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 /> | ||
Revised Date: ''' | Revised Date: '''09/17/24'''<br /> | ||
Reviewed Date: ''' | Reviewed Date: '''09/17/24'''<br /> | ||
<br /> | <br /> | ||
<big>'''Service Center Policy'''</big> | <big>'''Service Center Policy'''</big> | ||
== Basis and Purpose of the Policy == | == '''Basis and Purpose of the Policy''' == | ||
The University | The University of Nebraska Medical Center's (UNMC) policy for the financial management of service centers was established to provide consistent operational practices among the various service center units and to ensure compliance with federal government regulations. | ||
Service center activities result in direct charges to sponsored grants and contracts. The federal costing principles applicable to service center activities are contained in the Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards or Uniform Guidance - 2 CFR Part 200, and the Uniform Guidance Compliance Supplement under Cost Principles for Institutions of Higher Education Allowable Costs – Special Requirements – Internal Service, Central Service, Pension, or Similar Activities or Funds. | |||
== '''Definitions''' == | |||
* '''Service Centers''' - Service centers are cost objectives that regularly provide goods or services to other UNMC departments for a calculated fee. The most common type of service center is a Core Facility. Service centers that charge federally sponsored cost objectives are subject to this policy. | |||
* '''Auxiliary Enterprise''' - An organizational unit that provides goods or services primarily to students, faculty, staff, and others for personal use, rather than as a service to internal University operations. Examples of auxiliary policy enterprises include the UNMC Bookstore and the Center for Healthy Living. Auxiliary enterprises are not subject to this policy. | |||
* '''Revolving Center''' - A cost objective that is used to house purchases or transactions that will later be allocated without additional mark-up or added costs. Oftentimes, revolving centers are used to obtain bulk pricing or discounted supplies. These may be described as a clearing account which can be used for tracking purposes or will be billed to an affiliate organization. Revolving Centers are not subject to this policy. | |||
* '''Student Fees''' - Student lab fees collected for lab supplies, technology, etc. Student fees are not subject to this policy. | |||
* '''Self-Funded Activities''' - A cost objective that derives funding from charging other sales/contract activities not defined above. Other self-funded activities do not anticipate charging and shall not charge UNMC federally sponsored projects. Other self-funded activities typically will not be subject to this policy so long as they do not charge federally sponsored cost objectives. Examples of self-funded centers would be continuing education programs, or other centers that provide contracted services with various community organizations or external customers. | |||
* '''Internal''' '''Customers''' - All University of Nebraska departments are considered internal users. This is true regardless of funding source. | |||
* '''External''' '''Customers''' - External users include non-profit entities, for-profit entities, the public, students, and any members of faculty or staff acting in a personal capacity. | |||
* '''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 billing rate development model where revenues are set to equal expenses over a period, usually one year. | |||
== '''Policy''' == | |||
Service centers, as defined by this policy, must follow both [[Sponsored Programs Costing|UNMC Policy 6100 - Sponsored Programs Costing]], as well as the additional requirements specific to Service Centers listed below. | |||
* Service Centers must set and adjust rates to break-even or lower. Service Centers are not normally allowed to accumulate profits (surpluses). Rates that are set below breakeven can result in a deficit. Deficits are the responsibility of the administrative department that oversees the service center. | |||
* The Service Center must identify all planned deficits. The University, college 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 adjusting rates for a service center's deficits. Service center deficits caused by intentional subsidization 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. | |||
* Capital reserves (cash balance at fiscal year-end) shall not exceed 60 days of annual expenses (approximately 16.4%). | |||
* Billing rates must only include operational costs (direct costs) and exclude unallowable costs and indirect costs (see Policy 6100). This means that equipment/capital purchases cannot be included in billing rates or used to calculate the operational surplus/deficit. | |||
* Surpluses and deficits will normally be carried over and used in the calculation of future billing rates. | |||
