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]] | [[Direct Cost]] | [[Facilities and Administrative Cost]] | [[Institutional Base Salary]] | [[Unallowable Cost Policy]] | [[Sponsored Project Cost Share]] | [[Effort Certification]] | [[Cost Transfer]] | [[Service Center]] | [[Subrecipient Policy]]
[[Sponsored Programs]] | [[Sponsored Programs Costing]] | [[Facilities and Administrative Cost]] | [[Institutional Base Salary]] | [[Unallowable Cost Policy]] | [[Sponsored Project Cost Share]] | [[Effort Certification]] | [[Cost Transfer]] | [[Service Center]] | [[Subrecipient Policy]] | [[On-Campus and Off-Campus Indirect Cost Rates on Federally Sponsored Projects]]
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Policy No.: '''6107'''<br />
Policy No.: '''6107'''<br />
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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 [http://info.unmc.edu/dept/accounting/index.cfm?CONREF=5#assets Capitalization Policy and Definitions] section of the Accounting Information Manual.
*'''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 [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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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==
*Any questions about this policy should be referred to [http://info.unmc.edu/dept/fincompliance/ Financial Compliance and Cost Analysis].
*[mailto:mhrncirik@unmc.edu Senior Manager, Financial Compliance and Cost Analysis]
*[http://www.whitehouse.gov/omb/circulars_a021_2004/ OMB Circular A-21]
*[http://info.unmc.edu/management/finance/fincompliance/index.html Financial Compliance and Cost Analysis]
*[http://www.whitehouse.gov/omb/procurement_casb/ Cost Accounting Standards Board]
*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]
*[[General Accounting|General Accounting Policy, UNMC Policy No. 3000]]  
*[[General Accounting|General Accounting Policy, UNMC Policy No. 3000]]  
*[http://info.unmc.edu/dept/accounting/index.cfm?CONREF=5 Accounting Information Manual]  
*[https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html Accounting Information Manual]  
*[[Unallowable Cost Policy|Unallowable Costs Policy, UNMC Policy No. 6103]]  
*[[Unallowable Cost Policy|Unallowable Costs Policy, UNMC Policy No. 6103]]  
*[http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011 A-133 Compliance Supplement]
*A-133 Compliance Supplement
*[http://info.unmc.edu/dept/accounting/index.cfm?L1_ID=7&CONREF=15 General Ledger Account Listings]
*[https://info.unmc.edu/management/finance/general-accounting/general-ledger.html General Ledger Account Listings]
*[http://info.unmc.edu/fincompliance/core_lab_rate_congifuration_example.xls Rate Setting Procedure]
*[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 />


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