Home Service Center Service Center Use Rate Calculation Form

Service Center Use Rate Calculation Form
January 2005

SERVICE CENTER USE RATE CALCULATION (FORM CG-006) - PAGE 1

1-1. Enter the name of the service center. If multiple use rates are being established for the center (i.e., a separate rate for each major piece of equipment or a separate rate for each service offered), indicate an appropriate identifier and include only those expenses and utilization data that relate specifically to each rate.

1-2. Enter the name of the building where the service center is located.

1-3. Enter the room number of the room where the service center is located, and the percentage being utilized by the service center (note: base percentage utilized on time that the service center activity occupies the space in relation to other activities that are using the space, not actual square footage).

1-4. Enter the effective date for the use rate being calculated. Note: the service center should not use the use rates until approved by the Office of Contracts and Grants. Rate forms cannot be backdated.

1-5. Enter the Project ID number for the trust fund.. NOTE: This item would be left blank if the service center use rate calculation is for a new trust fund project ID request.

I. DIRECT COSTS:

1-6. Enter the name, position title, and total percentage of effort devoted to all service center related activity for each person working in the service center. Multiply the percentage of effort times the annual salary to get the service center salary amount for each person listed. Enter the total amount of salaries and wages for all employees in the space provided. These salaries and wages must be charged directly to the trust fund project established for the service center, if the project is a self-supporting service center. NOTE: Administrative positions such as secretaries and bookkeepers that do not devote a significant amount of their effort to service center related activities should be included as departmental administration in Section II, Item 1-18.

Example: John Brown, a laboratory technician, earns $50,000 per year. He spends 10% of time on service center related activities. His service center salary would be $5,000 ($50,000 x 10%).

1-7. Enter the fringe benefits for the salaries and wages for each person included in Item 1-6. To calculate the fringe benefits for an individual, multiply the applicable fringe benefit percentage times the service center salary. Add the health insurance. To calculate the appropriate amount of health insurance, multiply the percentage of effort listed times the applicable annual health insurance dollar amount. Enter the total amount of fringe benefits for all employees in the space provided. The current fringe benefit rates can be found here: http://www7.acs.ncsu.edu/CNG/service_center/fringe_ben_ratesFY05.asp

1-8. Enter the total annual costs of maintenance contracts directly related to the service center.

1-9. Enter the total annual costs for non-routine repairs and renovations to the service center and equipment repairs.

1-10. Enter the total annual costs for technical supplies used in operating the service center. NOTE: Office supplies are a component of departmental administration in Section II, Item 1-18, and therefore cannot be included as a direct charge.

1-11. Enter the total annual costs for travel directly related to the service center's operation. This may include the costs of travel and lodging for training seminars or conferences.

1-12. Enter the annual total for any other expenses directly related to the service center (e.g., outside services).

1-13. Enter the total annual direct costs, the sum of Items 1-6 through 1-12.

II. FACILITIES & ADMINISTRATIVE COSTS:

1-14. Enter the total annual depreciation (Item 2-10) for the service center's equipment with an acquisition cost of $5,000 or greater. The depreciation must be based on equipment costs net of federal funding. Depreciation must be calculated using the straight-line method based on the equipment's estimated useful life, i.e., net equipment cost divided by the number of years estimated for the useful life. Different types of equipment may have different estimated useful lives. However, depreciation may not be taken beyond the equipment's estimated useful life. A detailed listing of equipment, including location (if different than listed in Item 1-3), description, CAMS/Identification number, date of purchase, net cost, use allowance previously claimed, if any, adjusted cost, estimated useful life and annual depreciation amount must be provided (see Page 2, Items 2-1 through 2-10).

1-15. Enter the Current Year Total Annual Depreciation costs for the building space occupied by the service center. The Building Depreciation charge is based on Current Year Building Depreciation cost (net of federal funding) multiplied by the percentage of building square footage occupied by the service center. A list of room number(s) in which the service center is located and square footage for each must be listed on the form. Current year building depreciation costs and building net assignable square footage information can be found at the following web link: http://www7.acs.ncsu.edu/CNG/service_center/

1-16. Enter the total facilities and administrative costs for physical plant. This total is determined by multiplying the total square footage occupied by the service center by the physical plant facilities and administrative cost per square foot ($9.21) included in the University's facilities and administrative cost rate.

1-17. Enter the total facilities and administrative costs for general administration. This total is determined by multiplying the total direct costs (Item 1-13) for the service center by the percentage component for general administration (4.9%) included in the University's facilities and administrative cost rate.

1-18. Enter the total facilities and administrative costs for departmental administration. This total is determined by multiplying the total direct costs (Item 1-13) for the service center by the percentage component for departmental administration (12.5%) included in the University's facilities and administrative cost rate. > NOTE: Clerical / administrative salaries, office supplies, postage, local telephone charges, and memberships and subscriptions are all included in the departmental administration component of the University's facilities and administrative cost rate and therefore cannot be included as direct charges.

1-19. Enter the annual total for facilities and administrative costs, the sum of Items 1-14 through 1-18.

1-20. Enter the annual total for direct and facilities and administrative costs, the sum of Items 1-13 and 1-19.

III. ADJUSTMENTS:

1-21. Enter the over or under applied costs of the previous period. Over applied costs are direct costs and applicable F&A that were overestimated on a previously approved rate form and charged to customers. Over applied costs can occur when overestimating direct costs or underestimating utilization for your service center. It is critical that the service center track their utilization to assist in determining the over or under applied costs.

1-22. Enter total adjusted costs after over or under applied costs (1-21) have been added or subtracted from the Total Costs (1-20)

IV. UTILIZATION:

1-23. Enter the basis or unit of usage applied in the service center's billings, e.g., "labor hours", "CPU hours", "number of samples", etc.

