Operating Service Agreements (OSA)

Operating Service Agreements (OSA) are executed annually to support charges to VCUHS for services provided by VCU. The VCU Controller’s Office is responsible for gathering updates and coordinating with the VCUHS for approval of the OSA. This activity is recorded as revenue in Banner in orgs that start with ‘H’. The unit will need to charge the appropriate expenses to these same orgs once the OSA is approved for the fiscal year.

Typical timeline — the process starts in the fall for agreements for the upcoming fiscal year.

• October/November:
• Controller’s Office will meet to discuss the process and assign responsibilities.

• • Controller’s Office sends excel files with prior year information  and instructions to the units for updates.
    

• December:
  • Units return updated sheets before winter break with VP or unit head approval.
    
• January:
  • Controller’s Office reviews all returned files; compiles summary sheet with explanations for any significant variances; follows up with units as needed for questions that arise from review with leadership. 
    
• February/March:

• • Controller’s Office reviews with VCU Senior Vice President for Finance and Administration and Chief Financial Officer.
  • Controller’s Office will meet with VCU Health System finance staff for initial review; follow-up on any items based on discussion.
  • Any changes made during this process require an updated approval from the VP or unit head.
    
• VCUHS drives timeline and process for review with VCUHS CFO.
  
• April/May:
  • Controller’s Office will update all excel files for any salary and fringe adjustments based on General Assembly actions; provide a final summary to VCUHS and budget amounts to the VCU budget office.

Excel files are used to document the cost of the services being provided. The units are responsible for determining the appropriate metrics to be used. In most cases, personnel effort is expressed as FTE % and any operating costs are added. Some units have other metrics such as ridership for P&T or number of calls for police. If you need assistance with determining the appropriate metrics, please reach out to the Controller’s Office at (804) 828-1890 or mjackson9@vcu.edu 

Controller’s Office will reach out to each unit to have the sheets updated annually. If a school or unit is new to the process and needs to establish an OSA for the first time they should reach out to the Controller’s Office at (804) 828-1890 for a sample excel file and assistance with the process. A new Banner index(es) may also need to be established.