FY09/10 Collaborative Budget Office and Office of Accounting
18 – Service Center Reviews
The Budget Office and the Office of Accountings’ Costing & Analysis Group will be conducting the collaborative 18 – Service Center budget review. The collaboration will consist of reviewing the following to ensure:
- Compliance with the university’s Service Center Policy, as well as, all applicable university and government policies and regulations.
- Rates only include costs that are reasonable, allocable, allowable, and directly related to the operation of the service center and to the service/product the user receives.
- Service centers are structured to operate on a break-even basis.
- Rates do not include a mark-up for contingency purposes.
- Salaries included in the rate calculation are appointed to the service center account.
- Equipment depreciation can be included for capital equipment purchased with non-federal funds. Equipment must be appropriately accounted for and documented in the rate calculations.
- Excess revenue cannot be utilized to make additional purchases; increase salaries or provide bonuses/supplements; off-set losses in another service center; or be transferred into another account type to purchase and/or fabricate equipment or conduct remodeling and/or renovation projects.
- Services provided to non-UT Austin entities have been approved by Dr. Stephen Monti. Rates exclude any cost subsidies and include the 26.5% Institutional Surcharge.
- The institutional portion of income generated by providing services to non-UT Austin entities must be transferred to the Institutional Surcharge account (19-0220-0696).
- The institutional surcharge represents facilities and central administrative costs that are not currently charged to service centers or included in their rates to internal users. Examples of facilities costs are utilities, custodial, and building depreciation. Examples of central administrative costs are for accounting, payroll, personnel, and purchasing services. Application of the institutional surcharge ensures that external customers pay for these costs and are not subsidized by the institution.
- Service centers do not have excessive balances. Balances include any prior year balance carried forward less approved accumulated depreciation for equipment replacement. Excess balances will be reduced in the form of rate reductions and/or refunds to users.
- Excess balances resulting from salaries or other expenses that did not occur cannot be transferred or utilized for purposes unrelated to the operations of the service center.
In addition to budgeting the 18 – service center accounts in DEFINE; a rate proposal package will be required for selected service centers based on the following criteria:
- The service center had a significant carry forward balance from FY07/08; and/or
- The service center has not undergone a formal rate review approval in the past fiscal.
Units meeting this criterion will be contacted via email. All communication will be sent to the respective UBOC member and service center manager. Rate proposal submissions are due March 3, 2009 to Virginia Oviedo.
Virginia Oviedo, IDC Analyst, ext 2-5580, email: email@example.com
General instructions and rate proposal packages for single or multiple rate service centers can be found at http://www.utexas.edu/business/busmgr/rate.html.
Submitting the Rate Proposal Package
Submit a soft-copy (via email) to the IDC Analyst. The package will contain the signed rate proposal form, the service center description form, salary and wage schedule, equipment depreciation schedule, other expenses schedule, rate calculation form, income by customer form, and rate-cost subsidy form if applicable. The signature page must contain signature by the department’s respective Dean or VP.