Review this book for information about recharge and service center units at Indiana University. This is when a unit furnishes goods or services to another Indiana University unit for a fee directly related to, and not more than, the allowable cost to provide the goods or services. In general, revenue earned assists in IU’s mission of education and public support, but is not exclusive to the mission. All new revenue-generating activities within IU must be approved prior to accepting revenue. Existing activities with changes or expansions to business practices must be reviewed and approved before the changes are implemented. This book is intended to assist IU’s fiscal officers and departments in evaluating internal revenue streams under applicable laws and provide guidance on how to properly record these revenue streams.

What You Will Find Here

Rate Submission Requirements:  This section discusses the importance of submitting recharge rates, the reporting standards for recharge rates, the appropriate usage for internal billing and service billing documents, and compliance requirements of recharge and service center units.

Internal Recharge Activity in Accounts under $100,000 in Internal Revenue:  This portion of the book provides guidance for units needing to allocate costs to other Indiana University accounts when the activity estimates less than $100,000 in internal revenue.

Allocating Costs to Internal and External Activities: This section provides guidance to recharge and service center units on how to allocate costs to internal and external activities including examples of proper allocation methods.

Unallowable Expenses for Recharge and Service Centers: This section provides guidance on how to identify unallowable expenses for recharge activities, as defined by Uniform Guidance, and how to properly account for these expenses.

Capital Asset Purchases and Allocation of Depreciation: This section provides detailed information about allowable purchases of capital assets associated with recharge and service center units and the process of recovering depreciation in recharge rates.

Rebate Revenue and Applicable Credits for Recharge and Federal Grants: This section provides an overview of what is required when the university receives rebate revenue from a supplier related to a recharge activity or a federally sponsored project.  This includes the procedures and the timing of events that will occur to accurately record the rebate revenue in compliance with Uniform Guidance.

Glossary: The glossary is a repository of both general and Indiana University specific accounting terminology.