Recharge

Where do I find funding to purchase equipment for assignment to a recharge activity?

The University operating policies require the department to purchase the initial equipment for the newly established recharge activity. If it is an ongoing recharge activity and the amount of the equipment purchase is small, you can finance the purchase from amounts in the recharge accounts current reserves. If it is an ongoing recharge activity and the amount of the equipment purchase is substantial, you should finance the purchase through a capital lease or seek outside seed money from other sources.

Can a recharge activity lease a piece of equipment and charge the lease payments to the recharge operating fund?

For capital leases, lease payments can be allocated to the recharge operating fund provided that the amount of the lease payments is roughly equal to the amount of depreciation that could have been charged for the same period and the University has title to the asset. For operational leases, the lease payments should be allocated to the recharge operating fund.

What determines whether or not an item can be assigned as equipment with depreciation allocated to a recharge account?

The University definition for equipment must be met. Presently the item must have a purchase price of at least $5,000 and a useful life of more than a year. The item must be used in the recharge activity to have its charges assigned to the respective fund.