Recharge Kick-off Meeting Recharge Activity Review Process for

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1 Recharge Kick-off Meeting Debra Fry Executive Director, Operating Budget and Recharge Review Gabriella Hato Manager, Recharge Review Sarah Hislen Analyst, Recharge Review Charet Wynn Analyst, Recharge Review January 18, 2018

2 The focus of today s open house will be to: Review highlights, changes, and improvements for the review process for Enhanced training Updated website Rolling submission deadlines and extended approvals Updated proposal forms including automation Provide an overview of the Recharge Review Service Level Agreement Review the enhanced Recharge Renewal Form 2

3 UCSF s Recharge Review Unit is part of Budget & Resource Management and has three staff members dedicated to reviewing and approving rate proposals for the campus Michael Clune Associate Vice Chancellor Budget & Resource Management, Risk Management and Insurance Services Debra Fry Executive Director Operating Budget & Recharge Review Gabriella Hato Manager Recharge Review Sarah Hislen Analyst Recharge Review Charet Wynn Analyst Recharge Review 3

4 Enhanced Recharge Training Recharge Basics Classroom Training January 24, :00 AM 4:00 PM Mission Hall Room 1401 Recharge Review Open House February 21 and 22, :30 AM 4:00 PM 654 Minnesota Street Recharge Review revised website Updated Job Aids and FAQs 4

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8 Recharge Activity Proposal Review Process Highlights Enhanced Submission Timelines Renewal proposals for activities with an approval expiring on June 30, 2018 are due February 26, 2018 A rolling deadline schedule was provided to all departments with multiple recharge proposals up for renewal Extended approvals were issued to all activities that were up for renewal that had no identified compliance issues in the Annual Monitoring Report 8

9 Recharge Activity Proposal Review Process Highlights Revised proposal packages were created for recharge activities based on the type of review and approval: 1. Renewal: Macros have been added to populate the plan (Proposal Page 3) automatically. A reconciliation tab has been added to assist in reconciling and applying the prior year balance(s) across services. A rate calculation tab has been added to include the rate methodology and calculation. 2. New: A new abbreviated proposal package has been created to include only the information needed for starting a new recharge activity. 3. Rate Change: A new rate change package has been developed to assist proposal preparers in determining appropriate documentation to submit when adjusting approved rates during a multi-year approval. 4. Discontinuation: A new discontinuation package has been created to assist proposal preparers in completing the process steps to formally close a recharge. 9

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11 Recharge Review developed a Service Level Agreement to provide transparency within the recharge review and approval process The purpose of the Service Level Agreement is to: Provide a clear and concise understanding of the service procedures and responsibilities that contribute towards the management of the recharge rate review and approval process Document the review and approval process for rate proposals in accordance with federal, UC-wide and UCSF policies. This ensures: Recharge Review s ability to maintain service level requirements Client department compliance with UCSF and federal regulations Risk minimization of disallowed charges on federal awards 11

12 Service Level Agreement Description of Services The Recharge Review team provides the following services: Rate Proposal Review Recharge Policy and Guidance Manual Recharge Rate Development and Submission Annual Recharge Activity Monitoring Report Training and Job Aids 12

13 Service Level Agreement - Partnerships and Service Level Expectations The Recharge Review team provides review and final approval to all UCSF sales and service center proposals and rates prior to charging out for the services provided. Benefits of Service Level Agreement: Improve compliance Clearly define roles and responsibilities Facilitate improved service delivery Strengthen partnership between client department and Recharge Review Provide a clear framework to monitor performance and service quality 13

14 The Recharge Institutional Risk Matrix is used to determine recharge activity risk level based on the total annual plan and anticipated percentage of federal fund participation 14

15 Recharge approval duration is tied directly to the institutional risk matrix, allowing the Recharge Review team to focus more effort on higher institutional risk recharge activities 15

