chargeback and subject to the reimbursement of direct and indirect costs associated with the request.

Non-Maintenance Work (chargebacks) include such items as:

• Remodels
• Providing decorative treatment
• Attaching items to buildings and grounds
• Furniture assembly
• Rental of Enterprise vehicles
• Hanging pictures and/or documents
• Event support (electricians, custodial services, utilities, grounds, etc.)
• Adding electrical circuits
• Providing new locks on filing cabinets (due to lost keys)
• Adding electronic locking devices
• Any work provided to non-state (auxiliary) entities

However, small scale non-maintenance is predominantly done at "no charge" and includes:

• Hanging pictures, documents, decorative items
• Moving furniture to storage
• Small furniture assembling
• Repainting offices (prior to 7-year cycle)
• Seismic bracing of shelving

All CSU Facilities Services are required to determine that all non-maintenance work is:

• Adequately controlled and accounted
• Properly valued
• Fully charged back to the customer
• Identified and fully charged back for all non-general fund (auxiliary) services

Chargeback funds are used to procure materials, parts, vendor services, and additional labor to meet campus needs.

Definitions:

The complete list of definitions can be found in the Chancellor's Office Executive Order 847. But, in short, they are:

• Operations and Maintenance: Activities required by ongoing, routine operations and maintenance of a building.
• Deferred Maintenance: Work that has been deferred on a planned or unplanned basis due to lack of funds in the annual budget on building components that have not reached their expected life cycle.
• Capital Renewal: The systemic replacement of building and utility systems to extend their useful life.
• Direct Costs: Costs that can be readily assigned to a particular costs objective with a high degree of accuracy.
• Indirect Costs: All costs that are not direct such as support personnel, management/supervisory personnel, transportation, etc. Indirect costs do not have a direct relationship to the production actually being done but are related to the ability of the facilities department to work.
• Resource: General Funds or other appropriate fund sources made available to complete the basic mission of the facilities department. This includes, but is not limited to, all in-house labor, contractor support, and related sources to complete the facilities maintenance task.

Mission:

While adhering to the mandate set-forth in Executive Order 846, Facilities Services continues to strive in providing a quality and safe environment for our customers and employees and demonstrate stewardship of the physical assets of the campus. We hold firm to our motto: Maintaining a quality campus environment.

We invite you submit your work request on-line. If you have any questions, please feel free to contact Work Control at extension 75175.