Service Center: Difference between revisions
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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 /> | ||
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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 /> | ||
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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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*[mailto:mhrncirik@unmc.edu Senior Manager, Financial Compliance and Cost Analysis] | *[mailto:mhrncirik@unmc.edu Senior Manager, Financial Compliance and Cost Analysis] | ||
*[http://info.unmc.edu/management/finance/fincompliance/index.html Financial Compliance and Cost Analysis] | *[http://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 | *OMB Circular A-21 | ||
*Cost Accounting Standards Board | *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] | *[https://info.unmc.edu/management/finance/general-accounting/information-manual/index.html Accounting Information Manual] | ||
*A-133 Compliance Supplement | *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/general-accounting/general-ledger.html General Ledger Account Listings] | ||