Recharge

Overview

A recharge occurs when one university unit provides a good or service to or incurs a cost on behalf of another university unit and seeks to recover its costs.

Examples of this activity include campus-wide service providers such as Creative Services, Police Security and Human Resources (recruitment advertisements).

Benefits of Recharge

Objectives for establishing a recharge include:

  1. Capturing all of the costs of the service being provided.
  2. Emphasizing accountability of the service provider.
  3. Creating an incentive for the service recipient to self-regulate its usage of the service.

Developing Recharge Rate

A recharge rate is developed using projected accumulated costs (both labor and non-labor expenses) and usage.

If Federal funds will be charged, the university is required to establish a billing rate that is in compliance with the Office of Management and Budget (OMB) Circular A-21. Circular A-21 stipulates that the Federal Government may not be charged more than any other user, including internal users.

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