Testing Approval Form

The Procedure for establishing a testing account is as follows:

1. Establish Billing Rates and get them on file with the Controller's Office (see below).
2. The faculty member writes a brief description of the project, clearly demonstrating that it is testing (i.e. there will be no resulting patentable or publishable work) and includes a budget with a 15% College Administrative Fee. As of July 1, 2007 the Administrative Fee will be 16%.
3. The faculty member completes a Testing Proposal Form and gets the required signatures of his/her chair and the Associate Dean for Research and Graduate Studies.
4. The faculty member sends the project/budget to the Company.
5. When approved by the Company, DER will set up a sub-account in one of the College testing accounts to track the project revenue and expenses.
6. When the project requires a signed PO or is from Federal funds a Transmittal will also need to be completed. These testing projects will need the additional approval of Contract & Grants.

Billing Rates

The following information is intended to offer assistance in developing or updating your internal service billing rate(s) for services rendered.

Development of Billing Rates(s)

1. The billing rate must be determined with a method that does not discriminate against federally supported activities.

2. Federal regulations prohibit charging billing rate(s) that recover more than the cost of the service or include a component for depreciation based on replacement costs.

3. The billing rate cannot include a component for interest expense on internal University loans. Interest expense to external parties may be allowable, if the piece of equipment was purchased on or after July 1, 1982, and its cost was $10,000 or more.

4. Departments rendering services to all other users may include a component for depreciation.

Documentation of Billing Rate(s)

1. Supporting schedules documenting the development of the billing rate(s) should be sent to Jacque Shoppell in DER [shoppell@egr.msu.edu] . The information should include a breakdown by billing rate components, the estimated unit used to arrive at the unit cost, and the unit cost. (See example below.). Rates can be set up as $$/hour for lab use or $$/sample. When the Controller's office has approved the rates, you will be notified.

2. The rates should contain a statement to the effect that, the billing rate(s) will be reviewed at a minimum, on a biannual basis, with the rates being adjusted to reflect costs, number of units, or the projected costs/unit, etc. for the next year. Also indicated if the rates are for off campus users only.

Example of Internal Service Billing Rate Documentation