Budget Preparation

Volume 6, Chapter 3

INTRODUCTION

This section outlines OMP funding sources, requests for changes in workload, and the uses of OMP funds. The University’s General Fund is the source of OMP funding for all State eligible space. Approximately 50% of University space is non- state eligible. OMP funds can not be used to fund maintenance in these areas.

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3.1 OMP FUNDING SOURCES

3.1.1 State Funding

The State of California provides most of the OMP funds for state eligible space. These funds are allocated to the campuses on a square foot basis as part of the General fund, and are then incorporated into the overall Campus Operating Budget.

3.1.2 Federal Grant Funding

A portion of all Federal grants goes to pay indirect costs, including facilities services such as purchased utilities, maintenance, janitorial services, etc. The indirect cost, or overhead, rate is negotiated annually by the Campus based upon each Campus’ past expense history.

Approximately 20% of this of overhead is taken “off the top” to reimburse the University and the Campus for the costs of administering the grant.

Of the remaining amount, 45% goes directly to the Campus in the form of the “University Opportunity Fund”. Chancellors have discretion in the allocation of these funds for high priority campus needs.

The remaining 55% of the indirect cost recovery amount from federal awards is used to help fund the University’s “General Fund Budget.” The “General Fund” is made up of funds of State General Fund appropriations and income from federal indirect cost recovery and is incorporated into the overall Campus Operating Budget.

The component of Operation and Maintenance is calculated on average as approximately 10%-15% of total grant expenses. .

See: FAQ about Indirect Cost Rates

See: UCOP Contract and Grant Manual -- Chapter 8 -- Indirect Cost

See: Campus Primer on Indirect Costs

3.1.3 Indirect Cost Recovery from, State, Private, and Local Government Awards

For entirely State funded grants, indirect cost recovery goes directly to the General Fund. When the primary source is non-state, other policies apply.

See: Contract and Grant Manual Ch. 8 Section 8-820

All funds recovered as indirect cost receipts from private and local government contracts and grants, except for recovered indirect costs from private clinical trial agreements, are placed in the President's Education Fund. The Education Fund is used primarily for the support of high priority educational programs.

3.1.4 Garamendi Funding

The construction of some research buildings is entirely or partially funded by State issued bonds called Garamendi Bonds. Maintenance and utilities in these buildings are not funded from the General Fund. Debt Service and maintenance for these buildings is paid directly from indirect grant cost recovery funds.

See: Contract and Grant Manual Sec. 8-811 "Garamendi Projects Funding"

3.1.5 Recharges

Auxiliary programs, such as hospitals, housing and dining facilities, University Extension, student fee funded space, student centers, recreational facilities, are self supporting and ineligible for state support.

Specific Information about which programs are eligible for state OMP support, and which are ineligible is found in the “Corporate Equipment, Facilities, and Asset (EFA)” database. The cost of facilities services to these programs is recharged to the program.

Recharge rates for facilities services are set by the Campus in accordance with University Policy. Recharge rates must reflect the actual cost of the services provided.

See: Corporate Equipment, Facilities, and Assets System (EFA)

See: UCOP Recharge Guidelines

See: Business and Finance Bulletin Direct Costing Procedures - A-47

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3.2 OPERATION AND MAINTENANCE OF PLANT WORKLOAD

3.2.1 Workload adjustments are based upon annual changes to the accumulated State Maintained building area.

State funding for OMP is based upon eligible occupied square footage. Each year the University asks for an update from the Campus Budget offices reporting on any changes to either the eligibility or occupied area of State Maintained space.

See: University of California Budget Office: Guidelines for Preparing New Workload Request

See: University of California Budget Office: Current Year and Past Years University Budgets

3.2.2 OMP Workload Categories:

OMP funding within state eligible space funds the following workload areas or program elements:

  • Plant Administration
  • Building Maintenance (and Operation)
  • Grounds Maintenance
  • Custodial Services
  • Utilities Operation and Maintenance
  • Refuse Disposal
  • Plant Service
  • Fire Departments
  • Executive Housing
  • Purchased Utilities

See: Gordon Study History for derivation of program elements.

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