UNIVERSITY of HOUSTON
MANUAL OF ADMINISTRATIVE POLICIES AND PROCEDURES
SECTION:
AREA:
Administrative Operations
General
SUBJECT:
I.
Number: 03.01.01
Specialized Service FacilitiesCenters (Recharge Centers)
PURPOSE AND SCOPE
The costs of goods or services provided by highly complex or specialized facilities operated by an
institutionthe university, when material, must be charged directly to applicable federal awards
based on actual usage of the goods or services on the basis of aand on a schedule of rates or an
established methodologyEntities, hereinafter referred to as service centers, within the University
of Houston may establish and operate to provide goods or services to other academic and
administrative units within the university. Since these activities often result in charges, either
directly or indirectly, to federally sponsored programssupportedsponsored activities, university
policies, procedures, and practices must reflect government regulatory costing principles such as
those contained in the Office of Management and Budget’s (OMB) Circular No. A-21. An activity
will be identified as a “Specialized Service Facility” for purposes of this policy when it anticipates
recovering costs from federally sponsored upported activities in any given fiscal year. This
document establishes consistent operational accounting practices and to ensures compliance
with federal government regulatoryions, Board of Regents (BOR) policies, and University of
Houston System (UHS) and University of Houston (UH) policies and procedures costing
principles, such as those contained in the Office of Management and Budget’s (OMB) Circular
No. A-21.
II.
POLICY STATEMENT
Each college,/ division, and department is responsible for ensuring that all activities relating to the
providing of goods or services to other academic and administrative units within the
universityfederally sponsoredupported activities are carried out pursuant to federal regulations, all
applicable UHS Administrative Memoranda (SAM), other applicable UH university policies and
procedures (MAPPs), and this document. This policy, and the related procedures contained
therein, applies only to those specialized service facilities that provide goods or services to
federally supportedponsored activities. All other on-campus service providers that do not provide
goods or services to federally sponsored activities are governed by state procurement regulations
and guidelines [(i.e.e.g.,, State Comptroller Fiscal Policies and Procedures FPP I.004 (FM 95115): Purchase Guidelines for On-Campus Service Centers and Auxiliary Enterprises]) and other
university policies and procedures pertaining to procurement, finance, and accounting (i.e., SAMs
and MAPPs).
All other on-campus service providers (i.e., auxiliary enterprises, recharge centers, service
centers, service departments, etc.) are governed by state procurement regulations and guidelines
(i.e., FM 95-115: Purchase Guidelines for On-Campus Service Centers and Auxiliary Enterprises)
and other university policies and procedures pertaining to procurement, finance and accounting
(i.e., SAMs and MAPPs).
III.
DEFINITIONS
Comment [src1]: Auxiliary and service center
policies are outlined in their own respective
documents.
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37
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Annual operating budget: the total salary, wage, fringe benefits, and maintenance & operating
expenses expected to be incurred by an activity during any given fiscal year, normally the
university’s fiscal year (i.e., September 1 to August 31).
Auxiliary enterprise: An entity that furnishes goods or services primarily to students,
faculty, and/or staff and/or students; that charges a fee that is directly related (although
not necessarily equal) to the cost of the goods or services delivered,; and whichthat is
managed as a self-supporting entity. The general public may incidentally be served by
some auxiliary enterprises. Examples include residence halls, food services, student
stores, student unions, vending machines, and intercollegiate athletics. These activities
are governed by state procurement regulations and guidelines (i.e., FM 95-115: Purchase
Guidelines for On-Campus Service Centers and Auxiliary Enterprises) and other
university policies and procedures pertaining to procurement, finance and accounting
(i.e., SAMs and MAPPs).The distinguishing characteristic of auxiliary enterprises is that
they are managed essentially as self-supporting activities, whose services are provided
primarily to individuals in the institutional community rather than to departments of the
institution. Auxiliary enterprises may generate a profit or surplus; they are not considered
service centers, specialized service centers, or recharge centers for the purposes of this
document. Once an auxiliary enterprise’s total recovered costs from federally sponsored
activities exceeds $100,000 for two consecutive fiscal years, it will be subjected to the
provisions of this policy that relate to specialized service centers until such time as its
total recovered costs from federally sponsored activities does not exceed $100,000 for
three consecutive fiscal years.
B.Break-even analysis: Determination of the billing rate to charge, based upon projected
use/activity, in order to recover costs equal to the amount of operating expenses.
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Comment [src2]: This terminology is not used
anywhere else in the policy.
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Comment [src3]: Not covered by this policy.
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C.A.
Capital Eequipment replacement reserve fund: An accumulation of capital equipment
depreciation cost recovery. A separate cost center may be established for accumulating
(i.e., depositing) the equipment replacement reserveuse allowance/depreciation expense
cost recovery. The purpose of the cost center is would be to accumulate funds,
recovered through the recognitionapplication of approved use allowance/depreciation
expensemethods, for replacing capital equipment used in service center and specialized
service center facility operations.
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B.
Cost Sstudy / Bbreak-even analysis: Determination of the billing rate(s) to be charged
based upon projected use/activity, in order to recover costs equal to the amount of
operating expenses.
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C.
Depreciation: The allocation and recognition of the purchase cost of a capital asset over
its useful life.
C.D.
Facilities and Administrative (F&A) Costs: These costs consist of general administration
and general expenses. Examples of facilities costs include utilities, building
maintenance, custodial services, depreciation, and external interest associated with the
financing of building construction. Examples of administrative costs include general
administration and general expenses, such as executive management, payroll,
accounting and personnel administration; maintenance and operating expenses, such as
office supplies, paper, copier rental expenses; administrative and supporting services
provided by academic departments; libraries; and special administrative services
provided to sponsored agreements.
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E.Fixed-price jobs: Costs that are quoted and billed based upon a flat amount rather than
the approved billing rate. Any fixed price must be fully supported by a cost study.
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37
Comment [src4]: Terminology not used in
procedures.
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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E.
Imputed revenue: Revenue (i.e., recovered costs) that would have resulted had the
normal billing rate been applied to the units of service that were not charged the full rate.
(A lower billing rate may be charged to faculty, staff and students who need to have
access to the equipment in a specialized service facility for training purposes.) This is
referred to as imputing or imputed revenue.
F.Non-discriminatory rates: For this document, rates that do not discriminate against federally
supported activities of the institution, including usage by the institution forare the same
for all internal purposes,university users for the same level of services or products.
G.F.
Operating fund: The primary budget PeopleSoft cost Cost center Center in which all
recovered costs must be recorded and all direct, non-subsidized costs or expenses
should be recorded.
H.Recharge center (service centers, service departments, etc.): Departmental service operations
Units which provideing (or sharing) goods andor services that may or may not be
purchased from commercial sources but are more economically and conveniently
provided, and can better be controlled, by the institution. incidental to total departmental
activity, internally within their own departments. These are not formally recognized and
no formal cost studies are performed (e.g., photocopying done on a department copier
and recharged to the user) Service centers provide goods and services to university
departments, rather than individuals, and are supported by recovering their expenses
through charges to the departmental operating accounts. Examples are repair shops,
glass-blowing shops, mailing services, printing shops, supply stores, and audiovisual
services. A service center should serve a large segment of the university community.
For purposes of this policy, recharge centers (as well as service centers, service
departments, etc.) are defined as being all of the other on-campus and off-campus
service providers that do not fit the criteria set forth in this policy for recognition as a
specialized service facility. The policies and procedures set forth in this document do not
apply to these activities. Instead, these activities are governed by state procurement
regulations and guidelines (i.e., FM 95-115: Purchase Guidelines for On-Campus
Service Centers and Auxiliary Enterprises) and other university policies and procedures
pertaining to procurement, finance and accounting (i.e., SAMs and MAPPs).
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Comment [src5]: Specific terminology is not
used in document and discriminatory rates is defined
within guidelines on page 22.
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Comment [src6]: Not covered in this policy.
I.Service center: An entity that offers goods and/or services to other university departments, that
does not receive a material portion of their funding from federally supported activities or
sponsored agreements, and that charges a fee directly related (although not necessarily
equal) to the cost of the goods or services delivered.
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G.
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Specialized service centerfacilities: An entity that offers goods and/or services involving
the use of hHighly complex or specialized facilities operated by colleges, divisions, or
departments that offer goods and/or services to, and receiveprimarily to other university
departments and whose total recovered costs from, federally
sponsoredsupportedsponsored activities exceeds $100,000 for two or more consecutive
fiscal yearsof the University of Houston. (Examples include, but are not limited to,
telecommunication centers, super computers, animal care facilities, wind tunnels and
reactors.)
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An activity will be identified as a “Specialized Service Facility” for purposes of this policy
when it anticipates recovering costs from federally sponsored activities in any given fiscal
year.
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37
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
An activity will be identified as a “Specialized Service Facility” for purposes of this policy
when it anticipates recovering costs from federally supported activities in any given fiscal
year. The policies and procedures set forth in this document apply only to those activities
that meet this criteria.Specialized service center costs will be charged directly to users,
including sponsored agreements, based on actual use of the goods and/or services and a
schedule of rates that does not discriminate between federally and non-federally
supported activities of the institution, including use by the institution for internal purposes.
