Service Center Fiscal Management
University of Colorado
Denver | Anschutz Medical Campus
Finance Office
What’s New?
Due Date and Workshop
• Moved due date
– Reduce conflict with budget deadlines
– Allow time to review and approve before new year
– Due February 1st
– Based on FY15 adjusted for July-Dec trend
• Workshop cost study training
What’s New?
Template Updates
• Add overview of goods or services provided.
• Compare projected revenue and expense to
prior year.
• Compare projected sales volume to prior year.
• Clarify impact on fund balance.
• Clarified utilization check and effect on staff
funding distribution.
• Specify subsidy and support sources.
• Add review and approval by DFA/Administrator.
What is a Service Center?
• Unit providing services or goods to other
University departments.
• Supported by fees charged.
• May serve public too.
Service Centers
• Internal Service Center & Core Lab Policy
• OMB Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for
Federal Awards
• Allowable costs
• Breakeven long-run
• Accounted for in fund 28 (mostly)
Three Step Process
Gather data
Organize data
Input data into cost model
COST STUDY
Step 1: Gather Data
• Labor
• Operating supplies & services
• Overhead costs
– GAR 7.00% for FY16; 4.96% without salary.
– GIR $20.00 per sq ft for FY16
• Equipment
• 60-days operating capital
COST STUDY
Step 2: Organize Data
• Labor
– Include benefits
– Percent of effort in service center
• Can effort be redeployed as needed?
– Productive time, administrative time
– Grant subsidy
• Operating supplies and services
– Identify costs to specific product or service
• Capital equipment
– PO # or Tag #
– Include non-federal depreciation
COST STUDY
Step 3: Enter Data in Model
• Select template model (not prescriptive)
• Allocate costs appropriately
– Top down or bottom up
– Depends on number of services and ability to
redeploy slack time to other projects.
– By unit of sale (e.g. hour, piece, service)
– Affects utilization check figure
• Calculate rate for various services
Digging Deeper
Billing Rate Rules
Billable Hours
WebSpace and GIR
Reserve
Grant Subsidy
Rate Setting
Revenue Account Codes
Accounts Receivable
Sales Recordkeeping
Deficits
Billing Rate Rules
• Actual and reasonable costs
• Unallowable costs:
– Bad debts, entertainment, fundraising, internal interest
– Capital equipment (depreciation only allowed)
– Full list see OMB regulations
• Rates must be:
–
–
–
–
–
based on a cost study
published
stated in a measurable unit
reviewed and adjusted at least annually
non-discriminatory between federal & non
• Rates for external customers may be higher
Billable Hours
• Purpose
• Blend interchangeable employees’ rates
• Time Shrinkage
– 40 hours/week x 52 weeks/year = 2,080 hrs.
•
•
•
•
•
Less holidays
Less vacation time
Less sick leave time
Less meeting time, break-time
Less administrative duties
Web Space & GIR
•
•
•
•
•
•
Why is Web Space important?
What is the relevance of Web Space and GIR?
Web Space Data Entry Window
Off-campus no GIR
Web Space opens May 1 (tentative)
Deadline August 31 for research groups
– SOM, SDM, CON, SSPPS, CSPH, & OLAR
• Deadline June 30 for all others
– DDC & CSA
Reserve
•
•
•
•
•
Operating capital
Build into rates
Prevent deficits
Smooth rates
Maximum allowed 60 days
Subsidy
Using iLab
• Calculate full cost.
• Calculate percentage core
grant can support.
– Accurate demand forecast is
critical
• Split charge in iLab between
– Core grant
– Research grant
• Preferred accounting
method: keeps all costs
together.
Not Using iLab
• Subsidy often from core
grant, but may be other
funds.
• Calculate break-even
without subsidy.
• Then deduct subsidy for
member rates.
• List subsidy ST on cost
study.
• Expense subsidy portion of
costs directly to core grant.
Rate Setting
• Beware of excessive optimism estimating
demand
• Compare to market
• Reality check
• If no market, maybe survey.
• Compare to prior year rates
Revenue Account Codes
• Internal Sales
– 380100 Service Center IN Revenue
– 380101 IN Sales to Grants/Contracts
• Sales to UPI F80
– 335003 Sales to UPI
• External Sales
– 325100 Misc Revenue Operating
– 325106 Sales to Gov Agency
– 325200 ISU Sales to other Colo agency
– 325300 ISU Sales to Public
Timely Billing
• Require speedtype before rendering service.
• No approval necessary before internal billing:
– Receiving the service in exchange for the speedtype is implicit approval to charge them.
• Journal internal billings at least monthly.
• Issues:
– Improves cash flow
– Timely grant billing
• May use MOU for larger, ongoing deals.
Accounts Receivable
• Evaluate credit-worthiness of client
– Exhibit A
• Record outstanding receivable every month
– Via Journal Entry
– Via PS AR module
– Account codes:
• Debit 013100 AR Miscellaneous
• Credit 325100 Misc Revenue Operating
• Age of receivables
– 30 days past due: Follow-up
– 60-days past due: Send to collection agency
• Cut-off services
Sales Recordkeeping
• Required for each sale
– Identify customer
– Date
– Goods or services provided
– Rate charged
• Needed for next cost study
• Maintain all records for at least 7 years
Deficits
• Build working capital to avoid deficit, but…
• Can expenses be moved off the Service Center
ST to clear the deficit?
– Unrestricted: transfer in
– Restricted: move expense but document
thoroughly.
• Document subsidy sources
iLab
•
•
•
•
•
•
•
•
•
Ordering
Billing
Costing
$3,416/year: small core (<$100,000 yr rev)
$5,693/year: regular core (>$100,000 yr rev)
1% of revenue: large core (>$550,000 yr rev)
Site license
Implementation fee (50% of annual fee)
Lori.Workman@ucdenver.edu 303-724-1296
Core Facilities
• Section in Service Center policy
• NIH FAQ for NIH-Funded Core Facilities
• 2015 NIH Workshop on Enhancing Efficiencies
– Resource support to research and clinical investigation
– Increasing coordination between and among CTSA,
Cancer Center Support Grants, and other cores
– A need for core identification for grant applications
– Core strategic planning: governance, practice, reporting
• Implications for CU Anschutz
– Identification of core facilities
– Importance of using webspace, revenue accounts, support
Policy & Template
Service Center Web Page
– http://www.ucdenver.edu/about/departments/finance/Pages/ServiceCenter.aspx
Policy Web Page
@ UCD website
 Faculty/Staff
 Policies & Guidelines
 Filter by Fiscal/Finance Category; Finance & Administration Department; AMC & DC
Campus Policy
http://ucdenver.edu/faculty_staff/employees/policies/Pages/default.aspx
Scroll down: Internal Service Centers & Core Lab Policy
- Exhibit A -- Guidelines -- How to do a Cost Study
- Exhibit B -- Template
Workshop
Questions?
• Accounting Help
– 303-724-9610
– Finance.ServiceCenter@ucdenver.edu
– Kristina Mendez, Erin Tatman, Kelly McIlvride
• Shaun McMullin, Deputy Controller
– 303-724-9611 shaun.mcmullin@ucdenver.edu
• Jonathan Lurie, Senior Cost Analyst
– 303-724-9617 jonathan.lurie@ucdenver.edu