Financial Planning & Budgets

A Part of Finance


Auxiliary Enterprises

This category consists of self-supporting operations that provide services to students, faculty, staff or campus departments. While Auxiliary Enterprises must be self-supporting, they should not be regarded as profit centers. They play an integral role in helping the University meet its institutional mission and goals.

Detail revenue and expenditure budgets are developed for each Auxiliary Enterprise that support the enterprise’s programmatic and operating needs. These budgets must reflect the need for the operation to be self-supporting, the maintenance of adequate working capital, the anticipation of major capital needs in future years, and the requirement to remain competitive with alternative service providers (private housing, for example). Residence Life, Dining, and Parking must also develop and monitor a five-year financial plan to assure debt service needs and covenant requirements are met.

As there are significant indirect costs incurred in providing support for Auxiliary Operations (such as payroll, human resources, finance, purchasing), the larger auxiliary operations contribute to the Auxiliary Administration budget based on the operation’s revenues. This budget supports personnel in administrative offices including the Chancellor’s Office, Business and Student Services, Financial Services, Human Resources, and Facilities.

Unlike the State Operating Budget, which is a line-item detail budget with some restrictions relative to transfers among personnel and non-personnel lines, there are fewer constraints relative to Auxiliary Enterprises. However, a number of rules still apply. There can be no operating deficits without adequate working capital from previous years’ surpluses and a plan to rectify the operating deficit on a long term basis. Creation of new positions requires prior approval of the Vice Chancellor. Prior approval of the Vice Chancellor for Business Affairs is required for increases in the budgeted level of revenues and related expenditures and for the use of fund balances.

Processes such as personnel and purchasing apply to all University resources, not just state appropriated resources.

Operations of Auxiliary Enterprises