Specialized service centers are governed by the same policies and procedures in effect
for service centers, except where otherwise indicated in this document, and they are
subject to oversight by the Specialized Service Center Committee.
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K.Specialized Service Center Committee (SSCC): The SSCC reviews requests to establish a new
specialized service center, annual specialized service center billing rate proposals including annual
budgets and costs studies, and requests to discontinue operations as a specialized service center and
makes recommendations regarding the approval of those requests. The committee chairman shall be
designated by the Associate Vice President for Finance and will be responsible for planning, scheduling
and conducting SSCC meetings. The committee is comprised of representatives from the Division of
Finance, the Division of Research, the Provost’s Office, the faculty, and others as deemed appropriate by
the Associate Vice President of Finance.
L.H.
Standard cost accounting methods: Defined by the Cost Accounting Standards and
applied according to the Federal Register Office of Federal Procurement Policy, Cost
Accounting Standards Board of the Office of Management and Budget.
M.State records retention policies: The regulations, issued by the State of Texas, which define the
minimum and maximum length of time that agencies are required to retain official
documents and materials.
N.I. Start-up costs: The costs incurred to establish a new specialized service facilitycenter.
Specialized service facilities are prohibited from recovering these costs from federally
sponsored programs or projects since Ffederal regulations do not permit these costs to
be recovered.
O.J. Subsidy: Additional funding provided by sources other than the recovery of costs from users.
Subsidies may be in the form of actual fund transfers into the service center operating
cost center or the paying of service center expenses from non-specialized service
centerfacility cost centers. The most common forms of subsidy will usually include the
payment of service center employees’ salaries, the payment of maintenance and
operating expenses, or the purchase of capital equipment from other funding sources.
While specialized service center facility operations may be subsidized by authorized
university allocations, to the extent that specialized service centerfacility expenses are
paid for from non-specialized service centerfacility sources, they cannot be included in
the university’s facilities and administrative cost recovery pool when preparing the
IndirectF&A Cost Proposal.
P.Use allowance: The federal default method for determining allowable expense for fixed asset
usage. Current federal guidelines for use allowance calculation prescribe a 15-year life
for equipment and a 50-year life for buildings. For example, the annual use allowance for
a piece of equipment is calculated by dividing the cost of the equipment by the 15-year
life.
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Q.Working capital reserve: Funds accumulated in excess of actual operating costs in order to
fund future operating or capital expenses.
IV.
SPECIALIZED SERVICE CENTERFACILITY AND SPECIALIZED SERVICE CENTER
POLICYIES GUIDELINES
This section sets forth the policies governing units or entities that have been established, and are
operated, to provide goods or services to other academic and administrative units within the university.
These policies have been developed Each college, division, and department is responsible forto
ensuringe that all activities relating to the establishment and operation of specialized service facilities are
carried out pursuant to compliance with government regulatory costing principles, such as those
contained in OMB Circular No. A-21, (“Cost Principles for Educational Institutions,”), all applicable
University of Houston System Administrative Memoranda (SAM), and other applicable University of
Houston policies and procedures (MAPPs), and this document. Except as noted, these policies apply to
all service centers and all specialized services centers (regardless of the funding source) operating at the
university.
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policy statement of this document.
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Establishment: Entities within UH that want to provide goods or services to other academic and
administrative units within the university must submit a written request to establish themselves as a
service center or specialized service center. The request must be submitted to the Division of Finance
using forms prescribed in the procedures section of this document. Specialized service facilities are
distinguished from other on-campus service providers (i.e., recharge centers, service centers, service
departments, etc.) based upon the following characteristics/criteria:
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Specialized service facilities are defined as highly complex or specialized facilities
operated by colleges, divisions, or departments that offer goods and/or services to, and receive recovered
costs from, federally supported activities of the University of Houston. (Examples include, but are not
limited to, telecommunication centers, super computers, animal care facilities, wind tunnels and reactors.)
The costs of such goods or services must be charged directly to applicable awards based on
actual usage of the services on the basis of a schedule of rates or established methodology that:
a.
Does not discriminate against federally supported activities of the institution, including
usage by the institution for internal purposes, and
b.
s designed to recover only the aggregate costs of the services. The costs of each good or
service shall consist normally of its direct costs. Rates shall be adjusted at least biennially, and shall take
into consideration over/under applied costs of the previous period(s).
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Comment [src12]: This is already said in the
policy statement of this document.
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Comment [src13]: Repeated on page 22.
An activity will be identified as a “Specialized Service Facility” for purposes of this policy when it
anticipates recovering costs from federally supported activities in any given fiscal year
2.
Recharge center (service centers, service departments, etc.) are defined as units which
provide goods or services that may or may not be purchased from commercial sources but are more
economically and conveniently provided, and can better be controlled, by the institution. Service centers
provide goods and services to university departments, rather than individuals, and are supported by
recovering their expenses through charges to the departmental operating accounts. Examples are repair
shops, glass-blowing shops, mailing services, printing shops, supply stores, and audiovisual services. A
service center should serve a large segment of the university community.
For purposes of this policy, recharge centers (as well as service centers, service departments,
etc.) are defined as being all of the other on-campus and off-campus service providers that do not fit the
criteria set forth in this policy for recognition as a specialized service facility (i.e., they do not recover costs
from federally supported activities in any given fiscal year).
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37
Comment [src14]: Already stated in definition
of term.
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
These activities (recharge centers, service centers, service departments, etc.) are not governed
by this policy, instead they are governed by state procurement regulations and guidelines (i.e., FM 95115: Purchase Guidelines for On-Campus Service Centers and Auxiliary Enterprises) and other university
policies and procedures pertaining to procurement, finance and accounting (i.e., SAMs and MAPPs).
BA.
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Comment [src15]: Not covered in this policy
Financial record keeping for specialized service facilities:
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1.
All financially- relatedfinancial information to be included in the reporting required
by this policy (i.e., request for recognition as a specialized service facility, costs
studies, budget analysis, billing rate computations and proposals, revisions to
billing rate computations and proposals, etc.) is to come from, and be reconciled
to, the university’s official financial records system.
2.
Financial projections and statistical data used in developing billing rates, and, as
well as revisions to billing rates, should be based on a one-year period, normally
the university’s fiscal year (i.e., September 1st to August 31st).
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3.
All recovered costs shall be recorded in the unique operating funds assigned to
specialized service facilities.
4.
All direct costs should be recorded in the unique operating fund assigned to the
specialized service facility. However, in those instances where a specialized
service facility receives subsidy from another operating fund (or funds), the
amount(s) and source(s) of the subsidy must be disclosed and reported to the
DivisionDivision of Administration and Finance, Office of Finance – Cost
Accounting Department as part of the annualbiennial billing rate proposal
package or the analysis of total costs and recovered costs that is required in the
alternate fiscal years.
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5.
Specialized service facilities shall not transfer recovered costs, expenditures, or
fund balances from, or to, the operating fund without submitting a request to the
DivisionOffice of Finance. The request will be reviewed by the Division of
Administration and Finance, DivisionOffice of Finance – Cost Accounting
Department and then forwarded to the Associate Vice President for Finance (or
his/her designee) for approval.
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6.
Capital expenditures, including cost of equipment, shall not be charged to the
operating cost centerfund of any specialized service facility, unless the capital
expenditure is funded from the recovery of capital equipment usage cost from
prior fiscal periods (i.e., accumulated depreciation expense) or the funds have
been transferred from another cost center (i.e., subsidy funding received from
another cost center).
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7.
Other than acquisitions funded by the federal government, depreciation on
capital equipment shall be calculated and charged for all inventoried capital
equipment assigned to, and used by, the specialized service facility.
Depreciation on capital equipment shall be calculated in accordance with
university cost accounting procedures. Capital equipment depreciation expense
shall be considered direct costs and an equipment replacement reserve fund
should be established to accumulate funds for the eventual replacement of the
capital equipment.
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8.
Specialized service facilities are prohibited from recovering the costs incurred to
establish a new specialized service facility (start-up costs) from federally
sponsored programs or projects since federal regulations do not permit these
costs to be recovered.
79.
Financial records and supporting documentation for costs, recovered costs, and
billing rates must be maintained at the college, division, or department level for
the time periods prescribed in the Sstate of Texas Records Retention Schedule,
Category 4: Fiscal Records.
810.
Within 45 days from each fiscal year end (i.e., on, or before October 15),
specialized service facilities shall forward an analysis of total costs (including
subtotals for salary and wage expense, maintenance and operating expense,
and capital equipment usage) and total recovered costs (including subtotals for
each Fund Code) to the DivisionOffice of Finance for review and verification that
the specialized service facility did not over-recover costs for the most recently
completed fiscal year.
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CB.
Recovering costs associated with operating specialized service facilities:
1.
The costs for providing goods and/or services should be charged directly to the
users through a billing rate mechanism. The billing rates should be designed to
recover the aggregate costs of providing the service. A formal published
schedule of billing rates will be maintained by all specialized service facilities.
