Handbook of Business Procedures
June 19, 2012
June 19, 2012
Costing and Analysis
A. Costing and Analysis (C&A)
The C&A section at firstname.lastname@example.org of the Office of Accounting works to ensure that service centers are operated, monitored, and accounted for in accordance with all applicable university policies, procedures, state and federal guidelines, and sound costing principles. C&A performs the following functions:
- Provides rate-setting guidance.
- Approves the establishment of new service centers.
- Collaborates with the Budget Office annually to perform budget reviews during the spring budget submission and fiscal year end (FYE) balance justifications.
- Responds to requests by internal, state, or federal audits.
B. Service Center Management
The Service Center manager works to ensure that the service center(s) are operated, monitored, and accounted for in accordance with all applicable university policies, procedures, state and federal guidelines, and with sound costing principles. The Service Center manager performs the following functions:
- Submits a proposal to C&A on a biennial basis.
- Ensures proposals include the department head or chair and the dean's or vice president's approval.
- Ensures that rates are approved by C&A before they are charged to users.
- Ensures that all users are billed in a timely manner and billing activity is reviewed to verify that rates are correctly applied.
- Retains all costs, projections, and any other information used to develop rates to substantiate charges in the event of an audit.
- Requests accounts from C&A as appropriate.
- Ensures that rates only include costs directly related to the operation of the service center and the service or good the user receives.
- Analyze internal expenses and income to ensure the service center is operating on a break-even basis.
- Notify C&A when it is anticipated that:
- New services or goods will be added.
- Services or goods provided or costs will significantly change.
- The service center will no longer be operational.
C. Budget Office
During the budget submission period, C&A performs budget reviews and provides recommendations to the Budget Office. After fiscal year-end, C&A works with service center managers to provide a summary of effective balances. For more information, see the Handbook of Business Procedures, 10.2.D.5. Calculation of Effective Balance.
D. Financial Accounting Services (FAS)
FAS processes new account requests with the necessary object code restrictions as requested by C&A.
E. Payment Information Services
Establish or modify Interdepartmental Transfer (*DEFINE VT5) formats for service centers as requested by C&A, including any required restrictions.
F. Internal Audit
Review the records, operations, and practices of service centers.