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:
- Capturing all of the costs of the service being provided.
- Emphasizing accountability of the service provider.
- 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.