The major roles & responsibilities each party has in connection with the University’s recharge centers are as follows: Recharge Center/Specialized Service Facility Personnel Comply with RC/SSF policies and procedures Develop and administer annual budget Prepare schedule of rates and maintain supporting documentation Submit rate schedule to the Costs Analysis Department on an annual basis Generate […]
Topic: Recharge Centers
Glossary of Terms
Breakeven – The point where revenues equal expenses; where there is no surplus or deficit. Breakeven Analysis – The process of determining the volume at which a program becomes financially self-sufficient. Break-even Period – A reasonable time-period in which cumulative revenues for a good/service should equal cumulative expenses. For a deficit carry-forward this period is five years. For a […]
Annual & Ongoing Review Process
General RC/SSF operating principles should be evaluated on an ongoing basis to help ensure the following general RC/SSF facility best practices are applied. Again, the policies will be helpful in this evaluation and can be found on the Financial Services website. These include: Rate Reviews Recharge centers operate on a Washington University fiscal year basis, with rates […]
Manage Billing and Receivables
Billings Billings to customers should be done in a timely and regular manner after services/products have been provided. See Create Internal Service Delivery (ISD) step-by-step instructions. Washington University standard accounting policies and procedures should be followed. Receivables – Payment Processing In all payment processing procedures you must adhere to standard Washington University accounting policies and procedures, […]
Set Up an Account
Recharge Centers and Specialized Service Facilities As documented in the Washington University Recharge Centers Policy document, “All recharge centers will establish separate operating accounts to record revenues and expenses related to the products/services provided.” RC and SSF accounts are set up in Workday as Internal Service Providers (ISP). Workday provides step-by-step instructions on ISP: Set Up […]
Provide Services to External (Non-WashU) Customers
If services/products will be provided to external (non-Washington University) customers, it is important that you understand and consider all of the issues described below. External customers are individuals, groups, or organizations that are not part of the Washington University community and typically purchase services/products for reasons of convenience or uniqueness of the products/services offered. Some […]
Develop Charge Methodologies and Subsidies
It is imperative that a cost analysis is completed in order to know what it really costs to do business. An annual cost analysis determines the actual cost of providing services/products. Users are then charged for actual usage based on the rate schedule of these costs. There are defined situations when an RC/SSF may offer […]
Calculate Rates
It is necessary to follow these policies and procedures no matter how infrequent services occur. Operating Costs = direct labor costs + direct supply & other non-labor costs + portion of RC/SSF administrative personnel costs (subject to appropriate review and approval) Once you have identified all of your cost elements, the rate calculation is a simple fraction: […]
Identify the Cost Elements Related to Service/Product
The first step to developing rates for products/services is to identify the various cost elements. Measurable Units Recharge centers must bill users for actual usage; therefore a measurable unit must be identified. The unit must be something that can be measured, quantified and tracked in a reasonably accurate manner. In some cases, a recharge center may […]