* Billing rates must be calculated every two years based on historical data, but preferably on an annual basis. In the absence of actual data, estimates can be used for new service centers or in justifiable changes to service center activities. | |||
* Billing rates must be developed for all distinct services provided. A surplus generated by one service cannot subsidize other services provided by the service center. | |||
* Incidental charges to federal grants may occur for various reasons. These infrequent charges may not qualify as a service center, but normal costing principles contained in Policy 6100 and the Service Center Policy would still apply. | |||
* Billings must be based on actual use. Prepayments are not allowed. Billing must not occur until the service has been rendered. The service center must retain documentation supporting the charges, including documentation of the expenses and usage. All billings should be processed on a timely basis (usually monthly). Documentation should be retained by the service center to answer any user inquiries or in case of an audit. | |||
* Services and pricing will be published on a departmental website. Price discrimination is not allowed for internal users. | |||
* '''[https://info.unmc.edu/management/finance/fincompliance/servicecenterprocedure_2024.pdf Rate Setting and the Service Center Procedure]''' – contains additional information and detailed instructions on how to develop service center rates and other operational requirements of Service Centers. | |||
== '''Responsibilities''' == | |||
[https://info.unmc.edu/management/finance/fincompliance/ '''Office of Costing & Analysis'''] (OCA) | |||
* OCA shall review all rates submitted by service centers for compliance. | |||
* OCA shall monitor all service centers with internal charges to Federal Projects in excess of $25,000 within a fiscal year. | |||
* | * Service centers may request assistance from OCA when determining service center rates. | ||
* | * OCA must approve the use of depreciation in rate calculations and billing rates. (This is not a common situation.) | ||
'''Service Centers''' | |||
* Service centers shall submit rate setting documentation to OCA when: | |||
** A service center is initially established. | |||
** A service center with internal charges to Federal Projects over $25,000 within a fiscal year that modifies any rates. | |||
* | * Service centers is responsible to follow all applicable guidelines contained in this policy and regulations and maintain day-to-day operations. The day-to-day operation include, but are not limited to: | ||
** Tracking operating expenses and documenting all service center usage by individual customer | |||
** Generating invoices and monitoring billing/receivables | |||
** Publishing approved billing rates on departmental website | |||
* | ** Updating space and equipment inventories annually, at minimum | ||
** Retaining supporting documentation related to billing rate calculations, invoices for each customer, the billing rate charged, and billing rate approvals | |||
** Providing documentation requested by OCA for internal review | |||
* Service centers shall set rates at least once during a two-year rolling period. OCA recommends service centers review their rates every fiscal year by monitoring financial activities throughout the year and perform year-end review of fund balance to ensure breakeven operation or to evaluate the need to change rates. | |||
'''Campus Departments''' | |||
* | |||
* | |||
* | |||
* | |||
* | |||
Service centers | |||
* Departmental Administration (including Departmental Administrators, Chairs, Core Lab Directors) with financial and administrative oversight of a service center will follow applicable guidelines contained in this policy and the related procedure. | |||
* Departments shall cover all planned deficits, as well as capital outlays and any expenses (e.g. Institutional F&A expenses) that are not allowed to be recovered through service rates. | |||
== | == '''Special Consideration for External Customers- Unrelated Business Income Tax''' == | ||
Charges to external users may be subject to Unrelated Business Income Tax (UBIT). UBIT determination and calculation may require documentation from the departments that are providing services to external users. Cost objectives generating UBIT liability may be required to contribute to UBIT payments. | |||
This page maintained by [mailto: | == '''Additional Information''' == | ||
* [mailto:myu@unmc.edu Manager, Office of Costing & Analysis] | |||
* [http://info.unmc.edu/management/finance/fincompliance/index.html Office of Costing & Analysis] | |||
* [https://info.unmc.edu/management/finance/fincompliance/servicecenterprocedure_2024.pdf Service Center Rate Setting Procedure] | |||
