A Day In the Life of a Service Center

1
A Day In the Life of a Service Center

• Viewpoints from Central, Internal Audit and
  Department

2
Speakers

• Departmental Jim Day, Operational Manager of
  Visual Arts Services
• Central Christine Siu ORA-RAPC Financial
  Management Analyst - oversight for all of the
  Universitys Service Centers
• Internal Audit Jean Regan, Senior Audit Manager
  for the SoM activities and service centers

3
Department/Operational Process

• Why start a Service Center?
• How do you set it up
• Where will it reside
• Who will use it
• What is the product offering.
• Determine costs and pricing structure
• Build a budget and get it approved

4
Department/Operational Process

• Billing, buying, and paying
• Off the shelf or custom applications
• Procurement / P-Card
• Accounts payable
• Establish SOP and write it down!
• Follow it, review it, modify it

5
Central Issues

• External Agreement Form Service Centers need to
  complete this form in order to accept orders from
  external users. The routing lists informs
  specific personnel that the service center will
  have external users. Service Centers need to
  stay within the 15 threshold for Unrelated
  Business Income, UBI.
• 48xxx / 58xxx Interdepartmental income and
  expenses need to be recorded correctly for FAIR
  (Financial Analysis Information Reporting) to
  generate year end University financial statements

6
48xxx 58xxx Example
By removing the 48xxx / 58xxx amounts Stanford is
able to report correct Revenue and Expense
7
Central Issues

• Mid Year Review At 6 months the service centers
  are reviewed for compliance and status within
  break even . If there are problems, the analyst
  will continue monthly reviews until resolution.
• Capital Assets Obtain a University loan from
  CPM or request Departmental Unrestricted Gift
  Funds. Service Centers may not directly purchase
  any capital assets they may only expense the
  assets depreciation.

8
Internal Audit Observations

• May non-collaborators be users of the service
  center?

• Service Center Policy Section VIII B.1.b. Use
  of Service Centers by External Users

• Can you have special deals for services
  with your colleagues?

• Service Center Policy Section V. A. Non-
  Discriminatory Rates

9
Internal Audit Observations

• May federally funded equipment be used in a
  service center?

• Service Center Policy VI. B. 3. b. Funding
  of Service Center Assets

• How long do you need to keep the records for
  service center charges?

• Service Center Policy Section V. J. Records
  Retention
• AGM 34.4 Retention of Financial Records

10
Questions?
11
Handouts

• Internal Audit questions for a service center
  audit
• FY04 Year End Close Process Memo
• 48xxx/58xxx Procedures
• List of 48xxx Revenue Codes and 58xxx Expenditure
  Codes
• Abbreviations and Terms used in Service Center
  manual

12
Useful URLs

• Service Center website
• http//www.stanford.edu/dept/ORA/gcrs/policies.ht
  ml
• Oracle Financials website
• Link to HelpSU can be found here as well
• http//www.stanford.edu/services/oracle/
• Administrative Guide
• http//adminguide.stanford.edu/

13
Recommended Reportmart Reports

• On line reports that have proven useful for
  reconciliation and financial status
• FUND_Award_By_Org_Ftd 
• EXP_Quarterly_Expenditure_Review_and_Certification
   
• OSR_PTA_DMT 
• OP_100_Operating_Stmt_Summary_FTD 
• SETUP_Award_Config_Report
• SC Inventory Report (object code 11405)
• If you do not receive a hardcopy of the Revenue
  report, run REV_Monthly_Detail_Report_FTD

14
Contact Information

• Jim Day, Visual Arts Services, 3-5401,
  jim.day_at_stanford.edu
• Jean Regan, Audit Manager School of Medicine,
  4-6861, jean.regan_at_stanford.edu
• Christine Siu, RAPC Research Administration
  Policy Compliance ORA, 3-9063,
  christine.siu_at_stanford.edu