Re: Allocation of rent to "off-site" projects Peter Koch 02 Mar 2006 11:30 EST
Thanks for all of the on- and off-line replies on this issue. My problem is not with figuring out how much the space costs, but with how to allocate it to mutliple pojects using the same space. And, presumably, make some allocation to the portion of the space that is supporting "unfunded" activity. I had a number of responses that said they pay for the full amount of the lease costs with "institutional" funds, then treat the space as "on site." That is the approach I had been leaning toward and it sounds like there are a number of places doing exactly that. Thanks again. - Pete >>> xxxxxx@VERIZON.NET 03/02/06 10:45 AM >>> And for allocation, do it by square footage. Count 100% of space occupied by each project, and divide common/service area total proportionately and add that share to each project. In case you need to separate a project between two different areas (off- and on-campus, or between two off-campus areas with different rental values), I recommend making the division based on S&W expended in the various areas. That's a reliable technique used by many. And document as written policy whatever process you will use. That way, even if an auditor makes you change it (unlikely!), what you have done was done in good faith. Chuck At 09:24 AM 3/2/2006, you wrote: >Get a local realtor tell you how much office or whatever use space >rents for in that neighborhood in a $/sq.ft. That's the easiest and >you have an outside quote. > >SPanky > > > >At 08:18 AM 3/2/2006, you wrote: >>Can anyone share a tried-and-true allocation methodology for determining >>how much rent/lease cost to directly charge to an off-site project? We >>have had very few sponsored projects done "off-site" in the past, but >>now are faced with projects that will be performed in space we have to >>lease, rather than space we own. The challenge is how to reasonably >>apportion the lease and associated occupancy costs directly to >>projects. >> >> >>Thanks. >> >> - Pete >> >> >> >>Peter C. Koch, MBA >>Assistant Vice President >>Sponsored Programs and Research Accounting >>Cincinnati Children's Hospital Medical Center >>3333 Burnet Avenue, TCHRF-3303, MLC 7030 >>Cincinnati, Ohio 45229-3039 >> >>Phone: (513) 636-4583 >>Fax: (513) 636-1392 >>E-mail: xxxxxx@cchmc.org >> >> >>====================================================================== >> Instructions on how to use the RESADM-L Mailing List, including >> subscription information and a web-searchable archive, are available >> via our web site at http://www.hrinet.org (click on "Listserv Lists") >>====================================================================== > >====================================================================== >Instructions on how to use the RESADM-L Mailing List, including >subscription information and a web-searchable archive, are available >via our web site at http://www.hrinet.org (click on "Listserv >Lists") ====================================================================== Herbert "Chuck" Chermside, CRA Director Emeritus, VCU Sponsored Programs Executive Director, Research Administrators Certification Council 1915 Robindale Rd. Richmond, VA 23235-3931 804-320-5502 xxxxxx@verizon.net ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================