* [https://info.unmc.edu/management/finance/fincompliance/core_lab_rate_congifuration_example2023.xlsx Rate Setting - Sample Worksheet] | |||
* [https://www.ecfr.gov/cgi-bin/text-idx?SID=0d3801e083204d6d1c56e6b465e95e09&mc=true&node=pt2.1.200&rgn=div5#se2.1.200_1413 Uniform Guidance - 2 CFR 200] | |||
* [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://wiki.unmc.edu/index.php/General_Accounting General Accounting Policy, UNMC Policy No. 3000] | |||
* [https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html Accounting Information Manual] | |||
* [https://wiki.unmc.edu/index.php/Sponsored_Programs_Costing Sponsored Programs Costing Policy, UNMC Policy No. 6100] | |||
* [https://info.unmc.edu/management/finance/general-accounting/general-ledger.html General Ledger Account Listings] | |||
* [https://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-053.html NIH FAQs to Explain Costing Issues for Core Facilities] | |||
This page maintained by [mailto:mhurlocker@unmc.edu mh]. |
Latest revision as of 15:47, September 20, 2024
Human Resources | Safety/Security | Research Compliance | Compliance | Privacy/Information Security | Business Operations | Intellectual Property | Faculty |
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
Policy No.: 6107
Effective Date: 06/27/02
Revised Date: 09/17/24
Reviewed Date: 09/17/24
Service Center Policy
Basis and Purpose of the Policy
The University of Nebraska Medical Center's (UNMC) policy for the financial management of service centers was established to provide consistent operational practices among the various service center units and to ensure compliance with federal government regulations.
Service center activities result in direct charges to sponsored grants and contracts. The federal costing principles applicable to service center activities are contained in the Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards or Uniform Guidance - 2 CFR Part 200, and the Uniform Guidance Compliance Supplement under Cost Principles for Institutions of Higher Education Allowable Costs – Special Requirements – Internal Service, Central Service, Pension, or Similar Activities or Funds.
Definitions
- Service Centers - Service centers are cost objectives that regularly provide goods or services to other UNMC departments for a calculated fee. The most common type of service center is a Core Facility. Service centers that charge federally sponsored cost objectives are subject to this policy.
- Auxiliary Enterprise - An organizational unit that provides goods or services primarily to students, faculty, staff, and others for personal use, rather than as a service to internal University operations. Examples of auxiliary policy enterprises include the UNMC Bookstore and the Center for Healthy Living. Auxiliary enterprises are not subject to this policy.
- Revolving Center - A cost objective that is used to house purchases or transactions that will later be allocated without additional mark-up or added costs. Oftentimes, revolving centers are used to obtain bulk pricing or discounted supplies. These may be described as a clearing account which can be used for tracking purposes or will be billed to an affiliate organization. Revolving Centers are not subject to this policy.
- Student Fees - Student lab fees collected for lab supplies, technology, etc. Student fees are not subject to this policy.
- Self-Funded Activities - A cost objective that derives funding from charging other sales/contract activities not defined above. Other self-funded activities do not anticipate charging and shall not charge UNMC federally sponsored projects. Other self-funded activities typically will not be subject to this policy so long as they do not charge federally sponsored cost objectives. Examples of self-funded centers would be continuing education programs, or other centers that provide contracted services with various community organizations or external customers.
- Internal Customers - All University of Nebraska departments are considered internal users. This is true regardless of funding source.
- External Customers - External users include non-profit entities, for-profit entities, the public, students, and any members of faculty or staff acting in a personal capacity.
- 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 billing rate development model where revenues are set to equal expenses over a period, usually one year.
Policy
Service centers, as defined by this policy, must follow both UNMC Policy 6100 - Sponsored Programs Costing, as well as the additional requirements specific to Service Centers listed below.
- Service Centers must set and adjust rates to break-even or lower. Service Centers are not normally allowed to accumulate profits (surpluses). Rates that are set below breakeven can result in a deficit. Deficits are the responsibility of the administrative department that oversees the service center.
