Thompson Rivers University
Thompson Rivers University

Educational Service Agreements

Educational Service Agreements (ESAs) / Contracts

These forms are used when TRU provides a service that will be invoiced for. Blank ESA forms are available from the Finance Division. The account code, "in agreement", and "terms of contract" sections should be completed, and the Client, Originator (often a program co-ordinator) and Divisional Dean/Director should have signed the ESA before it is sent to Finance. A completed and signed Educational Service Agreement Budget Breakdown form (see page 73) should accompany the ESA. Please note that the Budget Breakdown is a confidential document intended for internal use only.

Under exceptional circumstances, other government ministries may wish to use their own contracts for services. These are the only circumstances under which a contract other than our own will be used.`

Please check with Finance before you agree to use another contract format. Please note that a Budget Breakdown must still be attached before the contract is submitted to Finance, where an ESA number will be assigned.

The ESA and corresponding Budget Breakdown are then reviewed and approved by the Director of Finance or the Vice-President, Finance and Business Operations. The client is then invoiced.

The following information has been taken from CCPM 9060:

General Components of Educational Service Agreements

For internal costing only

  1. Direct Costs Instruction and other costs directly attributed thereto, such as those allocated for fringe benefits, supplies, travel, space rental, etc. Any problem concerning definition of direct costs should be referred to the Business Analyst (5607).

      2.   Indirect Costs are defined as:

a)     Instructional support (Library, Audio-Visual and Information Services - F7 PACS Manual)

b)     Student Services (F8 PACS Manual)

c) Administration (F9 PACS Manual)

d)     Facilities (F10 PACS Manual)

Indirect costs shall be applied as a percentage of direct costs.

  1. International Education Surcharge

In the case of international contracts, a percentage of the total of items 1 and 2 above.

  1. Divisional Margin

a)     For domestic contracts, a percentage of the total of direct and indirect costs, items 1 and 2 above

b)     For international contracts, a percentage of the total of direct costs, indirect costs and international education surcharge, i.e. items 1,2, and 3 above.

Regulations

  1. Indirect Costs

Educational Service Agreements for services not covered by the College's normal operating budget shall be charged full indirect costs.

Normally, indirect costs shall be set at 10%, 20%, or 30% of direct costs. These percentages shall be applied in accordance with the categorization of Educational Service Agreements/Contracts, as approved by the Vice President.

Any deviations from the approved listing will be resolved, first, by reference to the Bursar and Director of Financial Services, and the Vice-President, and, second, if resolution has not been achieved, by reference to the President.

Once the indirect charge has been established and the contract has been signed an amount equal to the indirect costs will be set aside in Finance in an institutional account.

2.        Divisional Margin

The divisional mark-up shall take into account:

a.     Ability of sponsoring agency to pay overhead costs

b.     Marketplace competition

c.     Benefit to TRU from the agreement

The divisional margin will be highlighted on internal documentation for review before contract approval.

Contact local 5881 with questions regarding ESAs.

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