16 The Recharge Review and Approval Process consists of 3 types of reviews: Functional Review: Financial Review: Evaluates the need for the services to ensure efficient utilization of department resources Evaluates the financial viability of a proposed recharge when proposing the recharge function and cost recovery mechanism Compliance Review: Validates that the recharge activity and rate methodology are compliant with University of California and federal policies, regulations and requirements 16

17 Recharge Proposal Submission Dates and Procedures NEW Recharge Activities Type of Proposal New recharge activities Submission Due Date Two months prior to start date What to Submit Category Submit to Completed New Recharge Proposal Form Category 1 Category 2 Submit directly to Recharge Review for functional, financial and compliance review, and copy to control point Submit to control point for functional and financial review, receive user committee approval if needed, then control point will forward proposal to Recharge Review for a compliance review and final action 17

18 Recharge Proposal Submission Dates and Procedures Recharge Activity RENEWALS Type of Proposal Recharges that have an approval through and require renewal for Once approved, rates will become effective July 1, 2018 Submission Due Date Between January 2, 2018, and February 26, 2018* What to Submit Category Submit to Completed Renewal Proposal Form Category 1 Category 2 Submit directly to Recharge Review for functional, financial and compliance review, and copy to control point Submit to control point for functional and financial review, receive user committee approval if needed, then control point will forward proposal to Recharge Review for a compliance review and final action * renewal proposals submitted after the February 26, 2018 or other assigned deadline are not guaranteed to have their rates reviewed and approved in time to go into effect at the start of the next fiscal year. 18

19 Recharge Proposal Submission Dates and Procedures RATE CHANGE for an approved Recharge Activity Type of Proposal Recharges that have an approval through or later that wish to change only their recharge plan or rates Submission Due Date Between Apr 16, 2018 and May 31, 2018* What to Submit Category Submit to Completed Rate Change Request Form Category 1 Category 2 Submit directly to Recharge Review for functional, financial and compliance review, and copy to control point Submit to control point for functional and financial review, receive user committee approval if needed, then control point will forward proposal to Recharge Review for a compliance review and final action * rate change requests submitted after the May 31, 2018 deadline are not guaranteed to have their rates reviewed and approved in time to go into effect at the start of the next fiscal year. 19

20 Recharge Proposal Submission Dates and Procedures DISCONTINUATION of an approved Recharge Activity Type of Proposal Requests to discontinue recharges Submission Due Date One month following the end date What to Submit Category Submit to Completed Discontinuation Request Form Category 1 Category 2 Submit directly to Recharge Review for review and final action. Control point may be contacted to address activity net position (surplus/deficit) Submit to control point for review and action on activity net position (surplus/deficit), then control point will forward proposal to Recharge Review for final action 20

21 Recharge Proposal Submission Dates and Procedures TRANSFER OF OWNERSHIP of an approved Recharge Activity Submission of an approved Recharge Activity Type of Proposal Requests to transfer ownership of recharges Due Date One month before transferring ownership What to Submit* Category Submit to Request to transfer ownership, which includes: the effective date of the transfer a financial reconciliation of the recharge activity (Dept ID - Fund - Project net position) approval signatures from both department MSOs including agreement on terms of: recharge activity net position and personnel transfers transfer of reserve net position(s) if applicable a Dept ID provided by the new Department Category 1 Category 2 Submit directly to Recharge Review for functional, financial and compliance review, and copy to control point Submit to control point for functional and financial review, receive user committee approval if needed, then control point will forward proposal to Recharge Review for a compliance review and final action. *If there are changes in rates and rate methodologies, the new Department needs to submit a full proposal in accordance with the revised recharge review process (all Recharge Proposal forms). 21

