Comptroller's Office
 Policies and Procedures Manual

Effective: 03/22/2000
Revised: 02/22/2012 

CMP 213 : Establishment of Sale and Resale Activities


Purpose

To define when the university may engage in sale and resale activities and to establish guidelines for compliance with the overall University mission in accordance with applicable Federal and State laws and Arizona Board of Regents Policy 1-105 regarding competition with free enterprise.


Source

Arizona Revised Statutes § 41 2753

Arizona Board of Regents Policy Manual 1-105

University policy 


Background

State law and regents policy require the university to avoid competition with private enterprise. Unless specifically authorized by statute, the university may not provide to the general public goods, services, or facilities that are practically available from private enterprise unless the provision of the goods, service, or facility offers a valuable educational or research experience for students as part of their education or fulfills the public service mission of the university. In addition, the university may not provide to students, faculty, staff, or invited guests goods, services, or facilities that are practically available from private enterprise except as authorized by the Board of Regents.


Applicability

All University Dept/Units, both on campus and off campus (statewide) sites.


Authorized NAU Sale and Resale Activities


Student and Departmental Account Services

NAU Bookstore (under contract with Follet)

Postal Services

Fronske Heath Center

Cline Library

Property Administration

Dental Hygiene Clinic

Physical Therapy

Central Ticket Office

Student Union

NAU Skydome

Parking Services

Transportation Services

Residence Life

Performing Arts

Wall Aquatic Center

All new sale and resale activities must be approved by the Vice President for Finance & Administration.


Definitions


Sale and Resale Activity

A program that sells goods and or services primarily to individuals for personal use rather than to university departments or programs for official use. Payments made by individuals are the primary source of revenue for a resale activity.

Invited Guest

A person who enters a campus for an educational, research, or public service activity, and not primarily to purchase or receive goods or services not related to the educational, research, or public service activities of the university.

Service Center

A program that sells goods and/or services primarily to university departments or programs for official use. Interdepartmental billings are the primary source of revenue for a service center.


Procedure

  1. All sale and resale activities will adhere to all applicable laws pertaining to collection of sales taxes. See CMP 108 regarding sales tax.
  2. All sale and resale activities will follow the procedures for Deposits of University funds in CMP 301-01 and CMP 301-04 Authorization to Accept Credit Cards.
  3. Requests to establish a new resale activity will be submitted through the Comptroller's Office to the Vice President for Finance & Administration for approval.
  4. Requests to establish a new resale activity must include the following information:
    1. Evidence that the proposed resale activity offers or supports a valuable educational or research experience for students as part of their education or fulfills the public service mission of the university OR evidence that the goods and/or services to be provided are not practically available from private enterprise, OR if available, do not satisfy the objective of the program.
    2. Evidence that similar goods or services are not already being provided by another university department or program.
    3. A completed new Dept/Unit Application Form, in accordance with CMP 202.
    4. A proposed operating budget.

Requests will be submitted to the Comptroller's Office. If the request is approved, the Comptroller's Office will forward the request to the Vice President for Finance &  Administration for final review and approval.


Cross-Reference

CMP 108 - Sales Tax

CMP 202 Establishment of Dept/Units

CMP 214 Rental of NAU Facilities

CMP 301-01 Deposits of University Funds

CMP 301-04 Authorization to Accept Credit Cards

CMP 306 NAU Event Ticketing


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