|TOPIC: Revenue||EFFECTIVE DATE: 10/16/2013|
|TITLE: 4.1: Revenue Producing Activities/Accounts||REVISION DATE: 9/19/2017|
|AUTHORIZED BY: Ronald Ravel, Assistant Director|
UW Madison Accounting Services has established Guidelines for Revenue Producing Activities (RPA). Additionally, Accounting Services has made it a point of emphasis that accounting for RPA’s will not occur directly inside 233 projects.
This document has been written to give additional guidance on how the RPA activities will be handled in the Department of Medicine to fulfill Departmental and Accounting Services requirements, while providing for administrative efficiencies.
RPA procedures only allow for RPA activity to be originally accounted for in funds 101, 128 or 136. Policy DOES allow for RPA charges to be transferred into 233 projects and for charges in 233 projects to be transferred to RPA projects, if appropriate.
If you have limited activity, defined as a few checks per month, your total revenue is less than $25,000 and the RPA can be operated within one fiscal year, you might qualify for an exception from the need to formally set-up an RPA using the Revenue Producing Activities Questionnaire. The activity would be accounted under Fund 101, and only non-salary expenditures could be recovered.
Procedures do not speak directly to the exemption from filling out a questionnaire, however it has been granted by the SMPH to be used at the discretion of Department of Medicine Office of Financial Services (DOM Finance). DOM Finance will evaluate your activity to ensure that the type of activity (i.e., tax and copyright issues), duration, quantity and amount of payments do not necessitate a fund 136 RPA funding string.
In the case of 101 funding, all accounting, revenues and expenses, will be recorded under Sales Credit accounts 9050 and 9051. Please identify your activity clearly in the journal description field. Periodically, DOM Finance will review activity recorded under 101 funding and move expenses into or out of the 101 funding string as appropriate, in consultation with the division.
When fund 101 is not appropriate, an RPA must be set up under a fund 136 account. Please complete the Revenue Producing Activities Questionnaire available on the UW Business Services website.
Department of Medicine Office of Financial Services will periodically review fund 136 activities and balances to determine the need for addressing any deficits and for adjusting rates/prices, etc.
John Freeman 263-6989