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Government Costing

Service Activities

The University of Illinois System Government Costing offices are responsible for developing service activity policies, monitoring departmental compliance, and selecting and conducting service fund reviews. In addition, Government Costing administers training for service center personnel and provides guidance.

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Understanding service activities at the University of Illinois

Service and storeroom activities (service centers) are established primarily to meet the programmatic needs of the academic community, and usually provide goods or services to multiple internal users including sponsored programs administered by the University, State of Illinois agencies, and organizations affiliated with the Universities. They are distinguished from activities that serve a single or small number of users, auxiliaries, and departmental activity accounts that are established for services provided primarily to non-University users.

There are a wide variety of service funds at the University of Illinois System.  Each service center fund is its own business operation and many times contains multiple rates within each fund. Examples of service center rates include but are not limited to analytical testing, bundled services, utility rates, animal facility rates, machine shop rates, storeroom markup rates, carpool rates, medical center, etc.

Each service center is required to calculate and charge rates based on actual costs incurred and usage for the services and/or products they provide. These rates are charged against various University funds including sponsored projects. As a result, the Universities must comply with federal costing principles as well as State and University guidelines for service centers. These service centers, whose main customers are internal University departments, track their revenue and expenditures in Banner fund type 3E Service and Storeroom funds.

Policies, regulations, and requirements applicable to service centers and rate calculations

The Code of Federal Regulations (Uniform Guidance Title II CFR Part 200) provide guidelines that establish principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. It also outlines the general federal requirements for calculating service rates. Federal agency Inspector General's audit plans have recently included reviews of service center costs.

In addition, for our Universities service centers (UIUC and UIC only) Section 3.2.0 of the Federal Cost Accounting Standards Disclosure Statement (DS-2) requires the University to provide information related to specialized service facilities and service centers. Following this requirement, we report various information to the Federal government related to service centers with $1 million revenue and/or $250,000 in federal sponsored project revenue in our Universities DS-2s.

Service Center managers must familiarize themselves with policies, procedures, and regulations they are required to follow when operating Service Centers.  Click on the links listed below to access these regulations, etc.

 

Service center responsibilities

System Government Costing responsibilities

It is the service center managers' responsibility to ensure rate calculations are compliant, performed timely, and rates are published.  However, on an annual basis the System Government Costing (SGC) identifies select service funds for rate reviews and approvals. There are a wide variety of service funds at the University of Illinois System.  Each service center fund is its own business operation and many times contains multiple rates within each fund. In order for our staff to perform these rate reviews/calculations, they must work with each service center to obtain an understanding of their business operations.  SGC’s responsibilities include the following:

  • Establishment and maintenance of the University's service activity policy (OBFS Policies and Procedures Manual, 22 Self-Supporting/Revenue Generating Activities - Service and Storeroom Activities
  • Providing training for service center personnel and our internal staff
  • Performing service rate/fund reviews as deemed necessary
  • Providing assistance to departments with rate calculations
  • Monitoring the service center's adherence to University and federal policies (3E funds)

Training available for Service Centers

The System Government Costing office administers training for service center personnel to explain complex topics thoroughly and make working with them easier.

Service Activity Basics Certificate Course

System Government Costing has implemented a Service Activity Basics  web-based training program. This course is an active program designed to provide information and training related to performing service and storeroom rate calculations, including specific rate requirements, rate components, and considerations related to compiling service rates. The self-paced format allows you to work through the training one lesson at a time at your convenience. It only takes 3-4 hours to complete the entire program. Use this link to apply today!

Service Activity Advanced Certificate Track

This cohort-based, instructor-led training builds on the prerequisite Service Activity Basics course to provide information and training related to performing service and storeroom rate calculations, including specific rate requirements, rate components, and considerations related to compiling service rates. It is designed to be part of a Service Activities certificate track. The training provides:  

  • What you need to know to develop a complaint service activity rate
  • Step-by-step process for a complaint service activity rate
  • Hands-on rate calculations during the course
  • Walk-through complex topics being explained thoroughly and made easy
  • Helpful resources (SME's, templates, reports, job aids) available for all Banner 3E service activity units
  • Learn about various types of service rates (blended rates vs markup rates)

Service Activity Advanced Application

OBFS Training Center

  • Managing Service Centers and Setting Service Rates. This training session summarizes the various Federal and State regulations, and outlines methods service center managers should use when identifying costs, determining usage/base, identifying an over/under recovery, setting rates, and charging users.

Individualized training

Do you have questions about your rate calculation methodology? Do you need help allocating expenses, incorporating depreciation, and computing your adjusted fund balance? Can we show you how to use the rate calculation spreadsheet template? Contact us to schedule on-site or online training or to answer questions when convenient for your department.

Rate development principles

Business Objects Webi report templates 

Rate calculation Excel templates and guidelines

The templates below will help when populating Excel templates and/or running Webi reports.

Rate calculation templates

Rate review checklist

Salaries and Wages

Expenditures and transfers

Equipment Depreciation

Fund Balance

SERFS Combined

Frequently Asked Questions 

UIUC – Sponsored Projects Administration’s – Service Rate Database 

Who To Ask

Last Updated: September 28, 2022

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