Hi Andy,
Yes, it is my understanding (and interpretation) that if individual core facility deficits are carried forward from year to year (not covered by an institutional subsidy to reset the fund to $0) that rates can be adjusted to bring in enough revenue to cover the deficit in the following year. So in year 1 if the core brought in $100k in revenue but ended with a balance of -$20,000 and year 2 starts with that negative balance, one would strive to bring in $120k in year 2 to cover existing expenses plus the deficit. My interpretation has been that a core should break-even over a "reasonable" time, say 3-5 years. A brief statement regarding this can be found on this in the NIH FAQ document published in 2013 (search NOT-OD-13-053), specifically in section 2.b. While old, it is still a document I live by! :)
best,
Julie
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Julie Auger
Executive Director, Research Operations
Salk Institute for Biological Studies
La Jolla CA
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Original Message:
Sent: 04-15-2026 14:33
From: Andy Chitty
Subject: Question - Compliance and Rate Setting
Hi Everyone,
I was in a discussion with some colleagues about rate setting. There was a lot of back and forth. We are wondering how people interpret the regulations for recouping deficits from a previous year with the following year's rates.
For example, if I have a service that recovered 80% of its expenses this year, and I adjust my rates for next year, is it allowable for me to adjust such that recover not only 100% of the cost in the coming year, but also the 20% from the previous year?
Also, how does this apply to rolling out a new service? If I'm working to build my user base in the first two years of a new service and running a deficit, am I allowed to pay that deficit off in subsequent years until I'm at net zero?
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Andy Chitty
Executive Director, MGB Research Cores
Mass General Brigham
Boston MA
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