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>From: [log in to unmask]
>Date: Fri, 2 Aug 2002 18:57:45 -0400
>To: [log in to unmask]
>Subject: Re:  #6767 cost recovery for lab access

There are many ways to consider computing cost recovery.
Here are a few practical suggestions. Take your pick!


CHECKOUT RATE
If you keep track of lab checkouts, divide your
operating budget by the number of checkouts you do
in a year (I would exclude payroll costs for this
method). This gives you a cost per checkout.
Estimate the number of checkouts you would expect
from the course in question. Multiply this by
your checkout cost.

DAY RATE
Take your entire annual budget and divide by 365.
Presto, a daily rate. If you served this course,
what percentage of your user population would it
represent? Multiply your daily rate by that
percentage, and then multiply again by the
number of days you are open for the semester.

STAFF TIME RATE
Calculate how much it will cost to accommodate this
course, start to finish, based on the actual staff
time involved. Include your planning time (including
calculating your rates!). Include the time it will
take to catalog, label, shelve and track materials,
if that is something you do. Calculate the time it
takes to check out materials, in accordance with
the expected level of use. Calculate any production
time involved in duplication of materials. Figure
out staff time involved for orientations. In sum,
add up whatever _actual_ staff costs are involved,
multiplying each type of work by the appropriate
staff pay rate. Also add in any materials costs -
tapes, supplies, info sheets, etc.

PER CAPITA RATE
Take your annual operating costs and divide by the
number of students you normally serve in a year.
That gives you a per capita rate which you can then
multiply by the number of students enrolled in the
course.

MARKET RATE
Take a look at what other departments use as fees.
If it costs more per student to use your lab than
it does for them to pay lab fees for their biology
class, or activity fees for their extracurriculars,
you may want to adjust accordingly.



What I have done in similar situations is to figure
costs based on a couple of different methods for
comparison. No method is perfect, and some results
you may reject out of hand because they are either
ridiculously high or far too low.

Whatever method you use, be prepared to show your
work. If you cannot defend it, you had better not
suggest it. If the customer finds your method
objectionable, it probably means you are asking
more than it is worth to them. In that case, you
can lower your rates arbitrarily if you want them
as customers or stick to your guns if you would
just as soon not have to accommodate them. If
they are not part of your mandated service group,
this is entirely reasonable, IMHO.

Good luck!

bruce