Longwood
University
Chief Administration and Finance Officer:
Budget Office
201 High Street,
Lancaster 336, Farmville, VA 23909
Phone: 434.395.2282
Fax: 434.395.2635
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Longwood
University |
Policy
4203
REVENUE
GENERATING ACTIVITIES
I. PURPOSE
The purpose of this policy is to establish general guidelines for managing Longwood's revenue generating activities.
II. DEFINITION
A. Revenue Generating Activities (RGA's): all operations that produce income or recover costs by providing goods or services to the Longwood community or, in some cases, the general public. These include:
1. auxiliary enterprises and other support service functions;
2. departments and activities that solicit the patronage of the general public (These include the Athletic Department and the Longwood Theatre);
3. departments and activities whose primary mission is serving the University's faculty, staff and students, who also incidentally provide goods or services to the general public (These include Dining Services, the Bookstore, Parking and Transportation and Athletics); and
4. departments and activities that normally provide goods or services to the Longwood community and coincidentally to faculty, staff and students. These include Printing Services, Facilities Management, and Information and Instructional Technology Services. Where they are not in competition with commercial enterprises, such departments and activities may provide goods or services to entities outside of the Longwood community.
III. POLICY
A. Sales of Products and Services by a Revenue Generating Activity:
1. All sales and services of Revenue Generating Activities must be directly related to the goals and the mission of the University.
2. Revenue Generating Activities must conform to all Longwood policies and procedures.
3. No Revenue Generating Activity can be established at the institution without the prior approval of the appropriate Longwood officer.B. Authority to Establish a Revenue Generating Activity (RGA):
1. No RGA may be established without the approval of the Director of the Budget Office, the appropriate dean, and the appropriate vice president.
2. If a department or activity wishes to establish an RGA, a request must be submitted in writing to the appropriate Longwood officer. The request should describe the activity and the relationship of the activity to the programs and purposes of the department or activity and contain a description of proposed internal control and cash collection procedures. The request must be approved by the department or activity head and the responsible dean or director.3. All cash collection policies must be approved by the Director of Cashiering.
C. Responsibility for the Management of a Revenue Generating Activity: The department head or activity director is responsible for the prudent management of each RGA in his or her area. This responsibility includes the establishment and adherence to appropriate internal controls. The Director of Cashiering must approve all cash collection activities of an RGA prior to the collection of any funds. The department or activity head is responsible for following all policies and procedures related to cash collections.
D. Unrelated Trade or Business:
1. An RGA is prohibited from conducting an activity for the purpose of carrying on a trade or business.
2. An RGA will be classified as a trade or business if any of the following conditions apply:
a. The RGA is conducted on a regular basis, defined as the activity is frequent and continual.
b. The RGA does not contribute to or support the mission of the University.
c. The activity is conducted in competition with taxable organizations.3. An RGA that is conducted for the convenience of students, faculty, and staff is not considered a trade or business.
Revised and approved by the
Board of Visitors, September 7, 2002.