1. Definition of a Service Center/Core
And Establishing an Earnings Operation
David Phillips
Center for Clinical and Translational Science (CCTS)

2. Service Center Core
A Service Center Core is defined as a centralized, shared resource that provides scientific and clinical investigators with access to services; instruments; technologies; cellular, animal or human study support; and expert consultation.
Small Animal Imaging

3. Establishing and Running A Service Center Core
It is established by submitting a New Earnings Operation Request form through the Resource Planning Office
The request must be approved by the college or support unit’s senior fiscal officer and submitted at least two months before the proposed start date.
It is federally COMPLIANT and has established cost principles as defined for “Service Centers” in Uniform Guidance, Subpart E (§ ).
The recharge rates are run through an approved university earnings fund with financial oversight responsibility from the Resource Planning Office and the Office of the Controller.

4. Establishing and Running A Service Center Core
Each year (biennially per OMB) new or updated recharge rates must be resubmitted to the Resource Planning Office via or PeopleSoft Financials.
It is run by a director or manager who oversees the day-to-day operations.
It has an open door policy that includes access for all investigators and is open to new business.

5. Typically but not always a Service Center Core has
scientific and/or clinical investigators who utilize it each year be from a minimum of three different departments or centers.
an advisory or oversight committee associated with it.

6. OSU Guidelines for Earnings Operations
Specifically, Part VI-Customer Type/Operating Surplus/Fees & Charges
Request New Earnings Fund
Forms required annually by Financial Planning and Analysis
Surplus/Deficit Guidelines

7. Request for New Earnings Fund
New Earnings Operation Request

8. Request for New Earnings Fund - New Fund

9. Request for New Earnings Fund – New Fund Continued

10. Request for Establishment of a New Earnings Operation
A. Earnings Fund Name:
Owner Org: Proposed Start Date: 07/01/16
B. Description of product(s) or service(s) to be provided:
Medical Physics Program focusing on ensuring regulatory compliance and certification of imaging equipment within the Medical Center, the James, and third-party sites; optimizing imaging technical, quality and safety requirements; and monitoring of safe medical radiation doses and medical radiation safety to patients, University health care employees, and third-party health care employees due to imaging activities
C. Description of the potential customers, including any external users:
OSUWMC, the James, and third-party sites
D. Projected Level of Activity:
Estimated level of activity (volume) for the full fiscal year. E.g., hours of usage, estimated no. of copies, no. of samples, etc. Describe your assumptions.
Have MOU in place to receive up approximately $282k in support from the Health System and the James to support salaries/benefits of Chief of Medical Physics and three Medical Physicists. In addition, anticipate external work for regional health systems outside of OSUWMC.
E. Cost Details
Use Cost Details tab to provide details of budgeted amounts for salaries, equipment depreciation, and other costs. Provide sufficient detail to allow reviewer to verify that projected expenses are both reasonable and complete.
No unallowable costs may be budgeted to an earnings operation.

11. Rate calculations will be covered in the next session!

12. Earnings Operation Cost Details
Provide details below of budgeted amounts for salaries, equipment depreciation, and other costs. Provide sufficient detail to allow reviewer to verify that projected expenses are both reasonable and complete.
No unallowable costs may be budgeted to an earnings operation.
FY15
FY16
Salary
Benefits
Total
Layman, Rick Yang, Xiangyu Zhang, Jun
Medical Physicist (TBD) Medical Physicist (TBD) Office Associate
Computers Capital Equipment Conference Miscellaneous Equipment Repair Liability
Total Estimated Expenses
$ 104,526 $ 30,940
$ 49,280 $ 14,587
$ 11,457 $ 3,391
$ 32,853 $ 9,725
$ 75,250 $ 22,274
$ 5,642 $ 2,578
$ 135,466
$ 63,867
$ 14,848
$ 42,578
$ 97,524
$ 8,220
$ 107,662 $ 31,868
$ 50,758 $ 15,024
$ - $ -
$ 155,015 $ 45,884
$ 11,623 $ 5,311
$ 139,530
$ 65,783
$ -
$ 200,899
$ 16,934
$ 362,503
$ 6,000
$ 5,208
$ 7,675
$ 2,000
$ 5,000
$ 1,000
$ 488,929
$ 3,000
$ 13,000
$ 12,000
$ 26,883
$ 389,385
$ 36,000
$ 524,929

13. Earnings Operation Capital Assets
Attach below a list of all capital assets that will be used in the earnings operation. Include asset IDs.
Description Vendor
Reference
Price
Asset ID
Nested CT Dose Phantom Kit for Pediatric/Adult Head Fluke
& Body including carrying case w/ wheels and pull handle for Dept of Radiology, Division of Medical Physics
Physics Meter
Electronics Corporation
Radcal
259004AA34
$ 5,
TBD
$ 13, TBD

