Request Approval for Revenue-Generating Activities

Policy Statement

The series of steps as outlined in this policy must be completed before the revenue-generating activity begins. Do not engage in any type of purchasing or sales activity related to the revenue-generating activity until these steps have been fully completed and addressed.

Procedure

To request approval for revenue-generating activities:

1. Consult 22 Self-Supporting/Revenue Generating Activities - Determine the Need for a Self-supporting Fund.
2. Determine if your activity qualifies as revenue-generating. It may be more beneficial to record your activity within one fund or within multiple funds. Note that it is allowable to use multiple program codes with each unique fund code.
3. Obtain your unit head's approval to request new self-supporting fund(s).
4. Develop a business plan which includes an estimated budget of revenue, expense, and transfer activity for the first three years of operations.
5. Calculate rates for goods and/or services sold as a part of this self-supporting activity.

6. Determine if a contract is needed for your revenue-generating activity. Consult 22.1 Contracts for Revenue Generating Activities for contract requirements related to revenue-generating activities. If the revenue-generating activity requires a contract, work with your university specific purchasing and contract office to develop and execute a contract.
   • When applicable, a fully executed contract or an approved contract template must be in place prior to requesting a new self-supporting fund.
   • When applicable, a fully executed contract must be in place before the revenue-generating activity begins.
7. Consider the various methods of payment which you will accept for this revenue-generating activity. However, do not begin to accept payments until the new self-supporting fund has been established. See below for further guidelines to keep in mind as you consider the methods of payment which you will accept:
   • If you will be accepting cash/checks, consult 10.1.1 Obtain Approval as a Cash Handling Unit.
   • If you will be accepting credit/debit cards, consult 22.1.2 Become a Merchant Unit.
   • If you will be making sales on credit to customers, Banner AR must be used; consult 5 Receivables - Policy for Managing Receivables and 5 Receivables - Obtain Access to Banner Accounts Receivable (Banner AR).
   • If payment will be received via journal vouchers, the recommended practice is to have the unit who is providing the good or service process the journal entry to record the applicable revenue and expense transactions.
8. Complete the Banner Fund, Program, and Index Code Request form to request a new self-supporting fund. Complete all the information required on these three self-supporting tabs listed below:
   • FPI Code Request
   • SSF Supplemental Info
   • SSF Attestation Statement
9. Submit the completed form to UAFR at uas@uillinois.edu. UAFR will then review your request and may reach out to you and/or other applicable offices with additional questions if needed.
10. If the request is approved, UAFR will establish the applicable fund code (in addition to any program or index codes that were requested) and will notify you of the new code(s).

Forms Used in this Procedure

Banner Fund, Program, Index Code Request

Related Policies and Procedures

Determine the Need for a Self-supporting Fund
10.1.1 Obtain Approval as a Cash Handling Unit
22.1.2 Become a Merchant Unit
5 Receivables - Obtain Access to Banner Accounts Receivable (Banner AR)
5 Receivables - Policy for Managing Receivables

Additional Resources

NACUBO Function Code in Accounting Reference Materials   
Self-Supporting Funds FAQs
C-FOAPAL Quick Guide
Guide to Banner Default Codes and Index Codes

First Published: January 2013 | Last Updated: June 2023 | Last Reviewed: September 2018