Rates | Policies

Service Centers Policies

Chemistry Department Service Centers are designed to breakeven (breakeven point defined as a reasonable time-period in which total revenues for a good/service should equate total expenses. Annually, revenues + or - 15%, is considered breakeven. Variances within this range must be reflected in next years rates) unless exceptions are approved by the College Office.

Rates will be reviewed and adjusted biennially if needed. Rates do not have to equate cost during one fiscal year.

Variances greater than 15% can be handled in a number of ways but must be resolved before the fiscal years final closing. Course of action may include:

- Charging the loss or crediting the profit to the users

- Charging the loss to a guarantee/subsidy account

Each service center must maintain published price list, which will be published on Chemistry Department Website. Surplus from service centers should only support/fund related activities.

Chemistry accounting staff will monitor the service center activities to ensure that service center charges and expenses are allowable, allocable, reasonable, consistent, and in accordance with Emory University established service center policy.

Guidance for Calculating Service Center Rates

* Identify all services provided from each center.
* Determine direct costs associated with each service, pay attention on how it is funded-federal or non-federal.
* Identify indirect costs associated with service center operations. Be certain they are excluded from the Emory University indirect cost rate (consistent with policy).
* Identify unallowable costs in accordance with section J of A-21.
* Add prior period variance, should take in to consideration over/under applied cost of the previous year(s).
* Develop a reasonable method to assign service center indirect costs to each service, build in administrative cost, to the extent you can identify the individual efforts to the service; example, effort, total costs, FTE etc.
* Estimate usage for each service (example, number of units) to establish the distribution base. All usage must be included, regardless of whether discounts or free service is provided. Include discount rate, when adjusting for the next year rate, capture the rate discounted.
* Calculate cost-based rate for each service, this may include depreciation expense; make sure this rate is excluded in the F & A rate development.
* Determine rate that will actually be charged and if it reflects less than cost-based rate, exclude subsidy on rates development.
* Cost should be charged directly to users based on actual usage.
* Be certain that you are using rates that do not discriminate between users, particularly federal.
* Rates charged to profit companies should be calculated as follows: cost-based rate plus Emory University facilities and administrative approved rate. Return to Top