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Service Center: Difference between revisions
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width="20">[[Intellectual Property]]</td> | width="20">[[Intellectual Property]]</td> | ||
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width="20">[[Faculty]]</td> | |||
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[[Sponsored Programs]] | [[ | [[Sponsored Programs]] | [[Sponsored Programs Costing]] | [[Institutional Base Salary]] | [[Sponsored Project Cost Share]] | [[Effort Certification]] | [[Cost Transfer]] | [[Service Center]] | [[Subrecipient Policy]] | [[On-Campus and Off-Campus Indirect Cost Rates on Federally Sponsored Projects]] | ||
<br /><br /> | <br /><br /> | ||
Policy No.: '''6107'''<br /> | Policy No.: '''6107'''<br /> | ||
Effective Date: '''06/27/02'''<br /> | Effective Date: '''06/27/02'''<br /> | ||
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===Billing Rate=== | ===Billing Rate=== | ||
The amount charged to a user for a unit of service. Billing rates are usually computed by dividing the total annual costs of a service by the total number of billing units expected to be provided to users of the service for the year. (See [ | The amount charged to a user for a unit of service. Billing rates are usually computed by dividing the total annual costs of a service by the total number of billing units expected to be provided to users of the service for the year. (See [https://info.unmc.edu/management/finance/fincompliance/core_lab_rate_congifuration_example.xls Rate Setting Procedure] for further explanation). | ||
*'''Billing Unit''' - The unit of service provided by a service center. Examples of billing units include hours of service, animal care days, tests performed, machine time used, etc. | *'''Billing Unit''' - The unit of service provided by a service center. Examples of billing units include hours of service, animal care days, tests performed, machine time used, etc. | ||
*'''Break-even Concept''' - A rate development theory where revenues offset expenses over a reasonable period of time. | *'''Break-even Concept''' - A rate development theory where revenues offset expenses over a reasonable period of time. | ||
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*'''Allowable Surplus''' - A surplus (including both the annual surplus and the carry forward surplus/deficit from prior years) equal to or less than 60 days worth of operating expenditures for a fiscal year. | *'''Allowable Surplus''' - A surplus (including both the annual surplus and the carry forward surplus/deficit from prior years) equal to or less than 60 days worth of operating expenditures for a fiscal year. | ||
*'''Deficit''' - The amount that the costs of providing services exceeds the revenue generated by the service center during a fiscal year. | *'''Deficit''' - The amount that the costs of providing services exceeds the revenue generated by the service center during a fiscal year. | ||
== Policy == | == Policy == | ||
Service centers can result in charges, directly or indirectly, to sponsored programs at UNMC. As a recipient of federal grants and contracts, UNMC must comply with cost principles and cost accounting standards promulgated by the federal government. | Service centers can result in charges, directly or indirectly, to sponsored programs at UNMC. As a recipient of federal grants and contracts, UNMC must comply with cost principles and cost accounting standards promulgated by the federal government. | ||
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When cost allocations are necessary, they should be made on an equitable basis that reflects the relative benefits each activity receives from the cost. For example, if an individual provides multiple services, an equitable distribution of his or her salary among the services can usually be accomplished by using the proportional amount of time the individual spends on each service. Other cost allocation techniques may be used for service center overhead and institutional indirect costs, such as the proportional amount of direct costs associated with each service, etc. Questions concerning appropriate cost allocation procedures should be directed to Financial Controls and Compliance. | When cost allocations are necessary, they should be made on an equitable basis that reflects the relative benefits each activity receives from the cost. For example, if an individual provides multiple services, an equitable distribution of his or her salary among the services can usually be accomplished by using the proportional amount of time the individual spends on each service. Other cost allocation techniques may be used for service center overhead and institutional indirect costs, such as the proportional amount of direct costs associated with each service, etc. Questions concerning appropriate cost allocation procedures should be directed to Financial Controls and Compliance. | ||
=== Service Center Accounting === | === Service Center Accounting === | ||
To comply with the UNMC Accounting Policy, 3000, it is important that service centers use the correct general ledger account when recording revenue and expenditures. The complete list of general ledger accounts is located | To comply with the UNMC Accounting Policy, 3000, it is important that service centers use the correct general ledger account when recording revenue and expenditures. The complete list of general ledger accounts is located in the https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html. For internal revenue transactions, general ledger account 481100, Sale Material & Service - Interdepartmental, should be utilized. External revenue transactions should use general ledger account 452100, Sale Material & Service. | ||
