Service centers (aka recharge units) charge for products or services that directly support the research or academic mission of the university and recover costs through charges to internal and external users.
A rate-based service (aka recharge) is the cost charged to a university department for specific goods or services provided by another university department. Recharge units provide ongoing services to campus departments and recover the cost of providing these services on a rate basis.
Service centers provide specific, ongoing services to a number of campus units or projects, and recover the cost of providing these services from the unit served on a rate basis. Service centers develop rates to consistently and equitably recover the costs of the recharge operations such as salaries, benefits, equipment depreciation, material and supplies. Recharge units are expected to operate on a break-even basis – no gain and no loss.
Recharge rates allow recharge units to recover from extramural, auxiliary and university-funded activities the costs for goods and services provided. Costing policies have been established to provide consistent operational practices recharge units, to ensure compliance with university accounting policies and government regulations, and to ensure the equitable treatment of all users regardless of funding source.
|Financial Planning & Analysis||
|Financial managers with recharge activities||Operational management of respective recharge facilities. This includes budget preparation, invoicing, account reconciliation, and recharge proposal preparation.|
|Financial & Accounting Services||
Policy and Regulations Documents
Office of Management and Budget Uniform Guidance: Cost principles for educational institutions published by the federal Office of Management and Budget (OMB)
Business and Finance Bulletin A-47 : University direct costing procedures
Business and Finance Bulleting A-56: Academic support unit costing and billing guidelines
Business and Finance Bulletin A-59: Costing and working capital for auxiliary and service enterprises.
Business and Finance Bulletin A-72: Establishment and review of auxiliary enterprises.
The Recharge Committee is responsible for approving the establishment of a recharge unit and applicable rates.