Question: 
What are common audit recommendations on Recharge Centers?
Answer: 

Authorization

  • Submit rates to Management Accounting and Analysis whenever the rate calculation methodology changes significantly.
  • Submit rates to the Dean’s Office for review and approval.

Documentation

  • Develop written policies and procedures. It should include the department’s pricing policies and methodology for computing rates.
  • Identify all costs. If applicable, develop a cost recovery strategy that keeps the rates affordable and identifies sources of funding for all costs.

Reconciliation/Review

  • Perform a comparison of all identifiable rechargeable costs and recoveries on an annual basis. Projections and rate calculations should be adjusted if significant discrepancies are noted.

Reference

Management Accounting & Analysis – Recharge and Cost Center Rate Policy

faqtype: 
Standard