Recharge Standard Operating Procedures



Recharge/Service Center Transfers


Cost Accounting, Financial Management Services


January 2016  







To provide guidance on when a transfer in or transfer out is permitted within a recharge/service center (66) account.


Transfers In

The recharge/service center (66) account can receive a subsidy through a transfer of funds document to help cover expenses. However, the fund balance in the recharge/service center (66) account must remain at breakeven. Once funds have been transferred into a recharge/service (66) account, they cannot be transferred out for any reason other than what is cited below in the Transfer Out section.


Transfers Out

Transfers out of recharge/service (66) accounts are not allowed, with the exception of a transfer out to the organization’s dedicated renewal and replacement (92) account, equal to depreciation on assets related to the recharge activity.


Recharge/service center units that have capital assets should annually transfer out cash in the amount equal to depreciation expense. The cash should be transferred from the recharge/service center (66) account to the dedicated renewal and replacement (92) account for future capital purchases using a transfer of funds document. Please include a detailed description on the KFS Transfer document that includes the depreciation period (i.e., “Transferring depreciation expense for FY 2015”).


Recharge/service center units that have debt service should contact cost accounting.


Exceptions to this standard operating procedure require the approval of the Chief Accountant.


Debt Service:  Cash that is required to cover the repayment of principal and interest on bonds and notes issued by the university.


Depreciation Expense: Equal allocation of the cost of a capital asset on the balance sheet to the income statement during the periods in which the asset is used.


Renewal and Replacement Account: Accounts used to set aside funds for replacement of renewable property (typically capital assets or desktop computers).


Recharge Activity: An activity that furnishes goods or services to another Indiana University department for the convenience of the university and charges a fee directly related to, and not more than the allowable cost to provide the goods or services.




OMB Uniform Guidance (PDF) "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards"


RSOP #3: Including Annual Depreciation Expense in the Recoverable Rate Calculation




Organizations that bill other Indiana University departments for goods or services