=== Equipment Purchases === | === Equipment Purchases === | ||
Federal guidelines do not allow the purchase cost of capital equipment to be included in the calculation of the annual surplus or deficit. Also the equipment purchase cost may not be used in the rate setting calculation. | Federal guidelines do not allow the purchase cost of capital equipment to be included in the calculation of the annual surplus or deficit. Also the equipment purchase cost may not be used in the rate setting calculation. | ||
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Federal guidelines allow for the recovery of depreciation associated with the capital assets. If the service center has been approved by FCC to include depreciation in the rate calculation, separate child accounts will be established for service centers to collect depreciation charges. All capital equipment purchases must be made from this child account or another funding source, not the service center's general operating cost center. Depreciation of equipment purchased by the federal government cannot be included in the user rates.<br /> | Federal guidelines allow for the recovery of depreciation associated with the capital assets. If the service center has been approved by FCC to include depreciation in the rate calculation, separate child accounts will be established for service centers to collect depreciation charges. All capital equipment purchases must be made from this child account or another funding source, not the service center's general operating cost center. Depreciation of equipment purchased by the federal government cannot be included in the user rates.<br /> | ||
<br /> | <br /> | ||
Service center equipment must be depreciated using the useful lives outlined in | Service center equipment must be depreciated using the useful lives outlined in UNMC Policy No. 3000, [[General Accounting]].<br /> | ||
<br /> | <br /> | ||
Service centers which include depreciation in their rates must have funds or activities associated with the equipment to capture depreciation. It is important that the government not be charged for the depreciation of a piece of equipment through a user charge and again through UNMC's federally negotiated Facilities & Administration rate. To avoid this duplicate charge, '''FCC will review and approve rates for any service center that includes depreciation in their rates.''' | Service centers which include depreciation in their rates must have funds or activities associated with the equipment to capture depreciation. It is important that the government not be charged for the depreciation of a piece of equipment through a user charge and again through UNMC's federally negotiated Facilities & Administration rate. To avoid this duplicate charge, '''FCC will review and approve rates for any service center that includes depreciation in their rates.''' | ||
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In some instances, the University, or a school or department, may elect to subsidize the operations of a service center, either by charging billing rates that are intended to be lower than costs or by not making adjustments to future rates for a service center's deficits. Service center deficits caused by intentional subsidies cannot be carried forward as adjustments to future billing rates. Since subsidies can result in a loss of funds to the University, they should be provided only when there is a sound programmatic reason. | In some instances, the University, or a school or department, may elect to subsidize the operations of a service center, either by charging billing rates that are intended to be lower than costs or by not making adjustments to future rates for a service center's deficits. Service center deficits caused by intentional subsidies cannot be carried forward as adjustments to future billing rates. Since subsidies can result in a loss of funds to the University, they should be provided only when there is a sound programmatic reason. | ||
==Additional Information== | ==Additional Information== | ||
* | *[mailto:mhrncirik@unmc.edu Senior Manager, Financial Compliance and Cost Analysis] | ||
*[ | *[https://info.unmc.edu/management/finance/fincompliance/index.html Financial Compliance and Cost Analysis] | ||
* | *UNMC Policy No. 3000, [[General Accounting]] | ||
*UNMC Policy No. 6103, [[Unallowable Cost Policy|Unallowable Costs]] | |||
*OMB Circular A-21 | |||
*Cost Accounting Standards Board | |||
*[http://grants.nih.gov/grants/policy/air/rate_setting_manual_2000.pdf National Institute of Health's Cost Analysis and Rate Setting Manual for Animal Research Facilities] | *[http://grants.nih.gov/grants/policy/air/rate_setting_manual_2000.pdf National Institute of Health's Cost Analysis and Rate Setting Manual for Animal Research Facilities] | ||
*[ | *[https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html Accounting Information Manual] | ||
*A-133 Compliance Supplement | |||
* | *[https://info.unmc.edu/management/finance/general-accounting/general-ledger.html General Ledger Account Listings] | ||
*[https://info.unmc.edu/management/finance/fincompliance/core_lab_rate_congifuration_example.xls Rate Setting Procedure] | |||
*[ | |||
*[ | |||
*[http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-053.html NIH FAQs to Explain Costing Issues for Core Facilities ]<br /> | *[http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-053.html NIH FAQs to Explain Costing Issues for Core Facilities ]<br /> | ||
This page maintained by [mailto:dpanowic@unmc.edu dkp]. | This page maintained by [mailto:dpanowic@unmc.edu dkp]. | ||