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 José, 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 2016 fall term, there were 86 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:
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 year 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.
*The above figures are based on information reported in the CSU Financial Information Reporting System (FIRMS) in legal basis amounts without GAAP adjustments.