Questions to Consider
Determine whether a new center is justified
- Is the demand for the proposed services sustainable and ongoing?
- If the services are only needed on an intermittent basis, a new center might not be justified.
- How long do you expect the products/services to be in demand?
- If the services are only going to be in demand for a short time (due to technological changes, etc.) a new center might not be justified.
- How will the proposed center cover costs until the proposed level of activity is reached?
- It is important the new center have a clear financial plan.
- Are there others providing the same or similar service, either internally or externally to the UW?
- The number of serivce providers and the rates charged may affect the need for another provider.
Determine how the rates are going to be calculated
- What are the goods/services being provided?
- Who will be the primary users of the goods/services?
- Campus - Federal or Non-federal
- Public community
- What portion of income will be from federal grants and contracts?
- How many services will be offered?
- Can goods/services with common customers and similar costs be combined into one rate?
- How will the service be charged? For example, per hour, per item, etc.
- Will equipment costing more than $5,000 be used in the recharge center?
- When will the center begin charging for providing goods/services?
- Will any costs to provide the goods/service be paid from departmental funds?
- Will the department provide resources as the center gets up and running and how much?
Process
- Determine whether the activity will be classified as a transfer or a sale.
- Refer to the Budget Type Flowchart to determine which budget type is appropriate for the activity.
- If a recharge center is needed, contact MAA to discuss proposed services, recharge center guidelines, etc.
- Prepare a rate proposal.
- Obtain Dean or VP office and MAA approval for the rates. These can be obtained concurrently.
- Once the proposal has been approved, MAA contacts the Budget Office to establish a budget number for the center.