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2.
Billing transactions shall not be initiated in advance of providing goods and
services. Progress billings may be made for jobs in process.
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3.
Users are to be charged based on the number of service units used, such as,
hours or minutes of use, number of phone and fax lines serviced, number of
installations, animal days, etc.
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4.
Variances between the billed costs and actual costs should normally be treated
as adjustments to future billing rates.
54.
Revenue (i.e., recovered cost) should include all revenue (including imputed
revenue for unbilled services or services provided at a discount to certain users.).
65.
Specialized Service Facilities shall operate on a break-even basis, rather than a
profit basis. A year-end surplus should not exceed an amount equivalent to two
months (i.e., 60 days) of operating costs. A surplus or deficit occurring in any
year shall be included in the calculation of the subsequent year’s billing rates.
6.
Variances between the recovered costs and actual costs should be treated as
adjustments to futre billing rates.
7.
Facility costs are not to be included in the specialized service facility billing rates.
Instead, the allocated portion of facility and administrative costs will be assigned
to the “Other Institutional Activities” (OIA) cost category of the University of
Houston’s F&A RateCost Proposal.
8.
Specialized service facility operating costs and losses are not to be included in
the university’s F&A RateCost Proposal. Losses are not to be included in the
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MAPP 03.01.01
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General & Administrative or Department Administration cost pools of the F&A
Cost Proposal..
9.
DC.
Specialized service facility fund deficits are not to be transferred to F&A cCost
Proposal cost pools and surpluses are not to be diverted for other uses.
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Providing goods or services to users:
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1.
Specialized service facilities are defined as highly complex or specialized
facilities operated by colleges, divisions, or departments that offer goods and/or
services to federally supported activities of the University of Houston; therefore,
they shallould not routinely sell goods or services to University of Houston affiliated faculty, staff or students unless written approval for an exception is
obtained in advance of making such sales. When sales are made to University
of Houston affiliated faculty, staff or students:
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a.
A lower billing rate (and, in certain circumstances, possibly no billing
rate) canmay be charged to faculty, staff and students who need to have
access to the equipment in a specialized service facility for training
purposes (and not for an activity for which the charges are to be passedon or recharged to a federally sponsored activity).
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b.
Specialized service facilities must keep a record of such use and when
calculating the year end under or over recovery of the service center, the
normal charge rate should be applied to the units of service that were not
charged the full rate. This is referred to as imputing or imputed revenue.
Formatted: Indent: Left: 1.5", Hanging: 0.5"
2.
Comment [src16]: Repetitive
Specialized service facilities shall not routinely sell goods or services to the
general public or other non-University of Houston affiliated entities unless written
approval for an exception is obtained from the Associate Vice President for
Finance (or his.her designee) in advance of making such sales.
1.Requests to establish a service center will be reviewed by the Division of Finance and
approved by the Associate Vice President for Finance. Once a service center’s
total recovered costs from federally sponsored activities exceeds $100,000 for
two consecutive fiscal years, that entity will automatically be reclassified as a
specialized service center and will be subjected to the provisions of these
policies and procedures that pertain to specialized service centers retroactively
(i.e., as of the first day of the fiscal year in which total recovered costs from
federally sponsored activities has exceeded $100,000 for two consecutive fiscal
years). The entity will continue to be classified as a specialized service center
until such time as its total recovered costs from federally sponsored activities
does not exceed $100,000 for three consecutive fiscal years.
Formatted: Indent: Left: 1", Hanging: 0.5"
2.Requests to establish a specialized service center (i.e., a service center that anticipates
recovering more than $100,000 of costs from federally sponsored activities for
two, or more, consecutive fiscal years) will be reviewed by the Division of
Finance and the SSCC and then forwarded to the Associate Vice President for
Finance for approval.
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3.For those entities who provide goods or services to other academic and administrative
units without first obtaining approval:
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 8 of
37
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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a.No recovered costs will be recognized until approval has been given
recognizing the entity as a service center or specialized service center.
service center.
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b.In those instances where a service center or specialized service center
becomes operational and begins to recognize recovered costs before
obtaining approval, all recovered costs may be re-deposited and retained
retained in a separate cost center under the control of the Associate Vice
President for Finance until approval is obtained. If approval is
subsequently denied, all recovered costs retained by the Associate Vice
President for Finance will be disposed of at his/her discretion except for
recovered costs received from federally sponsored agreements which
will be returned to the appropriate funding agency.
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B.Costing and pricing: All service centers and specialized service centers must determine the
cost of producing goods and/or services and establish a price (i.e., billing rate) to be
charged for those goods and/or services taking into consideration the following:
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1.The cost of goods and services (i.e., billing rates) will be charged directly to all users,
including sponsored agreements, based on actual use of the goods and services
and pursuant to a published schedule of billing rates that does not discriminate
between federally and non-federally supported activities of the institution,
institution, including use by the institution for internal purposes. Billing rates shall
be stated in measurable units of goods or services, and a separate rate shall be
established for each class of goods or services provided. Price discrimination is
strictly prohibited.
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2.Service center billing rates for goods and services shall be developed and submitted to
the Division of Finance for review and approval by the Associate Vice President
for Finance on an annual basis and at least 90 days prior to the beginning of the
fiscal year in which they are to take effect.
Formatted: Bullets and Numbering
a.Service center billing rates should be directly related (although not necessarily
equal) to the cost of producing and delivering the goods or services and
should consist of all direct costs including salary and wages, cost of
materials and supplies, maintenance and operating expenses and capital
equipment usage allowance or depreciation expense.
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b.Service center capital equipment usage allowance or depreciation expense
shall be calculated in accordance with university cost accounting
procedures.
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c.Material revisions to service center billing rates, or billing rates developed for
new goods or services added during the fiscal year, must be submitted to
the Division of Finance at least 90 days before they are to become
effective. They will be reviewed by the Division of Finance and then
forwarded to the Associate Vice President for Finance for approval.
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3.Specialized service center billing rates for goods and services shall be developed and
submitted to the Division of Finance on an annual basis and at least 90 days
prior to the beginning of the fiscal year in which they are to take effect. The
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 9 of
37
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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proposed billing rates will be reviewed by the Division of Finance and the SSCC
and then forwarded to the Associate Vice President for Finance for approval.
approval.
a.Specialized service center billing rates shall not be based upon pro-rations or
other IDC allocations. They should be based on standard cost
accounting methods and designed to recover not more than the
aggregate cost of the services over a long-term period (i.e., they should
should not make a profit or accumulate large surplus balances).
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b.The cost of goods and services (i.e., billing rates) for a specialized service
center shall consist of its direct costs and, where deemed appropriate, its
indirect costs (i.e., F&A).
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c.Specialized service center direct costs paid for from non-service center
sources (i.e., subsidized) must be disclosed in the annual billing rate
proposal.
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d.Other than acquisitions funded by the federal government, use allowance or
depreciation expense for specialized service centers shall be calculated
and charged for all inventoried equipment assigned to the centers.
Capital equipment usage allowance/depreciation expense shall be
calculated in accordance with university cost accounting procedures.
Use allowance/depreciation costs shall be considered direct costs and
an equipment replacement reserve fund should be established.
Formatted: Bullets and Numbering
e.Material revisions to specialized service center billing rates, or billing rates
developed for new goods or services added during the fiscal year, must
be submitted to the Division of Finance at least 90 days before they are
to become effective. They will be reviewed by the Division of Finance
and the SSCC and then forwarded to the Associate Vice President for
for Finance for approval.
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4.Service centers and specialized service centers that fail to prepare and submit billing
rates for review and approval at least once each fiscal year may be subjected to
one, or more, of the following sanctions as deemed appropriate by the Associate
Vice President of Finance:
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a.All recovered costs recognized in the fiscal periods for which the service center
or specialized service center has not submitted billing rate proposals
may be transferred to a cost center under the control of the Associate
Vice President for Finance. These funds will remain under the control of
the Associate Vice President for Finance until such time as the service
center or specialized service center comes into compliance with this
policy.
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b.Temporary suspension of the service center’s or specialized service center’s
approval to provide goods or services to other academic and
administrative units within the university. During this period service
center or specialized service center recovered costs may be deposited
in, or transferred to, a cost center under the control of the Associate Vice
President for Finance. These funds will remain under the control of the
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 10
of 37
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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Associate Vice President for Finance until such time as the service
center or specialized service center come into compliance with this
policy.
c.Permanent revocation of the service center’s or specialized service center’s
approval to provided goods or services to other academic and
administrative units within the university. All recovered costs recognized
by the service center or specialized service center will be transferred to a
cost center under the control of the Associate Vice President for Finance
and disposed of at his/her discretion except for recovered costs received
from federally sponsored agreements which will be returned to the
appropriate funding agency.
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5.Goods or services shall not be routinely sold to university-affiliated faculty, staff or
students unless approval for an exception is obtained from the Associate Vice
President for Finance.
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6.Goods or services shall not be sold to the general public or other non-university
affiliated entities if the sales will compete with commercial sources.
