Policies & Procedures

I. PURPOSE

The purpose of this policy is to establish general guidelines for managing Longwood's revenue generating activities.

II. DEFINITION

1. Revenue Generating Activity(RGA): Any operations (with the exception of Foundation activities) that produce income or recover costs by providing goods or services to the Longwood community or, in some cases, the general public. These include:
   1. auxiliary enterprises and other support service functions;
   2. departments and activities that solicit the patronage of the general public (Examples include Athletics, the Longwood Theatre, the Golf Course, and the Center for Communication, Literacy and Learning);
   3. departments and activities whose primary mission is serving the University's faculty, staff and students, who also incidentally provide goods or services to the general public (Examples include Dining Services, the Bookstore, Parking and Transportation); and
   4. departments and activities that normally provide goods or services to the Longwood community and coincidentally to faculty, staff and students (Examples include Printing Services, and Information and Instructional Technology Services). Where they are not in competition with commercial enterprises, such departments and activities may provide goods or services to entities outside of the Longwood community.

III. POLICY

1. Sales of Products and Services by a Revenue Generating Activity (RGA):
   1. All sales and services of RGA's must be directly related to the goals and the mission of the University.
   2. RGA's must conform to all Longwood policies and procedures.
   3. No RGA can be established at the institution without the prior approval of the appropriate Longwood officer.
2.  Authority to Establish a Revenue Generating Activity (RGA):
   1. No RGA may be established without the approval of the Director of the Budget Office, the appropriate dean, and the appropriate vice president.
   2. If a department or activity wishes to establish an RGA, a request must be submitted in writing to the appropriate Longwood officer. The request should describe the activity and the relationship of the activity to the programs and purposes of the department or activity and contain a description of proposed internal control and cash collection procedures. The request must be approved by the department or activity head and the responsible dean or director.
   3. All cash collection policies must be approved by the Director of Cashiering.
3. Responsibility for the Management of a Revenue Generating Activity (RGA): The department head or activity director is responsible for the prudent management of each RGA in his or her area. This responsibility includes the establishment and adherence to appropriate internal controls. The Director of Cashiering must approve all cash collection activities of an RGA prior to the collection of any funds (See Policy 4305). The department or activity head is responsible for following all policies and procedures related to cash collections and for revenue monitoring.
4. Unrelated Trade or Business:
   1. An RGA is prohibited from conducting an activity for the purpose of carrying on a trade or business.
   2. An RGA will be classified as a trade or business if any of the following conditions apply:
      1. The RGA is conducted on a regular basis, defined as the activity is frequent and continual.
      2. The RGA does not contribute to or support the mission of the University.
      3. The activity is conducted in competition with taxable organizations.
   3. An RGA that is conducted for the convenience of students, faculty, and staff is not considered a trade or business.

Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, December 03, 2010.
Revised and approved by the Board of Visitors, June 15, 2012.