1998-1999 Support Book 2 Documentation
Special Funds: Auxiliary Program
This section identifies those programs supported by special fees assessed to students, faculty and staff receiving the benefits of the programs. Although these programs are not supported explicitly by state appropriations, the funds are classified as public service enterprise funds and are subject to state regulation. All Special Funds programs are controlled by financial and program policies of the Board of Trustees. The purpose of this presentation is to complete the report of proposed financial activity for the 1998/99 fiscal year.
The presentation of the financial activity of The California State University Auxiliary Organizations included in this document is intended to make a more complete picture of the financial activity of the system by showing auxiliary organization information in addition to State and Special Fund budgets.
Auxiliary organizations are separate legal entities authorized in the Education Code to provide essential services to students and employees. They operate in association with campuses pursuant to special written agreements and are permitted to perform functions that contribute to the educational mission of the campus.
Auxiliary organizations in The California State University have been in existence for many decades as a necessary supplement to State-supported instructional and administrative activities. The first organization, the Fresno State College Association, was established in 1922. Student associations have operated at San Jose, San Diego, San Luis Obispo, Chico, Fresno, and other campuses since the early 1920's. The growth of auxiliary organizations has paralleled the growth in size and complexity of The California State University.
These organizations are governed by applicable laws and regulations of the Federal and State governments. In addition, they operate within the policies established by the Board of Trustees, the Chancellor and campuses. As of the beginning of the 1997 Fall term, there were seventy-three auxiliary organizations, with one to five per campus and two system wide auxiliary organizations located at the Chancellor's Office. Most of these organizations can be grouped into four major functional categories:
- Associated Student body Organizations: These are student-run organizations that operate such extra-curricular activities as student government, student newspapers, athletics, cultural programs, and many other student activities related to the overall educational mission of the campus.
- Special Educational Projects: These organizations administer projects which have a direct relationship to the educational process of the campuses and are funded by numerous sources. Major sources of support come from Federal, State and private grants and contracts. Projects are designed to meet the needs of the program sponsor and campus programs.
- Student Union Operations: Student union fees collected by the campus are deposited in the Dormitory Revenue Fund Union Account to pay for the principal, interest and other costs of the building. Any surpluses remaining from the student union fees after the bond and other costs are met may become available to the auxiliary organization operating the student union to be used to pay union operating expenses.
- Commercial Activities: These activities consist mostly of the operation of bookstores, food services and agricultural projects. Agrarian activities are particularly important to campuses offering instruction involving direct experience with farms, cattle, poultry, etc.
The auxiliary organizations must be self-supporting and do not receive funding from General Fund sources. They derive revenue from various non-State sources such as contractual arrangements (e.g., Federal government), general assessments (e.g., student body fees), and commercial operations (e.g., bookstores). Pursuant to existing laws and policies, the materials, facilities, and services provided by the campus to these separate entities are paid for by the auxiliary organization. Revenue in excess of expenditures for a given period is used to establish working capital and reserves, and to pay for capital expenditures or special campus programs.
Prior to fiscal year 1995/96, financial data was reported only for the activities most common among CSU auxiliary organizations. Audited financial data served as the basis for extracting this information and estimating future amounts. Beginning with fiscal year 1995/96, the method of collection and reporting changed to incorporate all financial activity for the auxiliary organizations. This new approach will provide a comprehensive picture of the financial activity and will not be limited to selected primary activities.
The information below for Fiscal Year 1998/99 reflects the second year that auxiliary organization information is shown in this format and is based on financial data for fiscal year 1996/97.
|1998/99 Estimated Auxiliary Organization
|Total, Auxiliary Programs||$764,367,000|