The following items should be given special attention when performing review of proposed rate schedules. To ensure compliance with University rules and Federal regulations and to avoid future audit disallowances, the review should evaluate each proposed rate schedule and all supporting documentation. In addition, all fee and rate schedules are subject to periodic audit by Campus and System Internal auditors and Federal and State auditors. Costs charged to a particular service unit should only be for goods or services directly identifiable to that operation. Depreciation may be recovered only on non-federally funded equipment.
Depreciation starts when the chargeback is established for the remaining useful life.
The cost is adjusted to the useful life date. Proper accounting of expenses should be followed to assure matching expenses and revenues. Conversion should be undertaken to be effective the next fiscal year. Internal transfers should be made monthly, or quarterly at a minimum. This will ensure regular charges to the grants and contracts and keep operating deficits at a minimum.