Equipment reserve funds should only be used to make capitalized purchases related to the recharge activity when there are sufficient funds to cover the purchase. Equipment reserves are amounts set aside strictly for equipment replacement.
Salaries, wages and benefits of personnel associated with providing the goods and/or services must be included in the rate development of all recharge programs. Staff and/or faculty who are principally engaged in support of the recharge program, in whole or part, should be costed in proportion to their recharge support hours directly to the recharge program fund, via UCPath.
Occasionally the recharge program may need to temporarily employ staff and/or faculty whose services were not included in the development of the approved rates, and who are not paid from the recharge fund. In these cases, the full costs of the employee’s temporary time in service to the recharge program must be transferred to the recharge program through one or more Salary Cost Transfers (SCT). The SCT should include both REG pay and any additional compensation associated with the employee’s service to the recharge program. Examples of additional compensation include overtime premium pay or stipends which may be paid in connection with the services to the recharge program.
Temp Services from Faculty: Academic Year vs Summer
In cases where temporary services are required from a faculty member paid under a “9 over 12” faculty appointment, during the academic year the SCT will involve the transfer of REG pay, related benefits, plus any stipend or supplemental comp paid in connection with service to the recharge program. However if the temporary services are needed during the summer months, the SCT will not involve a transfer of REG pay to the recharge program, as all REG pay was earned and chargeable to other sources during the nine month academic term.
The cost of employees temporarily serving the recharge program can be recovered through an hourly billing rate. The billing rate should recover REG pay, additional comp, and related benefits that are transferred to the recharge account through SCT’s.
In the case of faculty providing temporary services during the summer, the calculated rate will not include recovery of REG pay (as noted above); only additional comp such as stipends can be recovered from campus users of faculty summer hours. However, Non-university users should be billed at a rate that includes the faculty’s REG pay rate plus additional comp and related benefits whether the hours are provided in summer or the academic year. In cases of summer hours, the excess of billing to Non-University users relative to actual payroll cost should be credited to the recharge program’s NUD fund.