Step 3: Develop the Rate
Determine cost of services supporting the activity
With your list of direct costs, now it’s time to put a dollar value to each and enter them into the Rate Calculation Worksheet.
1. Download the Rate Calculation Worksheet.
2. Follow along with Deb and Sherrell as they use the instructions to complete the worksheet for their Rates.
|Project List Tab||Rate Calculation Tab||Depreciation Tab|
|Productive Hour Per FTE Tab||Budget Worksheet Tab||Budget to Actual Tab|
1. List all your projects for the rate.
1. Use 2088 productive hours in a 12 month period (from Payroll).
2. Subtract leave time either by using standard leave deductions (shown on the Productive hour per FTE worksheet) or use historical average for staff.
included in the RATE.
3. Average and subtract hours for administration, training, meetings, travel, field days, and outreach
4. Average and subtract all other time unique to the Rate Activity but not billable
(field maintenance, uniform cropping, equipment setup and take down,
equipment maintenance and repair).
5. Average and calculate any furlough, START time or any other reduction in time.
6. The final Productive Hour per FTE will populate on Rate Calculation
Salary and Benefits
1. Include the % of each staff member whose time is spent directly in Rate Activity.
2. Include any explanations necessary for special circumstances. For example: 25% of Office Manager time included because Office Manager performs data collection and data entry for specific research projects.
3. Use the most current salary including any scheduled increases for the upcoming year.
The # of months is usually 12 but can be less with furlough staff or staff that will be hired sometime with in Program year.
4. Benefit %. Using the composite benefits rate chart, enter the benefits % for each staff member.
Adjustments for previous Program year’s Operations of RATE
5. If previous program year ended in a deficit within 5% list as an addition on Rate Calculation Worksheet.
6. If previous program year ended in a surplus within 5% –list as a deduction.
7. If previous program year ended in surplus greater than 5% you must refund to your clients uniformly and do not list on form.
8. If previous year ended in deficit greater than 5% you must submit a plan detailing how you will cover the deficit to Control point. Do not list on form.
Determine total Productive/Billable Hours
9. Total FTE of Productive personnel and productive hours per FTE both auto populate to the Rate Calculation sheet based on data entered earlier.
10. Add any purchased labor hours from the Budget worksheet. (Only Contract labor purchased through a vendor or temporary casual labor that is billable to research projects).
1. On budget Worksheet estimate all supplies, materials, repair and maintenance costs and services utilized in Rate activity. Use costs that are identifiable and directly related to the Rate activity. Include an explanation of any special circumstances. For example: Electricity used to run irrigation pumps to pump water from wells for field crops.
2. Do not include any costs associated with a different rate (if you have more than one rate).
3. Do not include costs charged directly to customer (example: alfalfa seed specific to a research project that is charged directly to researcher).
4. Do not include travel, memberships, entertainment, bank fees, general utility costs.
5. The total cost of supplies will populate to the Rate Calculation Worksheet.
1. On the Budget Worksheet identify the Account and dollar amount of any subsidy that you apply to all UC and affiliate users. Some examples include funds for salary and benefits, operating funds, income unique to Recharge unit(cell tower money, hunt income, crop income for equipment).
Prior Approval from the Control Unit is required before utilizing the following funds for subsidy: Crop income for equipment and salary savings
2. Do not include any Operating and Maintenance of Plant (OMP) funds which are used for facilities and grounds.
3. The total subsidy will populate to the Rate Calculation Worksheet.
1. Using the Depreciation Worksheet list all equipment with a useful life >1 year and value > $5,000 that will be used for the Rate activity. List date of purchase, purchase price, salvage value and % of time that the piece of equipment is used in the Rate activity. For example: a truck which is used 50% time for rate activity and 50% time for other activities should be listed as 50% time.
2. Useful life of the equipment can be found from the UCOP useful life calculator located at http://eulid.ucop.edu/ . You can search by description, the first letter of the commodity code or a key word.
3. Modify the Depreciation Worksheet to conform to your Program year. (Either fiscal, calendar or other 12 month period).
4. List depreciation total on Rate Calculation Worksheet. (Does not automatically populate).
1. Utilizing financial reporting system, complete the first two columns of the worksheet (Previous Year Budgeted and Actual) with the budget and expenditures amounts in each category listed.
2.Complete the following three columns with the budgeted amount for the current fiscal year, the actual expenditures and income/recharges to date and the year-end projected amounts.
3. Complete the proposed year column with the expenses and income/recharges from the rate calculation and budget worksheets.