F-3) External Sales of Education Related Activities

Review date:

February 08, 2018

Responsible office:

Budget and Resource Management

Definition

Sales of products or services to EXTERNAL customers (defined as not able to be charged via a journal, instead they are billed and pay by cash, check or credit). Activities under this category are very similar to recharge activities, except there are NO internal customers. Sales of products or services to BOTH internal and external customers are recharges (see F-2).
The University must not assume any obligation beyond delivery of a standardized University product or service at a pre-established, per unit, uniform price.
The activity must have some integral relationship to UCSF's instruction, research, or public service missions and yield some identifiable benefit to UCSF.
Customers may not be charged less than total cost.
Business contracts between external customers and the Regents of the University of California are required. These should be routine if a standard agreement is used.
Indirect costs must be included in the fee or price charged for the product or service.
Unrelated Business Income Tax (UBIT) and Sales Tax review is required.

Examples

The School of Nursing has an agreement with Adam.com to organize and provide chat room services and orientation for chat hosts for a 2-month period.

Department receives some reimbursement for the services.

The following are NOT External Sales of Education Related Activities:

Non-standardized testing [Sponsored Contract]
Sales of survey services (data collection and/or data analysis) [Sponsored Contract or Faculty Consulting or Clinical Management Services]
Service to industry agreements [Sponsored Contracts, Non-Federal Clinical Trials, Affiliated Organization Agreements, Industry Sponsored Agreements or Sponsored Cooperative Agreements]
Educational services provided at sponsor’s site for sponsor’s personnel [Faculty Consulting Fees or Sponsored Contract]

Products or services that are patient care [Professional Fee Services] or research [Sponsored Agreement or Affiliated Organization Agreement] (If Institutional Review Board (IRB) or Intellectual Property rights issues arise, it is not patient care).

Use of unique facilities when staff support or analytical services are also provided (e.g., not sold at pre-established, per unit, uniform prices for standard routines) [Sponsored Contract or Professional Fee Services];
Sale of consulting services [Faculty Consulting Fees, or Professional Fee Services or Clinical and other Management Services];
Agreements with non- University hospitals or clinics to provide medical services (e.g., scarce anesthesiology or radiology services) [Professional Fee Services, Outreach Agreements, or, if other party is a government agency, a Sponsored Contract];

Agreements to test a company’s drug or device. [Industry- Sponsored Clinical Trial].

Overhead Consideration

The service center rate of 26 percent applies to external sales and service agreements as of July 1, 2008. The rate is to be assessed based on revenue received.
Invoices should be adjusted to include the correct F&A rate. Indirect costs must be included in the rates charged for the products or services unless a formal waiver has been reviewed and approved by Budget and Resource Management Office, Recharge Review

Policy

Review Department/Signature Authority

Requires review and approval from: Budget and Resource Management Office, Recharge Review

For departmental review and approval:

Cognizant Departmental Business Officer
For School or Vice- Chancellor’s review and approval
Confer with Dean for School approval

For review of compliance with University costing policies:

For business contract review and execution:

For determination of UBIT and Sales Tax applicability: Controller's Office, Tax Information

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F-3) External Sales of Education Related Activities