Service Center Balance Policy - University of Houston

# Service Center Balance Policy

Each service center must maintain a positive cash balance and be self-funded.  In addition, service centers should not carry forward more than 20% of their revenue from one fiscal year to another.

• A positive cash balance is defined as:
• Carryforward + Revenue + Outstanding (Invoices) – Expenses (paid and outstanding) ≥ \$0.00
• If employees are paid from the service center, then a positive cash balance is defined as:
• Carryforward + Revenue + Outstanding (Invoices) – Expenses (paid and outstanding) ≥ 3 months' salary (for all employees)

Example

• In the example below, the equation would be:
• \$162,151.04 + \$57,000.00 + \$0.00 – (\$64,082.24 - \$4,549.04) = \$150,519.76
• \$150,519.76 > \$0 so the service center can continue spending.
• If the example below involves salaries:
• \$162,151.04 + \$57,000.00 + \$0.00 – (\$64,082.24 - \$4,549.04) = \$150,519.76
• \$150,519.76 > \$36,674.25 so the service center can continue spending.
• Note: The \$36,674.25 is 3 months' worth of salary which is a part of the entire \$65,468.22 shown below. This amount can always be provided by the EAS business office.

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