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Service Center: Difference between revisions
→Components of Costs in Rates
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*'''Service Center Child Account''' - A child account cost center is created to collect depreciation charges associated with capital equipment for a service center. Purchases of capital equipment for the service center should be capitalized through this account. Child should only be analyzed in conjunction with the operation cost center. Child accounts CANNOT be created or utilized without the approval of the Department of Financial Compliance and Cost Analysis (FCC). All depreciation entries will be calculated by FCC and booked by General Accounting. | *'''Service Center Child Account''' - A child account cost center is created to collect depreciation charges associated with capital equipment for a service center. Purchases of capital equipment for the service center should be capitalized through this account. Child should only be analyzed in conjunction with the operation cost center. Child accounts CANNOT be created or utilized without the approval of the Department of Financial Compliance and Cost Analysis (FCC). All depreciation entries will be calculated by FCC and booked by General Accounting. | ||
*'''Depreciation''' - The depreciation of capital equipment charged to service center operations is based on the straight line method over the useful life of the asset. | *'''Depreciation''' - The depreciation of capital equipment charged to service center operations is based on the straight line method over the useful life of the asset. | ||
*'''Useful Life''' - Service center capital equipment must be depreciated using the useful lives outlined in [ | *'''Useful Life''' - Service center capital equipment must be depreciated using the useful lives outlined in [https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html Capitalization Policy and Definitions] section of the Accounting Information Manual. | ||
*'''Unallowable Costs''' - Costs that cannot be charged directly or indirectly to sponsored programs. These costs are specified in the OMB Circular A-21. Common examples of unallowable costs include advertising, alcoholic beverages, bad debts, charitable contributions, entertainment, fines and penalties, goods and services for personal use, interest (except interest related to the purchase or construction of buildings and equipment), selling and marketing expenses. See [[Unallowable Cost Policy|Policy 6103, Unallowable Costs]], for additional information. | *'''Unallowable Costs''' - Costs that cannot be charged directly or indirectly to sponsored programs. These costs are specified in the OMB Circular A-21. Common examples of unallowable costs include advertising, alcoholic beverages, bad debts, charitable contributions, entertainment, fines and penalties, goods and services for personal use, interest (except interest related to the purchase or construction of buildings and equipment), selling and marketing expenses. See [[Unallowable Cost Policy|Policy 6103, Unallowable Costs]], for additional information. | ||
===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 [http://info.unmc.edu/fincompliance/core_lab_rate_congifuration_example.xls Rate Setting Procedure] for further explanation). | 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 [http://info.unmc.edu/fincompliance/core_lab_rate_congifuration_example.xls Rate Setting Procedure] for further explanation). | ||