UNC Charlotte is a public institution with stewardship responsibility for public funds. The purpose of this Policy is to promote effective oversight and administration of revenue generating activities throughout the University.
I. Policy Statement
Revenue generating activities by University officials, departments, colleges, or units must adhere to all applicable University policies and procedures, as well as North Carolina law. Such activities may occur only to support the University’s teaching, research, and outreach missions and provide necessary services to the University community. In general, North Carolina General Statutes prohibit government agencies from competing with the private sector unless certain specific exceptions apply to the activity. (See NCGS § 66-58 (Umstead Act))
II. Applicability and Procedures
This Policy and any related standards, procedures or other guidance apply to all UNC Charlotte academic and administrative units, organizations, and employees.
B. Types of Revenue Generating Activities
- Certain charges are assessed to students as a condition of their enrollment at the University. These charges include tuition, student fees, as well as charges for Auxiliary services (e.g., housing, dining, parking, and athletics). The amounts assessed are determined each fiscal year as part of the University's budgetary plans and take into consideration the costs required to provide the service as well as directives from the UNC System Office, UNC Board of Governors, and NC General Assembly regarding appropriations and non-General Fund revenues. These charges are established by the University and approved by the University’s Board of Trustees and the UNC System Board of Governors.
- External support for research and other scholarly activities is generally received by the University through grants, contracts, and cooperative agreements. The contractual nature of such agreements, the potential impact on University resources, inherent risks in certain types of research, and compliance with state and federal regulations necessitate a formal review process for grants, contracts, and cooperative agreements. University Policy 203, Grants, Contracts, and Cooperative Agreements to Finance Sponsored Programs, requires that such arrangements be reviewed and approved by the Vice Chancellor for Research unless delegated by applicable policy.
- The University actively seeks contributions, including gifts of real and personal property and gifts-in-kind, from individuals, foundations, corporations, and other entities. Pursuant to University Policy 602.2, Solicitation and Acceptance of Gifts, all gifts to the University must be coordinated through the Division of University Advancement and in accordance with the University’s standards for gift acceptance.
- Other revenue generating activities that occur within the University’s operations must adhere to UNC Charlotte policies, UNC System policies and NC General Statutes. Prior to engaging in any revenue generating activity at the University, the University official, department, college, or unit must consult with Financial Services, the Budget Office, and the Office of Legal Affairs to confirm the proposed activity is permissible and consistent with the University’s mission of teaching, research, and outreach.
C. Procedures for Engaging in Revenue Generating Activities
- No University official, department, college, or unit may collect monies on behalf of the University without authorization from Financial Services (for non-gifts) or one of the University’s respective fundraising foundations (for gifts).
- All non-gift monies received on behalf of the University must be deposited with the Office of the Bursar in accordance with University Policy 602.4, University Receipts and Deposits (or with the respective fundraising foundation for gifts). Cash received includes, but is not limited to, proceeds received from sales, services, gifts, sponsorships, grants, contracts, rebates, tuition and fees, collections on student accounts receivable, scholarships, special fees, fines and penalties, special billings, and departmental receipts. This requirement applies to credit/debit card receipts transacted through a merchant account.
- Recharge units are areas within University departments, colleges, or other units that charge for goods or services that directly support the research or academic mission of the University and recover costs through charges to internal and external users. All recharge units that may bill federal grants or contracts are subject to the cost principles set forth in the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance, 2 CFR Part 200). See the University Budget Office’s Recharge Unit Manual for additional information.
- Revenue generating activities not directly related to the University’s tax-exempt purposes may be subject to federal unrelated business income tax (UBIT). The University’s Tax Office will determine whether an activity is considered unrelated for UBIT purposes based on federal laws, regulations, Internal Revenue Service guidance, and other relevant guidance.
III. Roles and Responsibilities
A. The Division of Business Affairs (Financial Services and Budget Office) issues standards, guidelines, and supplemental procedures to assist departments in implementing this and other related policies. This Policy is the governing foundation for standards, guidelines and procedures related to revenue generating activities at the University.
B. The responsible departmental, college, or unit administrator must ensure any revenue generating activities within their department and the related receipt of monies:
- adhere to this Policy as well as related policies and procedures;
- comply with all applicable State statutes and regulations; and
- are designed with effective internal controls to help ensure proper stewardship of University assets.
C. All employees have a duty to report fraud under University Policy 804, Standards of Ethical Conduct, and to report and investigate suspected improper activities under University Policy 803, Reporting and Investigation of Suspected Improper Activities and Whistleblower Protection.
Responsible Office: Business Affairs
- University Policy 602.4, University Receipts and Deposits
- Payment (Credit/Debit) Card Processing Standard
- Umstead Act: State Competition with Private Business
- University Policy 601.21, Acquisition and Disposition of Real Property by Lease
- University Policy 601.1, Use of University Supplies, Equipment, Technology, Phones, and Other Resources
- University Policy 601.15, Control and Management of University Equipment and Other Property
- University Policy 301, Patent Policy
- University Policy 602.2, Solicitation and Acceptance of Gifts
- University Policy 203, Grants, Contracts, and Cooperative Agreements to Finance Sponsored Programs
- Recharge Unit Guidebook
- 2 CFR 200 (Uniform Guidance)
- University Policy 603.1, Authority to Sign Contracts and Other Official Documents
- University Policy 601.8, Appropriate Use of University Funds
- University Policy 602.11, Gifts, Awards and Prizes
- University Policy 101.24, Conflicts of Interest and Commitment