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Financial Responsibility for Facilities-Related Costs

Policy Number: FM-4200-02

Policy Title:  Financial Responsibility for Facilities-Related Costs

Vice Chancellor/Associate Chancellor: Vice Chancellor for Administrative Services (VCAS)

Unit Responsible for Policy: OVCAS Unit: Business and Finance

Effective Date: 12/03/2019

Contacts: Director of Business and Finance, OVCAS; Executive Director, Facilities Management; Director of Environmental, Health and Safety Office; Chief of UIC Police

Policy Statement: The Office of the Vice Chancellor for Administrative Services (OVCAS) is responsible for the operations, maintenance, safety and security of all University-owned facilities1. OVCAS is funded to provide basic safety and security services for the entire campus.  Procurement of both basic and specialized services for UIC owned facilities will be handled by the OVCAS with exceptions when authorized in advance by the Vice Chancellor for Administrative Services.  Auxiliary and self-supporting units are financially responsible for all levels of facility services for the spaces they occupy. Although OVCAS is financially responsible for basic facility services for University-occupied spaces, occupants are financially responsible for specialized facility services for their spaces.  Details about what constitutes basic vs. specialized services are found in the procedures associated with this policy.  This policy does not apply to Regional campuses.

University-owned facilities are categorized into four different groups for purposes of this policy (see procedures for complete list of buildings and their categorization):

  • State-supported facilities: those facilities that are primarily funded by State of Illinois appropriations and income fund (tuition and certain fees).
  • Auxiliary funded facilities: These include Student Residence halls, Student Centers, CU1 Arena, Dorin Forum, South Campus – University Village Market Place and offices, Flames Athletic Center, Recreation Centers and Parking lots and facilities, as identified in the University of Illinois Revenue Bond Financing Act for Auxiliary Facilities.
  • Healthcare and clinical facilities: those facilities currently operated by UI Health, that have patient revenue streams, including the UI Hospital, Outpatient Care Center, and other UI Health clinical care units located in university owned properties; Mile Square Health Center on Roosevelt Road.
  • Mixed-use: those buildings that are partially funded by the University, and partially by user (rental/lease/charge) fees. These include: West Research Office Building; Molecular Biology Research Building, Incubator Lab Facility, 2242 W Harrison; Student Services Building.

A Memorandum of Understanding (MOU) documenting the scope of services to be provided, performance levels and quality expectations, financial responsibilities, and funding sources will be mutually agreed to between the unit occupying the space and the OVCAS.  The MOU will also contain detailed explanations of billing processes, including an agreed-upon schedule for billing and funds transfers with detailed timelines and disputes resolution. OVCAS will establish a standard MOU template, and MOUs will initially be reviewed annually.

For facilities fully occupied by auxiliary or self-supporting units, those units will bear all financial responsibilities. For mixed-use facilities, financial responsibility will be assigned based on the cost to provide services to the occupied space, including an appropriate proportion of public space costs. MOUs will be used to codify these arrangements.

Reason for Policy: OVCAS must operate as efficiently as possible and review all opportunities for cost savings as well as cost-sharing, as appropriate. This policy provides clarity on the financial responsibility for various costs incurred for the operations, maintenance, safety, security and capital renewal of the University of Illinois at Chicago facilities


  • Auxiliary: Auxiliary enterprises are self-supporting activities which provide non-instructional support in the form of goods and services upon payment of a specific user charge or fee that is at least equal to the full direct and indirect cost of providing the goods and services. The general public may also be served incidentally by some enterprises.
  • Self-supporting: refers to departmental activities that are revenue generating and expected to operate on a breakeven basis.  Such entities are not technically an auxiliary enterprise but self-supporting activities generate sales revenue by providing products or services to customers. "Customers" may include other University units, the general public, employees, and students.   Activities such as career fairs, student fees, field trips, study abroad programs may also fall into this category.
  • University-owned and occupied: refers to space that is supported primarily by State of Illinois appropriations and income fund (tuition and certain fees) and occupied by a non-revenue generating academic or academic support unit.
  • Mixed-use: refers to facilities that contain any combination of auxiliary, self-supporting and university-owned and occupied space.
  • Public space: refers to space that is defined as general use and not assigned directly to any one unit.

Minority Impact Statement: This policy does not have any disproportionate or unique impact on UIC’s minority students, staff, or faculty.

Who Should Read the Policy: All UIC faculty, staff, or other employees or representatives involved in the fiscal operations of their department.

Procedures: Procedures for this policy can be found on the UIC Facilities Management website.

Document History:
Approved by: Committee on Policy, CVC, Chancellor
Approval date: December 3, 2019
Approved as: Revised Policy

1 All university buildings are considered to be property of the State of Illinois unless owned by the University of Illinois Foundation.