Formatted: Bullets and Numbering
a.The Associate Vice President must approve all sales to non-university affiliated
entities in advance.
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b.The billing rates for sales made by specialized service centers to the general
public, if approved, shall include the university’s on-campus indirect cost
cost (IDC) rate to recover institutional overhead costs. Written requests
for exceptions to this overhead cost recovery policy must be submitted to
submitted to the Division of Finance. These requests will be reviewed by
the Finance Division and the SSCC and then forwarded to the Associate
Vice President for Finance for approval. Funds representing overhead
cost recovery shall be separately recorded in a cost center identified by
the Associate Vice President for Finance and shall be distributed as
directed by him/her.
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C.Administration: Each college/division is responsible for ensuring that all activities relating to the
establishment and operation of service centers are carried out pursuant to OMB Circular
No. A-21, “Cost Principles for Educational Institutions,” all applicable University of
Houston System Administrative Memoranda (SAM), other applicable University of
Houston policies and procedures (MAPPs), and this document. General guidelines to be
followed in the administration of service centers and specialized service centers include
the following:
Formatted: Bullets and Numbering
1.All financial-related information (i.e., request for establishing a new service center or a
new specialized service center, costs studies, budget analysis, billing rate
computations and proposals, revisions to billing rate computations and
proposals, etc.) is to come from, and be reconciled to, the university’s official
financial records system. Financial and statistical data used in developing billing
rates, and revisions to billing rates, should be based on a one-year period,
normally the university’s fiscal year (i.e., September 1 to August 31). Financial
records and supporting documentation for billing rates must be maintained at the
college or department level for the time periods prescribed in the State of Texas
Records Retention Schedule, Category 4: Fiscal Records.
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 11
of 37
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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2.Service centers shall operate on a break-even basis, rather than a profit basis. A yearA year-end surplus should not exceed an amount equivalent to two months (i.e.,
months (i.e., 60 days) of operating costs unless prior approval has been obtained
from the Associate Vice President for Finance. Failure to obtain prior approval
approval from the Associate Vice President for Finance may result in the transfer
of excess surplus funds to a cost center under the control of the Associate Vice
President for Finance until such time as adequate justification is given for
accumulating the funds or service center billing rates are adjusted to eliminate
the excess surplus balance.
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3.Specialized service centers shall operate on a break-even basis, rather than a profit
basis. A year-end surplus should not exceed an amount equivalent to two
two months (i.e., 60 days) of operating costs. A surplus or deficit occurring in
any year shall be included in the calculation of the subsequent year’s billing
rates. In cases where a rate adjustment would create severe fluctuations in
rates from one year to the next, a specialized service center may submit a
request for a reasonable extension to achieve a break-even balance to the
Division of Finance. The request will be reviewed by the Division of Finance and
the SSCC and then forwarded to the Associate Vice President for Finance for
approval.
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4.All recovered costs shall be recorded in the operating fund assigned to service centers
and specialized service centers.
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5.All direct costs should be recorded in the operating fund assigned to the service centers
and specialized service centers. However, in those instances where a center
receives subsidy from another operating fund (or funds), the amount(s) and
source(s) of the subsidy must be reported to the Division of Finance as part of
the annual billing rate proposal package.
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6.Service centers shall not transfer recovered costs, expenditures, or fund balances from,
or to, the operating fund without submitting a request to the Division of Finance.
The request will be reviewed by the Division of Finance and then forwarded to
the Associate Vice President for Finance for approval.
Formatted: Bullets and Numbering
7.Specialized service centers shall not transfer recovered costs, expenditures, or fund
balances from, or to, the operating fund without submitting a request to the
Division of Finance. The request will be reviewed by the Division of Finance and
the SSCC and then forwarded to the Associate Vice President for Finance for
approval.
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8.Service centers and specialized service centers shall not recharge or initiate other
billing transactions in advance of providing goods and services. Progress billings
may be made for jobs in process.
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9.Service centers must submit a written request to discontinue operations to the Division
of Finance for review and approval by the Associate Vice President of Finance.
Finance.
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 12
of 37
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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10.Specialized service centers must submit a written request to discontinue operations to
the Division of Finance and the SSCC for review and approval by the Associate
Vice President for Finance.
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11.Capital expenditures, including cost of equipment, shall not be charged to the
Formatted: Bullets and Numbering
operating cost center of any service center or specialized service center.
V.
ESTABLISHING & DISCONTINUINGSERVICE CENTER AND SPECIALIZED SERVICE
CENTER PROCEDURESFACILITY OPERATIONS
A.
B.
Formatted: Indent: Left: 0", Hanging: 0.5"
Establishing a Service Center or Sspecialized Sservice Ccenterfacility
1.
Colleges, divisions, and departments that want to provide goods and/or services
involving the use of highly complex or specialized facilities in support of federally
supported activities at the University of Houston must submit a written request to
be recognized, and operate, as a specialized service facility.
Formatted: Indent: Left: 1.03", Hanging:
0.47"
1.
A written requests providing sufficient justification for recognition as a specialized
service facility must be submitted to the Division of Administration and Finance,
Office of Finance – Cost Accounting Department Division in a format, and in
accordance with procedures, prescribed by that divisionofficedepartment.
Comment [src17]: Repetitive
22.
The request for recognition as a specialized service facility must include a cost
study and proposed billing rates prepared using forms and in a format prescribed
by the Division of Administration and Finance, Office of Finance – Cost
Accounting DepartmentDivision. These must be reviewed by the Cost
Accounting Department and approved by the Office oAssociate Vice President
forf Finance (or his/her designee)Division before the proposed new specialized
service facility begins operations and recovering costs from users.
Formatted: Indent: Left: 1.01", Hanging:
0.49", Tab stops: Not at -1.57"
Discontinuing operations as a specialized service centerfacility
Colleges, divisions, and departments that want to discontinuing providing goods and/or
services involving the use of highly complex or specialized facilities in support of federally
supported activities at the University of Houston must submit a written request to cease
operating, and being recognized, as a specialized service facility.
1.
A written requests providing sufficient justification for ceasing operations as a
specialized service facility must be submitted to the Office of FinanceDivision of
Administration and Finance, Office of Finance – Cost Accounting Department
Division in a format, and in accordance with procedures, prescribed by that
divisionofficedepartment.
2.
The request shall include the planned termination date, reason for discontinuing
the operation, an explanation of the specialized service centerfacility’s plan for
the resolution of any cost center surplus or deficit, and the planned disposition of
capital equipment and remaining inventory. Other information (supporting
schedules, documentation, etc.) may be required as deemed appropriate and
necessary by the DivisionOffice of FinanceDivision of Administration and
Finance, Office of Finance – Cost Accounting Department. Upon completion of
close out, the specialized service facility’s primary cost center should have a zero
balance and be inactivated by the Budget Officefrozen and flagged for deletion.
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 13
of 37
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0.47", Tab stops: Not at -1.57"
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Not at -1.57"
Formatted: Indent: Left: 0.98"
Comment [src18]: Repetitive
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Formatted: Indent: Left: 0.98", Hanging:
0.52", Tab stops: Not at -1.57"
Specialized Service Centers (Recharge Centers)Facilities
VI.
MAPP 03.01.01
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DEVELOPING AND MAINTAINING BILLING RATES & PRICING POLICY GUIDELINES
Formatted: Indent: Left: 0", Hanging: 0.5"
Specialized service facilities must determine the cost of producing goods and/or services for
federally supported activities and establish a price (i.e., billing rate) to be charged for those goods
and/or services taking into consideration the following:
Formatted: Indent: Left: 0.5"
A.
Formatted: Level 1, Indent: Left: 0.5"
Specialized service facilityDeveloping Bbilling Rrates
1.
All users must be charged for the cost of goods and services (i.e., billing rates)
they receive from a specialized service facility based on their actual usage and
pursuant to a published schedule of billing rates.
12.
The cost of goods and services (i.e., billing rates) will be charged directly to all
users, based on actual use of the goods and services and pursuant to a
published schedule of billing rates that does not discriminate against federally
supported activities of the institution, including usage by the institution for internal
purposes.Price discrimination against federally supportedsponsored activities of
the institutionuniversity, including usage by the institutionuniversity for internal
purposes, is strictly prohibited. Billing rates for goods and/or services should not
discriminate between Federal and non-Federal users including internal university
activities, for the same level of services or products.
Comment [src19]: Repetitive
Formatted: Indent: Left: 0.5"
Formatted: Normal, Left, Indent: Left: 1",
Hanging: 0.52", Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 1" + Indent at:
1.25", Tab stops: Not at 1"
Formatted: Indent: Left: 0.5"
Formatted: Indent: Left: 1", Hanging: 0.5"
Comment [src20]: Repeats in next section and
page 8 specifies that the rates must be published.
323.
Billing rates shall be published and stated in measurable units of goods or
services, and a separate rate shall be established for each class of goods or
services provided.
Formatted: Indent: Left: 1", Hanging: 0.5"
434.
Billing rates must be reviewed and approved biennially and, when warranted,
adjusted to compensate for under or over recoveries of costs in prior fiscal
periods.
