[Cialug] ballpark networking rates

[Claus]

The department I work for as well as several other departments at ISU do 
this "funny money" stuff.  Here it's called charge back.

Certain IT functionality that we provide is centrally funded because 
these things are just needed for the University to run and benefit to 
more than a certain department.  Other things are charged back to the 
department requesting it.  That way the department thinks about what 
they need and if its valuable enough for them to spend the money on it. 
  Seems to work OK.

   Claus

On 3/14/2005 10:23 AM, Nathan C. Smith wrote:
> Ahh, the joys of funny money and accounting chargeback.
> 
> 
> -----Original Message-----
> From: Dave J. Hala Jr. 
> Sent: Monday, March 14, 2005 10:20 AM
> To: Cialug
> Subject: RE: [Cialug] ballpark networking rates
> 
> 
> 
> I did that once. It turned out a little wierd.  After a while, we discovered
> the average amount that each "department" used. Then we ended up billing
> each department X amount of dollars. This turned out to be a
> *huge* mistake.
> 
> The "departments" then started coming up with this stuff:  I pay X amount of
> dollars so I pay that persons salary and that persons salary that does
> mostly work for my deparment."  I think they should be doing this and this
> and this for my deparment. Or I don't think I'm getting my money's worth
> from person X... I'm paying way to much money for the services I receive,
> why don't I just contract it out and IT can just support the
> infrastructure...and clean up the mess later...
> 
> What a mess. If you're a State/Federally funded entity, making the
> transition to IT as profit center could be a quite a shock. If you're a
> corporate person, then its just politics as usual...
> 
> Just my 2 cents..
> 
>