Q: I am interested in offering a service to the research community. How do I start?
A: The development of shared resources and core facilities are part of the institution’s commitment to interdisciplinary research. If you are interested in running a core or service that would be available to the research community, please see the “Starting up a New Core” button on the homepage. In short, you will need to submit a business plan, obtain departmental and chief signoff and provide a financial back-up source.

Q: Can I run a deficit?
A: Cores are meant to operate at break-even or revenue-neutral and must be self-sustaining. With start-up cores, break-even must occur within the first two years of operation as stated within their business plan. They should not generate a significant surplus or deficit. A back-up fund must be provided upon commencement of the core to cover any deficits in excess of 20%. The core will be reviewed semi-annually and the appropriate course of action will be applied with regards to the timing and use of the back-up funding.

Q: What is a “back-up fund”?
A: A back-up fund is an appropriate departmental (or institutional) cost center or Peoplesoft number that is provided by the requesting department and documented as a “back-up” or “guarantee” fund to cover any un-resolvable fund deficits that may arise from the operation of the core. The back-up fund must be a non-federal, unrestricted departmental or sundry fund.

Q: Can we make a profit?
A: Cores should not generate a significant surplus in excess of operating expenses. Any excess funds generated should be used to lower user-fees or enhance Core services. A surplus generally does not exceed 20% and is generally the result of services provided commercially or to external users. Accumulated surpluses resulting from charges to internal users cannot be transferred out of the center to another fund.

Q: How is overhead handled?
A: When approved as a Core facility/Recharge Center, the recharge center will use the “direct cost” methodology and should be set up at a 0% overhead rate. The overhead rate assessed is based on the user’s source of funding. The invoice for “internal users” will only reflect the “direct cost” of providing that service.

Q: Can I depreciate equipment already purchased?
A: Depreciation is handled on a case by case basis and would be determined at the time the business plan is written.

Q: Can I charge different rates to different users?
A: As stated in the Federal Guidelines, charges should be based on actual usage and a schedule of rates that does not discriminate between federally and non-federally supported activities of the institution. Government users should never be charged more than the actual cost and charges must be based on costs that are allowable, allocable and reasonable. The application of the Policy and charges should be applied consistently across all users.

Q: Can I offer services to external users?
A: Some centers may provide services to both “internal” users (entity specific users) and “external” users (e.g. PIs whose labs and grants are at non-PHS organizatons such as Harvard, MIT, HFCI, etc.) Services can be offered to “external” users but a bundled fee including direct costs and overhead would be included.

Q: How long does it take to get a new fund established once the business plan is approved?
A: A new fund set-up generally takes approximately 2 weeks to process from the time the “New Fund Set-Up Application” and is signed off on and received.

Q: How often are the cores reviewed?
A: A basic review of each recharge cost center will be done semi-annually (e.g. prior to the fiscal year end close) so that significant variances can be addressed and resolved and not allowed to grow from year to year.

Q: How would profits be handled?
A: Accumulated surpluses resulting from charges to internal users cannot be transferred out of the center to another fund. They should be used to reduce “user-fees” in the next period.

Q: What kinds of expenses can I include in an administrative core?
A: You can include

• Administrative support staff who support research/grant operations but are not currently paid through these funds.
• Shared expenses including office supplies, Xerox/copies, shared equipment repairs and maintenance, training for administrative staff if directly related to providing administrative support.

Q: Can I set up pre-payments for charging investigators within the core group?
A: Charges for services should not be pre-billed or pre-paid and should be charged out after the service was incurred. Ideally, invoices should be generated on a monthly basis, however in certain circumstances quarterly invoicing is advised.

Q: What kinds of expenses are unallowable in a core?
A: This can be addressed on a core by core basis but as a general guideline – food, coffee, meals, gifts, parties and travel should not be included.

Q: How do I calculate the user-fees?
A: Recharge centers base user-fees on the direct operating costs of the core which include direct labor (salary and fringe of technicians and staff), operating supplies and materials, and other expenses such as service contracts or equipment leases. The user fees must reflect the actual cost of operating and must be assessed consistently to all users. Capital equipment depreciation (or capitalized lease costs) may also be included in rates in certain cases however these costs must be reviewed and approved by PHS Research Management contact person. However, depreciation on federally purchased (or shared) equipment is not included. A User-Fee Calculation template is available to help you with the unit costing of the service to calculate user-fees. It can be customized to your service.

Q: What are market rates and how do I obtain them?
A: Prices must be reasonable and competitive when compared with other institutions and commercial companies offering similar services. A sampling of 4-5 local academic institutions and commercial companies offering similar services and pricing should be included in your business plan. These market rates are then compared to the user-fees that are calculated based on your core’s direct expenses. You would obtain this information by contacting other institutions or performing a web search.

Q: How often should I be generating bills?
A:Users should be invoiced on a monthly basis. However, in the case where volume is small, quarterly billing is acceptable. PHS Research Management establishes cut off times (generally by the 1st of the month) to get current charges into the monthly close to ensure that charges are reported in a timely manner. The importance of charging on a timely basis cannot be overstated since it allows for proper monitoring by core center staff, users, and Research Management. This also helps to facilitate timely error correction and allows for on-time filings of FSRs to sponsors and reduces the need for retroactive cost transfers.

Q: Are there systems available to help with billing?
A: In an effort to standardize invoicing and billing, Research Management has developed a Core Invoicing System available on PC that will assist in monthly invoicing and receivables. Please call 617-726-4360 if you are interested.

Q: What % effort would be acceptable for directing a facility?
A: There is clearly a range but generally directors include between 0% - 15% with the average between 5-10%.

Q: How do I submit the internal charges to Research Management for processing?
A: The standardized Transfers and Journal Voucher Form should be used to charge and credit the Core Cost Center. The form is processed by Research Management as part of the monthly Peoplesoft G/L close for that period’s activity. These forms are available clicking the “Forms” button on the homepage.

Q: What Peoplesoft Account Numbers should I be using to bill people and record the core’s revenue?
A: Please use PS# 951250 to record internal user-fee revenue for grants being charged. This is recorded as “Research Core Services” on the users’ financial statements. PS# 779050 should be used to record the receipt of internal user-fee income (recorded as “Research Core Revenue” on the Core Facility financial statements). Checks should be deposited to PS# 779000 (recorded as Miscellaneous Income). Corrections should be made prior to the end of the fiscal year if improperly coded.