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Policy 59

Financial Management of Auxiliary Operations
Policy #59

Introduction

The purpose of this policy is to provide managers with the operating principles that apply to the management of auxiliary operations, and to define whom will be responsible for auxiliary financial planning and preparation of auxiliary reports at UW-Parkside.

UWS Operating Principles

Financial Management of Auxiliary Operations (F43), (Revised: June 18, 1999), sets forth the operating principles for the University of Wisconsin System.

UW-Parkside Procedures

UW-Parkside expects auxiliary managers to maintain records in addition to the financial reports and records kept in the Business Services Office. These records include debt service budgets, wage and fringe benefit budgets, current replacement costs of auxiliary funded buildings, planned costs for facilities replacement, renovation (major) and maintenance (backlogged) and equipment repair and replacement needs as demonstrated in the institution's multi-year plan. The auxiliary manager will use these records to calculate reserve minimums and maximums. The reserve calculations and the multi-year plan are to be submitted to the UW-Parkside Assistant Vice Chancellor for Budget by the first Tuesday in August.

The Assistant Vice Chancellor for Budget will prepare the campus auxiliary reserve report by August 15, detailing its year-end fund 128 cash balance and providing sufficient information for UW-System Administration to prepare the reserve plan required by s. 36.46 of the Wisconsin Statutes.

The Assistant Vice Chancellor for Budget will call a meeting in October to review year-end actual and projected balances in relation to reserve management policy. Managers should be prepared to justify the accumulation of reserves that exceed the reserve maximum. If the reserves cannot be justified, the segregated fee or user charges may be reduced in the next year's budget. A report will be submitted to the Vice Chancellor for Administration and Fiscal Affairs.

The Chancellor will review segregated fee income projections and request that budget adjustments are made to auxiliary budgets for segregated fee shortfalls on the second Wednesday in October.

The Chancellor will approve auxiliary budgets, which are due in Business Services by the third Wednesday in February. The Assistant Vice Chancellor for Budget will prepare the annual operating budget and rate schedules for Board of Regents' approval. This will include requests for transfers from Auxiliary Enterprise funds.

Managers are expected to comply with the UW System policy on competition with the private sector: pricing policies.

[Last posted, August 18, 1999] 

900 Wood Road · P.O. Box 2000 · Kenosha, WI 53141-2000 P 262-595-2345