Service Center & Recharge Operations
Service Center & Recharge Operations
Working closely with our campus service centers and recharge operations, we provide guidance surrounding the primary requirements of appropriate rate development. We review all new requests to establish service centers and recharge operations, providing feedback on the overall business plan, the various components associated with developing appropriate rate structures, and the requirements of the billing process. We also provide on-going oversight of service center account balances and work closely with our campus partners to determine any adjustments that may be needed.
For Project Payroll Confirmation or Salary Cap information, please visit our site here.
For general Service Center inquiries, please email svcctr.help@uky.edu
For general Payroll Confirmation inquiries, please email ecrt.help@uky.edu
Staff
Jessica MacLeod | Payroll Confirmation & Service Centers Supervisor | (859) 218-1210 |
Cherri Wallace | Payroll Confirmation & Service Centers Specialist | (859) 257-1747 |
Service Centers & Recharge Operations
Service Center & Recharge Operations Contact List
Service Centers and Recharge Operations BPM
Service Center & Recharge Operations Manual
Frequently Used Forms
Service Center Rate Calculation Template
Service Center Recovery and Forecast Template UPDATED
UK Revenue Producing Activity Questionnaire
Service Center New Cost Center Form
Service Center Quick Reference Cards
How to determine a Service Center balance
Key Considerations in Rate Development
Service Center Presentations
Service Center & Recharge Operation FAQs
What is the difference between a service center and recharge operation?
Recharge Operations are departmental units that have direct costs less than $50,000 in a fiscal year. Service Centers are operational units that have direct costs greater than $50,000 in a fiscal year. Since a recharge operation is a departmental unit their fund balance at the end of the year rolls up with the other department accounts. A service center can also include indirect costs (depreciation) in their rate, but is not allowed on recharge operation accounts. Service centers have a functional area of 1250 - Other Aux; Recharge Operations functional area are based off the purpose of their work.
What is the process to establish a Recharge Operation or Service Center?
Please refer to BPM E-50-5 Section V. Procedures, A. Establishing New Service Centers/Recharge Operations. Some key questions to consider before starting the process are: Are your services unique and for the benefit of all campus users? Is your primary customer internal to the University? Do you want to make a profit, because service centers and recharge operations must break-even each year (no profit). Also refer to the Service Center & Recharge Operations Rate Calculation Manual for more information. Feel free to reach out to RFS or your AFO if you have questions.
Is there a fee charged to service centers or recharge operations?
No fee is charged to be a service center or a recharge operation.
What is the difference between a Minor and a Major Service Center?
A minor service center has total annual direct costs exceeding $50,000 but not more than $500,000 and can include equipment depreciation expenses in their rate. A major service center has total annual direct costs exceeding $500,000 and can include equipment and building depreciation and maintenance and operations costs in their rate.
How can I tell if an account is a recharge operation or service center?
The budget family attribute distinguishes the type of account as follows:
23 Recharge operation
22 Minor service center
21 Major service center
Also, all service center account numbers begin with the 10438xxxxx series. Recharge operations will be either 1012 or 1013 series accounts.
Can capital assets be purchased on a Service Center (10438XXXXX) Account?
Federal guidelines do not allow the purchase cost of capital assets to be recovered thru service center rates. Capital purchases should be made using renewal and replacement accounts.
What can be purchased on Renewal and Replacement (14278XXXX) Accounts?
Only capital assets (55XXXX - g/l accounts) can be purchased with your renewal and replacement account. Capital assets are defined by University policy outlined here BPM E-12-1.
Can indirect costs for depreciation be included in a recharge operation or service center billing rate?
Service centers are allowed to recover depreciation costs in their rates but recharge operations are not.
Can the service center fund balance at the end of the fiscal year be carried forward to the new fiscal year?
Service centers should strive for break-even, however, it is recognized that variances may occur that prevent this from happening on an annual basis. The University allows a surplus or unsubsidized deficit of 10% of annual operating expenses. Carry-forward balances within this 10% threshold must be carried forward to the next year and used in the calculation of rates for the following year.
What occurs if the service center fund balance has a deficit over 10% of the expenditures?
A subsidy from a general fund account will be needed to bring the service center account balance under 10% of expenditures.