Revenue Generating Activity
Establishing a Revenue Generating Activity (RGA)
(aka Recharge Center aka Internal Service Provider-isp)
The first step in establishing a revenue generating activity at the University is to determine the proper approval
process. This depends on what type of activity is being conducted. Read Financial and Administrative Policy
V.A.2 - Rate Determination to ascertain the
appropriate review and approval process.
If you determine that the activity is being performed by a recharge center (also referred to as an internal service provider, isp for short), then you must request review and approval through the department of Financial Reporting and Analysis.
Read Policy V.A.1 - Revenue Generating Activities and XV.G.3 - University Services and Activities. They will explain which revenue generating activities are acceptable and the criteria for justifying the implementation of the activity.
Then read Procedures 5-1 - Format to be Used in Calculating Support Service Unit Rates and Procedure 15-70 Approving New or Expanded Services and Activities which will give you detailed instructions on completing the Form 15-70 and guidelines on preparing a rate proposal.
Basically, the policies and procedures will tell you that you need a justification for why this activity is needed, how the activity contributes to the University’s mission, a detailed rate calculation, and approval from your department and approval from your VP or Provost using Form 15-70.
If you are a School of Medicine department, send the completed form to who will review and forward the form to . If you are a School of Engineering department, send the completed form to who will review and forward to John Wallace-Smith. All other departments send the form directly to John Wallace-Smith, Box 400194, Carruthers Hall.
You will be contacted upon approval or rejection. If approved you then need to set up a revenue/expenditure project and request a SS award from the Budget Office. The date of approval of your RGA must be included on the Project Create Form.
The approved 15-70 form must be retained in your files forever.
It is the responsibility of the isp (internal service provider) to comply with FIN-021 - Internal Controls and V.B.1 - Cashiering Activities as well as V.B.2 - Credit and Collection.
The procedure for billing your customers is as follows:
- Customers will request services from an isp and will provide the PTAO values for billing purposes.
- The isp will provide the services ordered and will calculate the charges due and the correct Expenditure Types to use for billing and receiving (debiting and crediting) purposes. Use Recov, isp (Non-Aux) for the credit to your PTAO.
- The isp will prepare bills for all customers and will provide customers with this information for their review. The customer has five days to review the bill.
- Once the 5-day review period has elapsed, the isp will complete a cost transfer to charge the customer’s PTAEO and credit the isp’s PTAEO. For large volume isp’s ISDS has a process for uploading a file containing the billing data. Contact ISDS for information on the process and to see if your isp qualifies to use it.