The document is a summary of a presentation by Lynn McGinley at the June 2013 COGR meeting, detailing the financial and operational structure of a university system with six professional schools primarily focused on graduate health and human services programs, including medicine, pharmacy, dental, nursing, social work, and law. The institution operates with $1 billion in annual expenses and $422 million in sponsored expenditures, of which $262 million are federally funded. There are between 12 and 15 service centers with internal billings exceeding $100,000, as well as three specialized facilities with internal billings over $1 million; both recover equipment costs through depreciation and have centrally reviewed rate schedules, with specialized centers also incorporating space costs. Smaller centers are not centrally reviewed but are expected to adhere to sound charging practices.
The management of these centers requires significant documentation and approvals, including 13 key data elements to justify both the business and compliance aspects. Ongoing oversight includes quarterly activity reviews and annual rate assessments, with supporting documentation such as proposal and rate schedule examples. Equipment acquisition is facilitated either through operating reserves from depreciation or via a revolving loan program, with debt service costs integrated into operating budgets. Administrative oversight is rigorous, allowing surcharges at the discretion of center administrators and supporting retention by the centers themselves. The document also discusses operational challenges such as funding start-up and replacement equipment, managing external service sales, addressing intellectual property implications, and compliance with unrelated business income tax (UBIT) when selling externally. Additional strategic issues include aligning center operations with research funding, allocating administrative costs, and leveraging service center funds for seed programs. The proposed CTSA initiative includes cost sharing for core operations and plans to develop a program income system for service centers operating within sponsored accounts. Overall, the presentation emphasizes the complexity of managing service centers in compliance with institutional and federal requirements while adapting to evolving financial and administrative demands.