14. Template to the right is the annual operating plan
Template to the right is the annual operating plan. The template for this is included on the jump drive.
Yearly Requirements
FY 2017 Projected Annual Operating Plan
College/Office Name: Earnings Operation Name: Fund:
Person Completing Form: Phone Number:
College of Medicine
Division of Medical Physics
Annual Operating Plan and Recharge Rates – same spreadsheet
Proposed Budget
TBD
Kevin Crofoot
FY 2014
Proposed
FY 2015
Proposed
BEGINNING CASH $0 $0
SOURCES
Temp Invest Income Sales/Operations Interdepartmental Billings General Funds Support
$30,000
$40,000
$361,467
$488,881
Total Operations Total Sources
$391,467
$528,881
USES
Personnel Benefits
Supplies & Services Cost of Sales
Equipment Depreciation Non-Capital Equipment Physical Plant
Debt-Service Overhead
$279,008
$375,816
$83,495
$113,113
$15,675
$20,000
$372
$1,673
$6,000
$3,000
$5,208
$13,000
$1,710
$2,280
Total Expenses
$391,467
$528,881
NET TOTAL OPERATIONS $0
($0)

15. OSU Guidelines for Earnings Operations
Customer Type – Needed for rate reporting
Earnings operations can have one or more of the following customer types:
Faculty/Students/Staff
University Departments
Sponsored Grants and Contracts
General Public
Private Corporations

16. FY 2017 Fees and Charges
College/Office Name: Earnings Operation Name: Fund:
Person Completing Form: Phone Number:
College of Medicine
Primary Customer Types:
(click on appropriate boxes)
Faculty/Staff OSURF General Public
Univ. Depts Students Private Corp.
Division of Medical Physics
TBD
Kevin Crofoot
Description
FY 2014
FY 2015
Amount
Basis
Radiographic Evaluation
$225.00
Annual
$232.00
Retesting
Fluoroscopic Evaluation
$250.00
$258.00
Single Plane Cath Laboratory Evaluation
Bi-Plane Cath Laboratory Evaluation
$500.00
$515.00
IR Single Plane Evaluation
IR Bi-Plane Evaluation
Mammography Evaluation (includes Program Audit)
$1,200.00
$1,236.00
Mammography Evaluation
MRI Evaluation (includes Program Audit)
$1,700.00
$1,751.00
MRI Evaluation
$800.00
$824.00
CT Evaluation (includes Program Audit)
CT Evaluation
PET / CT Evaluation (includes Program Audit)
$1,600.00
$1,648.00
PET / CT Evaluation
SPECT / CT Evaluation (includes Program Audit)
$2,800.00
$2,884.00
SPECT / CT Evaluation
$1,000.00
$1,030.00
Gamma Camera (single) Evaluation
$2,000.00
$2,060.00
Gamma Camera (dual) Evaluation
Gamma Camera (triple) Evaluation
Mammography Program Audit
per add'l site
MRI Program Audit
CT Program Audit
PET / CT Program Audit
Nuclear Medicine Program Audit
Design (Diagnostic) Shielding
Evaluation (Diagnostic) Shielding
Hourly charges for Medical Physicist services
$150.00
hourly
$155.00
Ultrasound
Fetal or Patient Dose calculations (per patient)
per patient
Report Rates Annually
Recharge rates are required to be reported to the University annually
Manually enter them in Peoplesoft or…
Send them a spreadsheet

17. PeopleSoft Earnings Release of Approved Budgets
Budgets are reported to the University annually. This is the University document. The Medical Center and the College of Medicine use Business Objects. This template is included on the jump drive.
PeopleSoft Earnings Release of Approved Budgets
Release of Approved Budget Spreadsheet Template

18. OSU Guidelines for Earnings Operations Operating Surplus (Deficit)
--Permitted only under certain circumstances:
When the primary customer is the general public, a private corporation, university employees or students acting as the general public
and there is reasonable marketplace competition
or, in the case of conference offerings, when it is stated on the registration form
--Not allowed when the primary customers are funded by sponsored grants and contracts or departmental budgets
These operations must be “revenue neutral”
fees are set to cover the cost of the services or goods provided but not to generate a large surplus
Cash balances should not exceed sixty (60) days working capital, excluding depreciation
operating surplus that does occur may not be transferred to another fund to subsidize other activities
if have operating cash balances at the end of the fiscal year that exceed 17% of their net operating expenditures
must adjust their fees for the following year, factoring in the net over- recovery to ensure that charges reflect true cost recovery