EXHIBIT A

1. Briefly describe the proposed activity and the goods or services to be provided by it.

2. Provide the following information:

   1. The name and title of the faculty member or administrator who accepts responsibility for the activity.

   2. The requested starting date of the activity.

   3. The name and mail code of the activity's financial manager.

   4. If the proposed activity has primary use of a specific space, provide the building(s) and room number(s).

3. Briefly describe and indicate locations of commercial and other non-University sources from which similar goods or services may be obtained.

4. Briefly describe other University sources from which similar goods or services may be obtained.

5. If similar goods or services may be obtained from non-University sources or other University sources, explain the necessity for the proposed activity.

6. If the goods or services have been provided free of charge in the past:

   1. Describe and provide the account distribution of past funding.

   2. Explain the necessity for now charging for the goods or services.

7. State the proposed activity's anticipated number of monthly users.

8. State the proposed activity's anticipated monthly dollar volume of combined recharge and other income.

9. State the number of years the activity is anticipated to continue to provide its goods or services.

10. State the estimated percentage of users by the following categories:

    1. UC Departments:

       1. Fed & Fed flow-thru funded users ________ %

       2. Non-Federally funded users ________ %

    2. UC Individuals:

       1. Student ________ %

       2. Faculty ________ %

       3. Staff ________ %

       4. Patients ________ %

    3. Non-UC Individuals & Entities ________ %

       Total 100 %

11. Briefly describe any unique connection between the proposed activity and any Federal contract or grant, including:

    1. Any subsidy, direct or overhead, to be provided by the Federal contract(s) or grant(s).

    2. Any limitation the Federal contract(s) or grant(s) place on use of the proposed activity's income.

12. Briefly describe any unique connection between the proposed activity and any non- Federal funding source, including:

    1. Any subsidy, direct or indirect, to be provided the funding source.

    2. Any limitation the funding source places on use of the proposed activity's income.

13. If goods or services are to be sold to non-University individuals or entities, provide information conclusively showing that satisfactory commercial or other non-University sources for similar goods or services do not exist elsewhere.

14. Provide the following financial information:

    1. Proposed rates with supporting calculations. SAMPLE RATE CALCULATIONS APPEAR IN EXHIBIT C. In the case of certain auxiliary enterprises and support groups, proposed pricing or rate methodology may be substituted for individual rates.

    2. A projected annual operating(profit and loss) statement. Proposed auxiliary enterprises must submit projected annual operating statements for three years.

    3. A projected balance sheet for the end of the first full year of operations. Proposed auxiliary enterprises must submit projected balance sheets for the end of each of the first three full years of operations.

    4. Proposed funding sources for:

       1. Start-up costs.

       2. Working capital.

       3. Equipment to be acquired.

       4. Operating deficits, anticipated or unanticipated.

    5. A listing of initial equipment, including UC identification number, UC custodial code, date of acquisition, purchase order number, cost and funding source for the cost.

    6. If equipment is to be depreciated, the listing described in paragraph f, above, should be expanded to include, for each item of equipment, the projected useful life of the item, the calculated per-year depreciation for the item, and the total depreciation of all items for the first full year of operations.

15. Provide the following tax information:

    1. Sales Tax. If the proposed activity will sell tangible personal property(goods), explain why the activity should NOT be subject to California sales tax regulations.

    2. Unrelated Business Income Tax. If the proposed activity will sell goods or services to individuals or entities, explain how the sales will relate to the University's educational or research mission. SALES NOT RELATED TO THE UNIVERSITY'S EDUCATIONAL OR RESEARCH MISSION WILL BE REPORTED AS UNRELATED BUSINESS INCOME AND WILL BE SUBJECT TO FEDERAL INCOME TAX REGULATIONS.

16. If the proposed activity will have point of sale, or cash, transactions, provide a copy of cash handling procedures. CASH HANDLING PROCEDURES MUST BE APPROVED BY THE BURSARS OFFICE.

17. If the proposed activity will recharge other University departments, provide a copy of recharge procedures, including a sample of the monthly statement to be provided recharge users. RECHARGE PROCEDURES MUST BE APPROVED BY GENERAL ACCOUNTING.

