FY11/12 Collaborative Budget Office & 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. Daniel Slesnick. 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.
All communication will be sent to the respective UBOC member and service center manager.
Virginia Oviedo, IDC Analyst, ext 2-5580, email: firstname.lastname@example.org