Imagine this, you know that some of your service fund’s expenditures, such as materials, supplies, or repairs might increase significantly next year. A brand-new $10,000 maintenance agreement tied directly to your service fund is going to be put into place next fiscal year. You even have a purchase order to support this large increase in expenditures!
What Can Be Included As A Projection?
Generally, projections can be included for any:
• Significant non-personnel expenditure changes,
• Significant salary and wage changes,
• Signficant fixed asset depreciation changes,
• And/or signficant base changes.
Just remember, the key word here is significant.
Before projecting any expenses, consider these questions:
- Q: Is this new cost a meaningful operational change?
- A: If yes, it may be appropriate to project it into the rate.
- Q: Do you have documentation showing this expense will occur soon?
- Q: Did a significant expense occur in the past that will no longer happen?
- A: If so, remove it from the calculation.
Contact
If you have any questions, feel free to contact us at obfsgcocosting@uillinois.edu or visit the Service and Storeroom Centers page for more information.