Exhibit B

1. Briefly describe the activity and the goods or services currently provided by it.

2. Provide a list comparing existing rates with proposed rates.

3. Provide a brief description of the basis for the proposed rate changes.

4. Provide the following information:

   1. The name and title of the faculty member or administrator currently responsible for the activity.

   2. The requested effective date of the proposed rate changes.

   3. The name and mail code of the activity's financial manager.

   4. If the activity has primary use of a specific space, provide the building(s) and room numbers.

   5. A sample of the monthly statement currently provided recharge users.

5. State the percentage of current users by the following categories:

   1. UC Departments:

      1. Fed & Fed flow-thru funded users ________ %

      2. Non-Federally funded users ________ %

   2. UC Individuals:

      1. Students ________ %

      2. Faculty ________ %

      3. Staff ________ %

      4. Patients ________ %

   3. Non-UC Individuals & Entities ________ %

      Total 100 %

6. Briefly describe any unique connection between the activity and any Federal contract or grant, including:

   1. Any subsidy, direct or indirect, provided by the Federal contract(s) or grant(s).

   2. Any limitation the Federal contract(s) or grant(s) place on use of the activity's income.

7. Briefly describe any unique connection between the activity and any non-Federal funding source, including:

   1. Any subsidy, direct or indirect, provided by the funding source.

   2. Any limitation the funding source places on use of the activity's income.

8. If goods or services are sold to non-University individuals or entities, provide information conclusively showing that satisfactory commercial or other non-University sources for similar goods or services do not exist elsewhere.

9. Provide the following financial information:

   1. Supporting calculations for the proposed rate changes. SAMPLE RATE CALCULATIONS APPEAR IN EXHIBIT C OF THIS PPM. In the case of certain auxiliary enterprises and support groups, proposed pricing or rate methodology may be substituted for individual rates.

   2. A projected annual operating(profit and loss) statement reflecting the rate changes.

10. Provide the following tax information:

    1. Does the activity currently collect California sales tax?

    2. Does the activity currently report Unrelated Business Income?

11. If the request includes a proposal by an existing activity to establish rates for new goods or services, provide the following additional information:

    1. Briefly describe and indicate locations of commercial and other non-University sources from which similar goods or services may be obtained.

    2. Briefly describe other University sources from which similar goods or services may be obtained.

    3. If similar goods or services may be obtained from non-University sources or other University sources, explain the necessity for the proposed activity.

    4. If the goods or services have been provided free of charge in the past:

       1. Describe and provide the accounting distribution of past funding.

       2. Explain the necessity for now charging for the goods or services.

    5. State the anticipated number of monthly users of the goods or services.

    6. State the anticipated monthly dollar volume of combined recharge and other income from the goods or services.

    7. If the new goods or services are to be sold to non-University individuals or entities, provide information conclusively showing that satisfactory commercial or other non-University sources for similar goods or services do not exist elsewhere.

Exhibit C-1

The estimation of productive hours used in calculating recharge rates is determined by deducting from available working hours vacation, holiday, and sick hours usage and non-productive hours used for clean-up, general maintenance, etc.

Vacation hours earned varies by individual. Determination of sick-leave usage and non-productive hours can be estimated using past experience of the department as a guide.

The productive hours calculated are those hours that are expected to be rechargeable.

An example follows:

Exhibit C-2

For an activity, such as a machine shop, whose recharge rates are composed of charges for labor and materials, the labor rate is an hourly rate calculated as follows:

Exhibit C-3

Recharge rates for activities, such as storerooms, which provide stock items to users, are based on the cost of the merchandise plus a mark-up to cover the salaries and other operating expenses.

For a storeroom or storehouse there may be a single mark-up rate applicable to all stocked items or possibly two or more rates for certain categories of merchandise. The mark-up percentage may be calculated as follows:

Exhibit C-4

An activity, such as a photo lab or a lab providing testing services, often must develop a list, or catalog, of rates. Rates for individual catalog items are determined by calculating labor and other costs for each item.

The first step is to calculate an hourly labor rate that will recover general operating expenses. If needed, the hourly rate can be reduced to a per-minute rate.

The following page has Sample Rate Calculations for items produced by a photo lab. Note that each item has unique equipment depreciation, equipment maintenance and materials costs that are part of each item's rate calculation.

A proof of calculation, also shown on the following page, should be prepared to verify the calculated rates.

Exhibit C-5

Exhibit C-6

An activity that offers equipment or instruments for rental or use, can develop a rate for an individual item, such as a microscope. Rates for classes or groupings of like items, such as camcorders, also are possible.

