Processes for Establishing a SSA

Prior to establishing a SSA, it is important to evaluate the need and potential campus impact.

By definition, SSAs provide specific, ongoing, repetitive services or products to campus units on a fee basis. Given the possible financial risk and significant compliance concerns associated with SSAs, if services or products are being provided on a onetime basis, to only a select number of units, or for a limited time, it might be prudent to explore other options than establishing a SSA.

If you are unfamiliar with all options available or would like to discuss if establishing a SSA would be the best option for your unit, please reach out to BFS-FAO.

Questions to consider;

• Are these products and/or services currently being provided by another campus unit?
• Are these products and/or services currently being provided by an external business?
• Is the service identifiable (e.g. machine shop or glass blowing) as opposed to general (e.g. general administrative fee)?
• Can separate costs and budget be clearly defined for these activities?
• Is the need for this service short-term or long-term?
• Is this service provided for, or subsidized by, a federal award?
• Will this service be used by multiple customer groups and sources of funds within the University?
• Is the volume of service expected to increase over time?
• What portion of the users will be Internal vs. External?

The SSA proposal will serve to justify the business need for the service, document the resources required to establish the SSA, describe the plan for a compliant operation of this SSA, and the rate methodology.

For information on guidelines, information gathering, proposal forms & exceptions to policy templates, rate calculation, and proposal submission, click here. 

1. Departmental Review 
   

   This is completed by the proposal preparer and departmental financial stakeholders. There is no institutional defined structure for completing the Departmental Review at this time.

   Departmental reviewer should consider;

   • Proposal form is complete – all services and goods are included
   • All expenses, revenues, UBIT, and cost adjustments have been documented in the proposal
   • Expenses are allowable per Federal and University policy and guidance
   • At a minimum, 5% for Off-campus activities and 11% for On-Campus activities for Differential Income (DI) has been included in all external rates or an Exception to Policy Request has been submitted with proposal
   • Exception to Policy Requests have been completed, if allocable
   • Rate methodology appropriately distributes costs to benefiting customers
   • Rate(s) have been established to ensure full cost recovery
   • Rate(s) are not in competition with competitors
   • Service or goods are not provided by other SSA
2. Functional Review 
   

   This is completed by the cognizant VC office. Functional Review rubric, located in SSA proposal form, must be completed by the cognizant VC office and included in proposal. After the Functional Review has been completed, the cognizant VC office will forward proposal to Recharge@ucsd.edu as either an FYI, if low risk, or for further review and approval.

   Functional reviewer will consider;

   • Proposal form is complete and has not been modified to alter rate calculation(s) – all services and goods are included
   • All expenses, revenues, UBIT, and cost adjustments have been documented in the proposal
   • Expenses are allowable per Federal and University policy and guidance
   • At a minimum, 5% for Off-campus activities and 11% for On-Campus activities for Differential Income (DI) has been included in all external rates or an Exception to Policy Request has been submitted with proposal
   • All VC Area overhead has been included in external rates
   • Exception to Policy Requests have been completed, if allocable
   • Rate methodology appropriately distributes costs to benefiting customers
   • Rate(s) have been developed to ensure full cost recovery and do not subsidize external customers
   • Rate(s) are not in competition with competitors
   • Service or goods are not provided by other SSA
   • Institutional support/subsidy is recognized and verified
   • Capital equipment is documented and all UCIDs are included
   • Establishing or allowing for the continuation of the operation is in the best interest of the department, VC area, and institution – Activity will further the mission of our institution
3. Financial Review 
   

   This is completed by BFS – General Accounting. Financial Review rubric located in SSA proposal form must be completed by BFS-GA and included in proposal.

   After the Financial Review has been completed, BFS-GA will forward proposal to the BFS – Financial Analysis Office (FAO) as either an FYI, if low or medium risk, or for further review and approval.

   Financial reviewer will consider;

   • Proposal form is complete and has not been modified to alter rate calculation(s) – all service lines and goods are included
   • All information to make UBIT determination has been included
   • At a minimum, 5% for Off-campus activities and 11% for On-Campus activities for Differential Income (DI) has been included in all external rates or an Exception to Policy Request has been submitted with proposal
   • Capital equipment is documented with UCIDs and appropriate Depreciation included in rate(s) or an Exception to Policy Request is included in the proposal
   • Exception to Policy Requests have been completed, if allocable
   • Rate(s) have been established to ensure full cost recovery
4. Compliance Review 
   

   After the Compliance Review has been completed by BFS-FAO, proposal will be forwarded to the originating department with FYIs going to the cognizant VC Area and BFS-GA. Originating department will work directly with BFS-GA to modify or establish any necessary accounting elements.

   Compliance reviewer will consider;

   • Proposal form is complete and has not been modified to alter rate calculation(s) – all services and goods are included
   • Expenses are allowable per Federal and University policy and guidance
   • Operation annual and total carryforward is within the 2 months of annual expenditures or a plan to decrease surplus/deficit
   • At a minimum, 5% for Off-campus activities and 11% for On-Campus activities for Differential Income (DI) has been included in all external rates or an Exception to Policy Request has been submitted with proposal
   • Exception to Policy Requests have been completed, if allocable
   • Rate methodology appropriately distributes costs to benefiting customers
   • Rate(s) have been established to ensure full cost recovery
   • Institutional support/subsidize have been properly documented and included in rate calculation(s)
   • Rate(s) are not in competition with competitors
   • Service or goods are not provided by other SSA

Upon receiving a fully approved proposal, originating department will work with BFS-GA to create the necessary accounting elements.

The originating department is responsible for all communication, publication, retention, and billing management for all operations they establish and manage.

The operation should communicate any rate changes to customers as soon as the information is available. Rates must be published or readily available. The originating department must retain all documentation pertaining to the operation of the SSA, such as proposal approvals and invoices, in accordance with University policy.

More information on communication, publication, retention, and billing management can be found in the SLA.