Recharge Center Policy

Equipment may be allocated to recharge centers.


Recharge centers provide goods or services to internal users and are paid for through a user fee.  Federal regulations require that:

  1. For federal awards, a profit should not be built into the rates.
  2. The centers should only recover cost.

NYU Approach

Although recharge centers may vary in size, complexity, and services provided by recharge centers, they are required to follow common administrative practices.

Criteria for a Recharge Center

Recharge centers at New York University (NYU) must meet the following:

  • Billing rates or fees must be designed to recover no more than the costs of the goods or services being provided.
  • Costs must be consistently applied to all users and allocations based on actual use.
  • For the costs to be “recharged,” there must be a direct relationship to the project.
  • Only costs that are allowable and allocable (i.e., “recoverable costs”) should be charged to a recharge center.

Annual Financial Review

By May 1st of each year, recharge centers should submit a budget and rate schedule to Sponsored Programs Administration (SPA) for the review and approval of the next year’s rate.

Internal Controls

  • Billing: All charges must be documented and include the nature and components of the charge. The support for the charges should fully substantiate the cost.
  • Equipment Inventory: Equipment purchased for a recharge center must be capitalized based on the capitalization threshold.
  • Supplies Inventory:  Unused inventories maintained for resale will need to be accounted for as assets of the University.
  • A physical count of inventory must be taken at least annually and reported to the Assistant Controller for Research by September 15.
  • Space Survey:  Space occupied by recharge centers should be identified and designated as such.

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Documentation for Subsidized Recharge Centers

The School/Division may choose to subsidize the operation of a recharge center.  At the time of the Annual Financial Review, documentation supporting the subsidies needs to be reported to the Sponsored Programs Administration (SPA).

Record Retention

All recharge operations must maintain documentation to support expenditures, billings and cost transfers.  Records should be kept for three years.

Unrelated Business Taxable Income (UBIT)

In limited situations, the University may generate unrelated business income tax (UBIT) while operating a recharge center.  This is generated when the University engages in activities unrelated to its mission.


Deviations from the Recharge Center policy may be necessary under special circumstances.  Any deviation from this policy should be reviewed and approved by SPA.

Establishing Recharge Centers

Departments should submit a request for establishing a recharge center to SPA.


  • The Dean (or equivalent for central recharge center) will fully review and approve the establishment of each new recharge center.
  • The recharge center manager is responsible for monitoring the recharge activity in the general ledger.
  • SPA approves new recharge centers, assists recharge center managers with policy and procedures and performs an annual review.

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