Revenue Producing Activities

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A revenue producing activity (RPA) is established when revenue is generated from the sale of products and/or services provided by the University or University employees. Revenue producing activities can be for both internal and external sales and can be processed on campus or off. In general revenue earned assists in IU’s mission of education and public support, but is not exclusive to the missions. All new revenue generating activities within IU must be approved prior to accepting revenue pursuant to IU policy FIN-TRE-121 Establishing and Modifying Revenue Producing Activities (RPA). Existing activities with changes or expansions to business practices must be reviewed and approved before the changes are implemented.

Indiana University engages in many revenue-generating activities. Revenues from tuition are the University’s primary form of financial support, followed closely by State support & grants, but many other revenue streams play an important role. Maintaining and expanding IU’s revenue base is important to maintaining the quality of education the university offers. On the other hand, as a public university, Indiana University must approach recording these revenue streams in a way that is compliant with the public policies that govern IU. This document is intended to assist IU’s fiscal officers and departments in evaluating revenue streams under applicable laws and policies, and provide guidance on how to properly record the revenue streams.