Recharge Review: Allowable and Unallowable Costs | UCSF Budget & Resource Management

Allowable and unallowable costs on recharge activities

The following lists summarize common allowable and unallowable costs on recharge activities. These examples are not exhaustive.

Allowable costs

Salaries, wages, fringe benefits
Supplies
Contract services
Equipment depreciation
Other directly assigned costs associated with providing the service or product
Directly assigned or allocated expenses of recharge administration
Services
Working capital (up to two months of operating expenses)

Unallowable costs

Alcoholic beverages
Entertainment
Memberships, except for professional organizations
Advertising (with some exceptions)
Bad debts and related legal expenses
Fines and penalties
Short-Term Investment Pool (STIP)
Fundraising expenses and lobbying costs
Legal settlement costs
Charitable contributions

List of Always Unallowable and Generally Unallowable Expenses by Account

Costs that are always unallowable and costs that are generally unallowable are listed below by account. Generally unallowable costs may be considered allowable only if they are directly related to, exclusively benefit, and are required to provide the recharge services and are included as an approved exception in the recharge approval letter.

Always unallowable and generally unallowable expenses by account for recharge activities
Account	Description	Allowability
51321	Sponsored project equipment > $5,000 and above	Always unallowable
52601	Computers $5,000 and above	Always unallowable
52602	Software $5,000 and above	Always unallowable
52603	Equipment $5,000+ non-computer	Always unallowable
52604	Interdepartmental equipment transfers	Always unallowable
52605	Library materials capitalized	Always unallowable
52900	Bad debt expense – sundry debtor	Always unallowable
55601	Legal – general operations/advice	Always unallowable
55602	Legal – litigation/debt collection	Always unallowable
55603	Legal – fines and penalties	Always unallowable
57250	Social activities/entertainment/alcohol	Always unallowable
57251	Social/civic memberships and subscriptions	Always unallowable
57253	Travel – fundraising, lobbying, alumni	Always unallowable
57501	Capital lease principal – computer	Always unallowable
57503	Capital lease principal – non-computer	Always unallowable
57835	Advertising – sales/public relations	Always unallowable
57843	Donations/contributions	Always unallowable
57970	Medical center – bad debt	Always unallowable
57971	Medical center – bad debt – certain IP/personal/private	Always unallowable
59032	Loans – reserve for bad debts	Always unallowable
59135	Debt extinguishment costs	Always unallowable
59140	STIP investment expense – current	Always unallowable
59141	STIP investment expense – loan	Always unallowable
59142	STIP investment expense – plant	Always unallowable
59143	STIP investment expense – ROI	Always unallowable
59144	STIP investment expense – RRPL	Always unallowable
52310	Dietary (food)	Generally unallowable (requires approved exception)
52315	Furniture	Generally unallowable (requires approved exception)
57001	Telephone – lines/equipment	Generally unallowable (requires approved exception)
57025	Telephone – cellular	Generally unallowable (requires approved exception)
57055	Mail sorting/mail delivery	Generally unallowable (requires approved exception)
57200	Business meetings excluding alcohol	Generally unallowable (requires approved exception)
57802	Parking permits/space	Generally unallowable (requires approved exception)
57808	ID card expenses	Generally unallowable (requires approved exception)
57851	Employee recognition/award/bearhugs	Generally unallowable (requires approved exception)
58510	Interest expense – other	Generally unallowable (requires approved exception)

Setting up a Monthly Automated Unallowable Expense Report in MyReports (PDF)