Last month, System Government Costing (SGC) introduced you to rate calculations. This month, we are sharing 10 practical tips to use while preparing your rate calculations.
1. Create a Specific Folder
Set up a dedicated folder for all things rate calculation. Whether it's on your local drive or Box, having one place for projected purchase orders, time studies, and other support makes it easy to start the process.
2. Download the Latest Template
SGC regularly makes improvements to the rate calculation template, so grab the latest version before starting on this year's rate calculation.
3. Take a Tour
Sometimes the best way to understand a service activity is to see the process firsthand. Walking through the operation can help you flag things to include in the rate, like equipment.
4. Take Training Classes
SGC offers many training opportunities like a high-level self-paced course, as well as a deep-dive template-driven course. You'll even meet the experts you can turn to in the future.
5. Reconcile Monthly
It's easy to save this for later, but staying on top of your transactions helps you catch any pesky rogues early on. Set a monthly calendar reminder or look for the BusFin Mobius View statement emails.
6. Pay Attention to Account Codes
The latest SGC EDDIE report uses conditional formatting to flag specific account codes. Review all your expenditures thoroughly and pull together supporting documentation for any flagged account codes.
7. Automate Allocations
If your fund supports multiple lines of service, consider using program or activity codes to keep track of expenditures. Bonus tip: Set up generic activity codes for supplies or items that benefit all lines of service.
8. Add Supporting Worksheets
Treat the rate calculation template as your one-stop shop for all your supporting documentation. Time studies, projections, notes, base support, and fund balance history can all live in the file.
9. Fully Load the External Rate
Remember, while your primary users are University of Illinois departments, you may have also offered services to external customers. Don't forget to tack on expenditures to the external rate like non-3E salaries, fully depreciated equipment, or advertising expenses. Just remember that anything you add must directly support the activity.
10. Post the Calculated Rates
You've gone through the effort of calculating your rate; now make sure to communicate and publish your final rates! Some departments choose to wait until a fiscal or calendar year to update their rates—but giving your customers advance notice helps them plan more efficiently.
Contact
If you have any questions, feel free to contact us or visit the Service and Storeroom Centers page on the BusFin website.
