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Core Service Rate Prep

Core Service Rate Preparation

Core services, including service centers and other operations that regularly perform fee-based services for internal and external customers are subject to specific rules applicable to the development of "charge out" rates. Many hospitals, as well as colleges and universities provide these services on a routine basis. Examples include laboratories, wind tunnels, animal care, materials testing, and many others. ML Weekes has experience in the application of the rules prescribed in OMB Circulars and OASC-3, and the pricing concepts and guidance related to animal care facilities.

When an institution is involved in the performance of Federal grants and contracts, policies and practices need to be established and followed to provide consistent operational and costing practices among various service units, including the development of rates that prevent the over recovery of costs. Whenever direct and indirect costs are charged to government grants and contracts, these rules must be followed. If your organization is subject to Cost Accounting Standards, consistency in cost accounting practices for all awards and other activities is mandatory.

We can assist in identifying costs and developing appropriate "charge-out" rates for each service center. Our staff has experience preparing policies and procedures and core service manuals used to bill and track the costs of core services.

In addition, we offer cost-benefit and benchmarking studies to help determine if existing cost centers are profitable, or if the service is available at a reduced rate from an outside source. Using our analytical techniques, we can also provide recommendations for the establishment of service centers for operations where a competitive advantage may exist.