Sent to the Budget-Recharge mailing list on July 26, 2021
It is time to prepare for the annual recharge rate review. Each recharge unit is required to review its fiscal operations and produce an annual report that will be shared with the campus Recharge Review Committee and Provost/Executive Vice Chancellor. Units will also present requests for rate changes as needed and appropriate. These efforts are to ensure that recharge activities are operating on a fiscally sound basis and in compliance with recharge policies and procedures. Please refer to the UCI Accounting & Fiscal Services Official Recharge page for guidance.
A complete recharge review packet includes the following steps:
- If the recharge activity used the correct debit object codes and properly charged all expenses to the correct recharge operating account(s), subsidy accounts and reserve account that are unique to the recharge activity: Complete the KFS Decision Support – Recharge Review Report. Click here for Instructions. Review and print out the PDF version, and use as cover page to obtain signatures for the complete recharge review packet.
- If expenses were not charged to unique recharge-specific accounts or if the wrong debit object codes were used at any point during the year when charging other departments: Attach a copy of the relevant June Final Account Summary report(s) from KFS Decision Support for the account(s) referenced on the Quantitative Analysis. The report(s) will serve as supporting documentation so that amounts shown on the Current Year Actual column on the Quantitative Analysis form may be verified for ease of committee review, audit, and reconciliation. If any recharge unit costs have been expensed on a non-recharge fund, this is considered a subsidy and the amounts should be shown as a subsidy to the recharge unit on the Quantitative Analysis form.
- Annual Recharge Report Template, which contains:
- Instructions for running the DS Recharge Review Report (does not need to printed),
- Narrative Analysis (Question 3 and signatures are optional if the DS Recharge Review Report is provided. If the report is not provided, in question 3 be sure to indicate the primary users of the recharge unit expressed in percentages by School/Unit, e.g., 55% Engineering, 32% Biological Sciences, 13% other),
- Quantitative Analysis (can be skipped if the DS Recharge Review Report is provided)
- Exclude any encumbrances that may be shown as outstanding for the recharge unit.
- On-Campus Recharge (the % federal and % non-federal rows can be skipped if the DS Recharge Review Report is provided),
- Off-Campus Income (complete only if applicable),
- Reserve Account (complete only if applicable for activities that use equipment depreciation to establish a reserve – can be skipped if the DS Recharge Review Report is provided).
- If new rates are proposed for the new Fiscal Year, be sure to provide cost-based justification for the proposed rates shown on the On-Campus Recharge and Off-Campus Income by following step below.
- Complete the second attachment, Income and Recharge Rate Calculation Template, for each rate being adjusted. The rate calculation template provides a clear cost-based rationale to support a rate adjustment. Include any assumptions that were considered in developing the new rate. Please include a rate justification document for each new rate or change in rate.
- Approvals – Using either the DS Recharge Review Report or the Narrative Analysis as a cover page, obtain the following approvals before submitting your report:
- Recharge Facility Director/Manager
- Department Administrator/Financial Reviewer
- School or Coordinating Point Approver
The completed forms are due to the Cost Accounting office no later than Friday August 13th, 2021. Please email all the submissions to email@example.com. Accounting & Fiscal Services will complete its review and then meet with the Campus Recharge Review Committee. We anticipate obtaining approval from the Provost by the end of September for implementation effective October 1, 2021.
If you have any questions, please contact me at firstname.lastname@example.org.
Maria Gorginova, MBA
Associate Director, Cost Accounting
UCI Accounting & Fiscal Services