1-24. Enter the total for units of usage for the annual period. This total must include all billed and unbilled units. NOTE: (Special circumstances must exist, that must be reviewed and approved by the office of Contracts and Grants, in order to have "un-billed" units).

V. USE RATE:

1-25. Enter the use rate calculated by dividing the total adjusted costs (Item 1-22) by the total utilization (Item 1-24).
NOTE: Concerns / questions regarding the calculated use rate should be directed to the Office of Contracts and Grants.

APPROVALS:

1-26. The individual responsible for the use rate calculation must sign on this line and provide their position title, college or department, and the date signed. This individual would normally be the person established as project custodian for the service center's trust fund project .

1-27. The individual responsible for approving the use rate request for the service center must sign on this line and provide their position title, college or department, and the date signed. This individual would normally be a dean, director, or department head responsible for the service center. For colleges that have centralized the service center function, the authorized college approver must sign on this line for new project ID's.

1-28. Leave blank. The Director of the Office of Contracts and Grants will sign this line after the use rate calculation form is reviewed and approved by the Office of Contracts and Grants. Upon approval of the Service Center Use Rate Calculation Form by the Office of Contracts and Grants a copy of the form will be returned to the individual who submitted the form.

SERVICE CENTER USE RATE CALCULATION FORM - EQUIPMENT (pg 2)

For definitive purposes, the Facilities and Administrative Rate Agreement has dictated that equipment possesses the following characteristics: it is not consumable or expendable; it is movable, even though sometimes attached to other objects or buildings; it has an expected useful life of longer than one year; its cost is at least $5,000; and its use does not create a readily observable physical impairment or deterioration.

In accordance with state and federal guidelines, the current threshold for which an inventory of fixed assets is maintained is $5,000 unless conditions of a contract or grant require a lower threshold. These items are tagged and included in the University's Capital Assets Management System (CAMS).

The CAMS Departmental System is available on the Web and provides some of the information necessary to complete the equipment page. This information can also be obtained from the Capital Assets Management System (CAMS) equipment inventory listing. Contact the University's Capital Assets Section in the University Accounting Office for system access information, for assistance needed with using the system, and for assistance needed in obtaining the equipment inventory listing.

2-1. Enter the name of the service center as in Item 1-1, and the Project ID as in Item 1-5

2-2. Enter the description of the equipment that is being included in the computation of the equipment depreciation charge. NOTE: Service centers with equipment items costing $5,000 or more that were included on a use rate form that was approved after July 1, 1997 only need to complete Items 2-2, 2-3, 2-4, 2-5, 2-8 and 2-9 for those items.

2-3. Enter the CAMS/Identification number that is on the piece of equipment that is being included in the computation of the equipment depreciation charge.

2-4. Enter the purchase date (month and year) of the equipment that is being included in the computation of the equipment depreciation charge. Contact CAMS in the University Controller's Office for this information.

2-5. * Enter the net cost (cost less federal funding) of the equipment that is being included in the computation of the equipment depreciation charge. Contact the University's Capital Assets Section in the University Accounting Office for this information.

2-6. * Enter the use allowance that was previously claimed (or any other adjustments), if any. Calculation of use allowance is as follows:
(a) Multiply the net cost of the equipment by 6.67%.
(b) Multiply (a) by the number of years that the equipment was included in the Service Center use rate calculation and enter the result.
Contact the Office of Contracts and Grants for any assistance needed to determine this amount.

2-7. * Enter the adjusted cost of the equipment that is being included in the computation of the equipment depreciation charge. Subtract the use allowance amount previously claimed, if any, from the net cost amount.

*An example showing the calculation of Items 2-5, 2-6, and 2-7 is shown at the bottom of Page 6 of the instructions.

2-8. Enter the number of years estimated for the useful life of the equipment that is being included in the computation of the equipment depreciation charge. Contact the University's Capital Assets Section in the University Accounting Office for this information.

Written justification will be required when using an estimated useful life that is different than the life provided by the CAMS office. If use allowance was previously claimed, the estimated useful life must be reduced by the number of years that the equipment was included in the service center use rate calculation. This is the adjusted useful life that will be used to calculate the annual depreciation. See the example at the bottom of the page.

2-9. Enter the annual depreciation of the equipment that is being included in the computation of the equipment depreciation charge. Depreciation must be calculated using the straight-line method based on the equipment's estimated useful life (adjusted equipment cost divided by the estimated useful life, OR the adjusted useful life if use allowance was previously claimed). See the example at the bottom of the page.

2-10. Enter the total annual equipment depreciation of all the equipment that is being included in the computation of the equipment depreciation charge. Transfer this amount to Page 1, Item 1-14.

Example of the calculations discussed in Items 2-5 through 2-9:
An item of equipment with an acquisition cost of $50,000 and an estimated useful life of 10 years was purchased in 1990. NSF provided $10,000 towards the purchase of this equipment. The service center was established in 1995. The use allowance method of depreciation was used in the rate development for 1995 and 1996. The annual depreciation would be calculated as follows:

Net Cost = $50,000 - 10,000 = $40,000 (Item 2-5)

Use Allowance Previously Claimed = $40,000 x 6.67% = $2,668 / year (Item 2-6)
$2,668 x 2 years = $5,336

Adjusted Cost = $40,000 - 5,336 = $34,664 (Item 2-7)

Estimated Useful Life = 10 years (Item 2-8)
NOTE: Use allowance was claimed for 2 years therefore the adjusted useful life is 8 years (10 - 2).

Annual Depreciation = $34,664 / 8 = $4,333 (Item 2-9)
NOTE: If no use allowance was previously claimed, the annual depreciation would be $4,000.00 ($40,000/10).