- The Service Center must identify all planned deficits. The University, college 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 adjusting rates for a service center's deficits. Service center deficits caused by intentional subsidization 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.
- Capital reserves (cash balance at fiscal year-end) shall not exceed 60 days of annual expenses (approximately 16.4%).
- Billing rates must only include operational costs (direct costs) and exclude unallowable costs and indirect costs (see Policy 6100). This means that equipment/capital purchases cannot be included in billing rates or used to calculate the operational surplus/deficit.
- Surpluses and deficits will normally be carried over and used in the calculation of future billing rates.
- Billing rates must be calculated every two years based on historical data, but preferably on an annual basis. In the absence of actual data, estimates can be used for new service centers or in justifiable changes to service center activities.
- Billing rates must be developed for all distinct services provided. A surplus generated by one service cannot subsidize other services provided by the service center.
- Incidental charges to federal grants may occur for various reasons. These infrequent charges may not qualify as a service center, but normal costing principles contained in Policy 6100 and the Service Center Policy would still apply.
- Billings must be based on actual use. Prepayments are not allowed. Billing must not occur until the service has been rendered. The service center must retain documentation supporting the charges, including documentation of the expenses and usage. All billings should be processed on a timely basis (usually monthly). Documentation should be retained by the service center to answer any user inquiries or in case of an audit.
- Services and pricing will be published on a departmental website. Price discrimination is not allowed for internal users.
- Rate Setting and the Service Center Procedure – contains additional information and detailed instructions on how to develop service center rates and other operational requirements of Service Centers.
Responsibilities
Office of Costing & Analysis (OCA)
- OCA shall review all rates submitted by service centers for compliance.
- OCA shall monitor all service centers with internal charges to Federal Projects in excess of $25,000 within a fiscal year.
- Service centers may request assistance from OCA when determining service center rates.
- OCA must approve the use of depreciation in rate calculations and billing rates. (This is not a common situation.)
Service Centers
- Service centers shall submit rate setting documentation to OCA when:
- A service center is initially established.
- A service center with internal charges to Federal Projects over $25,000 within a fiscal year that modifies any rates.
- Service centers is responsible to follow all applicable guidelines contained in this policy and regulations and maintain day-to-day operations. The day-to-day operation include, but are not limited to:
- Tracking operating expenses and documenting all service center usage by individual customer
- Generating invoices and monitoring billing/receivables
- Publishing approved billing rates on departmental website
- Updating space and equipment inventories annually, at minimum
- Retaining supporting documentation related to billing rate calculations, invoices for each customer, the billing rate charged, and billing rate approvals
- Providing documentation requested by OCA for internal review
- Service centers shall set rates at least once during a two-year rolling period. OCA recommends service centers review their rates every fiscal year by monitoring financial activities throughout the year and perform year-end review of fund balance to ensure breakeven operation or to evaluate the need to change rates.
Campus Departments
- Departmental Administration (including Departmental Administrators, Chairs, Core Lab Directors) with financial and administrative oversight of a service center will follow applicable guidelines contained in this policy and the related procedure.
- Departments shall cover all planned deficits, as well as capital outlays and any expenses (e.g. Institutional F&A expenses) that are not allowed to be recovered through service rates.
Charges to external users may be subject to Unrelated Business Income Tax (UBIT). UBIT determination and calculation may require documentation from the departments that are providing services to external users. Cost objectives generating UBIT liability may be required to contribute to UBIT payments.
Additional Information
- Manager, Office of Costing & Analysis
- Office of Costing & Analysis
- Service Center Rate Setting Procedure
- Rate Setting - Sample Worksheet
- Uniform Guidance - 2 CFR 200
- National Institute of Health's Cost Analysis and Rate Setting Manual for Animal Research Facilities
- General Accounting Policy, UNMC Policy No. 3000
- Accounting Information Manual
- Sponsored Programs Costing Policy, UNMC Policy No. 6100
- General Ledger Account Listings
- NIH FAQs to Explain Costing Issues for Core Facilities
This page maintained by mh.