Cost Components

Below are the various types of costs that can be incurred by a recharge center and some general guidelines as to whether the costs can be included in the rate development to support  activities. 

Personnel Costs

The salaries and benefits of the recharge center employees directly involved with the activity of the recharge center should be included in the rate development.  Contact Cost and Compliance for proper fringe rates.

Supplies and Material

The cost of supplies and materials needed to operate the recharge center should be included in the rate development. 

Other Direct Costs

Other types of costs that might be included are special conferences, professional services, communication costs, equipment expenditures under $1,000, etc.  The costs must be directly allocable and related specifically to the service or product provided.

Capital Equipment

Capital equipment is described as any stand alone item with a cost of $5,000 or more if purchased on non-sponsored funds and $5,000 or more if purchased on sponsored funds and has a useful life of one year or more. Recharge centers that are permitted to include the cost of capital equipment in their rates must keep track of and account for their capital equipment.  Although federal guidelines do not allow the purchase cost of a capital item to be included as a direct charge in the rate development, it is appropriate to include the depreciation associated with the item.  Contact the Department of Sponsored Projects and Property Administration for information about how to calculate depreciation.

F & A Costs

F&A costs cannot be included in the rates for academic departments/recharge centers.  Departmental F & A costs should be included in the rates for recharge center and specialized service facilities.  Institutional F & A costs can be included in the rates for recharge center and specialized service facilities with approval from the Sponsored Projects and Property Administration.

Unrecoverable Costs

Unrecoverable costs cannot be charged to federal sponsored agreements, and therefore should not be included in rates for internal users.  Examples of unrecoverable costs include alcoholic beverages, alumni activities, bad debts, entertainment costs, etc.

Surplus/Deficit from Prior Year(s)

For established centers, include any surplus (over-recovery) or deficit (under-recovery) from the prior year operations.