The document summarizes a presentation by Terry Johnson at a June 2013 COGR meeting, detailing the operations and financial management practices of service centers at the University of Iowa, located in Iowa City. With an annual budget of $3.5 billion that includes the university's hospitals and practice plans, and enrollment of over 31,000 students (majority non-residents), the institution manages around $400 million in annual grants and contracts—primarily from federal sources, especially the NIH. The university oversees 115 known service centers, comprising both Specialized Service Facilities (SSFs) and Departmental Recharge Centers, which together generate $24 million in yearly revenue from federal, internal, and external sources.
Service center policies and procedures focus on financial transparency and regulatory compliance. Each center is distinctly tracked in the general ledger, with mechanisms to identify and report subsidies. The centers are expected to operate near break-even, maintaining fund balances within 10% of annual expenses, and rates are calculated based on budgeted expenses and units. Charges to federal grants must be non-discriminatory, and capital purchases are excluded from operating accounts, often managed through plant fund reserve accounts tied to depreciation. Regular oversight is conducted by the Controller’s Office, with varying review frequencies based on revenue levels. Financial reporting includes detailed income statements, rate lists, and confirmation that unallowable costs are excluded from calculations, supported by an online system that tracks and flags expenditures over a five-year history. The policies ensure compliance with federal regulations, equitable treatment of charges, and prudent financial stewardship of research and operational support services.
