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UW Policy Directory

APS 38.14 – Sales of Goods and Services

Table of Contents

    d

(Approved by authority of the President)

Purpose

The University and its affiliated units provide goods and services for fees that enhance, promote, or support its teaching, research, and public service functions. The University must be mindful that it may be competing with local private businesses.

The purpose of this policy is to define the legitimate purposes under which sales of goods and services for fees may be approved and to establish a mechanism to review such sales.

Scope

This policy does not apply to charges for instruction in regular, extension, evening, or continuing education programs; services provided in the practicum aspects of instructional and research programs; services for fees in its extracurricular or residential life programs, including residence halls, food services, athletic and recreational programs; and the performing arts programs.

It does apply to academic services contracts with other institutions of higher education, governments, or other entities.

Policy Statements

1.  Sales of Goods and Services for Fees

The University may engage in the direct sale of goods and services to individuals, groups, or external agencies for fees only when those services or goods are directly and substantially related to the educational mission of the University. Charges for such goods and services will be determined taking into account the full cost, including University overhead, as well as the competitive price of such items in the local community.

2.  Criteria

The direct sale of goods or services to faculty, staff, students, and patients for fees which are for the convenience of and in support of the broad educational mission of the University is distinctly different from sales to individuals or organizations external to the University. Therefore, different criteria have been established to evaluate requests for such sales programs.

2.1.  Criteria for Sales to Campus Community Members

Each of the following criteria will be used in assessing the validity of providing goods or services to members of the campus community:

  • If the activity is directly related to federal research, it will comply with the cost principles set forth in Uniform Guidance (2 CFR 200 Subpart E) and must undergo formal review and approval by Management Accounting & Analysis (MAA): Service and Recharge Center Information–Management Accounting & Analysis.
  • The goods or services are substantially and directly related to the University’s instructional, research, or services mission.
  • Provision of the goods or services on campus represents a special convenience to and supports the campus community, or facilitates the extracurricular, public service, or residential life of the campus community.
  • The price or fee for the goods or services is established at such a level as to account for full costs, including University overhead. Rate templates are available to assist units in developing rates that meet at‑cost compliance standards: Forms/Templates–Management Accounting & Analysis.
  • Procedures are in place for ensuring that the goods or services are provided only to members of the campus holding valid identification.

2.2.   Criteria for Sales to the External Community

The University will not engage in any sales activities solely for the purpose of raising revenue to support an educational or research activity if the goods or services sold are not directly and substantially related to the educational program.

Each of the following criteria will be used in assessing the validity of providing goods or services to the external community.

  • The goods or services represent a resource that is directly related to a unit’s educational mission, which is not commonly available or otherwise easily accessible, and for which there is a demand from the external community.
  • The price or fee of the goods or services is established to account for the full costs of the goods or services, including University overhead.
  • The activity may be subject to Unrelated Business Income Tax (UBIT) if the exemption criteria are not met: Unrelated Business Income Tax–Tax Office.
  • The price of such items in the private marketplace will be taken into account in establishing the price or fee. A marketplace analysis is required to ensure the rate(s) charged to external users is at the fair market price: Marketplace Analysis Template.

3.  Review and Approval Procedures

Approval for the direct sale of any goods or services covered by this policy will be vested in deans and vice presidents for the units under their authority. Before any sales project may be implemented, the unit proposing the project will provide to the dean or vice president a request setting forth all pertinent information about the sales plan, and justification for such program addressing the elements of this policy and the stated evaluation criteria. If the dean or vice president approves the project, the dean or vice president will notify Budget Planning & Operations (BPO) of the approval as a condition to the creation of a revenue budget, and provide BPO with copies of the documentation supporting the request.

Each category of goods or services sold is to be considered individually to avoid the unplanned expansion of any sales program. All new categories of sales will be justified to and reviewed by the dean or vice president in accordance with this policy.

4.  Oversight

The Senior Vice President for Finance, Planning & Budgeting is designated as the officer who will be available to:

  • Resolve matters concerning the internal application of this policy. It is the role of BPO to review requests from deans/vice presidents to establish revenue budgets. Should BPO believe that the request is inconsistent with this policy, it will refer the matter to the Senior Vice President for Finance, Planning & Budgeting for final decision.
  • Address questions from members of the external community about specific sales programs.
  • Because sales of goods or services to other governmental agencies involve University wide considerations, the Senior Vice President for Finance, Planning & Budgeting will review all proposed sales to other governmental agencies and institutions of higher education.

Responsible Office and Additional Information

For further information contact the Office of Finance, Planning & Budgeting.

History

May 1, 2002; RC, January 12, 2011; RC, January 27, 2014; [Formerly numbered APS 59.5] March 3, 2026.