There are several considerations that must be addressed before any new type of external sales are undertaken or a significant increase in scale of activity occurs. The new activity form [1] must be completed and forwarded to the Accounts Receivable helpdesk. The form requires details of the proposed income generating activity, and institutions must have answered the questions below. The University’s charitable status must be protected and the institution’s evaluation of the price to be charged presented.

Should the University be making this sale?

Before deciding to supply any new type of goods or services to external customers, you must first complete the new activity questionnaire (available from the Finance Divisions forms website), and forward to the Accounts Receivable helpdesk [2] for sign off by the Head of Accounting Services. You will need to provide details of the new activity, including responses to these questions:

• How does the activity relate to the University’s core business, that is, the pursuit of education, learning and research at the highest international levels of excellence?
• Is it appropriate for the University to be involved in such activity?
• Does the activity conform to guidelines set in the Financial Regulations and to all relevant conditions already in existence within the University’s approval framework?
• Does the activity bring the University into disrepute or disgrace by association?
• Does the activity expose the University to unacceptable risks (e.g., financial, legal, health and safety) and is it covered by the University Insurance policy?
• Would the activity put the University’s charitable status at risk?
• Has the proposed customer been screened according to the University Sanctions policy?
• Has the activity been realistically assessed in terms of the likely levels of income versus the costs?
• Have the University’s standard terms and conditions been successfully incorporated into the sale?
• Are the price, delivery requirements and any other conditions particular to this sale acceptable to both the customer and the University?
• Has the Tax Team been consulted?

Further guidance about some of these aspects is provided in the following sections:

• Charitable status [3]
• Establishing the right price to charge (Full Economic Costing) [4]
• Non-University commercial activity [5]
• Marketing and advertising [6]

Latest version 16 April 2024