UCR Policies and Procedures

For a hardcopy pdf of this document, contact the Office of Compliance (2-8246).

Policy Title: Direct Sales by Department to Students or Other Individuals

Policy Number: 200-32

Responsible Officer:	Associate Vice Chancellor of Business & Financial Services and Controller
Responsible Office:	Business and Financial Services – Accounting Office
Origination Date:	01/01/2011
Date of Revision:	08/01/2017
Date of Last Review:	06/30/2017
Scope:	Guidance Concerning Handling of Direct Sales

I. Policy Summary

There may be an occasion where a campus department has goods, products, or services it has developed, which it would like to sell to students or other individuals.

II. 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.

III. Policy Text

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 VIII - 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 the appropriate safeguards for the regular depositing of cash

· Collecting and depositing sales tax

· Administering web-based on-line ordering interface

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). Applicable policies on conducting recharge sales transactions included: UCR Policy 200-30 Recharges and UCR Policy 300-66 Sales and Service Activities.

IV. Responsibilities

Business and Financial Services

V. Procedures

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. 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 the use of the Organization Unit Sales and Service Fund in accordance with UCR Policy 300-66A.

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

3. Campus Controller

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

VI. Contacts

Subject	Contact	Phone	Email
Accounting		(951)827-3303

VIII. Related Information

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 750-91 Policy for Disposal or Sale of Surplus Plant Material Growing on AES Land

IX. Revision History

Direct Sales to Students and Other Individuals – Effective Date 10/01/1983

Direct Sales to Students and Other Individuals – Revision Date 01/01/2011

Direct Sales to Students and Other Individuals – Revision Date 08/01/2017