Alternative methods: To the extent possible, federally funded activities will not use the complementary service; or timely reimbursement of federal contract and grant activities up to the amount of non-recoverable costs charged in top-up tariffs (see Federal Rebate Proposal 9). THE COSTS INCLUDED IN THE ADDITIONAL TARIFFS MUST BE REASONABLE: • The costs are generally recognized as necessary for the operation of the supercharge. • Cost incur is in accordance with the organization`s policies and practices. • The nature of the costs and the amount are reasonable for the services provided. • Depreciation, renewal and replacement reserves In general, the stock of equipment allocated to the load activity is amortized. Depreciation charges should be included as a cost element in the calculation of the loading rate. Depreciation shall be calculated on a straight-line basis, unless it can be demonstrated that another method is more appropriate. A depreciation reserve fund is established to be used for the replacement of equipment and credited to the amounts invoiced to operations for depreciation expenses (see definition of equipment to be depreciated). • Equipment purchased with funds purchased from 199xx onwards cannot be included in the amortization plans used for federal top-up rates because it is already included in the campus overhead rate calculated for contracts and grants. • Equipment purchased with federal funds may not be included in the depreciation schedules used for federal recharge rates. • Working capital reserve The financing of the current needs of ancillary and service enterprises, such as inventory or receivables, as well as capital requirements such as equipment, structures and renovations, may be provided by the establishment of a working capital reserve.
Funds for capital requirements (beyond the amount made available through depreciation) can be accumulated by setting prices above costs in order to build up reserves. Funds for current needs may be cumulated and must be earmarked for a specific purpose. • These accumulated contingency funds shall not exceed two months of operating expenditures. If a charging operation is to cover more than two months of operation, a justification must be submitted with the charging package. • The inclusion of working capital reserve accumulation costs in loading rates for the federal government is not permitted. The federal government does not accept a mark-up above cost, even if the purpose of the mark-up is to accumulate funds for the replacement or addition of equipment or for inventory expansion. • The accumulated working capital surplus is not included in the calculation and budget for the following year. • The accumulated income from the working capital reserve must be transferred to a separate reserve fund.
• Excess reserve for external revenue Reserves from external users of the additional service exceeding the full direct costs are allowed and must be separated from operating balances. Net profit at year-end (after depreciation and amortization, working capital and excess reserves recognised for external revenue and transferred to certain reserve funds) remains in FOAPAL operating balance to offset future operating expenses. Interim arrangements for events that cannot be predicted with certainty as to the timing, intensity or certainty of their occurrence are not permitted.) DEFINITION OF RECHARGE: A top-up is defined as «the cost charged to a university department for certain goods or services provided by another university department». Reloads funds and expenses from one department to another without increasing overall campus funding. CALCULATION OF TOP-UP BENEFIT: The top-up rate is equal to the cost of providing the goods or services divided by the number of service units to be provided. If goods or services are purchased externally and invoiced/sold internally, the external purchase must be coded with activity 00. The subsequent internal transaction should be invoiced at activity 33. VAT on external purchases should, where possible, take into account the intended use of the service to which the final recipient is consigned. Not eligible for federal fund supplements: housing and out-of-pocket expenses for campus public servants; bad debts and fines or penalties; attendance or convocation fees; interest or financing expenses; membership in civil, community or social organizations; provisions for contingencies or extensions; purchase of inventory equipment; costs of federally funded items; the activities of elders; entertainment (alcohol, tickets, flowers, gifts, etc.); Donations or contributions.
The following costs are eligible only if they are directly related to the federal project: legal fees, student activity fees, and advertising and public relations work (see OMB Circular A-21). THE COST ELEMENTS OF THE COMPANION KIT MUST BE ELIGIBLE AND DIRECT: • SALARIES AND BENEFITS • SUPPLIES AND SERVICES • EQUIPMENT/FACILITY RENTAL COSTS • DEPRECIATION OF STOCK EQUIPMENT • ADMINISTRATIVE BILLING COSTS • REPAIR AND MAINTENANCE COSTS LOADING SURPLUSES AND DEFICITS: SURPLUSES AND DEFICITS OCCUR WHEN ACTUAL COSTS AND/OR UNITS PROVIDED DIFFER FROM THE ESTIMATES USED TO CALCULATE THE Phrases have were used. and are expected in each fiscal year of a complementary activity.
