Overview
Recharge is a process for units that provide specific goods and services to a number of campus departments on an ongoing basis to recover costs. The unit establishes a recharge center and calculates a rate for the goods or services provided.
Recharge activities that are charged to contract and grants or generate over $500,000 annually are subject to central review and must submit a yearly self-certification.
Recharge self-certification forms are due in Q3. Training sessions are held in late Q2 to assist units with recharge centers in developing the Recharge Certification Form.
Examples of Departments with Recharge Activities
- Molecular Cell Biology
- Genomic Sequencing Lab
- Mail Services
- IT and Facilities Services
Examples of Non-Recharge Activities
- Customary services within general administration (Central Accounting, Human Resources, Budgeting)
- Two departments share the costs of a machine equally
- General, non-identifiable services (General administration fee)
- Auxiliary Services: service to individuals (Parking, residential and student services)
Campus Deliverables
Recharge in Chart of Accounts and Reporting
Recharge accounts roll up to Other Operating Expenses in the Total Non Compensation account category.
Detail accounts roll up to Recharge Income or Recharge Billing Expense.
In CalPlanning, the Statement of Revenue and Expenses and Changes in Net Assets (SRECNA) reports include income from recharge activities as a negative expense (contra expense) that rolls up to Other Operating Expenses. There are also reports that show recharge income separate from expenses; these reports are titled SRECNA - Recharge. Recharge reports have an R suffix following the report #, for example, CR902R.
Recharge centers' charging contract and grants or generating over $500,000 annually are subject to central review and must submit a yearly self-certification.
Recharge self-certification forms are due in early Q3. Training sessions are held in late Q2 to assist units with recharge centers in developing the Recharge Certification Form.
Policies That Govern the Work
The Recharge policies and procedures establish a mechanism for defining, establishing, operating and decommissioning recharge centers along with developing, requesting, reviewing and approving new recharge rates.
All recharge centers are expected to comply with the university's recharge policies and procedures.
The recharge policies and procedures have been established to provide consistent operational practices amongst the various recharge units, to ensure compliance with both university accounting policies and government regulations and equitable treatment of all users regardless of funding source.
Recharge center policies and practices must reflect government regulatory costing principles such as those contained in the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards as well as the University Accounting Policies.
Recharge centers are expected to comply with the University of California Policy on Sustainable Practices and help, among other things, achieve our goal of carbon neutrality by 2025.
Roles and Responsibilities
Divisional Finance Leader (DFL) Roles and Responsibilities
Coordinate with their recharge units to submit self-certification forms with an acknowledgment of Divisional review and approval.
Ensure that proposed multi year recharge rates are considered in their division's budgeted recharge income, as appropriate.
Inform their primary campus clients of the new recharge dollar amounts once recharge rates are approved and discuss planned recharged volumes. This will help to ensure their clients' budgets accurately reflect the new values and campus-wide planned recharge income ties to planned recharge expenses.
Raise any questions about either rate certification or planning for recharge expenses to Hervé Bruckert at recharge_certification@berkeley.edu.
Office of the CFO Roles and Responsibilities
Compile multi year recharge rate submissions, prepare and share a schedule of budgeted rates with Divisional Finance Leaders (DFLs) by March each year.
Conduct a review and analysis of divisional recharge rate submissions and follow-up with DFLs as needed.
Communicate rate decisions in June and post approved rates to the recharge webpage by the end of the second week of June.
Systems Used
- BFS
- CalPlanning