UNIVERSITY OF VIRGINIA
          FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL



TITLE:  FORMAT TO BE USED IN CALCULATING            PROCEDURE:  5-1
        SUPPORT SERVICE UNIT RATES                                 
                                                                   

Policy 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