Formatted: Indent: Left: 1", Hanging: 0.5"
545.
Billing rates should be directly related to the cost of producing and delivering the
goods or services. Billing rates should consist of all material direct costs
including salary and wages, materials and supplies, maintenance and operating
expenses, and depreciation expense for capital equipment usage. Billing rates
will not be allocated to each specialized service facility based on identifiable
square feet associated with each specialized service facility.
Formatted: Indent: Left: 1", Hanging: 0.5"
656.
Billing rates shall be based on standard cost accounting methods and designed
to recover not more than the aggregate cost of the services over a long-term
period (i.e., they should not make a profit or accumulate large surplus balances).
Formatted: Indent: Left: 1", Hanging: 0.5"
7.
Direct costs paid for from non-specialized service facility sources (i.e., subsidized
costs) must be disclosed in the biannual billing rate proposal.
Formatted: Indent: Left: 1", Hanging: 0.5"
8.
Other than acquisitions funded by the federal government, depreciation on
capital equipment shall be calculated and charged for all inventoried capital
equipment assigned to, and used by, the specialized service facility.
Depreciation on capital equipment shall be calculated in accordance with
university cost accounting procedures. Depreciation expense shall be
considered direct costs and an equipment replacement reserve fund should be
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 14
of 37
Comment [src21]: Moved to billing rate
proposal section.
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
established to accumulate funds for the eventual replacement of the capital
equipment.
: Service centers and specialized service centers should operate on a break-even basis (i.e.,
annual recovered costs less operating costs normally should equal zero), rather than a profit
basis; therefore, the cost charged for goods and services (i.e., billing rates) should be established
to ensure that recovered costs equal (or approximate) the costs of producing those goods and
services.
Formatted: Font: (Default) Arial, 10 pt, Bold
Comment [src22]: Moved up to the financial
recordkeeping section on page 8.
Formatted: Indent: Left: 0.5"
The Billing Rate Proposal (Form 6), included as Addenda G to this policy, should
be used to compile this data and document the billing rate computations.
Documentation must be maintained to support each calculated billing rate or
price charged. (The form may be modified and supporting schedules attached
as deemed necessary; however, as part of the review process, the Division of
Finance and the SSCC may require service center management to explain the
reasons for any modifications to the original form.) The following information will
be included in the billing rate proposal computations:
a.Estimated Salaries, Wages, and Benefits Costs: This information should come
from the Salaries, Wages, and Benefits Cost Analysis (Form 2, included
as Addenda C to this policy) prepared during the development of a
budget for the upcoming fiscal year. (Step 2.a., above.)
b.Estimated Maintenance and Operating Expenditures Costs: This information
should come from the Maintenance and Operations Cost Analysis (Form
3, included as Addenda D to this policy) prepared during the
development of a budget for the upcoming fiscal year. (Step 2.b.,
above.)
Formatted: Bullets and Numbering
c.Estimated Use Allowance/Depreciation Expense Costs: This information
should come from the Use Allowance/Depreciation Expense Analysis
and Equipment Inventory Form (Form 4, included as Addenda E to this
policy) prepared during the development of a budget for the upcoming
fiscal year. (Step 2.c., above.)
Formatted: Bullets and Numbering
d.Estimated Facilities and Administrative Costs: This information should come
from the Facilities and Administrative Cost Analysis Form (Form 5,
included as Addenda F to this policy) prepared during the development
of a budget for the upcoming fiscal year. (Step 2.d., above.)
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e.Estimated Total Expenditures: This amount should equal the total of a, b, c,
and d above.
Formatted: Bullets and Numbering
f.Accumulated (Over)/Under Recovery from Prior Fiscal Years: This information
should come from the Cost Study (Form 1, included as Addenda B to this
policy) prepared during the development of a cost study of the prior (i.e.,
most recently completed) fiscal year’s activity. (Step 1.h., above.)
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g.Estimated Total Costs To Be Recovered: This amount should equal the total of
e and f above.
Formatted: Bullets and Numbering
h.Estimated Fiscal Year Usage of Goods or Services: This amount should be
estimated based upon the expertise of center’s operating staff. This
estimate should be in the form of the units of goods or services for which
the rate is charged. For example, a center providing services at an
hourly rate should estimate the number of hours of services that will be
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 15
of 37
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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provided in the fiscal year. The estimate for a center that provides goods
will be the total number of units to be provided by the center during the
fiscal year.
B.
i.Costs Per Unit of Goods or Services: The Estimated Total Costs To Be
Recovered (g above) should be divided by the Estimated Fiscal Year
Usage of Good or Services (h above) to determine the actual cost to
provide the particular good or service.
j.Proposed Billing Rate: Since the objective of the center is to operate on a
break-even basis, the proposed billing rate should be equal to the cost
per unit of goods or service (i above) with adjustments for rounding if
deemed appropriate.
Billing rate proposal content and format
Formatted: Bullets and Numbering
Specialized service facility billing rates will be established, modified, and revised using
forms, and in a format, prescribed by the DivisionOffice of FinanceDivision of
Administration and Finance, Office of Finance – Cost Accounting Department and
hereinafter referred to as a Billing Rate Proposal. The content of the Billing Rate
Proposal shall, at a minimum, include the following:
Formatted: Indent: Left: 1.03", First line: 0"
1.
1.
A cost study containing an analysis of of the most recently completed
fiscal year’s activity: An analysis of the most recently completed fiscal year’s
activity will ensure that all costs incurred to provide goods and services have
been identified and taken into consideration when computing the accumulated
over or under recovery of costs (i.e., any accumulated surplus or deficit balance).
Any surpluses or deficits occurring in one fiscal year should be included in the
calculation of the subsequent fiscal years’ billing rates.
(The cost study must be prepared in a format prescribed by the Division of Finance
using forms developed specifically for this purpose.)
2.
All dDirect costs paid for from non-specialized service facility sources (i.e.,
subsidized costs) must be disclosed in the biannualbiennial billing rate proposal.
3.
A budget for the current fiscal year’s activity developed by estimating the results
of : Estimating results of the current fiscal year’s activity and identifying will help
identify the amount of anticipated over or under recovery of costs that will need
to be carried forward when proposing billing rate(s) for the upcoming fiscal year.
(The budget must be prepared in a format prescribed by the Division of Finance
using forms developed specifically for this purpose.)
34.
45.
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line: 0"
Formatted: Indent: Left: 0.75", Hanging:
0.25"
Formatted: Indent: Left: 1.03", Hanging:
0.49", Numbered + Level: 1 + Numbering Style:
1, 2, 3, … + Start at: 1 + Alignment: Left +
Aligned at: 1.03" + Indent at: 1.28"
Comment [src23]: Repetitive
Formatted: List 4, Indent: Left: 1", Hanging:
0.51", Tab stops: -1.63", List tab
Formatted: Indent: Left: 1.03"
Comment [src24]: Should this be the "annual
operating budget?" If so we should use the term in
the definitions section and reinstate that definition.
Comment [src25]: Repetitive
Projections and proposed billing rates for the upcoming (future) fiscal year
anticipating : Projecting the anticipated results of the future fiscal year’s activities
based upon the expected anticipated activity levels and the proposed billing rates
to be in effect during the upcoming fiscal year. Specialized service facilities
should operate on a break-even basis (i.e., annual recovered costs less operating
costs normally should equal zero), rather than a profit basis; therefore, the cost
charged for goods and services (i.e., billing rates) should be established to ensure
that recovered costs equal (or approximate) the costs of producing those goods
and services.
Formatted: Indent: Left: 0.98"
Copies of the billing rate proposal computations must be kept on file at the college
or department level for the time periods prescribed in the Sstate of Texas
Records Retention Schedule, Category 4.
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 16
of 37
Comment [src26]: Repeats page 9.
Specialized Service Centers (Recharge Centers)Facilities
C.C.
and approval
MAPP 03.01.01
Approving Service Center or Specialized Service Center Billing Rrates proposal review
Formatted: No bullets or numbering, Tab
stops: Not at 0.75"
Formatted: Bullets and Numbering
Proposed billing rates, material revisions to already approved billing rates, and billing
rates developed for new goods or services added during the fiscal year must be
approved before being charged to users. After their initial approval, specialized service
facilities shall prepare and submit a billing rate proposal on a biannualbiennial basis at
least 90 days prior to the beginning of the fiscal year in which the proposed billing rates y
are to take effect.
1. 1. Specialized service facilities must submit their biennial proposed billing rates
proposals, or proposals for billing rates developed for new goods or services added
during the fiscal year, to the DivisionOffice of FinanceDivision of Administration and
Finance, Office of Finance – Cost Accounting Department at least 90 days before
they are to become effective. These will be reviewed by the DivisionOffice of
FinanceCost Accounting Department and then forwarded to the Associate Vice
President for Finance (or his/her designee) for approval.
