UAFR - Request Approval for Self-Supporting Activities

For further information on self-supporting funds and revenue-generating activities, refer to the links below:

• Self-Supporting Funds
• Section 22, Self-Supporting Funds

Before You Begin

Units are not allowed to begin operating revenue-generating activities until all required approvals, revenue-generating agreements (if applicable), and documentation have been finalized and the self-supporting fund has been established.

To request approval for a new self-supporting fund, complete the following steps:

Planning

1. Evaluate whether the activity qualifies as a revenue-generating activity that should be accounted for in a self-supporting fund (see Section 22.1, Self-Supporting Overview for common examples of self-supporting activities).
   1. Self-supporting activities are managed as business-like operations that sell goods and/or services to a variety of customers, including students, faculty, staff, the public, external entities, and other system units.
2. Determine whether an existing self-supporting fund can be used to account for the activity. If not, determine whether one or more new self-supporting funds should be established.
   1. Depending on the nature of the goods or services provided, some activities may be better managed using separate self-supporting funds.
   2. Alternatively, multiple program codes may be used within a single self-supporting fund when separate tracking is desired without establishing additional funds.
   3. For example, a unit that holds multiple conferences each year may choose to establish a separate self-supporting fund for each conference, or instead use a single self-supporting fund with separate program codes for each conference.
3. Obtain approval from your unit head to request a new self-supporting fund.
4. Develop and retain a business plan within your unit that documents the activity, proposed rates, and an estimated budget. The business plan should include:
   1. A summary describing what goods or services are being provided, how they will be provided (operations plan), and the intended customer base.
   2. Calculated rates for the goods or services that will be provided, ensuring the rates are sufficient to support the operating costs of the activity.
   3. An estimated budget that includes all revenue, expenses, and transfer activity for the operation.
   4. Determine whether an administrative allowance will be assessed to the self-supporting fund. If so, factor this into your overall budget. Refer to Section 22.6 for requirements related to self-supporting fund administrative allowance assessments.
   5. Note: UAFR typically does not require a copy of the business plan. However, units should retain this information as supporting documentation for the activity. Some information from the business plan may also be needed to complete the request form submitted to UAFR.

Required Approvals and Compliance Requirements

1. Determine whether a revenue-generating agreement is required for the activity. If an agreement is required, determine whether the activity will require a new activity-specific revenue-generating agreement or if the standard revenue-generating activity template would suffice.
   1. Consult 22.5 Contracts for Revenue Generating Activities for requirements related to revenue-generating agreements for self-supporting fund activities. If a revenue-generating agreement is required, work with the Purchasing and Contract Management office to develop and execute the agreement.
   2. Note: When applicable, a fully executed revenue-generating agreement (or an approved template) must be in place before requesting a self-supporting fund. A fully executed revenue-generating agreement must also be in place before the revenue-generating activity begins.
2. For 3E self-supporting funds, verify that the designated Financial Manager (FINMGR) has completed the Service Activity Basics Certification Course prior to requesting the new fund.
3. If you are generating revenue from a course fee or required fee assessment, verify that you have the appropriate approvals. Course fee approvals are typically obtained from the Provost Office, while student fee approvals are approved by the Board of Trustees.

Payment Method Considerations

1. Identify how the self-supporting fund will accept payment. Common payment methods are listed below:
   1. Cash or checks: Obtain approval as a Cash Handling Unit. See Section 10.1.1 Obtain Approval as a Cash Handling Unit for further details.
   2. Credit or debit cards: Consult Section 22.1.2 Become a Merchant Unit for further details on accepting credit or debit cards.
   3. Credit sales (accounts receivable): If you are making sales on credit to external customers, Section 5.1 Managing Receivables requires that Banner AR be used or an exemption be obtained.
   4. Journal vouchers: If payment will be received via journal vouchers because you are charging other university units, the recommended practice is to have the unit who is providing the good or service process the journal voucher. This journal voucher would record revenue to the unit’s self-supporting fund and charge an expense to the applicable unit’s C-FOP.
   5. Note: Do not begin accepting payments until the self-supporting fund has been established.

Requesting the New Self-Supporting Fund

1. Complete the Banner Fund, Program, and Index Request Form (available on UAFR’s Forms webpage) to request a new self-supporting fund. Complete all the information required on the following three self-supporting tabs listed below:
   1. FPI Code Request
   2. SSF Supplemental Info
   3. SSF Attestation Statement
2. Submit the completed Banner Fund, Program, and Index Request Form to uas@uillinois.edu. UAFR will review the request and coordinate with other offices as necessary to verify compliance with applicable policies, revenue-generating agreement requirements, and fund setup requirements. Be prepared to respond to any follow-up questions from UAFR or other offices.
3. Upon approval, UAFR will establish the self-supporting fund and any associated program and index codes and will notify the department when the codes are available for use.

Contact

For questions related to this topic, refer to the Business & Finance Who to Ask list and search for “self-supporting funds” to identify the appropriate subject matter expert.