| Title: | Service Center Policy |
|---|---|
| Policy Owner: | Accounting Office |
| Applies to: | Faculty, Staff and Designated Affiliates |
| Campus Applicability: | UConn Storrs and Regionals |
| Effective Date: | December 26, 2014 |
| For More Information, Contact | Associate Controller & Director of Accounting |
| Contact Information: | (860) 486-1366 |
| Official Website: | http://accountingoffice.uconn.edu/ |
PURPOSE
To ensure that the University is in compliance with the cost principles and accounting standards set forth by the federal government.
APPLIES TO
This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.
DEFINITIONS
Service Center: a unit which charges a rate to recover the full allowable cost of goods or services provided. This differs from a unit which charges another area for the cost of the goods or services only, without consideration of other recoverable costs such as overhead costs. A unit of this type is defined as a “Recharge Center”.
OMB Uniform Guidance: publication of the Office of Management and Budget titled “Cost Principles and Audit Requirements for Federal Awards.”
Governmental Cost Accounting Standards (CAS): standards and rules administered by the federal government for use in achieving uniformity and consistency under federal contracts.
Service Center and Cost Recovery Committee (SCCRC): a University committee responsible for approving the establishment of and rates charged by University Service Centers.
POLICY STATEMENT
The Office of Cost Analysis (OCA), a unit within the University’s Accounting Office, is responsible for ensuring that the establishment of and the rates charged by University Service Centers are approved by the SCCRC in accordance with OMB Uniform Guidance. The Office of Cost Analysis reviews the rates charged by Service Centers, and ensures that the rates are consistent with good business practice and comply with all applicable regulatory and legal requirements, including those outlined in OMB Uniform Guidance and the Governmental Cost Accounting Standards (CAS). The OCA will ensure that federal grants and contracts are not charged a rate that is higher than what any other internal or external customer may be charged for goods and services. External rates include indirect costs or overhead, whereas internal rates include only direct costs. Departments operating Service Centers must have the Center and the rates used by the Center, approved by the SCCRC in advance of commencing operations.
Additional information on Service Centers and cost accounting principles at the University can be found in the Cost Accounting Disclosure Statements (CADS):
Direct and Indirect Costs of Federal Grants and Contracts https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2018/04/CADS1-Uconn-policies-updated-for-UG.pdf
Cost Sharing https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2015/08/CADS2.pdf
Financial Management of Service Centers https://accountingoffice.uconn.edu/wp-content/uploads/sites/143/2015/08/University-of-Connecticut.pdf
ENFORCEMENT
Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.
PROCEDURES/FORMS
For more information on OMB Uniform Guidance, please see
https://www.whitehouse.gov/omb/
POLICY HISTORY
Revisions: Review and editorial revisions August 27, 2021