2. For those alternate fiscal years when a biennial billing rate proposal is not required,
within 6 months from the fiscal year end (i.e., on, or before January 31st ) specialized
service facilities shall forward an analysis of all costs (including subsidized costs) and
total recovered costs (including subtotals for each Fund Code) to the Office of
FinanceDivision of Administration and Finance, Office of Finance – Cost Accounting
Department for review and verification that the specialized service facility did not overrecover costs for the most recently completed fiscal year. This analysis shall be in a
format, and in accordance with procedures, prescribed by that officedepartment.
D.
Formatted: Font: (Default) Arial, 10 pt, Bold
Billing rate revision review and approval
2. MMaterial revisions to already approved billing rates, or billing rates developed
for new goods or services added during the fiscal year that will have a material impact
on the service center’s anticipated total costs or total recovered costs, must be
submitted to the DivisionOffice of Finance Division of Administration and Finance,
Office of Finance – Cost Accounting Department for review and approval by the
Associate Vice President for Finance (or his/her designee) at least 90 days before
they are to become effective.
1.
A revisionrevision to the already approved billing rates, or the addition of a new good
or service, will be deemed material if:
a. i)
The revision or addition represents a 10%, or greater, increase in the
already approved billing rates for the same, or comparable, quality of goods
or level of services.
Formatted: Indent: First line: 0.49", No
bullets or numbering, Tab stops: Not at 0.75"
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Tab stops: Not at -1.63"
Formatted: Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
Formatted: Indent: Left: 0", First line: 0",
Tab stops: Not at -1.63"
Formatted: Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
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Superscript
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Tab stops: Not at -1.63"
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Tab stops: Not at -1.63"
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Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
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Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
Formatted: Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
Formatted: None, Indent: Left: 1.21", First
line: 0", Tab stops: 1.25", Left + Not at
-1.63"
Formatted: Indent: Left: 1.46", Numbered +
Level: 2 + Numbering Style: a, b, c, … + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
Indent at: 1"
Formatted: Indent: Left: 1.2"
b. ii) The revision or addition will result in a 10%, or greater, increase in the
total anticipated recovered costs for the same, or comparable, quality of
goods or level of services.
Formatted: Indent: Left: 1.46", Numbered +
Level: 2 + Numbering Style: a, b, c, … + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
Indent at: 1"
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December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 17
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Specialized Service Centers (Recharge Centers)Facilities
c.
MAPP 03.01.01
iii) Based upon the anticipated level of cost recovery resulting from the
revision or addition, recovered costs for the goods or services will exceed
total costs (i.e., the revision will result in the over-recovery of costs) of
producing the goods or services.
2. 3. Already approved billing rates may be revised as deemed necessary by
specialized service facility and college/division/departmental management. In all
instances, billing rates and modified billing rates must be based on the actual cost of
providing the goods or services. Revisions to already approved billing rates that do
not meet the above criteria for materiality must be reported to the DivisionOffice of
FinanceDivision of Administration and Finance, Office of Finance – Cost Accounting
Department prior to being charged to users. Updated price lists reflecting changes to
already approved billing rates will need to be provided to the DivisionOffice of Finance
Cost Accounting Department at least 3 working days before the revised billing rates
are to take effect.
Formatted: Indent: Left: 1.46", Numbered +
Level: 2 + Numbering Style: a, b, c, … + Start
at: 1 + Alignment: Left + Aligned at: 0.75" +
Indent at: 1"
Formatted: Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.96" + Indent
at: 1.21"
a.
Billing rate computations modifying, adding or revising specialized
service facility billing rates must be documented and approved by the
college/division business administrator, the department chairman (where
applicable), and the college dean or division head.
Formatted: Indent: Left: 1.52", Hanging:
0.48"
b.
Documentation must be maintained to support each calculated billing
rate, billing rate change, or price charged for a particular good or service.
Formatted: Indent: Left: 1.52", Hanging:
0.48"
c.
All revisions to billing rates must be reported to the DivisionOffice
of Finance. Updated price lists will need to be provided to the
DivisionOffice of Finance at least 3 working days before the revised
billing rates are to take effect.
Formatted: Normal, Left, Indent: Left: 1.52",
Hanging: 0.48", No bullets or numbering, Tab
stops: -1.63", List tab
All revisions to billing rates must be report to the Division of Finance.
Updated price lists will need to be provided to the Division of Finance at
least 3 working days before the revised billing rates are to take effect.
Formatted: Indent: Left: 1.52", Hanging:
0.48"
cd.
d.
C.
Formatted: Font: (Default) Arial, 10 pt, Bold
Comment [src27]: Repeats section 3 above.
Copies of the billing rate revision computations must be kept on file at
the college or department level for the time periods prescribed in the
Sstate of Texas Records Retention Schedule, Category 4.
Failure to obtain approval for billing rates
Specialized service facilities that fail to prepare and submit billing rates for review and
approval on a biannual basis, or that fail to obtain advanced approval for material
revisions to already approved billing rates and billing rates developed for new goods or
services added during the fiscal year may be subjected to one, or more, of the following
sanctions as deemed appropriate by the Associate Vice President of Finance (or his/her
designee):
1.
All recovered costs recognized in the fiscal period for which the specialized
service facility has not submitted billing rate proposals, or obtained prior approval
for material revisions to already approved billing rates or billing rates for new
goods or services added during the fiscal year, may be transferred to a cost
center under the control of the Associate Vice President for Finance (or his/her
designee).
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 18
of 37
Comment [src28]: Repeated in sections below.
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Specialized Service Centers (Recharge Centers)Facilities
2.
MAPP 03.01.01
These funds will remain under the control of the Associate Vice President for
Finance (or his/her designee) until such time as the specialized service facility
comes into compliance with this policy.
Service centers and specialized service centers shall prepare and submit a billing
rate proposal on an annual basis and prior to the beginning of the fiscal year in
which the proposed billing rates are to take effect.
D.Service center billing rates must be submitted to the Division of Finance for review and
approval by the Associate Vice President for Finance. Billing rates should be
developed using the forms and procedures recommended in the above section of
this policy entitled, “Guidelines for Establishing a Service Center or Specialized
Service Center.”
E.Specialized service center billing rates must be submitted to the Division of Finance.
The proposed billing rates will be reviewed by the Division of Finance and the
SSCC and then forwarded to the Associate Vice President for Finance for
approval on an annual basis and prior to the beginning of the fiscal year in which
they are to take effect. Billing rates should be developed using the forms and
procedures recommended in the above section of this policy entitled, “Guidelines
for Establishing a Service Center or Specialized Service Center.”
F.Modifying, Adding, or Revising Service Center and Specialized Service Center Billing Rates
Formatted: Font: (Default) Arial, 10 pt, Bold
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0.47"
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Hanging: 0.47", No bullets or numbering, Tab
stops: -1.63", List tab + Not at 0.75"
Formatted: Bullets and Numbering
Formatted: Normal, Indent: Left: 1.03",
Hanging: 0.47"
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Hanging: 0.47", No bullets or numbering, Tab
stops: -1.63", List tab + Not at 0.75"
Formatted: Bullets and Numbering
Formatted: Normal, Indent: Left: 1.03",
Hanging: 0.47"
Formatted: Bullets and Numbering
Billing rates may be revised as deemed necessary by service center and departmental
management. In all instances, billing rates must be based on the actual cost of providing
the goods or services. Documentation must be maintained to support each calculated
billing rate, billing rate change, or price charged for a particular good or service. To
materially revise existing billing rates or rate methodology or to propose new billing rates
for new goods or services, complete the “Request to Change Rates or Rate Methodology
and Request to Add Rates for New Goods or Services” Form (see Addendum H). Copies
of the billing rate computations must be kept on file at the college or department level for
the time periods prescribed in the State of Texas Records Retention Schedule, Category
4.
1.Billing rate computations modifying, adding or revising service center and specialized
service center billing rates must be documented and approved by the
college/division business administrator, the department chairman (where
applicable), and the college dean or division head.
Formatted: Bullets and Numbering
2.Requests for material modifications, additions, or revisions to service center billing
Formatted: Bullets and Numbering
rates must be submitted to the Division of Finance at least 90 days before they
are to become effective. These requests will be reviewed by the Division of
Finance then forwarded to the Associate Vice President for Finance for approval.
3.Requests for material modifications, additions, or revisions to specialized service
center billing rates must be submitted to the Division of Finance at least 90 days
before they are to become effective. These requests will be reviewed by the
Division of Finance and the SSCC and then forwarded to the Associate Vice
President for Finance for approval.
G.Discontinuing Service Center and Specialized Service Center Operations
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 19
of 37
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
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Service centers and specialized service centers shall notify the Division of Finance in
writing of the intention to discontinue operations. This notification shall include the
planned termination date, reason for discontinuing the operation, an explanation of the
specialized service center’s plan for the resolution of any cost center surplus or deficit,
and the planned disposition of remaining inventory.
VII.
1.Service centers shall not take action to dispose of equipment, inventory, or cost center
balances without first submitting a request to the Division of Finance. The
request will be reviewed by the Division of Finance and then forwarded to the
Associate Vice President for Finance for approval. Upon completion of close
out, the service center cost center should have a zero balance and be frozen and
flagged for deletion.
