1. THE VSC MECHANICS OF DETERMINING COSTS AND RATES
DIRECT COSTS
INDIRECT COSTS =
FULL RATE
-DIRECT LABOR & NON-LABOR WITHIN THE VSC.
-FEDERAL COST RECOVERY RATE
-DETERMINED BY THE VSC
-UTILITIES, ELECTRICITY, WATER, BUILDING
-DEBT SERVICE, F&A OVERHEAD,
-SPECIFIC TO ONLY ANIMAL USERS/RESEARCHERS
-SPECIALIZED SERVICE CENTER IDC
-DETERMINED BY THE UNIVERSITY / MED SCHOOL, NEGOTIATED WITH THE FEDS
-CONSISTS OF THE DIRECT COSTS + THE INDIRECT COSTS TO MAKE THE FULL RECOVERY RATE.

2. Activity based costing – vsc’s cost model

3. FY2013 EXAMPLE OF DETERMINING PER DIEM
-Services that go into Zebrafish
-Care days: 21,900 / 365 days = 60 tanks
-Each category is divided by the care days to determine the daily costs.
-Rate setting is the science and art of pricing a daily rate at the beginning of the fiscal year that will ensure cost-recovery by the end of the fiscal year.

7. Our regulatory structure
Title 9 – Animals and Animal Products
Title 2 of the Code of Federal Regulations (2013).
Federal Circular A-21; A-133 (reformed in Title 2 Uniform Guidance) ; and Title 9
All Federal agencies that sponsor research and development and training.
Cost principles will be used as a guide in the pricing of fixed price or lump sum agreements.
Financial compliance to cost accounting standards.
Other resources like the NIH’s Rate Setting Manual, 2000.
Local State & County Requirements
University Policy & Procedures (APLAC/IACUC)
Research Protocols
Procurement / Bidding Guidelines (private vs. public institutions)
Reporting / Compliance Requirements
USDA & Industry Guides
Internal / External Audits letters and exceptions/recommendations.

8. VSC Cost modeling modules: R  A  CO

9. Labor time study - example

10. Labor study – by species and activity

11. Non-labor assignment of costs

12. Escalation/INFLATION
And the cost-increases of per diem