A Recharge Center:
Sells predominantly to internal users, and has more than $1,000,000 in total revenue per year OR charges more than $175,000 per year to federal grants or contracts.
A Cost Center:
Sells predominantly to internal users, and has less than $1,000,000 in total revenue per year AND charges less than $175,000 per year to federal grants or contracts.
Internal users are those that pay with a UW budget number. This could be a department, grant, or another recharge or cost center.
External users are those that pay with something other than a UW budget number. Faculty, staff, and students who pay with cash are considered external users for recharge center purposes.
Non-university entities also are considered external users.
Rates to internal users should be set to recover not more than the cost of providing the goods and services over a reasonable period of time.
Rates to non-federal external users do not have to be based on cost.
- Recharge and cost centers are required to update their rates annually.
- MAA reviews rates for recharge centers annually, and cost centers when, initially established, there is a change in methodology, or new services are added.
- The Dean or VP's office reviews rate proposals for existing recharge and cost centers.
- Recharge and cost centers are required to submit various financial reports.
- MAA reviews financial reports for recharge centers.
- The Dean or VP's office reviews financial reports for recharge and cost centers.
Other than the proposal review process, the policy is the same for recharge and cost centers. Unless otherwise noted, the information in these web pages is the same for recharge and cost centers.
There are other budget types that charge for providing goods and services. Departments should review the Budget Type Flowchart to determine what type of budget is appropriate. Departments that wish to establish a non-recharge or cost center may use the non-recharge proposal template to help determine their rates.
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