Section 15 Introduction
An auxiliary enterprise, or auxiliary service, is defined as an activity that exists to provide a service directly or indirectly to students, faculty or staff, and for which a fee is charged that is related to, but not necessarily equal to, the cost of the service. Auxiliary enterprises are operated on a self-supporting basis, where the combination of fees and other revenues is sufficient to meet costs. Further, auxiliary enterprises are not subsidized by state appropriations, or other educational and general revenues, except as provided in Section 7.2.2 of the Board of Regents (BoR) Policy Manual, which states:
Exceptions to the requirement that institutions operate their auxiliary enterprises on a self-supporting basis shall be recognized as follows:
- Institutions may choose to operate some auxiliary enterprise activities on a loss basis, but must indicate in their five-year plans how the costs of such activities will be covered by revenues generated through other auxiliary operations. It shall be the Board of Regents’ determination as to whether such losses are sustainable based on the institution’s five-year plan.
- Institutions may apply general fund resources to auxiliary enterprise operations where such expenditures can be justified as supporting the primary mission of the institution. In no instance may general fund revenues be used to support athletic scholarships. The use and amount of general revenues applied to the support of auxiliary enterprise operations shall be included in the five-year plan.