By Donna Fowler
The President’s Cabinet has approved a policy governing revenue-generating programs that do not fall into the main categories for revenue.
“We need to have an accounting mechanism so that the programs which involve other revenue sources are handled properly,” explains George Middlemist, associate vice president of administration, finance and facilities/controller.
The four main revenue categories are: 1) tuition and fees, 2) restricted grants and gifts from external sources, 3) facilities and administration (indirect cost recoveries), and 4) self-supporting auxiliary activities.
The other revenue-generating category includes two types of programs: 1) events and fundraising activities that are within the scope and nature of a department’s main operational purpose such as athletic events and music performances, and 2) other opportunities for departments to generate revenue, including fundraising, space rental and the sale of specific goods or services.
The gist of the policy is that departments must obtain approval from their dean/AVP before engaging in a revenue-generating program by submitting a proposal that includes the following criteria:
- the purpose of the activity
- how it benefits the University
- how it ties to the University’s mission
- who the “customers” are for the activity
- the cost benefits for the department
- the potential for allocation of the revenue among various offices
Upon approval of the proposal, the Budget Office will work with the department to determine whether a revenue fund to support the activity should be established.
“By handling these other revenue-generating programs properly, we can avoid issues when we are audited,” Middlemist says, adding that he will meet with any staff to help explain the policy, if necessary.
Top of Page