Rules and Regulations
Federal Guidelines
OMB Uniform Guidance (2 CFR 200.468) requires costs to be charged directly to federal awards based on actual usage according to rates calculated using a methodology which:
- Does not discriminate against federally supported activities
- Is designed only to recover aggregate costs of services – i.e. the center cannot make a profit
- Costs may consist of direct costs and allocable share of F&A costs
- Rates should be adjusted at least biennially
- Adjustments should be made to account for over/under recovery
- Surplus fund balances cannot be used to fund unrelated activities
- Billing rates may include equipment depreciation expense, but:
- Rates can only include one year of depreciation, not the full cost of equipment
- Depreciation included in recharge rates cannot also be in the F&A rate
- Subsidies cannot be included in the F&A rate
NDUS Guidelines
Service Center guidance is provided in the NDUS Accounting Manual under the Service Center section:
In evaluating whether a business unit should be a service center, the institution should review identified criteria using established institutional procedures. Examples of criteria include but not limited to:
- Centrality to institutional mission
- Specialized, recurring services with value added to providing product internally
- Dollar volume/unit volume of transactions
- Defined unit of measurement possible
- Strong demand for the product or service being offered
- Clearly defined financial plan (identify start-up costs as well as ongoing operating costs
- and method of recovery)
- Charge rates that will fully recover costs. If not, is there an understanding with the department, college, or institution that ongoing financial support will be required?
UND Policy
In addition to following OMB and NDUS guidance, UND’s Business Charges Policy covers new rates and rate changes under Category D Charges: Recharge Center Rates.