UAMS ADMINISTRATIVE GUIDE

NUMBER: 8.3.11
DATE:
1/08/2004
REVISION:

SECTION: FINANCE DEPARTMENT
AREA: RESTRICTED FUNDS ACCOUNTING
SUBJECT: FINANCIAL MANAGEMENT OF SERVICE CENTERS
 

PURPOSE

The purpose of this policy is to make University of Arkansas for Medical Science departments aware of the information required for service/recharge centers to charge expenses to restricted funds.

POLICY

UAMS defines, identifies, and manages those areas where fees for services are charged by a service area or department of the University, to another department of the University.  When a department assesses “fees” for services, products, or procedures, they are a service/recharge center as defined by University standards.  Service centers must provide a copy of the billing rate computations and billing policy to the Grants and Cost Accounting Office each time the billing rate or policy is amended.  These rate computations and billing policies will be reviewed to ensure that any expenses recorded on restricted funds are in accordance with federal policies regarding allowable expenses. Issues to be considered in billing policies include:

  1. Expenses used to calculate billing rates should not include any grant funded expenses.
     
  2. Billing rate computations for recharge centers should not include administrative costs (overhead) that are included in the University F & A proposal.
     
  3. All users should be charged for the services they receive, and be charged at consistent rates. i.e. One grant should not be charged a different price than another grant for the same service.
     
  4. Quantity discounts or other variances must be documented in the service center rate computation and/or billing policy.
     
  5. Billings to restricted projects should be submitted timely, but no later than 45 days after the end of the month in which the service was provided.