Published February 20, 2026, via Research News
A new university wide policy has been developed for Internal Service Providers (ISP) in addition to updated ISP cost center subtypes in Workday to strengthen compliance with federal costing rules, improve financial reporting, and ensure consistent accounting, effective operations and unified oversight. New Workday cost center subtypes, including Passthrough and Auxiliary, have been added to the existing ISP categories of Recharge Centers, Specialized Service Facilities, Program Income, and Other/Generic ISP. Refer to Financial Services: Internal Service Providers page to review the ISP Policy and the setup process for Establishing an ISP.
Key Changes include:
- Formalization of an ISP Steering Committee comprised of the Offices of Sponsored Projects Accounting, Cost Analysis, and Customer Accounts.
- Formalization of ISP designations (i.e. cost center subtypes) and creation of new Passthrough and Auxiliary designations that define how ISPs are governed, permitted to bill, and monitored.
- Auxiliary ISP (Aux ISP): An ISP that charges users for goods and/or services as part of its routine business operations. Aux ISPs are managed as self-supporting units that exist to support students, faculty, staff, and the general public acting in a personal capacity. These operating units are categorized under the default function FN00007: Auxiliary Enterprises in Workday. Examples include campus housing, food services, bookstores, parking, etc. Goods and/or services offered by Aux ISPs can be directly billed to sponsored awards, in accordance with the specific terms and conditions of the award.
- Passthrough ISP (PT ISP): An ISP that aggregates and distributes goods and/or services primarily sourced from external suppliers without charging internal users administrative or other overhead cost related to their provision. PT ISPs may also be operating units that provide clinical services charged at Current Procedural Terminology (CPT) rates, Medicare, or other Government approved rates. PT ISPs do not meet the standard necessary to become a Recharge Center or SSF but may directly charge sponsored awards, in accordance with the terms and conditions of the agreement.
- PT ISPs and Aux ISPs are not required to develop a Rate Schedule in accordance with this policy; however, PT ISPs must retain documentation of pass-through costs for audit purposes and respond timely to annual confirmations from the Cost Analysis Office.
If you have any questions during this process, please contact: rechargecenters@wustl.edu.