Knowing your service centers within the university system is paramount for seamless operations. These centers offer essential goods or services on an ongoing basis, ensuring the smooth functioning of many departments. These goods or services are primarily directed towards internal customers within the university system, guaranteeing their needs are met efficiently and effectively. By understanding the role and function of each service center, departments can optimize their resources and streamline processes, ultimately enhancing productivity and fostering a cohesive environment within the institution.
Within service centers, you should also understand the financial aspects of their operation. It is crucial to recognize that these centers must recover the costs of providing their services by charging fees to users. This means diligent tracking of usage/revenue and meticulous management of supporting costs. By implementing effective financial strategies, such as budgeting and cost analysis, service centers can ensure their sustainability while maintaining affordability for users. This financial awareness not only ensures the continued availability of essential services but also fosters accountability and transparency within the university system.
What You Need to Track: |
Billing & Revenue | Service centers need to track revenue to evaluate their overall performance. Comparing revenue over different periods helps in assessing growth, identifying trends, and making informed decisions about business strategies. |
Usage Base | The base must include all service users, and detailed supporting base documentation must be maintained. This can be tracked manually through spreadsheets or log books, as well as internal billing systems. |
Employee Time Tracking | The systematic, ongoing analysis of the time individual employees spend on the lines of service provided in a service center to allocate salary expenses appropriately. |
What is Considered a Supporting Cost: |
Materials & Supplies | The daily items needed to operate a service center for its primary purpose. |
Services | The maintenance contracts, repairs, or other services are needed to provide your product or services. |
Personnel Expenses | Wages and salaries paid to employees |
Equipment | Allocation of the cost of long-term assets over their useful life, including depreciation of assets such as machinery and other lab equipment |
Over/Under Recovery | Service Centers are required to break even over time. Therefore, any resulting over or under-recovery must be included as a cost adjustment. |
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