UC Santa Barbara Policy 1300
Policies
Issuing Unit: Academic Affairs Date: June 1, 1985
ESTABLISHMENT AND REVISION OF RECHARGE RATES
I. REFERENCES:
A. University of California Business and Finance Bulletin A-47,
University Direct Costing Policy.
B. University of California Business and Finance Bulletin A-56,
Academic Support Unit Costing and Billing Guidelines.
C. University of California Business and Finance Bulletin A-59,
Costing and Work Capital for Auxiliary and Service Enterprises.
D. University of California Planning and Budget Manual, Section
4010, Operating Budget Amendments, VII.B.4.
II. POLICY:
A. Definition:
1. "Recharge" shall be defined as the assessment and
collection by one campus account of a charge for goods or
services, based on an identifiable unit of measure,
furnished to another campus account.
2. "Rate" shall be defined as a unit of value--based on an
established standard pricing method as developed under the
recharge function--for goods and/or services supplied to
authorized individuals or groups.
B. Applicability:
Fees set by regulatory bodies and rates subject to control
through other specific University policies are excluded from
this policy: (1) academic fees, (2) University Extension fees,
(3) Parking (4) Summer Session fees for instructional programs,
(5) residence halls, including food service, (6) admission to
athletic events, arts and lectures programs, and other events,
(7) University Center, and (8) rates associated with computing
equipment administered/controlled by the Computer Center. Note:
Stand-alone word-processing equipment, stand-alone micro
computers (whether used for word processing or data processing)
will be reviewed by the Rate and Recharge Council.
C. Rate and Recharge Council:
The Rate and Recharge council is advisory to the Chancellor in
all matters related to rate structures and recharge procedures
proposed by campus service units for their goods and/or
services, except as noted above.
1. In all deliberations, the Council shall keep in mind the
effect which its recommendations may have upon relations
with the adjacent community--to avoid the appearance of
unfair competition with local or private enterprise.
2. The Council shall insure that wherever possible
rates/recharges allow for full cost recovery. In the case
of self-sustaining activities, consideration shall be
given to amortization of indebtedness and depreciation of
equipment and facilities.
3. In accordance with paragraphs C.l. and 2. above, the
Council shall:
a. Review and evaluate the need for recharges and rates
for good and services, within the defined
jurisdiction of the Council.
b. Provide assistance in the development of recharge
formulas and rate structures for those new areas
needing help in their approach to this problem.
c. In conjunction with the annual budgeting process
receive and review requests for changes in
rates/recharges to insure that they reflect present
needs.
d. Review and recommend on new income accounts. These
must have final approval from the Office of the
President. Requests for new accounts may be submitted
at any time during the year. Noting the instructions
on the back of the form, the originating unit should
complete a Request for Establishment or Revision of
Rates or Recharge Fees for (Attachment A) and forward
it to the Chairperson, Rate and Recharge Council.
Proposals to establish recharge accounts should be
based on the following criteria:
(1) There exists a demand for the particular service
by more than one
department/unit/activity/project.
(2) There will be a significant volume of
recharging, both in dollar amounts and in number
of transactions.
(3) Service will be provided on a regular and
continuing basis.
(4) Service should be unique or specialized (for
example, a glass blowing shop, or a machine
shop) as opposed to general administration or
other institutional support services.
(5) If the predominant (over 50%) volume of the
product or service is to be provided to the
general campus, the recharge unit should be
classified within the Institutional Services and
General Administration function.
Please direct questions about these policies to Meta.Clow@vcadmin.ucsb.edu. For questions or comments regarding the format of the above information, please contact webcontact@ucsbuxa.ucsb.edu.
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Last Modified By: EBH, 7/09/98