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Service Level Agreement Template 3
[Use this section to address budget and funding issues. In cases where the SLA will also
cover services that will be funded through a chargeback mechanism, this section should
address the chargeback methodology and payment process. In such instances, you might
consider establishing a reporting and reconciliation process.]
Payment Process:
EOHHS shall:
1. Assess accounts through an Intergovernmental Payment Voucher (ITA) on a quarterly
basis at which time the transfer of funds will be requested from Departments.
2. Perform interim reconciliations of actual expenses to the Anticipated Budget not less
than twice a year and conduct a final reconciliation by the end of the third quarter, or
no later than April 30th.
3. Adjust the IE as appropriate if, in the determination of EOHHS, projected costs are
more than or less than actual costs for the operation of the Core Administrative
Activity charged at the beginning of each quarter or year.
Departments shall encumber funds through an Intergovernmental Encumbrance (IE)
transaction for the amount identified in the Anticipated Budget describing a Core
Administrative Activity.
Budget/Chargeback Methodology:
EOHHS shall:
1. Establish a consolidated Information Technology Core Administrative budget for EOHHS.
2. Ensure that the budget for the consolidated Information Technology Core Administrative is
adequate and that funding is sufficient to cover the costs of salary and other employee related
3. Include in the budget, the following employee related and administrative charges:
Payroll Related Fringe Benefit Costs (D09),
Voice and data related costs, and
Other contract costs
4. Assess a charge against each Department developed in accordance with the provisions of this
5. Modify the assessments if such modifications are warranted by the results of any cost
allocation study performed in order to maximize federal revenue or to reflect changes in the
number of staff processing Information Technology Core Administrative Activities and/or use
of these staffs time.
6. Amendments
[This section sets forth the conditions for amending the SLA.]
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