Setting Up a New Recharge Center Step-by-Step
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Setting Up a New Recharge Center Step-by-Step Guidance What is a Recharge Center? A recharge service facility is a self-supporting operating unit within the University that: exists principally to provide research related goods or services
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Setting Up a New Recharge Center Step-by-Step Guidance<br>
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What is a Recharge Center? A recharge service facility is a self-supporting operating unit within the University that:
exists principally to provide research related goods or services to University faculty, staff, or students at no more than the cost of providing the goods or services (break-even);
bills sponsored programs for such goods or services;
has operating costs that are funded by charges to the customers receiving the goods or services; and
has revenues between $10,000 and $1 million annually<br>
exists principally to provide research related goods or services to University faculty, staff, or students at no more than the cost of providing the goods or services (break-even);
bills sponsored programs for such goods or services;
has operating costs that are funded by charges to the customers receiving the goods or services; and
has revenues between $10,000 and $1 million annually<br>
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Qualification to be treated as a Recharge Center Facility The activity provides goods or services to a sponsored project. In addition, goods and services may be provided to University departments, students, and/or external customers.
The facility operates as a separate, stand-alone entity, and the revenue and expenses are recorded in a separate activity number.
The facility charges all internal customers equally for goods or services at a rate that is calculated to recover costs over a fixed period of time.<br>
The facility operates as a separate, stand-alone entity, and the revenue and expenses are recorded in a separate activity number.
The facility charges all internal customers equally for goods or services at a rate that is calculated to recover costs over a fixed period of time.<br>
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Qualification to be treated as a Recharge Center Facility(Cont’) All Recharge Service Facilities, Specialized Recharge Service Facilities, Core Recharge Service Facilities fall within the purview of the Office of Research and Economic Development (ORED) and are covered the ORED Recharge Center facilities Operating Procedures.<br>
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What compliance regulations govern Recharge/Service Centers? Recharge Center facilities should not over‐charge the Federal sponsored projects. OMB Circular A-21 rules apply.
The recharge center must be one a per unit basis, which must be at cost with no markup.
Federal guidance requires that facilities break even over a reasonable period of time.
Recharge center rates should be approved by the Office of Research and Economic Development on an annual basis to ensure compliance with OMB Circular A-21.<br>
The recharge center must be one a per unit basis, which must be at cost with no markup.
Federal guidance requires that facilities break even over a reasonable period of time.
Recharge center rates should be approved by the Office of Research and Economic Development on an annual basis to ensure compliance with OMB Circular A-21.<br>
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Steps to Request to Establish a Recharge Service Facility A Step-by-Step Guide<br>
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Step 1: Recharge facility Eligibility Form Complete the preliminary recharge facility eligibility form which includes the questions below. ORED will review the eligibility form and make an initial determination as to the feasibility of the proposed facility. Will equipment costing more than $5,000 be used in the center?
Was any of the equipment over $5,000 purchased using federal funds?
Are there similar services/products available in the area that will meet the needs?
Why the services can best be provided by an internal service center rather than by an external service provider?
When will the facility begin charging for providing products and services?
How much revenue do you think the recharge center will bring annually? You can access the form at the following link: What is your proposed recharge center name?
What are the products or service provided?
Who will be using your facility? Please identify your internal and external users.
How much in startup funding will be needed and who will provide the funds?
Will the facility be subsidized and who will provide this external funding? (e.g., from a department in the Dean’s office.)
What portion of revenue will be from federal sources?<br>
Was any of the equipment over $5,000 purchased using federal funds?
Are there similar services/products available in the area that will meet the needs?
Why the services can best be provided by an internal service center rather than by an external service provider?
When will the facility begin charging for providing products and services?
How much revenue do you think the recharge center will bring annually? You can access the form at the following link: What is your proposed recharge center name?
What are the products or service provided?
Who will be using your facility? Please identify your internal and external users.
How much in startup funding will be needed and who will provide the funds?
Will the facility be subsidized and who will provide this external funding? (e.g., from a department in the Dean’s office.)
What portion of revenue will be from federal sources?<br>
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Step 2: Prepare a Rate Proposal Prepare your rate calculations using the ORED rate development worksheet. Your rate proposal should identify the following:
Who will be using your facility? Who are the customers?
What product(s) or service(s) are you offering?
Identify all of the personnel, supplies, maintenance agreements and other costs of operating the facility.
Will the facility be subsidized and who will provide this external funding? (i.e. from a department in the Dean’s office.)
When will the facility begin charging for providing products and services?
How much in startup funding will be needed, who will provide the startup funds, and if needed, who will provide resources after the facility gets up and running?
Please request rate tool template at recharge@fiu.edu<br>
Who will be using your facility? Who are the customers?
What product(s) or service(s) are you offering?
Identify all of the personnel, supplies, maintenance agreements and other costs of operating the facility.
Will the facility be subsidized and who will provide this external funding? (i.e. from a department in the Dean’s office.)
When will the facility begin charging for providing products and services?
How much in startup funding will be needed, who will provide the startup funds, and if needed, who will provide resources after the facility gets up and running?
Please request rate tool template at recharge@fiu.edu<br>
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The rate is calculated by dividing the total annual cost directly chargeable to the facility by the total estimated annual usage. You may have more than one billing rate, depending on the services you provide and to whom (internal vs. external users) you provide them.
It is critical to emphasize that you should determine the “total cost” of your recharge service facility. By not including the total cost in the rate(s), you risk incurring a negative working capital fund balance (deficit) for the recharge service facility.
Components of the calculation of the rate are the estimated demand for products and services and the anticipated costs associated with providing those products and services. Calculating the Rate<br>
It is critical to emphasize that you should determine the “total cost” of your recharge service facility. By not including the total cost in the rate(s), you risk incurring a negative working capital fund balance (deficit) for the recharge service facility.
