Finance

Cost Centers

• Loma Linda University Health will utilize the following cost centers to track related costs for the University, Shared Services and the Hospitals

There are two primary methods that will be used for capturing the costs

1. Direct charge to the Disaster cost center
2. Reclassification of expenses to the Disaster cost center

Below is an explanation of how to capture the Disaster costs

1. Direct charge to the Disaster cost center
   • For items requiring a purchase order, the requestor should include the phrase “FOR COVID-19” in the Requisition’s comment section
   • Based on the “COVID-19” comment, Supply Chain will adjust the account number in Oracle to be the Disaster cost center
   • For expense report items, the Disaster code may be input on the expense report
2. Reclassification of Expenses to the Disaster cost center

Departments may request for expenses – both Labor and Non-Labor – to be moved to the Disaster cost center

• Requests may be submitted using the Disaster Report Form

The type of items to charge to the Disaster cost center

1. Additional, extra or unusual costs in planning and preparing for the disaster event
2. Additional, extra or unusual costs incurred during the disaster event itself
3. Additional, extra or unusual costs incurred in recovering from the disaster event

Examples of Items to Charge to the Disaster cost center

Capital equipment acquired to support or enable modified service delivery to clinics, hospitals and schools

Communication related expenses – design and printing of special signs, social media costs, purchased media time related to the disaster, etc.

Supplies – testing swabs, gloves, isolation gowns, etc.

• This would be for additional costs (e.g., using twice as much hand sanitizer) or for premium costs (e.g., gloves that cost twice the normal price)
• Increased medication costs (utilization and/or price)

Staffing costs – additional staffing dollars beyond the norm

• Training costs specific to the Disaster (e.g., refresh on how to use protective personal equipment)
• Stand-by and callback costs specific to the Disaster
• Premium pay caused by high Disaster-related work volumes
• Extra staffing beyond the normal staffing pattern (e.g., more Security guards)
• Meetings specific to COVID-19

Purchased Service Costs

• Contracted labor (e.g., cleaning, IT services)
• Extra linen costs
• Legal costs related to the Disaster (e.g., contract review, personnel matters, privacy matters, restricting access, etc.)
• Intercompany expenses

Equipment rental (e.g., ventilators, beds, tents, etc.)

If you have a question about whether or not something qualifies as a Disaster expense, or how to process, please contact your department’s or entity’s Finance Lead/Officer.