annual service center rate reviews for fy2014 presented by general accounting
TRANSCRIPT
Annual Service Center Rate Reviews
For FY2014
Presented by General Accounting
Agenda Why must we do the Service Center
Rate Review?
Address each tab of the rate review workbook
Questions & Answers
Why a Service Center Rate Review?
Compliance with Federal Circular OMB A-21 Direct Costs (C.4.a) Consistency (C.11) Indirect Costs (F.6.b) Specialized Service Facilities (J.47) Appendix B – CASB’s Disclosure Statement (DS
2) Item No. 3.2.0 http://m.whitehouse.gov/sites/default/files/omb/assets/omb/circular
s/a021/a21-appx_b.pdf
http://www.whitehouse.gov/omb/circulars_a021_2004
Service Centers General Principles
Established to recover actual costs. Cannot charge internal users more than
cost May accumulate profits from external sales Rates do not discriminate between internal
users, especially Federal Rate modifications, when necessary Charges should be based on actual usage Expected break-even over 3-5 years
Service Centers General Principles
Surpluses from the service center should not be used to fund unrelated activities
Cannot accumulate cash in excess of established University guidelines
Keep all appropriate documentation (usage log, invoices, expense record, etc.)
Must maintain a published price list
Principle Review Steps Identify all services provided Determine direct costs associated with
each service Identify indirect costs associated with
service center Administrative Surcharges are not
recommended as they generally do not pass audit
General Questions? Can we include a “reserve” amount in the
rates to purchase new equipment?
Can we charge internal users based on market rates, or what other institutions charge?
Can we charge external users more than the cost of the good or service provided?
General Instructions Use the Excel rate review workbook found
at: http://www.fa.ufl.edu/wp-content/uploads/ga/Service-Center-Rate-Review-Template.xlsx
Enter data in the worksheets as directed by the instructions found at: http://www.fa.ufl.edu/wp-content/uploads/ga/Service-Center-Rate-Review-Instructions.pdf
General Instructions Who must complete the rate review workbook?
Federal revenues greater than $200,000AND/OR
Total Internal Revenue exceeding $1,000,000 AND/OR
Federal revenues greater than $50,000 that were not reviewed in the previous year.
All Service Centers, large or small, are expected to be in compliance with OMB A-21 and should not charge more than cost.
Sheet 1a and 1b – Administrative and Operating Information
Contact Information
Operating Information (billing/customers)
Description of services provided
Sheet 1a – Administrative Information
Sheet 1b – Operating Information
Sheet 2 - Revenues A service line should be defined as a specific
service or product a customer agrees to pay for. Administrative support is not a service line but
a cost to allocate
Each service line revenue is tracked in MyUFL (department, flex) or using another internal system.
Unit should be a logical basis to establish rate(s). “Contract” type unit is not recommended
Internal and external rates can be different with external rates greater than internal rates.
Sheet 2 - Revenues
Sheet 3a and 3b – Non-Payroll Expenditures
Tab 3a shows expenses paid only by the Service Center chartfields
Tab 3b shows expenses paid by other chartfields (subsidies)
All expenses need to be allocated by Service Line Please specify the method used to allocate
the expenses. Each service line does not necessarily consume
resources (expenses) in the same proportion. Focus on GL accounts with large balances Allocation based on percentage of revenue is not
appropriate.
Sheet 3a – Non-Payroll Expenses Paid Only by Service Center Chartfields
Sheet 3b – Non-Payroll Expenses Paid by Other Chartfields
Sheet 4a and 4b – Salaries Paid by Service Centers and by Other Chartfields
Tab 4a shows Salaries and Benefits paid from Service Center chartfields
Tab 4b shows Salaries and Benefits paid from other chartfields (salary subsidies)
Sheet 4a and 4b – Salaries Paid by Service Centers and by Other Chartfields
Provide name, position title (description), chartfield and % of effort toward Service Center
If individual is paid from multiple chartfields, list the individual and each chartfield separately
Individual effort should correlate to allocations reported in the Effort Tracking System as Auxiliary/Other Institutional Activities (Aux/OIA)
Please specify the method used to allocate salary. A distinction between direct labor and
personnel with oversight and supervisory responsibilities may be useful.
Sheet 4a – Salaries Paid by Service Center Chartfields
Sheet 4b – Salaries Paid by Other Chartfields
Sheet 5a & 5b – Equipment Depreciation Provide Asset ID/Tag # and other required
information on Tab 5a Depreciation Report can be run from
http://www.fa.ufl.edu/departments/asset-management/ Click on the ‘myAssets’ link at the bottom of the page
Enter required depreciation information on Tab 5a
Enter Service Center % Usage on Tab 5a
Allocate the depreciation by Service Line on Tab 5b
Sheet 5a – Equipment Listing
Sheet 5b – Allocation of Equipment to Service Lines
Sheet 6 – Space Survey
Should agree to Space Inventory and Allocation Survey submitted for the same fiscal year
Identify all space used by or in support of the Service Center
Sheet 7 – Unallowable Costs
List any unallowable costs paid, so that these costs can be removed from the rate calculations.
If your Service Center has not incurred any of these unallowable costs, check the box for “None of these costs occurred” at the top of the page.
Sheet 7 – Unallowable Costs
Sheet 8 – Total Costs This data is populated automatically from other Tabs
Sheet 9 – Transfers Schedule
Please list any transfers in (enter as a debit/positive figure) and transfers out (enter as a credit/negative figure) for the accounts listed.
All overhead accounts 813xxx should not be included on this tab, but should be included on Tab 3a or 3b. Overhead charges are considered as allowable expenses and not as transfers out.
Explain any transfer in/out > $5,000 or 10% of revenue whichever is larger
Sheet 9 - Transfers
Sheet 10 – Profit/Loss Calculation Shows profit/loss by Service Line
Calculates whether Working Capital Balance (Cash Balance) is under/over amount permitted by University guidelines, which allow: 90 days average operating expenditures plus Profit from external sales plus Accumulated asset depreciation
The Service Center needs to reflect prior year profit/loss by service line and total profit from external sales on this tab.
Sheet 10 – Profit/Loss Calculation
Additional Notes and Deadlines
Refer to prior year review comments
Please contact General Accounting with any questions
Completed FY2014 workbooks should be returned by Friday, October 31, 2014.
Queries and Enterprise ReportingQueries UF_GL_TB_BY_FUND_DEPT_AUX_QRY
Trial Balance for ACTUALS ledger
UF_GL_JOURNAL_DETAIL_QUERY2Provides the details of entries making up the ACTUALS Trial Balance
Enterprise Reporting (Navigation: Main Menu>Enterprise Reporting>Access Reporting)
FIT Cube Cost Distribution Reports: Payroll or Fellowship Earnings
and Estimated Fringe Benefits by Cost Center by PersonNavigation: Public Folder> Human Resources
Information>Pay Information>Current Pay Cycle>Prompted Cost Distribution Reports
Provides earnings and fringe by person and cost center.
Contact Information
Jeremiah Carlson
Ricabuena Gagné
Patrice Lecomte [email protected]
General Accounting33 Tigert HallBox 113202
Phone 392-1326