Facilities Services Chargeback Overview

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Facilities ServicesChargeback Overview

• Tony Simpson
• January 6, 2003

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What is the role of Facilities Services?

• Maintenance of campus facilities,
  infrastructures, grounds, and roads
• Non-maintenance work
• AKA Chargebacks
• Both are defined by the CSU in EO 757 and 753

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Maintenance Work

• EO 757 defines maintenance as
• Work necessary to keep state-support facilities,
  utility infrastructure, roads and grounds in good
  repair and operating condition.
• Maintaining, operating, and repairing utility
  systems and elevators.

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Maintenance Work

• EO 757 defines maintenance as
• Maintaining and repairing basic components of
  campus buildings and grounds.
• Work that has been deferred on a planned or
  unplanned basis due to lack of funds in the
  annual budget on building components that have
  not reached their expected life cycle (deferred
  maintenance).

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Maintenance Work

• EO 757 defines maintenance as
• Systematic replacement of building and utility
  systems to extend their useful life (capital
  renewal).
• Facilities only receives budget allocations for
  maintenance work.

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Maintenance Work
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Maintenance Work
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Maintenance Work
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Maintenance Work
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Maintenance Work
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Non-Maintenance Work

• Maintenance excludes
• Remodels
• Providing decorative treatment
• Attaching items to buildings and grounds
• Extending or modifying utility systems
• Adapting or installing other than Group I
  equipment

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Non-Maintenance Work

• Why Chargeback and what costs need to be
  included?
• Facilities Services is required by the state to
  chargeback
• Executive Order 753
• Requires auxiliary enterprises to be charged the
  allowable direct costs plus an allocable portion
  of indirect costs associated with facilities,
  goods, and services provided by the University
  funded from the general funds.

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Non-Maintenance Work

• Executive Order 757
• Direct costs are costs that can be readily
  assigned to a particular cost objective with a
  high degree of accuracy, such as materials,
  contracts, and direct labor.
• Indirect costs are all costs that are not direct
  such as support personnel, management/
  supervisory personnel, transportation, etc..
  Indirect costs do not have a direct relationship
  to the production actually being done but are
  related to the ability of Facilities Services to
  do the work.

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Non-Maintenance Work

• CSU Facilities Audit Findings
• All Facilities Services are required to determine
  the following
• Non-maintenance work is
• Adequately controlled
• Properly valued
• Fully charged back to the customer
• All non-general fund services are identified and
  fully charged back
• Maintenance and materials must be adequately
  controlled and accounted

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Non-Maintenance Work

• Facilities Services provides approximately
  500,000 non-maintenance services (chargebacks)
  annually.
• Chargeback funds are used to procure
• Materials
• Parts
• Vendor services
• Labor
• Hired 3 permanent staff and 6 temporary workers
  to meet campus needs.

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Non-Maintenance Work

• Chargebacks may include

• Automotive repairs
• Furniture assembly
• Building occupant moves
• Rental of state and Enterprise vehicles
• Use of state-funded gasoline
• Hanging pictures, documents, decorative items
• Building alterations/remodels
• Group II repairs, fabrication, modification

• Event support (electricians, custodial services,
  utilities)
• Modular furniture hook-ups
• Adding electrical circuits
• Providing new locks on filing cabinets (due to
  lost keys)
• Adding electronic locking devices
• Any work provided to non-state entities

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Chargeback Work
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Chargeback Work
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Chargeback Work
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Chargeback Work
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Chargeback Work
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Chargeback Work
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Chargeback Work
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Chargeback Work

• Small scale non-maintenance is predominantly done
  at no charge and includes
• Hanging pictures, documents, decorative items
• Moving furniture to storage
• Small furniture assembling
• Repainting offices (prior to 7-year cycle)
• Seismic bracing of shelving

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Chargeback Information

• Can be found on Accountings website
  http//admnacct.csusb.edu/admnacct/reference/topic
  s/inv_policy/index.htm
• SAM Section 8752

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Summary

• Facilities Services is responsible for the
  maintenance of campus facilities,
  infrastructures, grounds, and roads.
• Facilities only receives budget allocations for
  maintenance work.
• Maintenance and non-maintenance are defined by
  the CSU.
• Facilities Services must chargeback for
  non-maintenance services and include direct and
  indirect costs.
• Auxiliary enterprises must be charged direct and
  indirect costs.
• Direct and indirect costs are defined by the CSU.
• Facilities cannot adopt policies which may be
  contrary to any Executive Orders.

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Questions?
Thank You

• Tony Simpson
• Facilities Services Director
• E-mail tsimpson_at_csusb.edu
• Internet http//facilities.csusb.edu