University Services and Activities

I. General Policy

1. When determining whether University services and activities should be maintained, supported or established by the University, the following factors will be considered:
   1. Does the service or activity play a significant role in the fulfillment of the University's educational, research, public service and/or support functions, without regard to profit?
   2. Does the activity provide an important service at a reasonable cost to the University?
   3. Will this activity provide a convenience to staff, faculty, students and patients because of location or other considerations?
   4. Does the activity offer a required service which the private sector cannot conveniently, adequately or economically provide?
   5. Will the program or activity unnecessarily duplicate services already provided at the University?
2. Goods and services may be offered to the general public when incidental to the provision of such goods and services to University faculty, staff, students and patients. Such University services and programs should, however, further the University's mission. (Such services and goods could include food, refreshments, mementos, etc., provided in conjunction with approved University programs.)
3. Services and activities should not be offered to the general public or to the University community solely as a means of creating additional revenue or because the University can provide the service at a cost savings to its faculty, staff, students and patients.
4. Services and activities should be reviewed periodically, as provided below, to ensure conformance with the intent and purpose of this policy.
5. This policy does not apply to instructional programs currently approved by the Provost or sponsored program activities currently reviewed by the Office of Sponsored Programs.

1. New or Expanded Services and Activities
   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 faculty, staff, students and patients. If a proposal is offered before final approval is secured under these procedures, the University will not be responsible for any commitments, obligations or expenses incurred if the proposal is disapproved.
   1. The proposal must be approved by the responsible department head or dean. If such approval is obtained, an activity description must be prepared. The activity description should include the following information to demonstrate that the proposal meets the conditions of the Services and Activities Policy or that sufficient justification exists for an exception to those conditions:
      1. A statement of the activity’s purpose describing the goods and services it will provide.
      2. An analysis of costs (including rate calculation) and benefits of the service and of what alternatives exist through other sources to provide similar services. This comparison should also evaluate quality, price and convenience compared to services which could be purchased on the outside.
      3. Documentation showing the funding source or the extent to which the activity must be subsidized by the University, including required usage of University facilities and services and the intended disposition of any net income generated by the activity.
      4. Factors pertinent to the proposed or current activity which show how it affects the overall mission of the University.
      5. A statement describing the customers served, methods of customer solicitation and planned pricing policies.
   2. The activity description must be sent to the Assistant Comptroller for Financial Analysis or, if a Hospital activity, to the Director of Finance of University Hospitals. The Assistant Comptroller or Director of Finance should review the activity to ensure congruence with the policy on Services and Activities and to secure additional reviews from the General Counsel, the Director of Governmental Relations, Risk Management and Budget Office, as appropriate. Such reviews could turn up potential problems such as unrelated business income (by the General Counsel); political sensitivity to competition with private business (by Governmental Relations); uninsured risks (by Risk Management); and lack of funds to cover overhead (by the Budget Office).
   3. Upon completing this review, the Assistant Comptroller or Director of Finance must send a brief analysis of the proposal and recommendations for its adoption, modification, or rejection to the department head or dean. If the department head or dean proposes alterations in the proposal in response to the recommendations, the proposal goes back to step 2 of this process. If the Assistant Comptroller or Director of Finance recommends adopting the proposal, or if the department head or dean continues to support the program despite a negative recommendation, the activity description and the recommendations must be sent to the Senior Vice President and Chief Financial Officer.

2. 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 are in compliance with the intent and purpose of the University's policy on Services and Activities. This review should include consideration of the information contained in an activity description as outlined in Paragraphs 1(a), 1(b), 1(c), 1(d) and 1(e) of Section II. A of this procedure.

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