Revenue Agreements

Revenue Agreements are those for which UC Davis is receiving money.

Examples of revenue agreement include arrangements under which UC Davis is providing a service or being reimbursed for staff and faculty salary and benefit costs.

The vast majority of service agreements handled by Business & Revenue Contracts are based on an approved rate(s); if such, a rate approval letter signed by the requesting department’s dean or vice chancellor must be electronically attached to the KFS Purchase Agreement. 

Other revenue agreements, such as those involving research or sponsored activities, may be directed to Sponsored Programs by Business & Revenue Contracts.

After your revenue agreement is fully approved, the Accounts Receivable process can be established; several options are available.  These options will allow you to bill your customer(s).

Commodity Codes for Revenue Agreements

There are five commodity codes for use on revenue agreements:

  • REV00001, Revenue for services provided by UC Davis - testing/analytical
  • REV00002, Revenue for services provided by UC Davis - miscellaneous
  • REV00003, Revenue for salary and benefit reimbursement
  • REV00004, Revenue from sponsorships received
  • REV00005, Revenue from commissions or royalties paid to UC Davis

Types of Revenue Agreements:

Services Agreements

An agreement in which the university is providing rate-based services to an outside vendor.

Required information/documentation for KFS Purchase Agreement:

  • Detailed Scope of work (who, where, when, what, why).
  • Deliverables of the service (examples include reports being sent to vendor, samples being sent).
  • Complete and exact description of the service being provided.
  • Exact rate attached to the service being provided.
  • Length of the agreement (specific start and end dates).
  • Total Not-to Exceed Amount (Not-to-Exceed amount should reflect contract and accounting lines entered on the document).
  • Complete vendor information (point of contact, address, email/secondary email); department should acquire this information from the vendor prior to submitting request.

Affiliation Agreements

Per UC Davis PPM 210-05, affiliation agreements are those between UC Davis and another accredited academic institution under which one party agrees to furnish education, training, or clinical experience that is integral to a specific institutional academic degree or course objective but is not available at the student’s home institution. Business & Revenue Contracts completes all non-UC Davis Health/School of Medicine/School of Nursing affiliation agreements.

The Process: Affiliation Agreements require a moderate amount of time to complete as we are dealing with other Academic Institutions that have their own approval process. Business & Revenue Contracts needs to coordinate between UC Davis Risk Management Services and Campus Counsel for their approvals as well. 

Required information/documentation for KFS Purchase Agreement:

  1. Deans or Vice Chancellors approval*.
  2. The affiliation agreement provided by the accredited academic institution.
  3. Exhibits outlining rotation of students and corresponding costs.
  4. Complete description of the work experience/training/education being furnished.

*For more information please view UC Davis PPM 210-05

Sponsorship Agreements

Sponsorship Agreements are those where:

  • UC Davis is providing money to another entity in exchange for a benefit or benefits, OR
  • UC Davis is receiving money from another entity in exchange for a benefit or benefits.

The benefit(s) should be clearly identified in the KFS Purchase Agreement document, either in the Items section or electronically attached to the KFS document.

The most common example of a sponsorship benefit is the use of a sponsor’s name/logo in promotional material recognizing them as a sponsor. Typically, organizations will list sponsorship opportunities and associated sponsorship benefits on their websites and that page can be printed and attached to the KFS document.

Note: If the university is providing money to an organization for an event and there is no benefit to the university directly, it is unlikely that a sponsorship agreement is appropriate. Payment for tickets to events should be paid through AggieExpense; cash donations are processed through Contracts and Grants Accounting.

Required information/documentation for KFS:
The Sponsorship Agreement Template on the Forms page must be completed and electronically attached to your KFS document:

  • If the template form is not modified in any way and the cost is less than $5K, you should complete a KFS Requisition.
  • If the template form is modified in any way or the cost is $5K or higher, you should complete a KFS Purchase Agreement.

On your KFS document, include the following information:

  • Documentation outlining benefits.
  • Documentation clearly outlining benefits sponsor will receive as a result of the sponsorship (if available, please attach letter showing levels of sponsorships and corresponding benefits).
  • Information describing specific location, date and time of the event.
  • Total dollar amount sponsor will spend on this event (dollar amounts in Agreement Information section should match with that entered on Accounting line on your document).
  • Appropriate commodity code(s) on document.

Note: As sponsorships can be outgoing, as well as incoming, above listed information is required for both.  

Partnership/Collaboration Agreements

These are agreements in which UC Davis programs partner/collaborate with local school districts to provide educational outreach services for their students and staff.

Required information/documentation for KFS Purchase Agreement:

  • Detailed description of outreach services being provided.
  • Fee schedule associated with program.
  • Specific dates of outreach services being provided.
  • Vice Chancellor/Deans approval electronically secured, or hard copy attached to document.

Faculty, staff, student appointments & IPA (Intergovernmental Personnel Act Agreements)

These agreements cover faculty, staff & student appointments at other institutions and UC Davis, including Intergovernmental Personnel Act agreements.

Note: Any agreement under which a faculty member will be performing work for another institution must be approved by the Provost Office before being sent to Business & Revenue Contracts with approval documentation attached to the KFS Purchase Agreement..

Required information/documentation for KFS Purchase Agreement:

  • Appointment letter from institution.
  • Fee schedule/reimbursement of salary.
  • Agreement from other institution (if provided).
  • Length of appointment (specific start and end dates).
  • Approval from Provost Office.

Reimbursement Agreements

Classified as a revenue agreement on the KFS Purchase Agreement, these are agreements under which the university is being reimbursed for use of staff and/or facilities.

Reimbursement agreements are entered into in advance of an engagement or use of facilities.

Reimbursement agreements should not be confused with confirming agreements, which are agreements that are entered into after an engagement has already taken place. Confirming agreements document a process that was not appropriately authorized up front.