The first step is to estimate annual usage of items. Usage can be measured by hours, half-days, days, etc. For this example, estimated annual usage is:

The next step is to calculate per-day general operating expenses:

Projected General Operating Expenses:
Salaries	$ 25,000
Employee Benefits	5,000
Supplies Expense	3,000
General Equipment Depreciation	2,000
Other ____________________	---
Total Operating Expense	35,000
Adjustment for Prior Years' Operations-
Deduct Surplus or Add Deficit	---
Total	35,000
Estimated Days Usage	5,000
Operating Expense Per Day	$ 7.00

The following page has the completed sample calculation that includes costs unique to each class of items.

Exhibit C-7

Exhibit D

Labor clearing funds can be used by departments to expedite and provide an equitable allocation of salaries, benefits, and related costs, such as network/telecommunication access fees, of employees who, during each month, work on different projects and activities supported by different funds. When payroll is processed, labor costs are initially charged to these clearing accounts and then allocated to the various project/activity accounts. The allocations of expenses are based on the employees' daily or monthly accounting of their efforts on specific projects/activities.

1. SOME IMPORTANT CRITERIA FOR FEDERAL ACCEPTANCE

   -costs charged to Federal grants and contracts and other funds through the clearing accounts are properly authorized, allowable, reasonable, and necessary in accordance with established guidelines;

   - costs are allocated equitably, in proportion to benefits received by each project/activity; and documentation is adequate to substantiate the cost allocations;

   - recharge rate for each individual is based on actual salaries and benefits;

   - recharges are processed timely, and there are no significant variances between the actual labor costs and the related recharges; and

   - cost transfers processed through the clearing accounts are adequately documented, properly approved, and in accordance with Federal guidelines. (see Figure 4)

2. ILLUSTRATION - MARINE PHYSICAL LABORATORY (MPL)

   The Marine Physical laboratory and the other organized research units and institutes of Scripps Institution of Oceanography currently operate labor clearing accounts that utilize a FilemakerPro database. The software was developed at SIO by the SIO Salary Recharge Committee. It was a modeled after the procedures used by the Marine Physical Laboratory in their manual system described below. This software now provides greater accuracy, flexibility, and retrieval of information related to our costs and distribution of expenditures. Please note that the description below doesn't deal with the distribution of NGN costs, however, those costs are distributed in the same manner as direct labor costs.

   1. RATES

      - Staff/Academic/Hourly employees: monthly benefits are incorporated into recharge rates.

      - Recharge rates are based on the July DOPEs with adjustments based on individual appointment issues considered. These rates are projected for the whole year. If there has been or will be a significant change as a result of a change in the employee's appointment, the rate will reflect these adjustments or benefit accrual (i.e., social security issues or student issues).

      - Staff: vacation, sick leave, holidays, jury duty, military leave expenses are incorporated into individual recharge rates by obtaining a lab average except for vacation and holiday which are fixed by an individual.

      - Academics (Research): As with University policy, sick leave is not considered a benefit until used for MPL's academic staff. This is due to their extremely low usage rate.

      (NOTE: Academics in the research series earn sick leave, professor series do not.) Example A: Research Academic reports 8 hours sick leave. This benefit has not been incorporated into the recharge rate in the downtime calculation, therefore is recharged to the project on which the employee worked during the reporting period. This would be the case if paid directly on the project as is done on the traditional University model.

      Graduate Student Researchers (GSR) earn holidays based on their appointment terms. GSRs at Scripps are normally appointed at 48.44% throughout the year.

      Example B: A GSR 48.44% in July and is paid for the July 4th holiday. As the holiday is not incorporated into the recharge rate in the downtime calculation, the holiday at 48.44% is recharged to the project on which the employee worked during the reporting period. A GSR is paid 9.69% in July as part of a fellowship appointment with a non-SIO department. The holiday at 9.69% is recharged to the project on which the employee worked that month.

      - Hourly employees and short-term employees: holidays/sick leave are not considered to be a benefit until used/earned. (NOTE: Casual employees often earn sick leave/holidays only intermittently. These are instances that are unpredictable in nature). Benefits for short-term employees are projected/calculated based on available PPS information.

      9 month Academic summer salary is recharged using 174 hours as the basis of the 9-month appointee's salary for the summer months, and is recharged at the calculated"OLN" (summer salary recharge rate). This is due to the derivation of the recharge hourly rate which is averaged over the year to be 174 hrs./mo. Academic year is charged in 9 month service periods (Oct.- June) even though it is paid over 12 months.

