Financial Services Manual (FIN)

Effective: 4/1/1999

Revised: 11/1/2013

FIN 213: Establishment of Resale Activities to the General Public

Purpose

To define when the university may engage in resale activities to the general public

Sources

Arizona Revised Statutes § 41–2753

Arizona Board of Regents Policy Manual 1–105

University policy

Applicability

All university agency/orgs

Background

State law and regents’ policy require the university to avoid competition with private enterprise. Specifically, the university may not provide to the general public goods, services, or facilities that are practically available from private enterprise unless:

1. the proposed resale activity offers or supports a valuable educational or research experience for students as part of their education or fulfills the public service mission of the university

   or

2. the goods and/or services to be provided are not practically available from private enterprise or, if available do not satisfy the objective of the program.

Policy

Resale activity can be to (1) the general public, including students, faculty, and staff, or (2) other ASU departments.

If more than 50 percent of the sales activity’s revenues are from charges to other university departments, the university’s internal Service Center Policy is to be followed.

If more than 50 percent of the sales activity’s revenues are from charges to the general public, this policy is to be followed. For a sales activity that is around 50 percent to the general public, including students, faculty, and staff, and around 50 percent to other ASU departments, high consideration should be given to two sales units, one being a resale activity to the general public, and a second being a service center.

For a list of the authorized resale activities refer to the relevant information on the Financial Services Web site.

All new resale activities to the general public must be approved by the college dean, the associate vice president for research, the senior associate vice president for finance and deputy treasurer, the director of Purchasing and Business Services, and the director of Accounting Services.

For information on service centers, see the ASU Service Center Policy.

Procedure

Requests to establish a new resale activity to the general public will be submitted through the director of Purchasing and Business Services and the director of Accounting Services for final approval. Approvals by the dean, associate vice president for research, and senior associate vice president for finance and deputy treasurer must be obtained on the Sponsored Project versus External Sales Guidelines Questionnaire by the external sales center manager prior to submission to the director of Purchasing and Business Services. The questionnaire is available online.

Requests to establish a new resale activity must include the following information:

1. Evidence that the proposed resale activity offers or supports a valuable educational or research experience for students as part of their education or fulfills the public service mission of the university

   or

   evidence that the goods and/or services to be provided are not practically available from private enterprise, or if available, do not satisfy the objective of the program.

2. Evidence that similar goods or services are not already being provided by another university department or program.
3. A completed New Account Application Form. (For information on the establishment of new agency/orgs, refer to the Financial Services Forms Web page, Advantage Forms, New Account Application Form, Form Instructions.)
4. A business plan and proposed operating budget.
5. The prices charged for sales to external ASU customers (general public) need to be the greater of (1) full-cost recovery, including overhead and indirect costs of ASU, or (2) market prices, unless an exception is approved in writing by the vice president responsible for the resale activity.
6. A completed and signed Sponsored Project versus External Sales Guidelines Questionnaire that supports the conclusion that the sales activity is a resale activity.

Requests, after approval of the Sponsored Project versus External Sales Guidelines Questionnaire, will be submitted to the director of Purchasing and Business Services. If a request is approved, the director of Purchasing and Business Services will forward it to the director of Accounting Services for final approval.

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