Procedure: 15-70

Procedure: 15-70

Effective: July 2, 2001

Owner: Assistant Vice President for Financial Operations

Latest Revision: January 28, 2016

Approving New or Expanded Services and Activities


Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership


This procedure describes documentation on how departments should process requests for new revenue generating services and activities. It also states how often such services and activities will be reviewed and what criteria govern the review.

New or Expanded Services

All new or expanded services and activities, except instructional programs currently approved by the Executive Vice President and Provost or sponsored program activities currently reviewed by the Office of Sponsored Programs, must pass through a four-step review process before being offered to the general public or to University departments, faculty, staff, students, and patients. If the new or expanded services are initiated before final approval is secured under this procedure, the University will not be responsible for any commitments, obligations, or expenses incurred if the proposal is disapproved.

Note: See flowchart under Procedure Steps

System References [Top]

15-70 - Approval Form for New Revenue Generating Activities and Services is available on the UVA Forms Directory as a PDF document.

Policy [Top]

Policy FIN-049 - Revenue Generating Activities

Responsibility [Top]

The person requesting the creation of a new service provider or revenue generating activity is responsible for initiating this procedure.

Distribution [Top]

University Fiscal Administrator
University Deans and Department Heads
Assistant Vice President for Finance and University Comptroller

Ownership [Top]

The Assistant Vice President for Finance and University Comptroller is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps [Top]







Prepares proposal to include:


A brief statement of the activity's purpose describing the goods and services provided.


An analysis of costs and benefits of the service and of what alternatives exist through other sources to provide similar services.

This analysis must include a detailed cost basis rate calculation.

This comparison should also evaluate quality, price, and convenience compared to services which could be purchased outside the University.


Documentation showing the funding source or the extent to which the activity must be subsidized by the University. Include required usage of University facilities and services, and the intended disposition of any net income generated by the activity.


Factors pertinent to the proposed or current activity which show how it affects the overall mission of the University.


A statement describing the customers served, methods of customer solicitation, and planned pricing policies.



Forwards proposal package to Dean, Department Head, or Associate Hospital Director and Vice President.


Dean, Department Head, or Associate


Approves or rejects proposal.


Hospital Director and Vice President


Forwards proposal to Office of Financial Analysis/ University Comptroller or Medical Center Director of Finance


Office of Financial Analysis/ University Comptroller 


Tests compliance with Policy University Policy FIN-049 and Procedure 15-70.


or Medical Center Director of Finance


As appropriate, requests additional reviews from:


General Counsel


Director, Governmental and Community Relations,


Risk and Insurance Management, and/or


The Budget Office.



Prepares analysis and recommendation.



Submits proposal, analysis and recommendation to Executive VP and CPO or designee.


University Comptroller


Approves or disapproves proposal.

Existing Services and Activities

Services and activities provided by the department will be reviewed yearly by the responsible departmental service center manager and at least every other year by the Office of Financial Analysis to make sure they comply with the intent and purpose of University Policy FIN-049 - Revenue Generating Activities and Federal regulations (2 CFR Part 220 – Appendix A). This review should consider the information contained in an activity description as outlined above.

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