   2. ADMINISTRATIVE SERVICES

      Specific to MPL, costs for Administrative Services are considered a prorated direct cost. Administrative costs are prorated and provide for the equitable assignment of those costs, which, although allowable as direct charges to a contract or grant, are difficult or impractical to apportion by other means. Examples include, but are not limited to charges for janitorial services, administrative telephones, copying, graphics, postage, shipping, administrative computer expense, payments in accordance with the terms of the tenancy agreement with the Space and Naval Warefare Systems Center San Diego for guard and fire protection services, buildings and ground maintenance, and fees for utility usage.

      Laboratory Administrative Salaries and Benefits provide for equitable assignment of laboratory administrative personnel working in support of contracts and grants. Although allowable as a direct charge, it is difficult or impractical to equitably apportion by other means.

      These costs are prorated to the Salaries and Benefits (excluding any overtime) charged to the individuals projects. The University overhead cost rate has been reduced to compensate for the direct charging of these expenses for MPL's contract and grant administration.

   3. OVERTIME & REMOTE LOCATION ALLOWANCE

      - Administrative Services costs are not calculated on overtime.

      - Individual overtime benefits information is used for OT rate. No other burdens are associated with OT.

      - Comp time and shore leave saved in lieu of RLA payment are charged to the project on which the overtime and RLA hours are worked. Comp time and shore leave hours are fully burdened as the employee receives full benefit on hours when used. A recharge adjustment is done for comp time or shore leave initially saved that is later paid; when comp time or shore leave is paid rather saved , the benefits charged are at the lower overtime or RLA rate. The recharge is adjusted to reflect the correct level of benefits paid on the employee's hours. A credit of the "comp time saved" or "shore leave saved" hours and a charge of the "comp time paid" or "RLA paid" hours is done.

      - Balance of comp time or shore leave saved should be reviewed at year end.

   4. PERIOD RECHARGED

      - Split month (21st to 20th) timesheets are used to allow timely submission of costs allocable to projects. (i.e.: timesheets for 10/21/XX-11/20/XX period will have costs charged in time to appear on the 11/XX ledgers). Allows for timely Federal billing.

      - June final period 6/21-30 timesheets are required due to fiscal closing. June final recharges generally make the final ledgers as MPL inputs directly into IFIS journaling system module.

      - July 1-20 period timesheets are used to begin the next FY, after which regular split month time sheets are used.

      - Employee's timesheets that have not been received in time to be charged in the current month recharge are tracked and charged as adjustments in subsequent months.

   5. FISCAL YEAR CLOSING REVIEW

      Analysis of fund balances at June 30 is required to determine what the balance represents. Costs & credits applicable to the period through June 30 but not recorded in the June ledger may include, but is not limited to:

      - Navy building maintenance charges, guard services, electricity & telephone billings. *

      - Costs of goods received but not billed per ledger. *

      - Computer hardware & system support, maintenance agreement costs expended but not recharged. *

      - Cost transfers /NPETS, PETS outstanding.

      - Physical Plant Services jobs in progress. *

      - Outstanding GUARD invoice payments due.

      - Credits for Workshop/seminar expenses. *

      - Recharge credits for overtime not paid in ledger but earned.

      - Recharge credits for bi-weekly/late timesheets not paid.

      - Recharge credits for S&E items held in recharge clearing account pending index determination. (i.e., transit risk, or resolution of billing disputes, etc.). *

      - Comptime accrual commitment review.

      * Specific to MPL & only relevant to Administrative Services - not labor related.

      Balances are reviewed and analyzed annually. If a rate change is determined to be necessary, a proposal is submitted to the University's recharge rate review committee for review and approval of rate change

   6. ADJUSTMENTS

      - Preliminary timesheets may be provided by seagoing personnel working on specific project(s) and unavailable at sea/travel when timesheets are due. Revised timesheets are submitted upon return. At that time project(s) are credited preliminary timesheet hours and charged per revised timesheets. MSO review & signature required.

      - Employees should obtain supervisor signature prior to submitting timesheets; however when timesheets are received without supervisor signatures close to recharge submission deadline, hours reported by employee are charged. Copies of the timesheet are made and the timesheet is sent to the supervisor for signature. When the signed timesheet is received back from the supervisor, it is compared against the copy. If changes are indicated on the signed copy, it is marked "Revised", the unsigned copy is marked "Preliminary" and stapled to the revised timesheet. Changes indicated on the revised timesheet are incorporated into an adjustment to the recharge. MSO review & signature required.

