You’ve just received an email confirmation that your brand-new 3E fund is set up and ready to go. You log into Banner, see the zero balances, and wonder, now what? Here’s what you need to know.
Step 1: Get Your Training In
3E funds are designed to support internal customers—your colleagues, departments, and grants across campus. Because of this, they follow specific university policies and federal guidelines to ensure compliance and sustainability.
To get you up to speed, we offer essential training opportunities:
- If you’re listed as a financial manager, you were required to complete the Service Activity Basics course before your fund was approved.
- The rate calculation contact will receive an email from SGC with instructions to complete the Service Activity Advanced course within six months. This hands-on course, offered frequently, walks you through preparing a proper rate calculation.
Taking advantage of these trainings will set you up for success and make managing your fund much easier.
Step 2: Prepare Your First Rate Calculation
Now that you’re equipped with the basics, it’s time to dive into the numbers! The heart of any service center is its rate calculation. At its core, a well-calculated rate helps ensure that your service center breaks even.
Since this is your first year, your calculations will be based on projections. When you submitted your fund request, you were asked to complete a miniature rate calculation and provide a three-year budget. Ideally, you used the rate calculation template to input these estimates, but now it’s time to refine your numbers. After monitoring your activity, your adjusted rate calculation based on actual costs should factor in adjusted fund balance, equipment depreciation, and other key costs, such as expenditures and salaries. This step ensures your rates are fair and compliant.
Step 3: Maintain, Maintain, Maintain
A well-maintained 3E fund is a healthy 3E fund! To keep things running smoothly, be sure to:
- Track expenditures carefully to ensure funds are being used appropriately.
- Track usage base to reflect current operations. Ensure that all activities have actual usage represented in the available lines of service.
- Bill your customers regularly to maintain cash flow.
- Review your rates to confirm you are staying within breakeven parameters and make necessary adjustments.
Taking these steps will ensure that your service center remains sustainable and in compliance.
Step 4: When in Doubt, Reach Out!
Running a 3E fund comes with a lot of moving parts, but you don’t have to figure it all out on your own. SGC is here as your partner! If you ever have questions about your fund, need guidance on rates, or just want a second set of eyes on your numbers, we’re happy to help.
