Cost Recovery

Per ICSUAM Section 3552.01Opens in new window , it is the policy of the California State University (CSU) to recover costs incurred in providing services, products and facilities to other funds, auxiliary organizations and system headquarters. In addition to the policy above, a Systemwide Cost Recovery GuidelineOpens in new window for direct costs was established. Effective July 1, 2010, cost recoveries are no longer allowed in the CSU Operating Fund (PeopleSoft fund THEFD). To comply with this directive, we created funds to record cost recoveries.

  • THERA - cost recoveries from internal university departments
  • THERE - cost recoveries from outside organizations (such as CSUF Auxiliary Organizations)
  • THEXT - cost recoveries from external entities (such as vendors)
  • THCSU -  cost recoveries from other CSUs and Chancellor's Office

Fund THERA is mostly used by the Service Providers to process chargeback transactions. See Chargebacks section.

Fund THERE is used to recover costs from the CSUF Auxiliary Organizations. Cost recovery revenue in THERE is posted to account 580095 (Oper Rev Cost Rec from Aux).

Fund THEXT is used to record revenues from external sources.  It is NOT to be used by self-support funds (Housing, Parking, and Continuing Education).  See THEXT section.

If possible, recovered costs (expenses) must be recorded directly in fund THERA or THERE. In most cases, expenses are posted in the CSU Operating Fund (THEFD). When this happens, expenses must be moved from THEFD to THERA or THERE before year-end (June 30).

Reimbursements for Disallowed Purchases Charged to a Procurement Card (P-card)

How to Reimburse the University for Disallowed Purchases Charged to a P-Card? (flowchart)PDF File Opens in new window


Related Link:

Procurement Card Guidelines