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California State University, Long BeachCalifornia State University, Long Beach

Cost Recovery

The purpose of this document is to outline and define cost recovery processes. Cost recovery processes ensure costs incurred by the CSU Operating Fund and other CSU funds (i.e. CCPE, Housing, Parking) for services provided within other CSU funds, or to Auxiliary or 3rd Party organizations, are properly and consistently recovered. The goal of documenting cost recovery transactions is to ensure timely and accurate reporting.

Who Should Use This Guide

This guide should be used by the following service providers to understand and follow cost recovery processes:

  • Self-Support Service Providers (Copier, Telecom)/ Enterprise Funds (Housing, Parking)
  • Departments purchasing goods to be reimbursed by other CSU funds, Auxiliary, and/or 3rd Party organizations
  • Departments with personnel transactions to be reimbursed by other CSU funds, Auxiliary, and/or 3rd Party organizations

Cost Recovery Defined

Cost recovery is defined as reciprocal transactions between CSU Funds, university Self-Support Service Providers, Enterprise Funds, Auxiliary and/or 3rd Party organizations.

Definitions and associated activities for each are identified below. For a full list of terms and definitions, please refer to Appendix A.

Enterprise Funds
The obligation of the Enterprise Fund is to obtain and map to appropriate cost revenue account.
Self-Support Service Provider

Reciprocal transactions between university Self-Support Service Providers and campus departments, Auxiliary and/or 3rd Party organizations.

Transactions, which include:

  • Telecommunications
  • Postage
  • Printing
  • Facilities
  • Copier Program
Purchase of Goods

Purchasing transactions made by the University to be reimbursed by Auxiliary or 3rd Party organizations. These transactions include:

  • Purchase Orders
  • Direct Expenses
  • Office Max
  • Procurement Card
Personnel Release Time

Personnel transactions made by the University to be reimbursed by Auxiliary or 3rd Party organizations. These transactions include:

  • Faculty/Staff Release Time
  • Faculty/Staff Charged 100% to a Grant
Grant Related Faculty (Job Code 2387 & 2388) Reimbursement
Faculty paid an augmented salary from endowment earnings or other approved source.

Objectives

The processes and tasks described in this Guide are designed to accomplish the following objectives:

  • Eliminate duplication of revenues.
  • Centralize all Accounts Receivables and Billing to Enterprise Funds, Auxiliary and 3rd Party organizations in General Accounting.
  • Provide a formal and consistent process for customers defined above and General Accounting to follow and maintain consistency and accuracy of financial records.
  • Prevent delinquent accounts.