Service%20Center

1
Service Center

• FY2007 Billing Rate
• Proposal Preparation Training
• Proposed Policy Revisions
• Guidelines for Preparing FY2007 Billing Rate
  Proposals

2
Proposed Policy Revisions

• Internal service provider defined as separately
  identifiable operational units that offer goods
  and/or services to other University of Houston
  affiliated departments, with no recovered costs
  coming from federally sponsored programs.
• Narrow definition of Specialized Service Facility
  (OMB Circular A-21, Section J.47) as separately
  identifiable operational units established to
  offer goods and/or services involving the use of
  highly complex or specialized facilities in
  support of federally sponsored programs or
  projects.

3
Proposed Policy Revisions(continued)

• MAPP 03.01.01 will apply only to specialized
  service facilities and not auxiliary
  enterprises, recharge centers, or internal
  service providers.
• Specialized service facilities that recover costs
  from state funded sources will not be able to
  included state funded costs in their billing
  rates. (FM 95-115 Purchase Guidelines for
  On-Campus Service Centers and Auxiliary
  Enterprises)

4
Proposed Policy Revisions(continued)

• Biannual Billing Rate Proposals. All billing
  rates must be reviewed and approved before users
  can be charged.
• Annual reporting of (1) Total Costs, (2) Total
  Recovered Costs, and (3) Over/Under Cost Recovery
  (i.e., Surplus/Deficit Balance)

5
Proposed Policy Revisions(continued)

• Material revisions to already approved billing
  rates must be reviewed and approved by the
  Division of Finance.
• Definition of materiality. For example, a
  revision to an already approved billing rate will
  be deemed material if any of the following apply
• The revision represents a 10, or greater,
  increase in the already approved billing rate for
  the same, or comparable, quality of good or level
  of service.
• The revision will results in a 10, or greater,
  increase in the total anticipated recovered costs
  for the same, or comparable, quality of good or
  level of service.
• Based upon the anticipated level of cost recovery
  resulting from the revision, recovered costs for
  the activity will exceed total costs. (i.e., The
  revision will result in the over-recovery of
  costs.)

6
Proposed Policy Revisions(continued)

• 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.
• 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.
• Documentation must be maintained to support each
  calculated billing rate, billing rate change, or
  price charged for a particular good or service.
• 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.

7
Guidelines for Preparing theFY2007 Billing Rate
Proposals

• Target Deadline April 1st
• Identify the services to be provided during
  FY2007.
• Identify the funding sources from which the
  service center will recover costs. (For example,
  will the service center recover costs from
  customers that will pay with local, state, or
  federal funds?)

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Guidelines for Preparing theFY2007 Billing Rate
Proposals(Continued)

• Prepare cost studies for FY2005 (actual), FY2006
  (estimated) and FY2007 (projected / budgeted) by
  including all costs associated with providing the
  services identified in Step 1 (above). (This
  the information that has historically been used
  to complete Cost Study Forms 1, 1A, and 2)
• Include costs paid for out of the primary
  PeopleSoft Cost Center and all other cost
  centers, regardless of the funding source.
  (Although service centers that recover costs from
  state funded sources will no longer be able to
  include stated funded costs in their billing
  rates, it will still be important from a federal
  cost accounting perspective to identify all costs
  associated with service center activities.)
• Concentrate mainly on Salary Wage Expenses
  (Form 3) and Maintenance Operating Expenses
  (Form 4).

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Guidelines for Preparing theFY2007 Billing Rate
Proposals(Continued)

• Review the listing of capital assets previously
  identified as being used to provide the services
  identified in Step 1 (above). (We will provide
  you with a copy of this listing.)
• Contact Victor a soon as you have completed your
  review of the capital asset listing and confirm
  that the listing is accurate and complete. Any
  items on the list that are no longer in service
  should be identified and eliminated. Any items
  not on the list, included newly acquired capital
  assets, should also be identified and added.
• There may be a one-time adjustment for converting
  from the depreciation method to the use allowance
  method for recovering the costs associated with
  capital asset usage.
• We will provide this adjustment, along with
  revised use allowance computations for all
  capital assets used in support of service center
  operations, as soon as you have confirmed the
  accuracy of the capital equipment listing. (The
  use allowance computations we provide will be the
  basis for Form 5.)

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Guidelines for Preparing theFY2007 Billing Rate
Proposals(Continued)

• Once you have completed Forms 3 and 4 for FY2005,
  FY2006, and FY2007, and once you have received
  the Use Allowance Computations (Form 5) from
  Victor, contact us so we can make arrangements to
  meet with you and provide final instructions on
  how to complete the billing rate proposal package.