Types of Utility Costs – include two major categories, depending upon the source from which the utilities are either acquired or generated:

Types of Facilities (Buildings) to which utilities costs are allocated include:

Electrical Non-metered Buildings – Costs of purchased utilities for all buildings which are not metered individually (for electrical costs) are charged (expensed) initially against central “Utility” accounts as follows:

Texas State On-campus Costs – These costs are initially accumulated in several accounts, as follows:

Gross Square Footage – is the basis for allocating utilities costs among the various areas. At the start of each fiscal year, the Associate Vice President for Financial Services/Treasurer (AVP-FS/Treasurer) contacts the Coordinator of Facilities Inventory (in the office of the VPFSS) to obtain up-to-date figures for all the buildings on-campus.

“Assignable Square Footage” is utilized to allocate Gross Square Footage for each split-use building (partially E&G and partially non-E&G). For example, 10,000 gross square feet in a split-use building which has 6,000 square feet of assignable E&G space and 2,000 square feet of assignable Athletics space would be allocated as: 7,500 gross feet to E&G and 2,500 gross square feet to Athletics.

Buildings Under Construction – are included in the utility calculations (and allocation) provided the building has been connected to the University's chilled water loop and/or other utilities costs are being incurred by the University directly ( i.e. , not being borne by the construction contractor). The AVP-FS/Treasurer must consult with the Associate Vice President for Facilities (AVP-Facilities) to confirm these items. [Each construction contract may contain different language as to who bears the cost of utilities during construction.]

The gross square footage will be determined once at the start of each fiscal year and will be utilized for allocations throughout that year. Buildings which are taken out of service for remodeling and/or renovations will not be removed from the square footage for their functional area – assuming that, after renovation, they will be returned to the same use. For example, the square footage of residence halls under renovation will continue to be included in utility allocations to Housing. This is due to the need for utility service which is paid by Texas State University throughout the renovation project.

Changes which occur in gross square footage “intra-year” will not affect that fiscal year's allocation methodology. Such changes will be reflected in the following year.

Frequency of allocation should be not less than quarterly. Estimates may be utilized in order to enhance the timeliness of allocations. It is desirable to have monthly allocations recorded even if it is on the basis of estimates.

Costs for Artesian Well water , Spring Lake water , and other similar sources are not allocated to the various areas based on lack of materiality.

AVP-FS/Treasurer reviews annual operating budget, to confirm any changes to Utility accounts (either Purchased or Texas State ). Confirmation with Director of Budgeting is also desirable. Updated Gross Square Footage figures are utilized to determine the percentage of utilities costs allocated to each functional area. (per the following sections)

AVP-FS/Treasurer requests from Accounts Payable reports from SAP financial system of “actual” expenses for Purchased and Texas State utilities which have been recorded for the period to be allocated (monthly or quarterly year-to-date).

Purchased Utilities are allocated to the functional areas as listed below:

Texas State Utilities (on-campus) Costs are allocated to the functional areas as listed below:

Wastewater (Sewer) Surcharges were instituted by the City of San Marcos in October 2005. The cost of the surcharges is to be allocated [via a separate journal entry] to the following areas:

E&G Utilities, 30%; Food Service, 30%; Housing, 30%; and Student Center , 10%.

Service Revenue is recognized in the Utilities fund as the credit which balances the utility allocations to the functional areas. The credit entry is to:

AVP-FS/T– prepares the utilities allocation and forwards to General Accounting for data entry into financial system.

Accountant II (in Accounts Payable) – records the journal entries into the general ledger, based on the allocation prepared by the AVP-FS/T. Review of the journal entry is done in accordance with standard GAO procedures.

AVP-Facilities– assures that utilities costs are monitored, approved, and communicated to AVP-FS/T in a timely manner. Also, communicates with AVP-FS/T about changes in building construction, utilities costs, and other issues that might affect utilities allocation. Monitors Utilities service center revenue and expenses.

Utilities Analyst (Facilities) – reviews and approves utilities charges prior to payment. Notifies AVP-FS/T of any outstanding issues, delays in payment processing, and so forth which might affect the utility allocation.

Coordinator of Facilities Inventory (VPFSS Office) – maintains the official university inventory of buildings.

Major responsibilities for routine assignments associated with this PPS include the following: