UNIVERSITY OF VIRGINIA FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL TITLE: FORMAT TO BE USED IN CALCULATING PROCEDURE:5-1SUPPORT SERVICE UNIT RATESPolicy Reference: V.A.2. EXAMPLE 1: Research Support Laboratory OPERATING STATISTICS (for period 07/19_1 - 06/19_2) Charged out 1285 hours performing Test A on samples. Charged out 1930 hours performing Test B on samples. Total hours charged out: 1285 + 1930 = 3215 hours PROJECTED CHARGEABLE HOURS (for period 07/19_2 - 06/19_3) Net Gross *Annual *Sick Non-Assignable Chargeable Person Hours Leave Leave Hours Hours A 2000 80 56 1000*** 864*** B 2000 80 56 200 1664 C 1000** 40 24 100 836 Total Hours 3364 PERSONNEL COSTS (for period 07/19_2 - 06/19_3) Annual Chargeable Person Salary Salary Test A Test B A $24,000 $24,000*** $ 8,000 $16,000 B 17,500 17,500 8,750 8,750 C 30,000** 15,000** 3,750 11,250 Total Personnel Costs $20,500 $36,000 * Anticipated usage for next fiscal year. ** Person "C" is a full-time employee devoting only half-time to this project. Only one-half of salary and anticipated leave are considered in the calculation. The remaining salary is paid from another funding source. *** Person "A" is a supervisor whose total salary is paid by the center. Although the supervisor works 50% of the time on administrative duties and 50% of the time on actual testing, the entire salary is a personnel cost that must be recovered through rate charges. The allocation of chargeable salary to Tests A and B is not based on chargeable hours, but rather on the time needed to perform both the administrative and productive duties associated with each test. OTHER COSTS (for period 07/19_2 - 06/19_3) Test A Test B Fringe Benefits (23% x Salaries charged)# $ 4,715 $ 8,280 Lab Supplies 1,000 1,700 Contractual Services 1,000 2,000 Travel 400 600 Telephone 280 420 Equipment Repair & Maintenance 500 1,200 Depreciation (See attached schedule) 600 1,125 Total Other Costs 8,495 15,325 LESS: Subsidy from XYZ Center ($13,000 for the year)## (5,200) (7,800) NET CHARGEABLE COSTS $23,795 $43,525 RATE CALCULATION Total Chargeable Rate Costs Hours Per Hour Test A $23,795 1,346 (40%)### $17.68 Test B $43,525 2,018 (60%)### $21.56 # The fringe benefits rate is adjusted annually by the Payroll Department. ## The distribution of the subsidy is 40/60 to Test A and Test B respectively. The percentages in this example are based on the distribution of labor hours charged out the previous year. ### Percentages are based on the actual results from the prior year. DEPRECIATION SCHEDULE Date Useful Original Annual Test A Acquired Life Cost Depreciation Item #1 06/19_1 5 $3,000 $600 Test B Item #2 05/19_2 2 $1,000 $500 Item #3 01/19_9 8 $5,000 $625 EXAMPLE 2: Research Copy Machine Operating statistics from previous year: Total actual copies made 07/19_1 - 06/19_2) 273,619 Operating Costs for 07/19_2 - 06/19_3) Lease purchase of copier $ 5,300.00 Maintenance Agreement 4,400.00 Paper: Legal size (50 reams @ $3.25) 162.50 Letter size (525 reams @$2.60) 1,365.00 Toner: 12 cartons @$37.50 450.00 Developer: 1 bottle @$55.00 55.00 Fuser Lubricant: 2 bottles @$16.50 33.00 Total Operating Costs $11,765.50 LESS: Over-recovery from prior year (2,500.00) Total Costs to be Recovered $ 9,265.50 Total Estimated Copies for Fiscal Year 19_2 - 19_3 $287,300 Total Costs $9,265.50 ------------ --------- = 0.0323/copy Total Copies 287,300 ISSUED BY: 04/02/90 Assistant Comptroller Financial Analysis 5.1.3