Revenue-based Funds - Budget Overview - UMass Amherst Provost's Office

Provost's Office > Administrative Info: Financial > Budget Overview > Fund Type: Revenue-based Funds

The following links contain more detailed information about the most important budget allocations and other FUND types available in the Academic Affairs Executive Area, and their respective operational procedures.

Operating Budget

Revenue-based Funds

Grants and Contracts

Research Trust Funds (RTF)

Gifts

Revenue-based Funds

Source and Use

This money is obtained by charging fees for services, or fees (mandatory or non-mandatory) to students. Each revenue-based activity is separately described, and has a specific fee amount or schedule associated with it. A single "fund manager" is assigned responsibility for the operation.

Policy Basis

The Trustees of the University of Massachusetts, unique among state agencies, are authorized by a 1963 piece of legislation to approve the creation of fees charged to pay for certain "self-sufficient" operations, and to delegate the management of funds so collected to the campus. Revenue-based funds are a unique FUND type, meaning they cannot be mixed with other FUND types. A small administrative overhead is charged (usually 4 – 7% on expenditures) to comply with the law and to support central services costs (Bursar’s, Controller’s, Procurement Office, etc.) needed by revenue operations.

Use of Revenue in the Academic Areas

Revenue-based funds exist to support a Fine Arts Center operation, various scientific laboratory services, some services of the registrars’ offices, instructional technology and media services, international exchanges, continuing education curriculum, and any other activities not already supported by the General Operating Budget (described above) which fulfills the campus’ missions.

Management of Revenue-based Cost Centers

Each activity supported by fees must be described as a separate "little business" managed by a fund manager, with a fee structure and a revenue plan. The University Trustees review the statement of purpose, fee structure and budget plan in an annual budget process. Support staff associated with the activity must collect and deposit cash, process expenditures, and prepare reports as needed.

The campus Budget Office manages the procedures to create and monitor revenue-based funds, including their annual budget review process. This process extends each year from early November through February in order to prepare for the February and later meetings of the Board of Trustees when fee approvals are considered.

Procedure for Creating a New Fee Operation

Academic administrators wishing to create new revenue-based fund activities talk first with their respective deans or Unit directors, and school/college business managers. The financial staff in the Provost’s Office is also available to provide consultation on the creation of fee structures and revenue plans, and has a Handbook designed for interested academic administrators. The campus Budget Office supplies the request forms necessary, and maintains a web site with more general information. The Trustees prefer to review new requests for revenue operations only during the annual revenue budget process, once a year.

More information can be obtained on this FUND type from the web Home Page of the campus Budget Office (http://www.umass.edu/af/budget/) . Trustees policies for revenue-based funds can be found in the Policy for Management of University Funds (Trustees Documents T92-031, 6/3/92, revised 6/8/94). Excerpts can be found in the campus Accounting Manual.

		Revenue-based Funds
		Provost's Office > Administrative Info: Financial > Budget Overview > Fund Type: Revenue-based Funds Budget Overview The following links contain more detailed information about the most important budget allocations and other FUND types available in the Academic Affairs Executive Area, and their respective operational procedures. Operating Budget Revenue-based Funds Grants and Contracts Research Trust Funds (RTF) Gifts Revenue-based Funds Source and Use This money is obtained by charging fees for services, or fees (mandatory or non-mandatory) to students. Each revenue-based activity is separately described, and has a specific fee amount or schedule associated with it. A single "fund manager" is assigned responsibility for the operation. Policy Basis The Trustees of the University of Massachusetts, unique among state agencies, are authorized by a 1963 piece of legislation to approve the creation of fees charged to pay for certain "self-sufficient" operations, and to delegate the management of funds so collected to the campus. Revenue-based funds are a unique FUND type, meaning they cannot be mixed with other FUND types. A small administrative overhead is charged (usually 4 – 7% on expenditures) to comply with the law and to support central services costs (Bursar’s, Controller’s, Procurement Office, etc.) needed by revenue operations. Use of Revenue in the Academic Areas Revenue-based funds exist to support a Fine Arts Center operation, various scientific laboratory services, some services of the registrars’ offices, instructional technology and media services, international exchanges, continuing education curriculum, and any other activities not already supported by the General Operating Budget (described above) which fulfills the campus’ missions. Management of Revenue-based Cost Centers Each activity supported by fees must be described as a separate "little business" managed by a fund manager, with a fee structure and a revenue plan. The University Trustees review the statement of purpose, fee structure and budget plan in an annual budget process. Support staff associated with the activity must collect and deposit cash, process expenditures, and prepare reports as needed. The campus Budget Office manages the procedures to create and monitor revenue-based funds, including their annual budget review process. This process extends each year from early November through February in order to prepare for the February and later meetings of the Board of Trustees when fee approvals are considered. Procedure for Creating a New Fee Operation Academic administrators wishing to create new revenue-based fund activities talk first with their respective deans or Unit directors, and school/college business managers. The financial staff in the Provost’s Office is also available to provide consultation on the creation of fee structures and revenue plans, and has a Handbook designed for interested academic administrators. The campus Budget Office supplies the request forms necessary, and maintains a web site with more general information. The Trustees prefer to review new requests for revenue operations only during the annual revenue budget process, once a year. More information can be obtained on this FUND type from the web Home Page of the campus Budget Office (http://www.umass.edu/af/budget/) . Trustees policies for revenue-based funds can be found in the Policy for Management of University Funds (Trustees Documents T92-031, 6/3/92, revised 6/8/94). Excerpts can be found in the campus Accounting Manual.
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