Recharge Centers

CAS also applies to recharge centers or those units that charge other units of the University for goods or services. In general, if a unit is going to charge another unit for goods or services, the prices charged must be based on actual costs and must be distributed to users on the basis of actual measurable usage. Prices should be set to recover only actual costs, so that no year-end surplus or deficit remains. Prior to initiating any new recharge center, its purpose and proposed rates must be reviewed and approved by the offices of Budget Planning and the Controller, as well as the school or unit under which it is organized. In addition, all existing recharge centers must review their financial position and obtain approved rates on at least an annual basis from the Budget Planning and Controller offices. Comprehensive guidelines related to recharge center operations were promulgated in July 1998 and can be obtained from the Office of the Controller. As of September 1, 1999, indirect costs will no longer be assessed on telecommunications charges or on shop charges when the services relate to fabricated equipment with a value, when complete, of $5,000 or more. Specific procedures must be followed to obtain the fabricated equipment exemption (see "Fabricated Equipment Policy").