Formatted: Bullets and Numbering
2.Specialized service centers shall not take action to dispose of equipment, inventory, or
cost center balances without first submitting a request to the Division of Finance.
The request will be reviewed by the Division of Finance and the SSCC and then
forwarded to the Associate Vice President for Finance for approval. Upon
completion of close out, the specialized service center cost center should have a
zero balance and be frozen and flagged for deletion.
Formatted: Bullets and Numbering
PROVIDING SERVICES AND GOODS TO NON-UH AFFILIATED PARTIES APPROVAL
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Specialized service facilities shall not routinely sell goods or services to the general public or
other non-University of Houston affiliated entities without obtaining prior written approval from the
Office of FinanceAssociate Vice President for Finance (or his/her designee) Division in a manner
and format prescribed by that divisionthe Division of Administration and Finance, Office of
Finance – Cost Accounting Department.
Formatted: Indent: Left: 0.5"
A.
The billing rates for sales made by specialized service facilities to the general public or
other non-university affiliated entities, if approved, should include the university’s oncampus indirect cost (IDC) rate to recover institutional overhead costs. Written requests
for exceptions to this overhead cost recovery policy should be submitted to the Office of
FinanceDivision of Administration and Finance, Office of Finance – Cost Accounting
Department Division in advance of making sales to the general public. These requests
will be reviewed by the Cost Accounting Departmentand approved by the Office of
FinanceAssociate Vice President for Finance (or his/her designee) Division.
Formatted: Indent: Left: 0.5", Hanging: 0.5"
a1.
Specialized service facilities should maintain adequate records of IDC collected
in connection with providing services and goods to non-UH affiliated users.
Formatted: Indent: Left: 1", Hanging: 0.5"
b2.
IDC collected as a result of providing services and goods to non-UH affiliated
entities will be reported to, and disposed of, in a manner prescribed by the Office
of Finance Division in accordance with policies and procedures developed and
implemented by that divisionoffice.
Formatted: Indent: Left: 1", Hanging: 0.5"
B.
Specialized service facilities can charge a higher rate for the same service to occasional
external customers (i.e., non-UH affiliated users) than they charge to internal customers
recharging to federally sponsored activities awards. This “profit” element does not have
to be included when determining the over/under recovery of costs when computing the
carry-forward into future fiscal years’ billing rates. However, this “profit” element may
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 20
of 37
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Formatted: Font: (Default) Arial, 10 pt, Bold
qualify for consideration as Unrelated Business Income Tax (UBIT). Specialized service
facilities are responsible for keeping adequate and accurate records regarding sales to,
and collections from, non-UH affiliated users and for contacting the University of
Houston’s Tax Compliance Department for guidance in how to properly address any
potential UBIT issues that may arise from making sales to non-UH affiliated users.
VIII.
VI.
VII.
RECHARGE CENTERS
For purposes of this policy, recharge centers include, but are not necessarily limited to, all of the
other on-campus and off-campus service providers (i.e., auxiliary enterprises, recharge centers,
service centers, service departments, etc.) that do not fit the criteria for recognition as a
specialized service facility.
Formatted: Indent: Left: 0.5"
A.
Recharge centers are not governed by this policy, instead they are governed by state
procurement regulations and guidelines (i.e., FM 95-115: Purchase Guidelines for OnCampus Service Centers and Auxiliary Enterprises) and other university policies and
procedures pertaining to procurement, finance and accounting (i.e., SAMs and MAPPs).
Formatted: Indent: Left: 0.5", Hanging: 0.5"
B.
Billing rates for recharge centers are not reviewed by the Finance Division and they are
not approved by the Associate Vice President of Finance or his/her designee. Each
college, division, and department is responsible for ensuring that the billing rates charged
for goods and/or services are appropriate and within the guidelines set forth in state
procurement regulations and guidelines (i.e., FM 95-115: Purchase Guidelines for OnCampus Service Centers and Auxiliary Enterprises) and other university policies and
procedures pertaining to procurement, finance and accounting (i.e., SAMs and MAPPs).
Formatted: Indent: Left: 0.5", Hanging: 0.5"
C.
A recharge center will be identified as a “Specialized Service Facility” when it either
recovers, or anticipates recovering, costs from federally supported activities in any given
fiscal year.
Formatted: Indent: Left: 0.5", Hanging: 0.5"
D.
Once a recharge center has met the above criteria for recognition as a specialized
service facility, the college/division/department in which the recharge center resides is
responsible for contacting the Finance Division and applying for recognition as a
Specialized Service Facility.
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REVIEW AND RESPONSIBILITY
Responsible Parties:
Associate Vice President for Finance
Review:
Every three years, on or before June 1
APPROVAL
Vice President for Research and Technology Transfer
John M. Rudley
Executive Vice President for Administration and Finance
Arthur C. Vailas
Vice President for Research
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 21
of 37
Comment [src29]: Not covered by this policy.
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Formatted: Font: (Default) Arial, 10 pt, Bold
Arthur K. Smith
President
Date of President’s Approval:
VII.
February 20, 2003
REFERENCES
Federal Office of Management and Budget Circulars
A-21 Cost Principles of Educational Institutions
State Comptroller Fiscal Policies and Procedures FFP I.004 (FM 95-115): Purchase Guidelines
for On-Campus Service Centers and Auxiliary Enterprises FM 95-115: Purchase Guidelines for
On-Campus Service Centers and Auxiliary Enterprises
A-110 Uniform Administrative Requirements for Grants and Agreements with Institutions of
Higher Education, Hospitals, and Other Nonprofit Institutions
A-133 Audits of Institutions of Higher Education and Other Nonprofit Institutions
UHS Board of Regents policies
University of Houston System Administrative Memoranda
MAPP 04.03.01 - Service Center Requisitions
Property Management policies and procedures
University of Houston Research Guidelines
Formatted: Indent: First line: 0"
REVISION LOG
Description of Changes
Formatted Table
Revision
Number
Approved
Date
1
12/02/1999
Initial version
2
02/20/2003
Applied new MAPP template. In Section III, added Facilities
and Administrative (F&A) Costs and Specialized service
center; updated Specialized Service Center Committee
(SSCC) and Subsidy. Rewrote Section IV and V to reflect
current operating practices with specialized service centers;
removed examples of service center rates. Responsible
party changed to AVP for Finance. Updated all forms in
Addendums
Formatted: Left
3
TBD
Applied new MAPP template and revision log. Retitled
MAPP from “Service Centers (Recharge Centers)” to
“Specialized Service Facilities.” Rewrote entire procedure to
reflect current operating practices, deemphasizing “recharge
centers.” Clarified Administration and Finance, Office of
Finance – Cost Accounting Department responsibilities
throughout the document. Removed all Addendums and
index terms
Formatted: Left
Formatted: Left
Formatted: Left
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 22
of 37
Specialized Service Centers (Recharge Centers)Facilities
Index Terms:
MAPP 03.01.01
Auxiliary enterprise
Break-even analysis
Depreciation
Capital Eequipment replacement reserve fund
Facilities & Administrative Costs
Fixed-price jobs
Non-discriminatory rates
Operating fund
Recharge centers
Service cost centers
Service centers
Specialized service facilities
Service Center Committee (SCC)
Specialized service facility
Standard cost accounting methods
State records retention policies
Start-up Costs
Subsidy
Use allowance
Working capital
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of 37
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line: 0.5"
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum A
Request for Establishing a New Service Center or Specialized Service Center
Proposed inter-departmental service provider/specialized service center name:
Requested start date:
Description of goods or services provided:
Description of potential users, including both internal (i.e., inter-departmental) and external
users:
1.
Briefly describe and indicate locations of commercial and other non-UH sources from
which similar goods or services may be obtained. (Attach additional pages if necessary.)
2.
Briefly describe other UH sources from which similar goods or services may be obtained.
3.
If similar goods or services may be obtained from non-UH sources or other UH sources,
explain the necessity for the proposed activity.
4.
If the goods or services have been provided free of charge in the past:
a.
Describe past funding sources and provide expenditure history.
b.
Explain the necessity of now charging for the goods or services.
5.
Estimate/Project
a.
Annual activity volume, such as hours of usage, number of copies, etc.
b.
Number of annual users.
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum A (page 2)
c.
Annual dollar value of recharge income.
d.
Number of years the center will provide goods or services.
6.
State the estimated percentage of users by the following categories:
a.
UH departments
1.
Federal and federal flow-thru users
%
2.
State-funded users
%
3.
Non-federally or state-funded users
%
b.
UH individuals
1.
Individuals
%
2.
Faculty
%
3.
Staff
%
7.
If applicable, describe any connection between the proposed inter-departmental
provider/specialized service center and any federal contract or grant, including:
a.
grant(s).
Any subsidy, direct or indirect, to be provided by the federal contract(s) or
b.
income.
Any limitation the Federal contract(s) place on the use of the proposed activity’s
8.
If applicable, describe any connection between the proposed inter-departmental
provider/specialized center and any non-federal funding source, including:
a.
b.
income.
Any subsidy, direct or indirect, to be provided by the funding source.
Any limitation the funding source places on use of the proposed activity’s
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum A (page 3)
9.
