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 authorized to perform specific functions that contribute to the educational mission of the campus.
CSU auxiliary organizations 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 1920s. The growth of auxiliary organizations has paralleled the growth in size and complexity of the CSU.
These organizations are subject to applicable state and federal laws and regulations. In addition, they operate within the policies established by the CSU Board of Trustees, the chancellor, and the campuses. As of the beginning of the 2013 fall term, there were 89 auxiliary organizations, with one to six per campus, and two systemwide auxiliary organizations. Most of these organizations can be grouped into five 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 that 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 student union auxiliary organization to pay operating expenses.
- Commercial Activities: These activities consist mostly of the operation of bookstores, food service, and agricultural projects. Agrarian activities are particularly important to campuses offering instruction involving direct experience with farms, cattle, poultry, etc.
- Development Activities: These organizations primarily administer programs related to the management of gifts, bequests, devices, endowments, trusts, and similar funds, as well as programs related to public relations, fund-raising, fund management, and similar development programs.
The auxiliary organizations must be self-supporting. They 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.
All auxiliary organization financial activity is reported yearly. Financial reports are audited annually and later incorporated in the systemwide CSU audited financial statements.
2012/13 Auxiliary Organization Financial Information1
|Other Sources (foundations & auxiliary organizations)||$1,453,916,000|
1 The above figures are based on information reported in the CSU Financial Information Reporting System (FIRMS) in legal basis amounts without GAAP adjustments. Auxiliary audited financial reports are released in October 2013.