2017-18 Recharge Kick-Off Meeting...Recharge Kick-off Meeting Recharge Activity Review Process for 2017-18 January 18, 2018 Debra Fry –Executive Director, Operating Budget and Recharge

Recharge Kick-off MeetingRecharge Activity Review Process for 2017-18

January 18, 2018

Debra Fry – Executive Director, Operating Budget and Recharge ReviewGabriella Hato – Manager, Recharge ReviewSarah Hislen – Analyst, Recharge ReviewCharet Wynn – Analyst, Recharge Review

The focus of today’s open house will be to:

Review highlights, changes, and improvements for the review process for 2017-18• 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 2018-19 Recharge Renewal Form

1/18/2018Recharge Activity Review Process for 2017-182

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

3

Michael CluneAssociate Vice Chancellor

Budget & Resource Management, Risk Management and Insurance Services

Debra FryExecutive Director

Operating Budget & Recharge Review

Gabriella Hato Manager

Recharge Review

Sarah HislenAnalyst

Recharge Review

Charet WynnAnalyst

Recharge Review


Enhanced Recharge Training

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Recharge Basics Classroom TrainingJanuary 24, 2018 9:00 AM – 4:00 PM Mission Hall – Room 1401

Recharge Review Open HouseFebruary 21 and 22, 2018 8:30 AM – 4:00 PM 654 Minnesota Street

Recharge Review revised websiteUpdated Job Aids and FAQs


https://brm.ucsf.edu/recharge-review

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https://brm.ucsf.edu/recharge-reviewRecharge Activity Review Process for 2017-18

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https:/brm.ucsf.edu/recharge-callRecharge Activity Review Process for 2017-18

Recharge Activity Proposal Review Process Highlights

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 2018-19 renewal

Extended approvals were issued to all activities that were up for 2018-19 renewal that had no identified compliance issues in the 2017-18 Annual Monitoring Report

Enhanced Submission Timelines


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.

Revised proposal packages were created for recharge activities based on the type of review and approval:

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Recharge Activity Proposal Review Process Highlights

Recharge Activity Review Process for 2017-18

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https://brm.ucsf.edu/recharge-rate-proposal-formsRecharge Activity Review Process for 2017-18

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


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


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


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


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

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The Recharge Review and Approval Process consists of 3 types of reviews:

Functional Review: Evaluates the need for the services to ensure efficient utilization of department resources

Financial Review: 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


Recharge Proposal Submission Dates and Procedures

NEW Recharge Activities

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Type of Proposal SubmissionDue Date

What to Submit Category Submit to

New recharge activities

Two months priorto start date

Completed New Recharge Proposal Form

Category 1 Submit directly to Recharge Reviewfor functional, financial and compliancereview, and copy to control point

Category 2 Submit to control point for functional andfinancial review, receive user committeeapproval if needed, then control point willforward proposal to Recharge Review for a compliance review and final action



Recharge Activity RENEWALS

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Recharges that have an approval through 2017-18 and require renewal for 2018-19. Once approved, rates will become effective July 1, 2018

Between January 2, 2018, and February 26, 2018*

Completed Renewal Proposal Form

Category 1 Submit directly to Recharge Review forfunctional, financial and compliance review,and copy to control point

Category 2 Submit to control point for functional andfinancial review, receive user committeeapproval if needed, then control pointwill forward proposal to Recharge Review for a compliance review and final action

* 2018-19 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.



RATE CHANGE for an approved Recharge Activity

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Recharges that have an approval through 2018-19 or later that wish to change only their recharge plan or rates

Between Apr 16, 2018 and May 31, 2018*

Completed Rate Change Request Form

Category 1 Submit directly to Recharge Review for functional, financialand compliance review, andcopy to control point

Category 2 Submit to control point forfunctional and financial review,receive user committee approvalif needed, then control point willforward proposal to RechargeReview for a compliance reviewand final action

* 2018-19 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.



DISCONTINUATION of an approved Recharge Activity

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Requests to discontinue recharges

One monthfollowing the end date

Completed Discontinuation Request Form

Category 1 Submit directly to Recharge Review for review and final action. Control point may be contacted to address activity net position (surplus/deficit)

Category 2 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



TRANSFER OF OWNERSHIP of an approved Recharge Activity

of an approved Recharge Activity

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What to Submit* Category Submit to

Requests to transfer ownership of recharges

One month before transferring ownership

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 Submit directly to Recharge Review for functional, financial and compliance review, and copy to control point

Category 2 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).


Recharge Rate Review – Roles and Responsibilities

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, email or a consultation request, as specified in the completiontime 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

The following is the responsibility of the Recharge Review team:



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

The following is the responsibility of the client departments:



• 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

Management of Recharge Activities



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

The following is the responsibility of the control point:


Rate Proposal Review Process* Primary Responsibility Completion Time Guidelines

Recharge Review manager assigns proposal to Review Analystupon receipt of electronic submission

Recharge Review team Within 1‐2 days of receipt ofelectronic proposal submission

Recharge Review analyst provides acknowledgement memo todepartment via email

Recharge Review team Within 1‐2 days of receipt ofelectronic proposal fromRecharge Review manager

Recharge Review analyst reviews recharge proposal andcontacts department with all outstanding issues and providesdepartment with 1‐2 week deadline for their response

Recharge Review team Within 2 weeks from datereceived by Recharge Review

Client department responds to recharge review analyst and resolves outstanding issues

Client department Deadline provided by theRecharge Review analyst

If no additional questions need to be addressed by department,Recharge Review analyst forwards proposal to rechargemanager 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 team Within 2 weeks of final review asigned approval letter will be sentto client department with a copyto control point.

Recharge Review Analyst establishes and updatesapproval expiration dates for all Recharge and Sales andService Activity Project IDs

Recharge Review team Upon rate approval


Base Year Approval Model

Base Year

2016-17Most recently completed fiscal year

Preparation Year

2017-18Rate proposals:Developed using base year financial informationReviewed and action is takenRates are published in a timely manner for all users

Implementation Year

2018-19New rates take effect at the start of the fiscal year

The Base Year Approval Model allows new rates to be reviewed and approved before the old rates expire


Review of 2018-19 RENEWAL Proposal Form


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


Documents

2017-18 Recharge Kick-Off Meeting...Recharge Kick-off Meeting Recharge Activity Review Process for 2017-18 January 18, 2018 Debra Fry –Executive Director, Operating Budget and Recharge