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UNIVERSITY POLICY

SUBJECT:

FINANCIAL AFFAIRS

TITLE:

CHARGES FROM UNIVERSITY SERVICE AND RECHARGE CENTERS TO FEDERALLY SPONSORED PROJECTS

CODING:

00-01-50-95:00

ADOPTED:

01/15/98

AMENDED:

01/15/98

I.        PURPOSE

To ensure compliance with federal regulations detailed in OMB Circular A-21 revised April, 1996, governing cost principles for Colleges and Universities in the area of organized sponsored research. Specifically, this policy shall ensure compliance with regulations for accurately developing charges from University service and recharge centers to federally sponsored projects.

Under the direction of the Senior Vice President for Administration and Finance, the Vice President for Finance and Treasurer shall ensure compliance with this policy. The Controller shall implement this policy.

This policy applies to all Deans, Vice Presidents, Principal Investigators and other personnel who serve as account representatives for externally funded projects.

A.    Organized Federal Research - All research and development activities that are
        sponsored by the Federal government and separately budgeted and accounted for.
        This term includes the training of individuals in research techniques (research training)
        where such individuals utilize the same facilities as other research and development
        activities.

B.    Service Centers - providing the services of highly specialized facilities, such as
        computers, vivarium, spectrometers, telecommunications; and

C.    Recharge Centers - providing other services of a less specialized nature, such as
        photolabs, stockrooms, locksmith, or reproduction facilities.

A.    Requirements:

       1.     Services provided are charged to all users, including sponsored agreements,
               based on actual use through a schedule of cost rates which does not discriminate
               between federally and non-federally sponsored activities. Billing charges to users
               must be consistent and rate reductions or preferential treatment to selective users
               is prohibited.

       2.     Charges are structured to recover not more than the aggregate cost of the
               services over a conventional University fiscal year from July 1 to June 30.
               Charges are to include labor and supply costs directly associated with the
               applicable service.

       3.     The Office of the University Controller is responsible for the cost accounting
                compliance review of all service center budgets and charge rates. This
                responsibility includes screening for federally unallowable expenses. Individual
                service centers must be separately budgeted as subledger cost centers each fiscal
                year. All expenses related to billable charges should be reflected in the subledger
                cost center. Consolidation of various types of services into one budget is
                prohibited, unless special circumstances exist. In these cases, the University
                Controller must approve the consolidation in writing prior to budget
                preparation.

      4.      Material variances (surplus or deficit) between annual costs and recovery can be
               carried forward into the subsequent fiscal year's rate structure.

      5.     Requests for the establishment of new service or recharge centers must be
              approved by the University Controller. The proposed service center will be
              reviewed for feasibility and to ensure the operation is in accordance with federal
              and state cost accounting parameters.

___________________________________
Vice President for Finance and Treasurer 

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