22 Recharge Rate Review Roles and Responsibilities The following is the responsibility of the Recharge Review team: UCSF Recharge Review strives for the highest level of customer satisfaction. To ensure we deliver consistent, quality, timely service, UCSF Recharge Review commits to the following standards: Provide compliance review of Category 2 recharge proposals and financial, functional and compliance review of Category 1 recharge proposals Approve all sales and service center rates and establish Project IDs prior to providing services and billing to users Respond to customer requests for service via phone, or a consultation request, as specified in the completion time guidelines Provide rate proposal development assistance and/or resolve any pending review issues Assist departments in successfully achieving their business needs and meeting compliance requirements Promote a culture that reinforces roles and responsibilities and policies and procedures in order to support the campus need for compliance 22

23 Recharge Rate Review Roles and Responsibilities The following is the responsibility of the client departments: Obtain training required for recharge rate development and management of recharge activities Develop and submit proposal adhering to submission guidelines Respond to all outstanding rate review issues Obtain rate approval from Recharge Review prior to recharging to users Manage recharge activities according to management compliance standards 23

24 Recharge Rate Review Roles and Responsibilities Management of Recharge Activities Ensure compliance with UCSF recharge policy and applicable federal costing policies Maintain surplus/deficit balance within the allowable limit of one month (8.3%) of planned expenses Ensure that unallowable expenses are not posted on recharge projects Post all revenues and expenses to the appropriate accounts within the assigned chartstring(s) Transfer all planned equipment depreciation to renewal/replacement reserve fund on an annual basis at minimum Process recharge journals and invoices to all users on a monthly basis Reconcile all billing and revenue on a monthly basis Reconcile year end surplus and deficit balances for each service based on actual expenses and revenue Maintain all records necessary to support operations in accordance with university record retention requirement 24

25 Recharge Rate Review Roles and Responsibilities The following is the responsibility of the control point: Provide financial and functional review and approval for Category 2 recharge proposals and forward to Recharge Review for compliance review and final action Provide any questions or comments to Recharge Review within 2 weeks of submission for Category 1 recharge proposals Assist client departments in resolving outstanding issues and revising incomplete proposals for resubmission 25

26 Rate Proposal Review Process* Primary Responsibility Completion Time Guidelines Recharge Review manager assigns proposal to Review Analyst upon receipt of electronic submission Recharge Review analyst provides acknowledgement memo to department via Recharge Review analyst reviews recharge proposal and contacts department with all outstanding issues and provides department with 1 2 week deadline for their response Client department responds to recharge review analyst and resolves outstanding issues If no additional questions need to be addressed by department, Recharge Review analyst forwards proposal to recharge manager for final review. Recharge Review manager provides approval letter within 2-3 weeks of client unit answering all questions from Recharge Review team Recharge Review Analyst establishes and updates approval expiration dates for all Recharge and Sales and Service Activity Project IDs Recharge Review team Recharge Review team Recharge Review team Client department Recharge Review team Recharge Review team Within 1 2 days of receipt of electronic proposal submission Within 1 2 days of receipt of electronic proposal from Recharge Review manager Within 2 weeks from date received by Recharge Review Deadline provided by the Recharge Review analyst Within 2 weeks of final review a signed approval letter will be sent to client department with a copy to control point. Upon rate approval 26

27 Base Year Approval Model The Base Year Approval Model allows new rates to be reviewed and approved before the old rates expire Base Year Most recently completed fiscal year Preparation Year Rate proposals: Developed using base year financial information Reviewed and action is taken Rates are published in a timely manner for all users Implementation Year New rates take effect at the start of the fiscal year 27

28 Review of RENEWAL Proposal Form 28

29 Best practices for managing your recharge activity after your recharge proposal is approved Read through the terms and conditions outlined in the approval letter Track progress on a periodic basis to prevent significant over/under recovery of costs Address project deficits and surpluses as needed Adjust rates to reflect increases/decreases in total Recharge Unit operating costs or service volume that does not constitute a change in methodology Prepare monthly recharge journals Transfer planned depreciation to reserve fund annually, at minimum Provide an updated listing to Recharge Review anytime there is a change in capital equipment Reconcile financial activity on the recharge regularly 29

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