Minutes of a Regular Meeting, June 22-23, 2004 - Digital Collections

REGENTS’ POLICY MANUALSECTION 4—FINANCE AND MANAGEMENT4.8—AUXILIARY ENTERPRISES/SERVICE UNITSFor purposes of this policy, Auxiliary Enterprises and/or Service Units are business-type activities inthat they charge fees to recover the cost of the goods and/or services provided. Auxiliary Enterprisesmarket and sell their goods and/or services primarily to parties external to the University. In contrast,Service Units market and sell their goods and/or services primarily to parties internal to the University.Although there are a multitude of business- and quasi-business-type activities (such as rechargecenters and activities designed primarily to meet the needs of educational activities) operating at theUniversity, this policy is intended to apply only to “major” revenue producing activities.As major business-type activities, each Auxiliary Enterprise and/or Service Unit is to develop,maintain and implement prudent business practices including, but not limited to:• A comprehensive procedure manual documenting applicable policies, procedures, standards, andother administrative and operating criteria;• Formal procedures for outlining operating philosophy and pricing criteria. The underlyingprocedures must include the processes for evaluating costs and determining prices, fees, charges,etc;• The development of budgets, operating plans, and prices to include, for example, the funding ofreserves for renewals and replacements, required debt service, planned capital improvements, andgeneral operating contingencies; and,• Periodic reporting of financial activities, prepared in accordance with Generally AcceptedAccounting Principles, to the Vice President for Administrative Affairs, President, and Board ofRegents.The Vice Presidents for Administrative Affairs or their designees will articulate and publish prudentbusiness practices for all major business-type activities.No Auxiliary Enterprise or Service Unit with annual sales (projected or actual) of $100,000 or moremay be created without the approval of the President and the Board of Regents. No Auxiliary Enterprisesor Service Units with annual sales of less than $100,000 shall be created without the approval of thePresident or his or her designee. No Auxiliary Enterprises or Service Units may be deleted without theapproval of the President or his or her designee. In those circumstances where closure will result insignificant financial or other institutional impact, Board of Regents’ notification is also required.The primary responsibility for managing each unit shall be with the operating manager of each AuxiliaryEnterprise and Service Unit and the respective dean/director and Executive Officer. The Controller shallbe responsible for the overall fiscal monitoring of all Auxiliary Enterprise Entities and Service Units.(RM, 9-8-88, p. 20553; 11-89, p. 21470; 2-19-92, p. 22769; 3-29-00, p. 26909; 1-27-04, p. 28924)THE UNIVERSITY OF OKLAHOMA 237