DAR Cost Analysis Study Phase II

1
DAR Cost Analysis Study - Phase II

• Presented by Dr. Lyndon Goodly
• August 1, 2, 3, 2005

2
OMB Circular A-21Section J.44 is applicable to
animal care facilities

• Cost will be charged directly to users
• Rates must be reviewed periodically
• Rates should be designed to recover not more than
  actual cost
• Rate schedule does not discriminate between
  federal and non-federal supported activities
• Based on actual use of the services

3
Grants and Contracts - UIUC

• Coordinate animal care rate calculations closely
  with the FA cost rate development
• Conduct annual detailed cost analyses for animal
  care program
• Include all of the costs of providing animal care
  services

4
Grants and Contracts -UIUC

• DAR worked with Huron Consulting Group
• Huron provided template for conducting cost
  analysis
• Huron gave guidance during data collection
• Huron reviewed procedures and results with DAR

5
Mechanics to Determine Per Diem Rates Based on
Huron Template

• Determine Total Costs Associated w/ Program
• Conduct time/motion study for three two week
  periods
• Assign Salary costs based on percentage of staff
  time spent working with each species
• Other costs allocated based on Total Cost Per
  Species
• Total Species Costs / Total Animal Days
  Calculated PDR

6
Results of Cost Analysis

• 100 Cost Recovery Analysis Rates excludes the
  following
• Existing Major Equipment Replacement
• Cage Washers 11
• Autoclaves 8
• Estimated replacement costs - 1,500,000
• Equipment Needs for New Researchers
• Cages
• Racks

7
Total Cost Per Animal Per Day
8
Total Cost Per Animal Per Day

• Insufficient animal numbers to calculate
  accurate cost per animal.

9
Current Per Diem Rates
10
Current Per Diem Rates at Other Institutions
11
Projected FY06 Revenues Expenditures
12
Next Steps

• Present to VCR - Done
• OVCR work with Campus Committee on Animal Care to
  determine new PDR - Ongoing
• Receive input from Facility Advisory Committees -
  Ongoing
• VCR set rates and timeline
• Implement New Per Diem Rates
• New cost analysis every other year

13
Dates of Time Motion Study

• September 16, 2004 September 29, 2004
• December 5, 2004 December 18, 2004
• February 27, 2005 March 12, 2005