At a minimum a review of the rate calculation for a service center under $2 million must be completed annually ($2 million and above must be completed biennially) and submitted to the RF’s Assistant Controller for Related Entities to ensure any resulting surplus or deficit is carried-forward into the next year’s rate calculation. The analysis must include the variance between revenue and actual costs for the period.
Periodic (e.g., semi-annual) variance analysis is encouraged to minimize large variances at fiscal year-end. Rates may be adjusted mid-year based on periodic analysis.
To facilitate the variance calculation, revenues and costs should be identified (accumulated in the RF/CUNY First account) by product/service. Each unit must have its own dedicated account number into which all revenues and costs are recorded.
Year-end transactions that transfer funds to remove deficits must be flagged to ensure exclusion from the F&A rate calculation. The RF must be notified of any such transfers.