      - Retroactive salary changes are treated as an adjustment. Original amount charged is credited entirely and corrected amount (total hours * new rate) is submitted. (See FIGURE 4)

      - Cost transfers. When moving labor costs from one contract/grant to another, treat as a cost transfer and obtain PI signature or his/her delegate in addition to MSO, unless MSO had delegation of authority. (Reference Cost Transfer PPM)

   7. LABOR NOT ASSIGNED TO A BUDGET:

   All salaries must be charged to either a budget number, vacation, sick leave, holiday, or other approved administrative leave (jury duty/military leave).

   Under no circumstances are employees without index numbers or approved leave status, allowed to draw salary. Appropriate care must be taken to initiate projections and submit lay-off notices when necessary.

3. ILLUSTRATION - MPL REGULAR HOUR RECHARGE RATE CALCULATION

   Following are the steps involved with calculating the individual regular hour recharge rate.

   1. Calculate annual laboratory staff sick leave/jury duty/military leave downtime: (See FIGURE 1)

      1. Identify laboratory sick leave earned & used for all staff employees recharged during the prior FY.

      2. Assign cost to sick leave using the base rate in effect during the period the employee earned/used the sick leave hours.

      3. Subtotal to summarize sick leave hours & costs for all laboratory recharged staff employees.

      4. Identify any staff jury duty, or military leave down time hours & costs.

      5. Total staff sick leave and jury duty/milt. leave downtime hours & costs.

      6. Determine a downtime expense ratio by dividing the total costs of downtime used by the costs of sick leave accrued. (See FIGURE 1)

      7. Use ratio calculation multiplied by 96 (12 x 8) to determine FY SL/JD/ML downtime expense.

      8. Add in the carry forward credit/debit of sick leave/jury duty/military leave downtime from the prior year. This number is used for the next FY downtime rate factor.

      FIGURE 1. Annual Laboratory Staff Sick Leave/Jury Duty/Military Leave Downtime
      
      
      
      

      SICK LEAVE SUMMARY FOR THE PERIOD 7/1/XX - 6/30/XX
      STAFF
      BASE RATE+BENEFITS	NAME	HRS EARNED	$ EARNED	HRS USED	$ USED
      16.30	AnybodyA staff	96.00	1564.80	58.00	945.40
      21.60	AnybodyB staff	96.00	2073.60	112.50	2430.00
      14.21	AnybodyC staff	96.00	1364.16	20.00	284.20
      	ETC
      STAFF SICK LEAVE DOWN TIME (SubTotal):		3920.00	82411.84	2806.38	56474.80
      STAFF JURY DUTY DOWN TIME:
      21.60	AnybodyA oct.nov.92			32.00	691.20
      		0.00	0.00	32.00	691.20
      TOTAL STAFF SICK LEAVE AND JURY DUTY DOWN TIME		3920.00	82411.84	2838.38	57166.06
      TOTAL FYXX STAFF DOWNTIME($57,166.06/82,411.84):
      		USED/EARNED $	0.69 * 96 = 66.59
      (Add in military leave usage when applicable.)
      SICK LEAVE/JURY DUTY FACTOR TOTALS
      TOTAL FYXX STAFF DOWNTIME AVERAGE:
      		USED/EARNED $	0.69 * 96	67 hrs
      FYXX SL FACTOR USED IN PRIOR FYXX RATES:
      		USED/EARNED $	0.49 * 96	47 hrs
      SL CARRY FORWARD:				20 hrs
      FYXX Sick leave				67 hrs
      Add SL Carry Forward:				20 hrs
      TOTAL ADJUSTED FYXX STAFF DOWNTIME AVERAGE:				87 hrs *A*

   2. Calculate annual downtime factor (incorporates sick leave/jury/military leave down) (See FIGURE 2)

      1. Separate downtime factor is required dependent on number of hours vacation accrual each staff employee earns.

      2. Calculate # hours of vacation each employee will earn in the year taking into account mid-year anniversaries that result in an increase in vacation accrual rates and multiply by any University escalation rate "vr" for vacation "B"*

         *There is currently an escalation rate of about 5%. This rate has varied over time from 0-5%.

