UVA Financial & Administrative Procedure

Procedure: 15-70	Effective: July 2, 2001
Owner: Executive Vice President and Chief Operating Officer	Latest Revision: June, 2001

Approving New or Expanded Services and Activities

Procedure Steps

Scope

This procedure describes how to document how departments should process requests for new revenue generating services and activities. It also states how often such services and activities will be reviewed and what criteria will govern the review.

New or Expanded Services

All new or expanded services and activities, except those relating to degree programs and course offerings, must pass through a four-step review process before being offered to the general public or to University departments, faculty, staff, students, and patients. If the new or expanded services are initiated before final approval is secured under this procedure, the University will not be responsible for any commitments, obligations, or expenses incurred if the proposal is disapproved.

Note: See flowchart under Procedure Steps

System References [Top]

Approval Form for New Revenue Generating Activities and Services is available on the UVA Forms Directory as a PDF document.

Policy [Top]

Policy XV.G.3 "University Services and Activities"

Responsibility [Top]

The person requesting the creation of a new service provider or revenue generating activity is responsible for initiating this procedure.

Distribution [Top]

University Fiscal Administrator
University Deans and Department Heads
Assistant Comptroller for Financial Analysis

Ownership [Top]

The Assistant Vice President for Finance and University Comptroller is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps [Top]

Responsibility		Action

Preparer	1.	Prepares proposal to include:

		A statement of the activity's purpose describing the goods and services it will provide.

		An analysis of costs and benefits of the service and of what alternatives exist through other sources to provide similar services. This analysis should include a detailed cost basis rate calculation. This comparison should also evaluate quality, price, and convenience compared to services which could be purchased outside the University.

		Documentation showing the funding source or the extent to which the activity must be subsidized by the University. Include required usage of University facilities and services, and the intended disposition of any net income generated by the activity.

		Factors pertinent to the proposed or current activity which show how it affects the overall mission of the University.

		A statement describing the customers served, methods of customer solicitation, and planned pricing policies.

	2.	Forwards proposal package to Dean, Department Head, or Associate Hospital Director and Vice President.

Dean, Department Head, or Associate	3.	Approves or rejects proposal.
Hospital Director and Vice President
	4.	Forwards proposal to Assistant Comptroller for Financial Analysis or Medical Center Director of Finance

Assistant Comptroller for Financial Analysis	5.	Tests compliance with Policy X V.G.3 and Procedure 15-70.
or Medical Center Director of Finance
	6.	As appropriate, requests additional reviews from:

		General Counsel

		Director, Governmental and Community Relations,

		Risk and Insurance Management, and/or

		The Budget Office.

	7.	Prepares analysis and recommendation.

	8.	Submits proposal, analysis and recommendation to Executive VP and CPO or designee.

Executive VP and CFO or designee	9.	Approves or disapproves proposal.

Existing Services and Activities

Services and activities provided by the University will be reviewed at least once every five years by the responsible Vice President to make sure they comply with the intent and purpose of Policy XV.G.3, "University Services and Activities." This review should consider the information contained in an activity description as outlined above.

Flowchart

REVIEW PROCESS FOR NEW SERVICES AND ACTIVITIES, EXCEPT THOSE

RELATING TO DEGREE PROGRAMS AND COURSE OFFERINGS.


	Proposal Prepared

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	Submitted To and Approved by
	Dean/Department Head/Associate Hospital Director
	and Vice President --> Rejects Proposal

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	\|

	Submitted to Assistant Comptroller for Financial Analysis
	or Medical Center Director of Finance

	\|
	\|

	May Request Additional Reviews

	\|
	\|

---------	---------------------------------------	--------------------------------	----

\|	\|	\|	\|
\|	\|	\|	\|

General Council	Director, Governmental and Community Relations	Risk and Insurance Management	Budget

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	\|

	Assistant Comptroller for Financial Analysis or Medical Center Director of Finance prepares analysis and recommendation.

	\|
	\|

	Proposal Submitted to Executive VP and CFO
	or his/her designee --> Disapproves

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	\|

	Approves Proposal

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