Recharge Review Job Aids | UCSF Budget & Resource Management

How to prepare a monthly recharge journal

Example of a monthly recharge journal in UCSF PeopleSoft (header and lines shown)

Continuation of monthly recharge journal example (lines tab detail)

How to prepare an equipment depreciation transfer journal

Equipment Depreciation Transfer Journal — SC 535 Header Tab in UCSF PeopleSoft

Equipment Depreciation Transfer Journal — SC 535 Lines Tab in UCSF PeopleSoft

How to apply a Subsidy to a Recharge

Recharge Activities may be subsidized from other funding sources and may be applied in the following ways:

Application of Non-Federal Subsidies to Recharge Rates

Non-Federal Subsidies	Guidelines	Examples
1. Billing subsidy	To reduce the rate charged to the users for recharge products or services by charging a portion of the billing rate directly to a subsidy project.	The fully costed rate of a recharge service is $100 per unit. Eligible users receive a 20% billing subsidy from a subsidy project. The subsidy project pays $20 by charging the subsidized portion of the rate directly to the subsidy chartstring and the users get charged $80.
2. General subsidy	To offset overall expenses in the recharge operating project.	The department transfers year-end deficit balance from the recharge project to a departmental discretionary project or transfers subsidy to recharge operating project during fiscal year to offset expenses and lower the rate.
3. Subsidy for specifically identified expenses	To pay for specifically identified expenses of the Recharge Activity by charging the subsidized expenses directly to a subsidy project. Since all costs and revenues should be recorded in the recharge project, this option has been removed from the guidelines. However, in certain cases might still be allowed if exceptional approval has been received from Budget and Resource Management.	The subsidy fund source specifically requires that certain costs are directly charged to the subsidy project (i.e. faculty and staff effort, supplies, etc.)

Non-Federal Subsidies

Guidelines

Examples

1. Billing subsidy

To reduce the rate charged to the users for recharge products or services by charging a portion of the billing rate directly to a subsidy project.

The fully costed rate of a recharge service is $100 per unit. Eligible users receive a 20% billing subsidy from a subsidy project. The subsidy project pays $20 by charging the subsidized portion of the rate directly to the subsidy chartstring and the users get charged $80.

2. General subsidy

To offset overall expenses in the recharge operating project.

The department transfers year-end deficit balance from the recharge project to a departmental discretionary project or transfers subsidy to recharge operating project during fiscal year to offset expenses and lower the rate.

3. Subsidy for specifically identified expenses

To pay for specifically identified expenses of the Recharge Activity by charging the subsidized expenses directly to a subsidy project.

Since all costs and revenues should be recorded in the recharge project, this option has been removed from the guidelines. However, in certain cases might still be allowed if exceptional approval has been received from Budget and Resource Management.

The subsidy fund source specifically requires that certain costs are directly charged to the subsidy project (i.e. faculty and staff effort, supplies, etc.)

Application of Federal Subsidies to Recharge Rates

Federal Subsidies	Guidelines	Examples
1. Billing subsidy	To reduce the rate charged to the users for recharge products or services by charging a portion of the billing rate directly to a federal award. The billing subsidy process results in no program income reporting requirement to a federal award, only direct costs.	The fully costed rate of a recharge service is $100 per unit. Eligible users are receiving 20% billing subsidy from a federal project. The federal project pays $20 by charging the subsidized portion of the rate directly to the federal award and the users get charged $80.
2. Recharge with federal subsidy (subvention)	To apply a federal subsidy to offset recharge expenses (subvention) and lower the rate charged to all users. In this case, the recharge is classified as a program income activity and must report program income and account for as specified by the Controller’s Office. Budget and Resource Management’s role is to review and approve the rate calculation methodology and rate schedule.	The federal award subsidizes the recharge service cost to reduce the rate charged to all eligible users. Costs and revenues related to the recharge activity are recorded in a subproject under the award’s primary project. Costs subsidized by the federal subvention are recorded in the award’s primary project or in a secondary project.

Federal Subsidies

Guidelines

Examples

1. Billing subsidy

To reduce the rate charged to the users for recharge products or services by charging a portion of the billing rate directly to a federal award.

The billing subsidy process results in no program income reporting requirement to a federal award, only direct costs.

The fully costed rate of a recharge service is $100 per unit. Eligible users are receiving 20% billing subsidy from a federal project. The federal project pays $20 by charging the subsidized portion of the rate directly to the federal award and the users get charged $80.

2. Recharge with federal subsidy (subvention)

To apply a federal subsidy to offset recharge expenses (subvention) and lower the rate charged to all users. In this case, the recharge is classified as a program income activity and must report program income and account for as specified by the Controller’s Office.

Budget and Resource Management’s role is to review and approve the rate calculation methodology and rate schedule.

The federal award subsidizes the recharge service cost to reduce the rate charged to all eligible users. Costs and revenues related to the recharge activity are recorded in a subproject under the award’s primary project. Costs subsidized by the federal subvention are recorded in the award’s primary project or in a secondary project.

Billing Subsidy Application

When a subsidy is applied to billing rate for all internal users, the subsidized portion of the rate is charged directly to the (federal or non-federal) subsidy fund, and the remaining portion of the rate is charged directly to the user.

When preparing a recharge journal with a billing subsidy, only one additional journal line is needed to recharge the billing subsidy fund source.

Recharge Journal

Example journal lines for a billing subsidy showing Acct, Fund, Dept ID, Project, Func, Amount, and Description

Subsidy Application Q&A

How to calculate billable hours for an hourly rate

Billable Hours Calculation Worksheet*

When calculating a rate based on a per hour labor service unit, the rate per hour should reflect only the employee’s billable time. Billable hours are calculated by deducting non-billable time (vacation leave, sick leave, holidays, and administrative time) from the annual working hours.

Billable hours calculation visual example

How to calculate monthly recharge journals for a Common Cost Allocation Recharge

Common Cost Allocation Recharge Worksheet*

For Common Cost Allocations, the monthly rate is a formula rather than a set dollar amount. This worksheet can be used to assist in calculating monthly recharge journals based on your approved rate formula.