Recharge Review: Allowable and Unallowable Costs

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

Costs that are generally unallowable, unless they are directly related to, exclusively benefit, and are required to provide the recharge services. These costs require an approved exception in the recharge approval letter in order to be considered allowable. 

51321   Sponsored project equipment > $5,000 and above

52601   Computers $5,000 and above

52602   Software $5,000 and above

52603   Equipment $5,000+ non-computer

52604   Interdepartmental equipment transfers

52605   Library materials capitalized

52900   Bad debt expense – sundry debtor

55601   Legal – general operations/advice

55602   Legal – litigation/debt collection

55603   Legal – fines and penalties

57250   Social activities/entertainment/alcohol

57251   Social/civic memberships and subscriptions

57253   Travel – fundraising, lobbying, alumni

57501   Capital lease principal – computer

57503   Capital lease principal – non-computer

57835   Advertising – sales/public relations

57843   Donations/contributions

57970   Medical center – bad debt

57971   Medical center – bad debt – certain IP/personal/private

59032   Loans – reserve for bad debts

59135   Debt extinguishment costs

59140   STIP investment expense – current

59141   STIP investment expense – loan

59142   STIP investment expense – plant

59143   STIP investment expense – ROI

59144   STIP investment expense – RRPL

52310   Dietary (food)

52315   Furniture

57001   Telephone – lines/equipment

57025   Telephone – cellular

57055   Mail sorting/mail delivery

57200   Business meetings excluding alcohol

57802   Parking permits/space

57808   ID card expenses

57851   Employee recognition/award/bearhugs

58510   Interest expense – other

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