This policy does not supercede the IU Intellectual Property Policy (http://www.indiana.edu/~ovpr/respol/intprop.html) which defines the rights of the university and the creators of intellectual property, including provisions on how revenues generated from it shall be distributed.

External Sales -External Sales” is defined as an exchange by the university of tangible or intangible products and/or services with external customers for monetary consideration. For the purposes of this policy, an external customer is anyone not paying for the goods or services from an Indiana University account.

Transactions handled for technology transfer, license and trademark agreements are excluded from this definition. A contact should be made to the campus business officer if such transactions are going to be involved.

Internal Sales - “Internal Sales” is defined as the sale of goods or services by one university department to another department within the university and to sales within a department. Transactions are completed using an Internal/Service Billing form or the batch processing process that recognizes income and expense between university accounts.

Sponsored Programs - Sponsored programs shall not be considered a Revenue Producing Activity (RPA) under this policy. As a general rule, sponsored programs are differentiated by RPA’s by the following criteria:

• Funds must be separately budgeted and accounted for, or;
• Funds are restricted to the sponsored activity until expiration of the agreement, or;
• The activity is the result of an individual agreement with an external entity with terms and conditions unique to that particular project or activity, or;
• The activity is the result of a Federal or Federal Pass Through contracts of any kind.

Any questions as to whether an activity should be considered a sponsored program should be referred to Office for the Vice President for Research.

Sponsored Program accounts occasionally have reportable program income, which is defined by the Federal government as "gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award."  Tracking program income on federal and federal pass-through accounts is required under the provisions of A-110.  If your revenue producing activity is a result of a Contract & Grant account, you should follow the procedures outlined in Important Notice 00-6, at http://www.fms.indiana.edu/cg/imp_notice/00-6.asp. For the purposes of this policy, program income would not included income earned from license fees and royalties for copyrighted materials, patents, patent applications, trademarks and inventions.

Under Indiana State law and reiterated under the university Conflict of Interest Policy, University employees and their dependents are prohibited from having an aggregate financial interest of $250 or more per year in, or deriving an aggregate profit of $250 or more per year from, any contract(s) or purchase(s) connected with the University. If the employee is not a member or on the staff of the governing body empowered to purchase or contract, and the functions and the duties performed by the employee for the University are unrelated to the purchase or contract, employees and their dependents may have an interest in, or derive an aggregate profit from, a purchase or contract with the University of $250 or more if:

1. The employee first obtains the written approval of the Board of Trustees, and ;
2. Files a disclosure with the Indiana State Board of Accounts.

RPA is established when revenue is generated from the sale of products and/or services provided by the university and/or university employees. The revenue must be deposited in an approved university account(s) and recorded with the appropriate general ledger account(s) and object code(s). The sale of products and/or services to internal and/or external customers must be consistent with the mission of the university (education, research, or public service), as well as the mission of the specific organization. If the sales are to internal customers, the sales activity is limited to a break-even basis and must comply with additional restrictions described below. If the sales are to external customers, the sales revenue may exceed expenses.

If it is considered necessary or efficient for an IU organization or department to sell to another university organization or department in order to accomplish university objectives, then a recharge (or internal service) center must be established in compliance with university policies. All sales activity must be conducted in accordance with university policy and procedures to ensure adequate compliance with federal and state regulations and to minimize legal, insurance, and tax risks. If the campus business officer determines that the activity has university-wide risks, the review and approval of central university administration will be necessary.

This policy does not apply to outside entity student organizations revenue activity. However, if the student organization processes the revenue activity through a university account, then that activity would be covered under this policy.

When planning or approving business activities, Deans, Department Heads, and other appropriate administrators should ensure that these activities are consistent with this policy. Units that do not follow the guidelines set forth in this policy will at a minimum be held responsible for any fines or penalties externally imposed.

Revenue producing activities which involve University owned Intellectual Property are excluded from this policy and must follow the guidelines as stipulated in the IU Intellectual Property Policy (http://www.indiana.edu/~ovpr/respol/intprop.html).

1. Schedule a preliminary review meeting/discussion with the campus business officer before commencing with the following steps in establishing an RPA account;
2. Complete an RPA Questionnaire;
3. Create a business plan;
4. If a recharge center, prepare a schedule of rate calculations for the operation; and,
5. Submit the questionnaire, business plan, completed Conflict of Interest Disclosure Statement, if applicable, and any supporting paperwork to the campus business officer for approval.

The campus business officer will attach the routing sheet to record all appropriate reviews/approvals.

1. Revenue Producing Activities Questionnaire (Revenue Producing Activities Questionnaire)
2. Business Plan Template ( Business Plan Template)
3. Business Plan Template, Non-recurring Activity ( Business Plan Template, Non-recuring Activity)
4. Revenue Producing Activity Routing Sheet ( Revenue Producing Activity Routing Sheet)
5. Conflict of Interest policy ( Conflict of Interest policy)
6. Conflict of Interest Disclosure Statement ( Conflict of Interest Disclosure Statement)

1. Purchasing Policies;
2. Recharge Center policies:

   Formula for Setting Recharge Center Rates

   Fund Balance in Recharge Centers

   Recharge Center Transfers

3. Contract and Grants Important Notices:

   Program Income

   Internal Billings to Sponsored Projects

4. IU Copyright Center
5. Refer to and use the “External Agency Route Sheet for Contract For Services” as appropriate.
6. IU Intellectual Property Policy