Effective: 10/25/2005
| Revised: |
Business Services 102: Auxiliary Service Enterprises
Purpose
To provide prudent pricing methods for authorized auxiliary units
References
Definitions
Auxiliary Service Enterprises: Separately organized university units specifically established to sell goods or services on a continuing basis to individuals—students, faculty, staff, alumni and other members of the university community. Auxiliary units are operated primarily for the convenience and necessity of students and the campus community. These units may sell to UAA departments if the revenues generated represent an immaterial percentage of total revenues.
Policy
Authorized Auxiliary Units
Pricing of Goods and Services
University policies require that auxiliary services be operated as self-supporting entities, and to the extent possible, charge fees or set prices to cover the full costs of operation including:
Full direct costs (cost of goods sold, salaries and benefits of staff assigned to the auxiliary operation, travel, supplies, services and equipment directly assignable to the auxiliary)
Indirect costs (utilities, repairs and maintenance, and administrative overhead)
Contributions for renovation and remodeling of facilities
Contributions for renewal and replacement of facilities
However,
BOR Policy 05.15.03 allows auxiliary units to consider, among other things, competitive positions with regard to state, local, and national markets in the setting of prices. Costs which are so supported must be must be recorded in the budget and accounting process in conformance with university regulations and the
Statewide Accounting Manual.
