SERVICE CENTERS

1
SERVICE CENTERS
2
Service Center Definition

• A unit that performs specific technical or
  administrative services primarily for the
  internal operations of the university and charges
  users for its services.
• A service center can be authorized to provide
  services to external customers.

3
OMB Circular A-21

• Requires that all costs be reasonable, allowable,
  allocable and consistently treated.
• Contains a list of allowable and unallowable
  costs.
• Unallowable costs cannot be budgeted or expensed
  on service center accounts.

4
Specialized Service Facility(SSF)

• A service center that offers highly complex or
  specialized services that are not readily
  available from outside sources for example,
  animal care facilities.

5
Service Centers

• Facilities
• Telephone Services
• General Stores
• Core lab facilities
• Electron Microscope Research Ctr

6
Billing Rates/User Fees

• Customer Base
• General Guidelines for Rates
• Key Compliance Issues

7
Customer Base

• Internal
• University Departments
• Sponsored Programs
• External
• Those who do not have a university account number
• Industry
• Students, faculty or staff acting in a personal
  capacity

8
Billing Rates Internal Users

• All internal customers must be charged the same
  rate for the same level of service under the same
  circumstances.
• Federal grants or contracts must be charged a
  rate equal to or lower than the rate charged to
  any other customer.

9
Billing Rates Internal Users

• Rates must be designed to recover the direct
  costs of the services or goods.
• Rates cannot be marked up to accumulate reserves.
• Rates must break even over time.

10
Surplus

• Must be used to adjust future billing rates.
• Used to purchase equipment? No
• Used to fund salary increases? No
• Transferred to other activities
• unrelated to the center? No

11
Billing Rates External Users

• Recover all costs and
• Include a surcharge equal to the current approved
  FA rate.
• Rates cannot constitute unfair competition.
• External customers cannot be charged less than
  internal customers or the Federal government.

12
Federal Concerns

• Administrative
• Inadequate policies and procedures.
• Records not retained by the Service Center for a
  period of 5 years.
• Fund balance not properly monitored.

13
Federal Concerns

• Administrative
• Surplus funds were transferred to other
  university accounts.
• Surplus funds were used for purposes unrelated to
  center activities.

14
Federal Concerns

• Billing Rates
• Cost studies not done to insure that rates
  represented actual costs.
• Unallowable costs were included in the rates.
• Rates not adjusted to eliminate operating
  surpluses and deficits.

15
Federal Concerns

• Billing Rates
• Some users billed at reduced rates and the
  federal programs subsidized the difference.
• Surplus balances not always used to reduce future
  rates.

16
Administrative Operational Guidelines

• Establishment and Financial Management of
  Authorized Service Centers and Specialized
  Service Facilities
• https//rowdyspace.utsa.edu/xythoswfs/webui/_xy-86
  089_1-t_wcQmjthn
• Or
• https//www.utsa.edu/grants/