1. Jennifer Bunge Joni Rippee Debra Driskill
ANR Research and Extension Center System Rate and Recharge for WRAOM 2017
Jennifer Bunge
Joni Rippee
Debra Driskill

2. ANR Research and Extension Center System
Geographically diverse- covering just about every ecosystem across the state
Intermountain-140 acres
Sierra Foothill-5,700 acres
Hopland-5,300 acres
Kearney-330 acres
Lindcove-175 acres
Westside-320 acres
Hansen-27 acres
SouthCoast-200 acres
Desert-255 acres
Total = > 12,000 acres
9 Research Centers mangaged

3. Budget Reductions/constant rising costs.
85% of Operating budget in salaries
Increase demand for research
Method of charging for services that conforms to Policy
Why Rate and Recharge

4. Guiding Principles UC PPM 340-25 Recharge Activity
Business & Finance Bulletin A-56
OMB- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly A-21)
Contract & Grant Manual

5. How to Develop a Recharge Rate
Identify costs to be included in cost pool. Allowable costs normally include but are not limited to:
Salary, wages and benefits
Supplies and services
Cost of leased non-capital equipment
Equipment depreciation
Administration costs of recharge unit (if not included in indirect cost rate)
Repairs and maintenance

6. How to Develop a Recharge Rate
Unallowable costs
Costs of capitalized renovations or leasehold improvements
Internal interest expense
Bad debts
Fine/penalties (except in compliance)
Inventorial/capital equipment purchases
Fund raising expense
Contingency reserves

7. How to Develop a Recharge Rate
Unallowable costs continued
Cost paid by Federal Government
Alumni activities
Entertainment (alcohol, event tickets, flowers, gifts, etc.)
Donations/contributions
Memberships/civic/community/social org.
Abnormal (non-operating) deficits

8. How to Develop a Recharge Rate
Direct charges for costs that have been included in an indirect administrative cost pool are unallowable costs to federal customers.
Example: Research administration services historically paid from funds.
The Federal Government doesn’t like to pay twice!

9. How to Develop a Recharge Rate
Inventoried/capital equipment with useful life > 1 year and value > $5,000 shall be depreciated on a straight line basis.
Recommended useful life can be found in CAMS or at
Useful lives other than those in the UCOP tables should be noted on the self certification form and coordinated with Financial Services.

10. How to Develop a Recharge Rate
Depreciation expense is included as a cost in the rate development, except when:
Equipment is funded by the federal government
Equipment is funded by an incomplete private contract or grant
Equipment is identified as cost sharing to a federal research project

11. How to Develop a Recharge Rate
Through depreciation entries a reserve fund is established.
Entries should be done preferably monthly, but at least annually.
Equipment reserve funds should be used to purchase replacement equipment needed for the recharge operation.

12. UC-ANR Research Rates
2009 Established Rate process aligned with UC Recharge Policy and OMB A21 Circular
Required Center management to review Operating Budgets and understand which costs directly support research.
Rolled out the process one Center at a time.

13. Rate and Recharge Process
Each Center determines Rates annually based on Research Program year.
Only costs directly associated with research project support are included. Unit of measurements are specific to the type of research.
All Rates are reviewed by a Committee that includes Research Project Investigators with recommendations to Associate Vice President, Business Operations.
Centers are expected to break-even.

14. STEP BY STEP INSTRUCTIONS
Plan
Step 1 Determine if a Rate is Needed But is it a Recharge Activity Step 2 Determine Activity Scope Identify Direct Costs Step 3 Develop the Rate
Submit
Step 4 Submit to Control Unit Step 5 Greater than 15K in Revenue? Step 6 Control Unit Submits to Rate & Recharge Committee
Implement & Monitor
Step 7 Establish Account Step 8 Post Rate & Notify Users Step 9 Implement Accounting Process Step 10 Implement Billing Process Step 11 Monitor Your Rate Step 12 Is Rate Covering Cost?

15. STEPS FOR CREATING A RATE
Step 1 Determine if a Rate is Needed - What is our mission? Is there a sound business case supporting the activity. - Are services identifiable and provided on a regular and continuing basis? - Can rates be stated in measurable units of goods or services? (per acre, labor hour, per project)

16. Step 2 Determine Activity Scope Identify Direct Costs-Those costs that can be directly and consistently traced to the product or service of the activity. Personnel-Salary and benefits -include anticipated salary increases Supplies -irrigation water, fertilizer, fuel for tractors -maintenance and minor repair of equipment Equipment Depreciation

17. Step 3 Develop the Rate
Determine Unit of Measurement
per acre, labor hour or per project.
List the research projects for program
year.
Include all direct costs
Include any deficit or overage from previous year.

18. Rate Methodology-Full Cost Rate
Total Operating Cost to Directly Support Research
Personnel + S&E + Depreciation
Divided by number of total unit of measurement = Full Cost Rate
This rate will be charged to non-UC affiliated researchers.

20. Estimate supply expense

21. Equipment Depreciation

22. Rate Calculation Sheet

23. Rate Calculation sheet part 2

24. CHALLENGES

25. Rate and Recharge web site http://ucanr.edu/sites/recharge/
Training, resources, step by step instructions
Resources
Forms
FAQ’s
Rate Preparer Assessment
“Understanding Rate and Recharge” video

26. THANK YOU
Debra Driskill, Business Manager –Research & Extension Center System
Joni Rippee, Director Program Planning and Evaluation:
Jennifer Bunge, Director Resource, Planning and Management :