Keys to Successfully Developing and Managing Recharge Centers
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Transcript of Keys to Successfully Developing and Managing Recharge Centers
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@2014 National Council of University Research Administrators
Keys to Successfully Developing and
Managing Recharge Centers
National Council of University Research Administrators
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@ 2014 National Council of University Research Administrators
Thongsy Singvongsa, CRAResearch Administrator, Preventive Medicine (Departmental)Northwestern University Feinberg School of Medicine in Chicago, IL
Nicole Nichols, MPA, CRAResearch Administrator, Internal Medicine – Oncology (Departmental) Washington University in St. Louis, MO
Keys to Successfully Developing and Managing Recharge Centers
Presenters:
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@ 2014 National Council of University Research Administrators
What is a recharge center?Startup processRate DevelopmentTools or practices for best management
Agenda / Learning Objectives
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Understanding what constitutes a Recharge Center / Activity
Develop a plan for a new centerCalculate rates & set pricesEstablish a specific fund/account just for
recharge activityManage the account per university & OMB
Circular A-21
The Recharge Process
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A recharge center is a unit within an institution that provides a specialized service or good to internal users on a recurring basis by charging a fee. It is designed to be cost-efficient and not a profit-generating unit.
Recharge centers provide goods and services through a “charge-back” mechanism therefore, they are designed to recoup the costs of running the recharge center.
What is a recharge center?
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Does another unit at university provide similar service?
Can an external vendor provide the same service for cheaper?
Do you have a vested interest & support from your department and constituents?
See handout from Wash U (Questions to Consider Before Setting Up a Recharge Process or Center)
Questions to Consider
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Describe goods/servicesCustomer baseProjections of expenses/revenuesWho will cover deficits (if any)Support of housing department?
Develop a Plan
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Process Flow (ideal)
Contact Central Office for
Guidance and Questions (Initial
Meeting)
Develop Business Plan
If approved, develop a rate
plan
If approved, establish a chart
of accounts (fund)
Provide goods/services once rates have been approved
Rates must be reviewed/approve
d on an annual basis
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General Formula
Calculated for each product/service offered by center
Plan to operate at break-even with no significant surplus or deficit Depending on your institution, this could be a 3 or 5 year rolling
average, etc.
Developing your rate(s)
Expenses Incurred (+/- prior year surplus/deficit)Estimated Level of Activity (units)
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Salary and Fringe*
Materials and Supplies
Equipment; depreciation (depends on your university policy – at Wash U, only allowed in Recharge Centers over $250K)
Equipment service contracts
Other Service Costs
Expenses included in the Rate Calculations
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Dependent tuition benefit costs
Personnel salary funded on sponsored projects
Entertainment/alcoholic beverages
Space rental costs
Memberships
Bad debt
Fines or penalties
Other costs disallowed per OMB A-21
UNALLOWABLE Costs
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Hours Used
Tests performed
Lab runs
Other Reasonable method
Determining Usage Basis
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Should be done on a monthly basis or sooner
Should occur after the work is performed
Reconcile statements and accounts & follow-up with outstanding accounts
Billing
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Document and calculate cost-based rate(s) and publish rate(s)
Adhere to federal cost accounting guidelines such as OMB A-21
Establish and maintain a separate account/fund to capture revenues and expenses
Track actual usage
Administrative Requirements
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Bill customers on a timely basisReconcile and analyze surplus/deficit
position at least annuallyRetain records
Administrative Requirements (Cont…)
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Questions?
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Thongsy Singvongsa, CRAResearch Administrator, Preventive Medicine (Departmental)Northwestern University Feinberg School of Medicine in Chicago, ILEmail: [email protected]; Phone: 312-503-1832
Nicole Nichols, MPA, CRAResearch Administrator, Internal Medicine – Oncology (Departmental)Washington University in St. Louis, MO Email: [email protected]; Phone: 314-362-0698
Wash U Recharge website: http://research.wustl.edu/ComplianceAreas/RechargeCenters/Pages/default.aspx
THANK YOU!