      3. Include 104 hrs/yr holidays "C"

      4. Add Sickleave/down hrs + vacation accrual hrs + holidays for = subtotal DOWNTIME "D"

         (A + B + C = D)

      5. Subtract the subtotal all down hrs "D" from total hrs in FY ="E"

      6. Divide Downtime Hrs (D) by Working Hrs (E) = F

      FIGURE 2. Annual Downtime Factor

      DOWNTIME FACTOR SUMMARY: 7/1/XX - 6/30/XX (FACTOR FOR FYXX RATES)
      FYXX Working Hours: 2088
      B + A + C = D            E = 2088 - D            F = D / E
      STAFF
      	B*	A	C	D	E	F
      Vacation	Vac.Hrs	SL/down	Holidays	Subtotal	WkgHrs-	Downtime
      Earned Hrs/Mo		hrs(AV)		Hrs Down	Down hrs	Factor
      10 X vr X 12 mo.	120	87	104	311	1777	0.17501
      12 X vr X 12 mo.	144	87	104	335	1753	0.1911
      14 X vr X 12 mo.	168	87	104	359	1729	0.20763
      16 X vr X 12 mo.	192	87	104	383	1705	0.22463
      ACADEMIC
      Vacation	Vac.Hrs	SL/down	Holidays	Subtotal	Wkg Hrs	Downtime
      Earned Hrs/Mo		hrs(AV)		Hrs Down	Down hrs	Calc
      16 X vr X 12 mo	192	0	104	296	1792	0.16518
      9 mo appontees, no vacation hours accrued, holiday hours are not applicable
      GSR's at 48.44%, no vacation hours accrued, holidays not applicable * Note: Vac. Hrs include the escalation rate (vr) for vacation, if any. The illustration give includes no escalation.

      
      
      
      

      INDIVIDUALS WITH VACATION ACCRUAL RATE CHANGES MID-YEAR:
      Vac.Earned Hrs/mo		Vac.Hrs	SL/down hrs(AV)	Holidays	Subtotal Hrs Down	WkgHrs-Down hrs	Downtime Calc
      NAME,A.	Effective 11/16/XX increase from 10 hrs to 12 hr/mo earned
      10 X vr X 5 (5 mo)		50
      12 X vr X 7 (7 mo)		84
      NAME,A. Total:		134	87	104	325	1763	0.18434
      NAME, B.	Effective 9/12/XX increase from 10 hrs to 12 hr/mo earned
      10 X vr X 2 (2 mo)		20
      12 X vr X 10 (10 mo)		120
      NAME,B. Total		140	87	104	331	1757	0.18839

   3. Calculate recharge rate (See FIGURE 3)

      (July DOPE employee benefits/DOPE salary) = benefits factor

      projected annual base X benefits factor X downtime factor = annual recharge rate

      annual recharge rate/12 mos. =monthly recharge rate

      monthly recharge rate/174 hrs. =hourly recharge rate

   4. Assign costs to projects per employee time record (See FIGURE 3)

      employee recharge rate * hrs reported =labor cost to project

      FIGURE 3. Recharge Rates Per Employee
      
      

      CALCULATION OF MPL RECHARGE RATES: FYXX/XX
      FYXX wk hrs- 2088		Projected Base/Yr	Ben.Fac	ModDown SL,Hol,Vac	RchgRate/YR	Rchg Rate/ MO	Recharge Rate/HR
      NAME
      AnybodyA	ACAD	81621	1.0942	1.16518	104061.87	8617.82	49.84
      AnybodyB	GSR	34896	1.0106	1.0000000	35265.90	2938.83	16.89
      AnybodyC	HRLY	19692	1.0106	1.0000000	19900.74	1658.40	9.53
      AnybodyD	10 HR	21400.68	1.1963	1.17501	30082.17	2506.85	14.41
      AnybodyE		39154.80	1.2715	1.1856900	59029.97	4919.16	28.27
      AnybodyF		33156	1.2506	1.2020700	49843.70	4153.64	23.87
      AnybodyG		47239.08	1.2219	1.2189100	70357.23	5863.10	33.69

   5. Calculate Retroactive Salary Changes. (See FIGURE 4)

   1. Original amount is credited entirely

   2. corrected amount (total hours * new rate) is submitted.

IV. MPL OVERTIME HOURS RECHARGE RATE CALCULATION

Hourly base rate * (overtime benefits factor ) =OT hourly recharge rate

Overtime hourly recharge rate * 1.5 =POT hourly recharge rate

Comp time saved is charged at regular hourly recharge rate (fully burdened) at the time it is earned to the project on which hours are reported as employee receives full benefits when comptime is taken.

V. RECHARGE SALARY ESCALATION FACTOR

For proposal application, it is necessary to determine a factor for escalation of the Recharge salary rate that combines the effects of both Benefit and Payroll salary escalation factors.