Processes for Managing a SSA

The process for renewing and modifying is the same as establishing a SSA from the Proposal Development point on. The primary difference between renewing/modifying and establishing a SSA is what initiates the action. The process of establishing a SSA is based on want and need to provide a service or product.

Renewing and modifying SSA rates are a critical component to ensuring full cost recovery, and compliance with federal and UC policies and procedures.

At a minimum, rates should be reviewed to determine if renewal or modifications are necessary:

• Annually – during the annual review process
• Material expense increase or decrease
• Material sales increase or decrease
• Major personnel or customer base changes
• Discontinuing services or products
• Addition of services or products
• Deficit or surplus exceeds 16.67% of annual operating expenses

OMB Uniform Guidance requires SSAs to adjust rates at least on a biennial basis, where by the University requires an annual cost analysis and review of the rates in relation to changing costs and volume to determine whether an upward or downward adjustment of rates is necessary. The cost and breakeven analysis should include all of its direct operating costs and any identifiable administrative costs.

Direct operating costs include salaries and wages of SSA staff, associated fringe benefits, fixed costs such as equipment maintenance contracts, lease payments, supplies, and administrative costs such as computing devices, software licenses, and telecommunications fees. Administrative costs include salaries and wages of administrative staff that support the SSA, telecommunications and computing costs, and printing and duplication services. Administrative costs are typically unallowable Direct Costs when charged directly to a sponsored award; however, they are permitted as a cost to a SSA.

To transfer or discontinue an operation, please reach out to the UC San Diego Services & Support portal to discuss with BFS-GA and FAO any necessary steps to prepare for transfer or discontinuation, such as ensuring all expenses/revenues have posted and indices deactivated. Afterwards, BFS-GA will perform the process of transferring or deactivating the fund and other accounting elements.

A. Discontinuation of an Approved SSA

To discontinue an approved SSA, a request must be submitted to the UC San Diego Services & Support portal, one month following the end date that includes:

• The activity’s cessation date;
• A financial reconciliation of the activity (net position)
• A financial reconciliation of all associated reserve funds (net position); and
• The proposed disposition of recharge net position(s)):
• Deficit balances must be charged to a discretionary fund source;
• Generally surplus balances will be returned to the users, however disposition of surplus balances will be determined on a case by case basis.

SSAs are not formally terminated until the operating unit receives written approval of their proposed disposition of fund balance(s). Units providing any goods or services to external sources should contact their business office for appropriate disposition of existing agreements with external clients.

B. Transfer of Ownership of an Approved SSA

To transfer ownership of an approved SSA from one department to another, a request must be submitted the UC San Diego Services & Support portal, one month before the transfer date including:

• The effective date of the transfer;
• A financial reconciliation of the activity (net position);
• Approval signature from both department MSOs including agreement on terms of:
  • Net position and personnel transfers,
  • Transfer of reserve fund net position, if applicable;
• If there are changes in rates and rate methodologies, the new Department needs to submit a full proposal in accordance with the annual recharge review submission guidelines (all Recharge Proposal forms).

SSEAs are not formally transferred until the operating unit receives written approval of such from BFS.