7.0 - Recharge/Service Center Transfers


Cost Accounting, Financial Management Services


January 2016   


June 2019





To provide guidance on when a transfer of funds (TF) document is permitted within a recharge/service center 66* account.


Transfers In

The recharge/service center 66* account can receive a subsidy through a transfer of funds document to help cover expenses, however, any excess subsidy will not be allowed to be transferred out of that 66* account. Once funds have been transferred into a recharge/service 66* account, they cannot be transferred out for any reason other than what is cited below in the Transfer Out section.


Transfers Out

With the exception of a transfer out of depreciation to the dedicated renewal and replacement 92* account, transfers out of a recharge/service 66* account are not allowed.


Recharge/service center units that have capital assets should annually transfer out cash in the amount equal to or less than their depreciation expense. This transaction is conducted using a transfer of funds document from the 66* account to the 92* account and the intent is to fund future capital purchases.

Please include a detailed description on the KFS Transfer document that includes the depreciation period (i.e., “Transferring depreciation expense for FY 2015”).


Recharge/service center units that have debt service should contact cost accounting.


Any exceptions to this standard operating procedure require the approval of the Chief Accountant or Controller.


Debt Service:   Cash that is required to cover the repayment of principal and interest on bonds and notes issued by the university.


Depreciation Expense: Equal allocation of the cost of a capital asset on the balance sheet to the income statement during the periods in which the asset is used.


Renewal and Replacement Account: Accounts used to set aside funds for replacement of renewable property (typically capital assets or desktop computers).


Recharge Activity: An activity that furnishes goods or services to another Indiana University department for the convenience of the university and charges a fee directly related to, and not more than the allowable cost to provide the goods or services.


OMB Uniform Guidance (PDF) "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards"


Organizations that bill other Indiana University departments for goods or services