Chapter 7-600

Service Facilities

It is University practice to abide by Section J. 47, “Specialized Service Facilities”, of 2 CFR 220 (OMB Circular No. A-21) in the operation of service facilities ("recharge centers"). General elements of this practice applicable to direct costs charged to sponsored projects are discussed in sections 7-610 through 7-630, below. Specific procedures are promulgated in Business and Finance Bulletin A-47, section VI. Section I., "References," of A-47 specifies other Business and Finance Bulletins which cover recharge costing procedures for certain areas of the University such as dental clinics, academic support units, auxiliary and service enterprises, and campus computer centers.

7-610 Recovery of Actual Costs

In general, all elements of allowable costs resulting from the service provided should be recharged to users. Recharge rates should approximate the actual cost of the service provided. Specific billing and costing guidelines for recharge centers are found in Business and Finance Bulletins A-56, Academic Support Unit Costing and Billing Guidelines and A-59, Costing and Working Capital for Auxiliary and Service Enterprises.

7-620 Adjustment of Prices

Recharge center charges are based on previously authorized established prices. These prices are to be adjusted at least once a year to eliminate accumulated surpluses or deficits.

7-630 Consistent Application of Rates

Federally-sponsored users should not be charged a higher rate than other non-University users for use of recharge center services.