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Adjustment of FSEA Rates to Account for Surplus/Deficit

Rate Adjustments

Fee-for-Service Educational Activity (FSEA) at a minimum must review their rates biennially, but it is advised that the rates be reviewed annually.

To ensure and document that a center is operating toward a break-even position over time, a surplus/deficit analysis must be prepared.  In general, the surplus/deficit amount must be carried-forward (included in) the next year’s rate calculations.

Operating Gain/(Loss)

  1. Operating Gains: Gains from internal sales should be handled by decreasing the billing rate for the specific goods or services in future rates.  In rare occasions, if the gain is obtained from projects and is found to be in error, the amount or the gain may have to be returned
  2. Operating Losses: Losses from goods or services should be handled by increasing the specific billing rate moving forward or by subsidizing the loss through other funding sources


A large surplus need not be eliminated in its entirety within one year; however, a plan should be in place to reduce it over the course of a few (2 – 4) years. Some amount of surplus at year’s end is acceptable, and does not have to be carried-forward into the next year’s rate calculations.


The deficit usually results from expenses being greater or usage being less than estimated in the initial rate calculation.  These unplanned deficits should be carried over to the next year’s calculation or offset by the provision of a subsidy.

Last Reviewed

Last reviewed on 03/20/2024


Auxiliary Accounting: (352) 294-7236

Email: ga-aux@ad.ufl.edu

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