What Is the Usage Base?
The base (also known as usage base or base detail) refers to the total number of measurable service units provided to customers during a specific period—typically the most recently completed fiscal year. Each “unit” in the base corresponds to how the service is delivered or billed—such as per hour, per test, per item, per sample, or per square foot.
Why Usage Base matters?
Establishing an accurate usage base is not just a best practice - it's a compliance requirement. By clearly identifying, documenting, and tracking your unit's base, you help ensure the financial sustainability of your services and the integrity of university financial operations.
In accordance with the university Policies & Procedures, and as emphasized by System Government Costing, service centers must maintain detailed, auditable records of usage.
Minimum required base documentation includes:
- Date the service was provided
- Quantity of units delivered or consumed
- Customer receiving the service
- CFOP (Chart-Fund-Organization-Program) code or equivalent account used
This documentation supports the base value used in the rate calculation and is crucial during audits and annual rate reviews.
More In-Depth
We encourage you to take our Service Activity Basics and Service Activity Advanced courses to expand your knowledge on these topics. Whether it be learning the lingo or understanding which funds are allowable for which types of customers, we’ve got you covered in our trainings!
Contact
Contact us if you have any questions – System Government Costing is always here to help with your rate calculation needs!
