EXECUTIVE SUMMARY:
This final report provides the results of our review of University Recharge Centers at the University of Iowa, Iowa City, Iowa (University). The University generally operated its recharge centers in a satisfactory manner. Based on the recharge centers reviewed, however, we found the need for improved procedures and controls to fully comply with all the requirements of Office of Management and Budget (OMB) Circular A-21, cost Principles for Educational Institutions. In five recharge centers selected for review, we found: billing rates were not periodically adjusted to achieve break-even (four centers); equipment was improperly expensed in the year purchased (three centers); transfers were improperly made to a capital reserve fund (one center); and, users were billed at different rates (one center). We are recommending that the University implement certain procedures and controls over the operation of recharge centers.