If sales to non-UH individuals or entities are expected, provide information conclusively
showing that satisfactory commercial or other non-UH sources for similar goods or services do
not exist.
10.
11.
Provide the following financial information:
a.
Proposed funding sources for:
1.
Start-up costs
2.
Working capital
3.
Equipment to be acquired
b.
Use the forms provided (modify to meet your needs) to provide:
1.
Cost study
2.
Budgets
3.
Use Allowance or Depreciation Expense
Provide the following tax information:
a.
Sales Tax. If the proposed inter-departmental provider/specialized center will sell
goods, explain why the activity should not be subject to Texas sales regulations.
b.
Unrelated Business Income Tax. If the proposed activity will sell goods or
services to individuals or entities, explain how the sales will relate to the university’s educational
or research mission. Sales not related to the university’s educational or research mission will be
reported as unrelated business income and subject to federal income tax regulations.
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum A (page 4)
12.
If the proposed inter-departmental provider/specialized service center will have a point of
sale or cash transactions, provide a copy of the cash handling procedures. Cash handling
procedures must be approved by the Office of the Associate Vice President for Finance.
13.
If the inter-departmental provider/specialized service center activity will bill other UH
departments, provide a copy of billing procedures, including a sample of the billing
statement/invoice to be provided to the service center users. Billing procedures must be
approved by the SCC.
Service Center Location:
Prepared By (Name):
Title/Position:
Phone Ext:
E-mail:
UH Mail Address:
Service Center Manager (Name):
Primary Business Person (Name):
Title/Position:
Phone Ext:
E-mail:
UH Mail Address:
Department and College/Division Administrator’s Approval Signature:
Approval of service center and acceptance of operating and financial responsibility:
Department Chair:
Date:
Dean (or equivalent):
Date:
Forward this completed request to Division of Finance for review and routing for approval.
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Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum B
Cost Study (Form 1)
FYE
(The most recently completed fiscal year.)
Service Center Name:
Prior Fiscal Year’s Statement of Costs
1.
Wages, Salaries, and Benefits Costs
(Attach Salaries, Wages, and Benefits Cost Analysis - Form 2)
2.
Maintenance & Operations Expenditures Costs
(Attach Maintenance & Operations Cost Analysis - Form 3)
3.
Use Allowance/Depreciation Expense Costs (Attach
Use Allowance/Depreciation Expense Analysis – Form 4)
4.
Facilities & Administrative Costs
(Attach Facilities & Administrative Cost Analysis - Form 5)
5.
Prior Accumulated Over/Under Recovery
(Add Under, Subtract Over Recovery)
6.
Total Expenditures
7.
Total Recovered Costs
8.
Total Accumulated Over/(Under) Recovery
Note:
Amount of Over/(Under) Recovery should be used to adjust estimated costs in proposed budget for the
next fiscal year.
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
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MAPP 03.01.01
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Service Center Manager:
UH Mail Address:
E-mail:
Telephone:
Addendum C
Salaries, Wages, and Benefits Cost Analysis (Form2)
Salaries, Wages, and Benefits Budget Proposal
FYE
Service Center Name
Employee
Name
Title/Position
Annual
Salary/Hourly
Rate
Estimated
Benefit
Amount
Funding
Source
FTE/Annual
Hours
Total
Expense
Less
Estimated
Subsidy
Amount
Total Personnel Budget
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
UH Mail Address:
December 2, 1999; Revised February 11, 2003Draft July 28, 2010Revised March 3, 2011 Page 29
of 37
Adjusted
Total
Expense
Specialized Service Centers (Recharge Centers)Facilities
MAPP 03.01.01
Addendum D
Maintenance and Operations Cost Analysis (Form 3)
Maintenance and Operations Budget Proposal
FYE
Service Center Name
Expense
Description
Subcode
Primary Operating
Cost center
Estimated
Amount
Subsidy
Funding
Less Estimated
Subsidy Amount
Adjusted Total
Expense
Total Maintenance and Operation Expense Budget
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
UH Mail Address:
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MAPP 03.01.01
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Addendum E
Use Allowance/Depreciation Expense and Equipment Inventory (Form 4)
FYE
Service Center Name
(1)
Item
Description
UH Tag
Number
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(8)/(9)
Building
Location
Date of
Acquisition
Purchase
Cost
Funding
Source
Subsidy
Funding
Subsidy
Cost
Amount
Purchase
Cost Less
Subsidy
Projected
Useful
Life
Use
Allowance
Depreciation
Expense
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
UH Mail Address:
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Addendum F
Facilities and Administrative Cost Analysis (Form 5)
Facilities and Administrative Cost Budget Proposal
FYE
Service Center Name
Expense
Description
Subcode
Primary Operating
Cost center
Estimated
Amount
Subsidy
Funding
Less
Estimated
Subsidy
Amount
Adjusted Total
Expense
Total Facilities and Administrative Costs Budget
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
UH Mail Address:
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Addendum G
Billing Rate Proposal (Form 6)
Billing Rate Proposal
FYE
Service Center Name
Proposed Budget and Billing Rate
1.
Estimated Wages, Salaries, and Benefits Costs
(Attach Salaries, Wages, and Benefits Cost Analysis - Form 2)
2.
Estimated Maintenance & Operations Expenditures Costs
(Attach Maintenance & Operations Cost Analysis - Form 3)
3.
Estimated Use Allowance/Depreciation Expense Costs (Attach
Use Allowance/Depreciation Expense Analysis – Form 4)
4.
Estimated Facilities & Administrative Costs
(Attach Facilities & Administrative Cost Analysis - Form 5)
5.
Total Current Operating Costs to Recover
6.
Accumulated (Over)/Under Recovery from Prior FYE
(Add Under, Subtract Over Recovery)
7.
Estimated Total Recovered Costs Required to Break Even
(Add 5 and 6)
8.
Estimated Usage (Expressed in Units)
9.
Estimated Cost Per Unit (7 divided by 8)
10.
Proposed Billing Rate
Note: Amount Over/(Under) Recovery (Item #6, above) should come from prior year cost study.
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
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UH Mail Address:
E-mail:
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Telephone:
Addendum H
Request to Change Rates or Rate Methodology and
Request to Add Rates for New Goods and Services
Service Center Name
Requested effective date of proposed rate changes
1.
Provide list comparing existing rates with proposed rates.
2.
Provide a description of basis for the proposed rate changes
3.
State the estimated percentage of users by the following categories:
a.
UH departments
1.
Federal and federal flow-thru users
%
2.
State-funded users
%
3.
Non-federally or state-funded users
%
b.
UH Individuals
1.
Individuals
%
2.
Faculty
%
3.
Staff
%
4.
If applicable, describe any connection between the proposed center and any Federal
contract or grant, including:
a.
Any subsidy, direct or indirect, to be provided by the Federal contract(s) or grant(s).
b.
Any limitation the Federal contract(s) place on the use of the proposed activity’s income.
5.
If applicable, describe any connection between the proposed center and any non-Federal
funding source, including:
a.
Any subsidy, direct or indirect, to be provided by the funding source.
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b.
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Any limitation the funding source places on use of the proposed activity’s income.
Addendum H (page 2)
6.
If sales to non-UH individuals or entities are expected, provide information conclusively
showing that satisfactory commercial or other non-UH sources for similar goods or services do
not exist.
7.
8.
Provide the following financial information:
a.
Proposed funding sources for:
1.
Start-up costs
2.
Working capital
3.
Equipment to be acquired
b.
Use the forms provided (modify to meet your needs) to provide:
1.
Cost study
2.
Budgets
3.
Use Allowance or Depreciation Expense
Provide the following tax information:
a.
Does the activity currently collect Texas sales tax?
b.
Does the activity currently generate Unrelated Business Income Tax?
9.
If the request includes a proposal of an existing service center to establish rates for new
goods or services, provide the following additional information.
a.
Briefly describe and indicate locations of commercial and other non-UH sources
from which similar goods or services may be obtained.
b.
obtained.
Briefly describe other UH sources from which similar goods or services may be
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c.
If similar goods or services may be obtained from non-UH sources or other UH
sources, explain the necessity for the proposed activity.
Addendum H (page 3)
10.
If the goods or services have been provided free of charge in the past:
a.
Describe past funding sources and provide expenditure history.
b.
Explain the necessity for now charging for the goods or services.
11.
State the anticipated number of annual users of the goods or services.
12.
State the anticipated annual dollar volume of service center income.
13.
If sales to non-UH individuals or entities are expected, provide information conclusively
showing that satisfactory commercial or other non-UH sources for similar goods or services do
not exist.
Service Center Location:
Prepared By (Name):
Title/Position:
UH Mail Address:
E-mail:
Telephone:
E-mail:
Telephone:
E-mail:
Telephone:
College/Division Business Administrator:
UH Mail Address:
Service Center Manager:
UH Mail Address:
Approval of service center and acceptance of operating and financial responsibility:
Department and College/Division Approval:
Department Chair:
Date:
Dean (or equivalent):
Date:
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Forward this completed request to the Division of Finance.
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