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I.        PURPOSE

          To establish business objectives for all UMDNJ Food Service and Dispensing Operations.

II.      ACCOUNTABILITY

         Under the direction of the Senior Vice President for Administration and Finance, the Vice
         President for Financial Affairs and Treasurer, shall ensure compliance with this policy. The
         Vice President and Chief Executive Officer for University Hospital, the Vice President for
         Mental Health Services and the Associate Vice President for Administration and Finance
         shall implement this policy.

III.    DEFINITIONS

        A.    Direct Costs - Cost of labor and/or material used on a dedicated basis in the provision
                of service. Includes supplies, equipment, salaries of full-time personnel and a proration
                of administrative supervision.

        B.    Indirect Costs - Cost of labor and/or material allocated in the provision of service.
                Includes utilities, cleaning, housekeeping, security, and routine maintenance (prorated).

IV.   POLICY

        A.    Guidelines:

                1.     Food service and dispensing facilities operated on UMDNJ property and/or
                        involving UMDNJ personnel or visitors should be self-sustaining including the
                        bearing of appropriate direct and indirect costs.

                2.     Indirect charges can be estimated or actual, and must include allocation of charges
                        for purchasing and fiscal overhead but not proration of other University
                        Administration or school/hospital overhead.

                3.     Any equipment acquired must be amortized over a useful life and charged to the
                        cafeteria operational expense. Repairs to such equipment must also be considered
                        operational expense. Replacement or new equipment purchases must be charged
                        to funds accrued from annual depreciation charges.

                4.     No unreimbursed meals will be provided by UMDNJ Cafeterias. Cafeterias will
                        be reimbursed for free meals provided to faculty and staff under collective
                        bargaining agreements pursuant to Sections IV. A. 5-7 of this policy.

                5.    When faculty or staff members receive free meals pursuant to a collective
                        bargaining agreement, the cafeteria involved must be credited on a proforma basis
                        with the revenue for the estimated value of those meals; such costs are to be
                        charged to the faculty or staff members' departments. As an alternative to
                        individual department charges in order to minimize distribution costs, single cost
                        centers may be established subject to the following cost limits: Breakfast - $2.50,
                        Lunch - $3.50, and Dinner - $7.50. Any faculty or staff member expending more
                        than these amounts for the meal will be required to pay the additional amount.
 

                6.     Administrators and supervisors of involved faculty or staff members are required
                        to institute control procedures to monitor the issuance of free meal vouchers
                        (which should be clearly identified as to their value), the meals which they cover,
                        and the category of personnel receiving them. When meal vouchers are turned in
                        they should be controlled and canceled and the departments making use of such
                        vouchers should be charged for the value of free meals taken.

                7.    Individuals using the vouchers will be required to establish their eligibility for the
                       free meal by presenting their University Identification Card with their meal
                       vouchers. The actual amount expended should be identified and charged to the
                       appropriate department by the cashier in the cafeteria.

                8.    Individuals responsible for starting and running new cafeteria operations within
                       UMDNJ schools, healthcare and administrative units should receive prior approval
                       of the Vice President for Financial Affairs and Treasurer prior to establishing any
                       accounting practices that differ from those stated in this policy.

                9.    Whenever a joint agreement exists between UMDNJ and any other agency or
                        institution, the spirit of this policy must be incorporated into the agreement.

        B.     Responsibilities:

                The Vice President for Financial Affairs and Treasurer is responsible for:

                1.     determining the appropriateness of overhead costs and accounting practices by
                        consulting with those departments which contribute substantial overhead time and
                        effort to cafeteria operations before making a determination of indirect overhead
                        costs; and

                2.    approving any exceptions to this policy.
 

By Direction of the President:

________________________________________
Senior Vice President for Administration and Finance

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