F-2) Recharge Activity – Both Internal AND External Customers

Review date: 
February 08, 2018
Responsible office: 
Budget and Resource Management

Definition

Mechanism for charging both INTERNAL customers (defined as able to be recharged via a journal) and EXTERNAL customers (defined as not able to be recharged via a journal, instead they are billed and pay by cash, check or credit) for products or services

All of the definitions in F-1 above apply, and in addition the following conditions apply.

  • Business contracts between external customers and the Regents of the University of California are required. These should be routine if a standard agreement is used.
  • Business contracts will only be executed for recharge activities that have been approved by the Budget and Resource Management Office.
  • The University must not assume any obligation beyond delivery of a standardized University product or service at a pre- established, per unit, uniform price.
  • External customers may not be charged less than total cost.
  • Indirect costs must be included in the rates charged for the products or services unless a formal waiver has been reviewed and approved by the Budget and Resource Management Office.
  • Unrelated Business Income Tax (UBIT) and Sales Tax review is required.