Components of the calculation of the rate are the estimated demand for products and services and the anticipated costs associated with providing those products and services. Calculating the Rate<br>
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The formula used for calculating the rate for each service or product is as follows:
Annual Rate = Annual Costs / Total Annual Usage Calculating the Rate (cont’d…) BUDGETED EXPENSES ± PRIOR YEAR’S SURPLUS OR DEFICIT
USAGE BASE<br>
Annual Rate = Annual Costs / Total Annual Usage Calculating the Rate (cont’d…) BUDGETED EXPENSES ± PRIOR YEAR’S SURPLUS OR DEFICIT
USAGE BASE<br>
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Unallowable Costs The federal guidelines require consistent costing practices with the University’s federal funds. Those costs that are not allowable on a sponsored project are also not allowable in the facility and may not be charged to a federally sponsored project. Examples of these unallowable costs include costs for contingency provisions or other reserves, costs relating to other functions of the school or department that are unrelated to the facility’s operations, entertainment, bad debts, alcoholic beverages, and public relations. Federal regulations do not permit startup costs incurred to establish a new recharge facility to be included in the rate.<br>
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Unallowable Costs: Lists Surpluses or deficits from other service lines within the facility that do not share the same customers Auxiliary management fee
Bad debts
Contingency provisions
Entertainment
Fines and penalties
Public relations and advertising
Interest expense on internal loans
Memberships, subscriptions, and professional activity costs of a social or individual nature Principal payment on debt
Contributions, donations, remembrances
Goods and services for personal use of employees
Alcoholic beverages
Commencement or convocation costs
Depreciation of equipment purchased by the federal government<br>
Bad debts
Contingency provisions
Entertainment
Fines and penalties
Public relations and advertising
Interest expense on internal loans
Memberships, subscriptions, and professional activity costs of a social or individual nature Principal payment on debt
Contributions, donations, remembrances
Goods and services for personal use of employees
Alcoholic beverages
Commencement or convocation costs
Depreciation of equipment purchased by the federal government<br>
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Step 3: Submit your rate calculations Your rates calculations should be submitted using the ORED Rate Development tool at recharge@fiu.edu. The ORED team will revise your submission and will be sending an email to schedule a meeting.<br>
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Step 4: Request a recharge center Activity number Once your recharge center rates are approved, ORED will request a new activity number for your recharge center.
As soon as New Activity Number ID is setup ORED will load initial Budget based on rate tool calculations approved.<br>
As soon as New Activity Number ID is setup ORED will load initial Budget based on rate tool calculations approved.<br>
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Step 5: Billing The facility is responsible for internal and external billings and receivables. Facilities must provide all customers, whether internal (i.e., a University unit or department) or external, with a detailed billing, which can be either electronically or on paper, and which shall identify:
• The nature of the services rendered (e.g., testing)
• The goods provided
• The number of units (e.g., pounds, hours, # of items)
• The amount charged per unit of good or service
• Total charges by department or sponsored project being charged
• Name of person authorizing the service or good (from the Service Authorization Request or Usage Log)
Note: User bills that do not carry sufficient detail to identify the services or goods provided are subject to disallowance in a federal audit. The type of invoice used depends on the service or good provided.<br>
• The nature of the services rendered (e.g., testing)
• The goods provided
• The number of units (e.g., pounds, hours, # of items)
• The amount charged per unit of good or service
• Total charges by department or sponsored project being charged
• Name of person authorizing the service or good (from the Service Authorization Request or Usage Log)
Note: User bills that do not carry sufficient detail to identify the services or goods provided are subject to disallowance in a federal audit. The type of invoice used depends on the service or good provided.<br>
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Step 5: Billing(Cont’d) For Internal Billing Use:
Revenue Internal: Account # 679110
Expenses Internal: Account # 773911
*For External Billing:
Revenue External: Account # 672101
Expenses Expense: Account # 773913
*All checks from external customers should be routed to the Office of Research and Economic Development, MARC 430, to be deposited into the Recharge Center’s operating activity number. All checks must be accompanied by a complete DoR Recharge Center Deposit form and copy of invoice/agreement.<br>
Revenue Internal: Account # 679110
Expenses Internal: Account # 773911
*For External Billing:
Revenue External: Account # 672101
Expenses Expense: Account # 773913
*All checks from external customers should be routed to the Office of Research and Economic Development, MARC 430, to be deposited into the Recharge Center’s operating activity number. All checks must be accompanied by a complete DoR Recharge Center Deposit form and copy of invoice/agreement.<br>
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Step 6: Publish your rates Please publish your rates on recharge center website and send the website link to recharge@fiu.edu.<br>
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Important Reminders: The Office of Research and Economic Development will review the rates of the facilities every two years to ensure compliance with OMB Circular A-21.
The facility is responsible for preparing a detailed budget including rate calculations that account for the recovery of yearly surpluses or deficits. User rates must be supported by cost calculations based on historical costs and service levels. An adjustment for known or anticipated changes in service levels or services should be clearly documented.
The facility is also responsible for issuing invoices, properly accounting of receivables and maintaining records pursuant to the applicable records retention period.
If you need a recharge center training, please schedule an one-on-one session at recharge@fiu.edu<br>
The facility is responsible for preparing a detailed budget including rate calculations that account for the recovery of yearly surpluses or deficits. User rates must be supported by cost calculations based on historical costs and service levels. An adjustment for known or anticipated changes in service levels or services should be clearly documented.
The facility is also responsible for issuing invoices, properly accounting of receivables and maintaining records pursuant to the applicable records retention period.
If you need a recharge center training, please schedule an one-on-one session at recharge@fiu.edu<br>