THE VSC MECHANICS OF DETERMINING COSTS AND RATES DIRECT COSTS + INDIRECT COSTS = FULL RATE -DIRECT LABOR & NON-LABOR WITHIN THE VSC. -FEDERAL COST RECOVERY RATE -DETERMINED BY THE VSC -UTILITIES, ELECTRICITY, WATER, BUILDING -DEBT SERVICE, F&A OVERHEAD, -SPECIFIC TO ONLY ANIMAL USERS/RESEARCHERS -SPECIALIZED SERVICE CENTER IDC -DETERMINED BY THE UNIVERSITY / MED SCHOOL, NEGOTIATED WITH THE FEDS -CONSISTS OF THE DIRECT COSTS + THE INDIRECT COSTS TO MAKE THE FULL RECOVERY RATE.

Activity based costing – vsc’s cost model

FY2013 EXAMPLE OF DETERMINING PER DIEM -Services that go into Zebrafish -Care days: 21,900 / 365 days = 60 tanks -Each category is divided by the care days to determine the daily costs. -Rate setting is the science and art of pricing a daily rate at the beginning of the fiscal year that will ensure cost-recovery by the end of the fiscal year.

https://www.coursera.org/learn/managerial-accounting/lecture/LnIEF/the-difference-between-financial-and-managerial-accounting

Our regulatory structure Title 9 – Animals and Animal Products Title 2 of the Code of Federal Regulations (2013). Federal Circular A-21; A-133 (reformed in Title 2 Uniform Guidance) ; and Title 9 All Federal agencies that sponsor research and development and training. Cost principles will be used as a guide in the pricing of fixed price or lump sum agreements. Financial compliance to cost accounting standards. Other resources like the NIH’s Rate Setting Manual, 2000. Local State & County Requirements University Policy & Procedures (APLAC/IACUC) Research Protocols Procurement / Bidding Guidelines (private vs. public institutions) Reporting / Compliance Requirements USDA & Industry Guides Internal / External Audits letters and exceptions/recommendations.

VSC Cost modeling modules: R  A  CO

Labor time study - example

Labor study – by species and activity

Non-labor assignment of costs

Escalation/INFLATION And the cost-increases of per diem