UCR

UCR Policies and Procedures

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This policy is currently under review by the policy owner.

For additional information, please contact the Office of the Associate Vice Chancellor-Financial Services.

Campus Policy Number:             200-32

Policy Topic:                                  Direct Sales to Students and Other Individuals

Policy Owner:                               Campus Controller 

Effective Date:                              10/01/83 

Revision Date:                              01/01/11

 

A.            Introduction and Overview

 

There may be an occasion where a campus department has goods, or a product it has developed, which it would like to sell to students or other individuals.    If the department does not already have an approved cashiering station operation, the campus has designated the Campus Store as the appropriate channel for handling these  transactions, given its established infrastructure and safeguards for handling sales transactions and cash.   

 

B.            Background and Related References

 

The handling of sales activities and cash can present both opportunities and risks to a campus.   The University of California has a series of policies, procedures, and requirements governing sales activities and cash handling (see Section G - Related Policies and References below).     Sales to students or other individuals need to be handled in a manner that is compliant with these policies. 

C.            Definitions

 

Direct Sales:   Where an entity is selling an item or product directly to a student or other individual for cash or a cash equivalent (e.g.,  check, credit card), and is handling the sales and payment transaction.   

 

Sale of items or products:  Items which have been purchased for resale or are being produced and which will subsequently be sold to a customer.

 

Approved cashiering station:   A sub-cashiering or cash handling operation which has been established in accordance with UCR P&P 200-12 “Cashiering and Sub-Cashiering Station Operations” and UC Business & Finance Bulletin BUS-49 “Cash and Cash Equivalents Received”,  and approved by the UCR Campus Cashiering Coordinator. 

 

D.            Policy

 

There may be an occasion where a campus department has goods, or a product it has developed, which it would like to sell to students or other individuals.    The administration of sales activities and cash handling can present both opportunities and risks to a department and the campus.   The University of California has a series of policies, procedures, and requirements governing sales activities and cash handling (see Section G - Related Policies and References below).     Sales to students or other individuals need to be handled in a manner that is compliant with these policies. 

Administration of a direct sales and cash handling activity can involve a variety of activities, including:

·         Establishing and administering a sales and service fund;

·         Establishing and administering inventory controls and safeguards

·         Ensuring the use of trained, bonded cash handlers

·         Ensuring appropriate safeguards for and regular depositing of cash

·         Collecting and reporting sales tax

·         Administering  web-based on-line ordering interface

 

If the department does not already have an approved cashiering station operation, the campus has designated the Campus Store as the appropriate channel for handling direct cash sales to students and other individuals on a cash basis, given its established infrastructure and safeguards for handling sales transactions and cash.  

 

This policy does not apply to a registered campus organization’s fundraising sale of products to students, faculty, staff or other individuals.   The policy on this type of activity is UCR P&P 700-30 Fundraising by Campus Organizations.  

 

This policy does not apply to the sale of goods or services by one campus department to another campus department (i.e., sales transacted via recharges -- recharge sales).      The policy on conducting recharge sales transactions is UCR Policy 300-66 Sales and Service Activities.

 

E.            Procedures (Roles and Responsibilities)

 

1.       Department Head

a.       Evaluate  any proposal to sell goods or products directly to students or other individuals (in conjunction with the respective office of the Dean or Vice Chancellor).

b.      Determine if the department has an approved cashiering station established.

c.       If the department does not have an approved established cashiering station, consult with the Campus Store Director about using its sales and cash handling infrastructure.     If it is agreed that the Campus Store will provide the sales and cash handling services, initiate a Memorandum of Understanding (MOU) with the Campus Store to document the terms of the agreement. 

d.      Designate an appropriate existing sales and service fund which should be credited with the sales revenue,  or request to establish such a fund.    For low dollar value or one-time activities, consider use of an Organization Sales and Service Fund (see UCR Policy 300-66A). 

2.       Organization Unit Head (Dean, Vice Chancellor, etc.)

a.       Approve the sale of goods or products directly to students or other individuals.

b.      Consider a request to set up new sales and cash handling infrastructure within a department .

c.       Discuss with the Campus Controller as necessary.

d.      If applicable, approve use of Organization Unit Sales and Service Fund in accordance with policy.

e.      Approve initial selling price to ensure full recovery of costs.   Conduct annual review of pricing.

 

 

3.        Campus Controller

a.       In conjunction with the UCR Campus Cashiering Coordinator and campus management, help ensure compliance of campus cash handling operations with established policies.

4.       Campus Store

a.       Agree (via written MOU) to provide sales and cash handling infrastructure.

b.      Conduct sales of goods for the requesting department in accordance with UC cash handling policies and MOU.

c.       Assess and remit appropriate sales tax.

d.      Record revenue (net of the agreed-upon cost for providing the sales and cash handling infrastructure) in the appropriate departmental revenue fund.        

 

F.            Frequently Asked Questions

 

Direct any general questions about this UCR Campus Policy & Procedures 200-32 to the Campus Controller.  To learn more about the UCR Campus Store’s capabilities to handle direct sales activities for departments, contact the UCR Campus Store Director at (951) 827-3733. 

 

G.           References and Resources

·         UC Business and Finance Bulletin A-47 University Direct Costing Procedures

·         UC Business and Finance Bulletin BUS-49, Cash and Cash Equivalents Received

·         UCR Policy 200-12 – Cashiering and Sub-Cashiering Station Operations

·         UCR Policy 200-17 – Credit/Debit Card Payments – Acceptance of

·         UCR Policy 300-66 Sales and Service Activities – Establishment and Budgetary Review

·         UCR Policy 300-66A – Organization Sales and Service Fund

·         UCR Policy 300-66B – Auxiliary and Self-supporting Enterprises

·         UCR Policy 750-51 Policy for Disposal or Sale of Surplus Plant Material Growing on AES Land

 

 

H.           Feedback

For comments or questions regarding this policy, please contact the UCR Finance and Business Operations Policy Analyst/Information Officer, at (951) 827-7321 or email at UCRpolicy@ucr.edu.