S.C. Code Regs. § § 19-410.5

Current through Register Vol. 48, No. 10, October 25, 2024
Section 19-410.5 - Financing and Service Charges
A. Section 3-9-10, Code of Laws of South Carolina, 1976. Any charges made or fees assessed by the South Carolina Office of General Services for the acquisition, warehousing, distribution or transfer of any property of the United States of America for educational, public health or civil defense purposes, including research for any such purpose which may now be or hereafter become eligible under the act, shall be limited to those reasonably related to the costs of care and handling in respect to its acquisition, receipt, warehousing, distribution or transfer. The State Agency does not receive any appropriated funds from either State or Federal sources.
B. Method of Computing Service Charges.

Service charges shall be fair and equitable as related to the services performed and the direct and indirect cost of operations. In general the charges are related to the following expense factors:

(1) Personal Service
(a) Clerical
(b) Secretarial
(c) Purchasing & Supply
(d) Security
(e) Labor & Trades
(f) Equipment Operation
(2) Contractual Services
(a) Freight, Express & Delivery
(b) Travel
(c) Telegraph & Telephone
(d) Repairs
(e) Water, Heat, Lights & Power
(f) Other Contractual Services
(3) Supplies
(a) Fuel Supplies
(b) Office Supplies
(c) Motor Vehicle Supplies
(d) Postage
(e) Other Supplies
(4) Fixed Charges & Costs
(a) Rents--Equipment
(b) Insurance
(c) Contributions & Dues
(5) Equipment
(a) Office Equipment
(6) Depreciation

A chart has been prepared for computing service and handling charges by applying percentage factors to acquisition cost in ranges to permit consideration of property conditions, desirability, normal market value, quantity available, etc. (See chart, infra)

C. Minimal Charges.
(1) In cases where property is located and screened exclusively by a donee screener at a Holding Agency where state screeners do not visit, the service charge will be reduced, as a general rule, by 10%.
(2) On direct transfers of property from the Holding Agency to the donee, where the donee pays all transportation costs, the service charge may, as a general rule, be reduced by 25%, when compared to similar items transferred from the State Distribution Center.
(3) Service and handling charges assessed for donated property to providers of assistance to homeless individuals shall be at nominal cost for care and handling.
D. Special Donations.

In cases involving major items of property or otherwise when unusual expenses may be incurred, the State Agency may mutually arbitrate with the donee for a fair and equitable service charge.

E. Evaluation of Service Charges.

The relation of service charges to the total costs of operation will be evaluated on a quarterly basis. The service charges will be revised in accordance with the evaluation results.

F. Funds accumulated from service charges including such funds accumulated from donee service charges before October 17, 1977, or from other sources such as sales or compliance proceeds, will be used to cover direct and indirect costs of the State Agency's operation, to purchase necessary equipment, to rehabilitate donable surplus property, to provide normal upkeep of office and distribution center facilities, to purchase necessary equipment and supplies, to purchase replacement parts for donable property items, to acquire or improve office space or distribution center facilities as authorized in Section 3-9-10 of the South Carolina Code.
G. Capital Reserve Fund.

A reasonable working capital reserve fund will be maintained (the previous year's total overhead expenses) and should this reserve become excessive, a reduction in service charges shall be made to all donees on future transfers.

H. Deposits of Service Charge Funds.

All moneys are deposited with the State Treasurer in a Revolving General Fund and designated by a separate account in accordance with Section 11-14-30 of the South Carolina Code, 1976.

I. Disposition of Funds if Facilities are Sold.

All moneys arising from the sale of facilities shall be paid into the State Treasurer and shall be kept on a separate account by the Treasurer as a fund to be drawn upon the warrant of the Budget and Control Board for the exclusive use and purpose which have been or shall be declared in relation to the General Fund, in accordance with Section 11-9-620 of the South Carolina Code, 1976.

J. Means and Methods of Financing.
(1) The State Agency receives no appropriated funds from the State or Federal Government. The Agency is financed solely from the assessment of service and handling charges on Federal surplus personal property donated. Authority for this is covered by State statutes as defined in Part I of the State Plan, Paragraph B(1).

Chart for Computing Service and Handling Charges

(a)

(b)

(c)

Percent of A/C

Acquisition Cost

Service Charge Range

0-50%

0-$10

0-$5

0-40%

$10-$100

0-$40

0-30%

$100-$200

0-$60

0-25%

$200-$1500

0-$375

0-10%

$1500-$5000

0-$500

0- 5%

$5000-$20,000

0-$1000

0- 3%

$20,000-$50,000

0-$1050

0- 1%

$50,000-$100,000

0-$1000

Open

Over $100,000

Negotiable

Exceptions:

(a) Rehabilitated property--Direct costs for rehabilitating property will be added to the charge.
(b) Overseas property--Additional costs for screening and returning property will be added.
(c) Extraordinary and/or unusual transportation charges--Charges on property with "out-of-the ordinary" or "unusual transportation cost" will be added.
(d) Special Handling--An additional charge may be made for dismantling, packing, crating, shipping, delivery and other extraordinary charges.
(e) Adjustment in acquisition cost--When the acquisition cost of an item is unrealistic, an adjustment will be requested from the GSA Regional Office prior to assessment of service charge.
(f) Lotted property--Property issued by the pound will not be covered by the above schedule. Service charges will be assessed on a price per pound basis.
(g) Fair market value--In certain special cases service charges may be assessed on a basis of the fair market value of the property.

S.C. Code Regs. § 19-410.5

Amended by State Register Volume 21, Issue No. 6, Part 1, eff June 27, 1997.

The above schedule will be re-evaluated periodically for comparison of operating expenses with income receipts, at which time the percentage of acquisition cost (Col. a) will be adjusted accordingly.