REQUEST TO ESTABLISH A REVENUE PRODUCING ACTIVITY (RPA)

REQUEST TO ESTABLISH A REVENUE PRODUCING ACTIVITY (RPA)

UNDER FUNDS 128/136

Please return to the Auxiliary Operations Analysis office

Email

To be considered for approval as an RPA under Fund 128 or 136, a proposed activity must:

  1. Clearly support the UW-Madison’s mission of instruction, research, and public service.
  2. Generate revenue from a fee charged for the sale of products owned by the UW-Madison, services performed by its employees, or for admission to an event. Event must be UW-Madison sponsored or cosponsored, and be promoted that way.
  3. Must not be required to operate under Fund 133 or Fund 144.

If the above requirements are met, complete this formand submit to your Dean’s/Director’s office for approval prior to submissionto Auxiliary Operations Analysis (AOA) office.Your submission must include a rate calculation schedule with detailed methodology and RPA Estimated Cash Flow Worksheet.

Once the request has been approved by the Dean/Director and the AOA, the contact will be notified.

TO COMPLETE THIS FORM – save using the following naming convention

RPAQ_Project# OR DeptID#.docx

School/College (choose from dropdown) / Department Name / DeptID / Project Number
Contact / Title
Email / Phone / Desired Start Date
Name of individual responsible for general bookkeeping and budget duties for this RPA / Email / Phone
Contact Signature (type name if completing form online) / Date
Approved by:
Dean/Director / Date
For AOA office use only
Approved by:
AOA / Date
Rate calculation? / ☐Yes / ☐No
Cash Flow Worksheet / ☐Yes / ☐No
DeptID/Project# Request? / ☐Yes / ☐No
DESCRIPTION of ACTIVITY & CUSTOMERS
Title of proposed RPA (limited to 39 characters)
Describe purpose and nature of RPA. Include a description of the goods you will be producing or selling.
  1. Do you plan to do business with the following customers? Check all that apply and describe.

☐Yes / ☐No / UW departments- other than federal grants (Internal)
☐Yes / ☐No / Other UW System campuses (Internal)
☐Yes / ☐No / Charges to federally sponsored grants and contracts (Internal)
☐Yes / ☐No / Wisconsin state agencies (Internal)
☐Yes / ☐No / Students (External)
☐Yes / ☐No / Faculty/Staff for personal use or consumption (External)
☐Yes / ☐No / School districts, local and/or federal government (not grants) (External)
☐Yes / ☐No / Other – general public, other universities, corporations, nonprofits (External)
☐Yes / ☐No / None of the above – no customers
☐ Clearing Account / ☐ Passive Revenue (rents, royalties, etc.)
Describe:
If you only checked Clearing Account or Passive Revenue, you do not need to complete the rest of this form.
  1. Will the activity involve selling by-products e.g. animal offspring, meat, dairy, etc.? Please describe. If yes, rate calculation is not required.

☐Yes / ☐No
COMPETITION
  1. To the best of your knowledge, are other RPAs on campus providing the same or similar products or services? If yes, describe the rationale for approving the new RPA (e.g. unmet demand, additional by-products, convenience for customers, etc.)

☐Yes / ☐No
  1. To the best of your knowledge, are there private sector businesses providing the same or similar products or services? If yes, describe the rationale for approving the new RPA.

☐Yes / ☐No
FINANCES
  1. Attach RPA Cash Flow Worksheet to this questionnaire. Please explain any deficits, plans for recovery, or what funding source(s) will be charged for year-end deficits. The RPA CashFlow Worksheet can be found at

RATES

Full documentation of how rates were calculated must be prepared for all RPAs. Estimates may be used when the RPA is initially set up. Rates should be recalculated and documented using actual costs for all subsequent years. Policies that apply to developing rates differ depending on the type of customer (Question 1.).

  • Internal customers – sales must be at or below the cost of providing the good or service. Rates must be applied consistently to all internal customers.
  • External customers – sales must be priced to cover the direct and indirect costs of providing the good or service.
  • Byproducts – may be priced at market rate.

Attach copy of detailed and auditable rate methodologies to this request. Rate calculationinformation can be found at

  1. Do you require assistance from AOA in calculating your rates?

☐Yes / ☐No
YEAR-END REPORTING

These checklists are used to determine if the RPA will have year-end reporting requirements. Accounting Services coordinates the year-end reporting process through your Dean’s office. Please check all that apply.

EXTERNAL CUSTOMERS ONLY

Accounts Receivable* at end of FY
*Services provided or products sold in one FY but revenue received in subsequent FY
☐ / External – owed by customers outside UW System
External A/R as of June 30 must be reported to Accounting Services for inclusion in the State of WI Annual Financial Report.
Unearned Revenue* at end of FY
*Revenue received and coded in current FY but goods or services will be delivered in subsequent FY.
☐ / Unearned Revenue exceeds $5,000
If box is checked, year-end reporting is required.

Revised 07/01/17