How to Complete the Equipment Exclusive to Recharge Rate Form
Complete this worksheet only if capital equipment (over $5,000) is being used exclusively for the recharge service.
What can be included?
Depreciation expense for capital equipment used exclusively in recharge activities is included. Units include the equipment depreciation expense to recover that cost via the recharge rate.
Units may include:
- Capital equipment (equipment over $5,000) depreciation
- Depreciation expense based on the assets actual cost
- Costs for equipment purchased by the university for which title is held by the university
Units may NOT include:
- Cost required for future replacement
- Non-capital equipment replacement costs
- Equipment donated or purchased using a sponsored funds
- Equipment purchased with gift funds
Completing the Equipment Exclusive to Recharge Rate Form
List each piece of equipment for which depreciation costs are included on a separate line and include the following for each item:
- Enter the recharge unit department ID number
- Include the following where indicated on the worksheet
- Equipment description
- Serial number
- Tag number
- Date purchased
- Original cost
- Years to depreciate
- Annual depreciation included in the rate
Recharge Unit Fiscal Responsibilities
Units are required to process manual journal entries to record annual depreciation costs as included in the recharge rate. At a minimum this must be processed annually; however, for purposes of monitoring cash flow and recharge balances, Enterprise Financial Planning & Analysis recommends units process the entries on a monthly basis.
The link below provides further instructions on completing the required journal -
Sample Journal Entry