Sales and Service Activities
Overview
In collaboration, BFS - Costing Policy & Analysis (Formerly FAO) and BFS - Internal Controls & Accounting (ICA) provide oversight and guidance to ensure that all Sales & Service Activities (SSA) comply with federal and UC policies, and recover costs to avoid impacts on other resources.
What is a Recharge?
A recharge is an internal charging mechanism used to redistribute expenses for products or services provided by organizational units within the University. The type of SSA being conducted will determine the action (i.e., establishment, modification, discontinuation, and approval) process.
Sales & Service Activities (SSAs)
- Recharge Activity - Sales and service activities that provide specific, ongoing, repetitive goods or services to campus units on a fee basis. Activities may have both internal and external sales. Sales and services provided to an external entity are not achieved by the internal recharge mechanism. Rather using service agreements charges and revenue are processed by a billing invoice and a cash receipt or credit card transaction.
- Clearing Activity - A clearing activity is an activity that uses a recharge methodology to redistribute costs to multiple funding sources in circumstances which otherwise would require complex, split-funded payroll transactions.
- Medical Center Activity - The Medical Center provides goods and/or services entirely to other Hospital units within the same fund group. However, the rates or rate methodology of Medical Center activities, which recharge funds other than the same fund group, will be subject to review and approval by BFS-FAO.
- Service Agreements for Non-Recharge Units - This type of activity has only external sales. Service agreements are written legal contracts between the University and external sources containing terms and conditions under which goods and/or services are to be furnished by the University.
- Other Income-Producing Activity - Like Recharge Activities, Other Income-Producing Activities provide goods or services to a wide range of customers that include non-UC users, students, faculty, staff and other campus departments. These activities generally do not use conventional rate methodologies, and/or cannot be classified as an Auxiliary Enterprise, Recharge Activity, Medical Center activity, Labor Clearing Activity, or Service Agreements by Non-Recharge units.
Other Sales and Service Activities
- Auxiliary Activity - Auxiliary activities are self-supporting activities which provide non-instructional support primarily to individual students, faculty and staff upon payment of a specific user charge or fee for the goods or services provided, using an approved rate methodology. Services to other departments or to the general public are incidental. Although the operation of an auxiliary activity is supplemental to the primary educational functions of the University, such activities are important to the overall operation of the University.
This type of activity follows different processes and policies.
Managing a SSA
- Service Level Agreement - Agreement between UCSD BFS and campus departments is to provide a clear and concise understanding of the service procedures and responsibilities that contribute towards the management of the SSEA rate review and approval process.
- SSA Guidance - Information on operating and managing a SSA at UC San Diego.
- Establishing a SSA - Creating an entirely new activity that requires new accounting elements
- Processes:
- Modify - Revising rate methodologies, adjusting rate(s), renewal of rate(s), budget modifications, and rate additions or discontinuations to established activities
- Transfer of Ownership and Discontinuation - Costing or discontinuing an activity
- Annual Review - Analysis performed annually to evaluate surplus/deficit, necessary remittance of depreciation and overhead, and allowability of expenses in the operating fund
The Service Level Agreement documents the review and approval process for rate proposals in accordance with federal, UC-wide, and UCSD policies.
- Accounting & Transactions - The technical details on journal entries, accounting elements, and annual transactions.
- Forms & Templates - Documents used to develop recharge rates and requests pertaining to SSAs.
- Recharge Advisory Committee - This committee acts as an advisory committee and may be appointed to address policy related issues, recommend resolution of any disputes, and/or help ensure consistent treatment and adequate oversight.
- Additional Information - FAQs and manual recharge information.
Governing Policies & Processes
- Business and Finance Bulletin A-47, University Direct Costing Procedures
- Business and Finance Bulletin A-56, Academic Support Unit Costing and Billing Guidelines
- Business and Finance Bulletin A-59, Costing and Working Capital for Auxiliary and Service Enterprises
- Business and Finance Bulletin A-60, Short-Term Investment Pool Distribution of Income
- Business and Finance Bulletin A-61, Procedures for Determining Unrelated Business Income and Expenses
- Business and Finance Bulletin BUS-29, Management and Control of University Equipment
- Office of Management and Budget (OMB) Federal Register CFR Part 200 (Uniform Guidance)
Contact Us
Find answers, request services, or get help from our team by emailing Recharge@ucsd.edu.