New Service Departments

New service departments must be created and set up according to System Regulation 21.01.05:

Each component shall have a designated committee that has the responsibility to review all requests for the creation, consolidation, or separation of service departments within its component. The committee reviews proposals for their impact on the System, its components, and the citizens of Texas. The committee shall report to the CFO who will make recommendations on the service departments to the CEO.

Requests for the approval of the creation, consolidation or separation of a service department must contain the following:

  1. A description of the services to be provided and the users of the services;
  2. An analysis showing that the request is feasible and appropriate;
  3. The reasons why the services can best be provided by an internal service department, rather than an external service provider;
  4. Expected benefits/potential problems for the component;
  5. A projection of the costs and utilization of the services;
  6. A billing rate calculation and, where possible, a comparison of the internal rates with the rates charged by external service providers; and
  7. The component CEO's endorsement of the proposal.

If your department is interested in setting up a new service department, please contact us to set up a meeting. The following forms will be used to complete the new service department request:

Because creating rates for new service departments can be a time-consuming process, a rate study checklist is provided to assist in the gathering of the information used in the calculation of rates. The templates below have also been provided to ensure all the rate components are properly identified and assigned for the proposed service facility to facilitate the approval process.

This flowchart explains the new service department setup process.