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Can a Service Center be established off campus?

  • 1.  Can a Service Center be established off campus?

    Posted 06-30-2020 16:34
    Hello all,

    Recently, our sponsored program and accounting office is working with the information system department on a new service center called iConsultancy capstone cost center, and which provide services on a project basis. One issue is that the services will occur  at a rented-space. Since it is not a specialized service center, when services are charged on contracts/grants, can the full on campus F&A rate be applied? or the off-campus rate? I think it should be the later one, but would like to hear your thoughts.

    Thank you!

    ------------------------------
    Wendy Yu
    Senior Accountant
    University of Maryland, College Park
    College Park, MD
    (301) 405-9283
    ------------------------------


  • 2.  RE: Can a Service Center be established off campus?

    Posted 06-30-2020 20:30
    Wendy,

    Each project will be charged the service center recharge rate. You should establish a rate like any other CORE rate that includes the cost of supplying the service. F&A will not be drawn down to your service center. F&A will be drawn down on each individual project with a service center recharge expense(at the current project specific rate).

    Thank you,

    Renee


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  • 3.  RE: Can a Service Center be established off campus?

    Posted 06-30-2020 21:59
    Thank you for the explanation, Renee.
    I should have been more specific. The cost center would consist the rent in the rate and which made me think that all facility costs were included in the rent and thus the rate. Therefore, when the cost center charges contracts /grants, the off campus F&A rate ( only the administrative piece) should be applied  to the service charges.  Now I'm kind of confused this type of service center with SSF ( F&A exempt on contracts/ grants). Am I overthinking?

    Best,  
    Wendy
    --
    Thank you,

    Best,

    Wendy (Ying) Yu
    Sr. Cost Analyst, Cost Accounting
    Sponsored Programs Accounting & Compliance (SPAC)
    Phone:301-405-9283





  • 4.  RE: Can a Service Center be established off campus?

    Posted 07-01-2020 08:35
    Hi Wendy,

    Long time no speak.  Sure, a service center can be established off campus.  We at NC State would first make sure if the rent is included in the F&A or not; most likely not, then we can include the rent in the service rate calculation.  Then we would decide which one of the two off campus F&A rates we will use which is distinguished by if the location is within 10 miles of campus thus has access to library would have the higher off campus rate vs the lower off campus F&A rate for location farther than 10 miles.  

    Hope this helps.  Feel free to reach out if you have any other questions.

    Kind Regards,
    Jeannie Chen
    Financial & Systems Analyst
    Office of Cost Analysis
    Budget and Resource Management
    Phone:  919-515-1885
    Fax #:  919-513-2746
    Email:  jjchen4@...

    North Carolina State University
    Campus Box 7013
    Admin II Room 162
    Raleigh, NC  27695-7201





  • 5.  RE: Can a Service Center be established off campus?

    Posted 07-01-2020 09:50

    Wendy,

     

    Charging rent depends on whether the rent for the facility is included in your F&A proposal.  If it is included in the F&A proposal, that space would be considered on campus and should not be included in the service center rate.

     

    If the rent is excluded from your proposal, you are free to include it in the rate, if your service center is classified as a specialized service center, since it is a cost of the service center.

     

    You may want to touch base with the area at your university that prepares and negotiates your F&A proposal.

     

    At any rate, when the service center charge hits your grants it should be charged the appropriate F&A rate for that grant.

     

    I hope this helps,

     

    Best regards,

    Chuck

     

    Charles E. Tarantino, CPA

    Assistant Vice President

    Hurley Administration Building, Suite 160

    (: 940-565-3246 | *charles.tarantino@...

     

    University of North Texas

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