To provide the guidelines and procedures for the establishment of revenue producing activities by University departments, units and individuals, consistent with the University mission and that of the unit generating the revenue. In doing so, the University must not unfairly compete with the private sector or engage in activities with an unreasonable risk. University departments whose services are provided to other departments within the University and that charge an approved rate must also follow the cost accounting standards as outlined in E-50-5 Service Centers and Recharge Operations.
Prior to initiating any revenue producing activity, University department personnel documents the purpose of the activity, activity risks, business plan, pricing and obtains appropriate approvals. The normal timing of the request would be during the budget cycle but can be initiated at any time. Approval should also be obtained when any change is contemplated for an existing RPA.
Certain RPA is administered at the University level and the specific procedures identified in this policy are not applicable to these activities:
UFS will prepare annual tax return for identified unrelated business activities and pay the tax liability to the Internal Revenue Service. UFS will then charge the department based on its share of the taxable unrelated business income. Departments should consider that cost as part of the evaluation in determining rates to charge.
Departments must complete the Annual RPA Survey and Annual UBI Questionnaire as outlined in BPM E-6-3 Unrelated Business Income Tax - UBIT and submit annual forms to taxoffice@uky.edu by September 1st for prior fiscal year.