TSPR Higher Education Protocols- Chapter 11

Chapter 11
Auxiliary and Service Departments

Auxiliary and service departments exist to furnish goods or services to students, faculty, or staff, and charge a fee directly related to, although not necessarily equal to, the cost of goods or services. Many institutions have other auxiliary-like operations and self-supporting activities that are accounted for in a manner similar to auxiliary enterprises. The distinguishing characteristic of an auxiliary enterprise is that it is managed as an essentially self-supporting activity. Examples are residence halls, food services, student unions, intercollegiate athletics, college stores, faculty clubs, faculty and staff parking. Student health services, when operated as an auxiliary enterprise, also are included. Hospitals, although they may serve students, faculty, or staff, are classified separately because of their financial significance.
The auxiliary enterprise category includes all expenditures and transfers relating to the operation of auxiliary enterprises, including expenditures for operation and maintenance of plant and institutional support. Also included are other direct and indirect costs, whether charged directly as expenditures or allocated as a proportionate share of costs of other departments or units. To ensure that data regarding individual auxiliary enterprises are complete and adequate for management decisions, cost data should be prepared using full costing methods. Full costing means that the costs attributed to each enterprise includes a portion of indirect costs related to that enterprise such as accounting, budgeting, payroll and purchasing that is done for the entire institution, as well as debt service and the costs directly attributable to its operation.
Auxiliary enterprises are self-supporting units that operate on a break-even basis for those goods and services offered to other units. These services are an increasingly important component of the financial well being of individual campuses. Many colleges transfer surplus revenues from their auxiliary functions to unrestricted operating or other funds.
The auxiliary and service funds of the institution will be reviewed in the following sections:
Part 1
11.A. General
11.B. Intercollegiate Athletics
11.C. Student Housing
11.D. Food Services (Self Operated)
Part 2
11.E. Printing and Copying
11.F. Book Stores (Self Operated)
11.G. Mail Services (Self Operated)
11.H. Student Unions
11.I. Contracted Services

PART 2
11.E. Printing and Copying
Data Needs

Policies and procedures pertaining to the printing and copying
Financial reports/budgets
Organization and staffing charts for the operation
Job descriptions for employees of the department or operation
Copies of contracts for outsourced or contracted services
Compliance/audit reports
Productivity reports/participation rates for each program
Safety and incident reports
Pertinent internal audit reports

Possible People to Interview
Vice president responsible for the operation
Directors or management staff with oversight responsibility
Chief Financial Officer
Internal Auditor
Employees
Customers
Activities to Perform

11.E.1. Examine the capacity, cost and profitability of the current printing and copying function based on the type of equipment, staffing and physical plant.
11.E.2. Diagram the printing process from the point that a request for services is made until the finished product is returned to the requestor. Specify turn-around times for each phase of the operation.
11.E.3. Examine policies, procedures and practices associated with copyright and copyright infringements. Highlight any weaknesses in the system that would allow or encourage copyright infringement.
11.E.4. Examine the cost and quality of jobs produced in-house versus the cost and quality of jobs contracted to local print shops.

Questions to Ask
Are the costs for end users competitive with the current market? Is the level of service provided competitive with the current market? If outsourced, what would be the cost and benefit of bringing the function in-house? If conducted in-house, what would be the cost and benefit of outsourcing the function? How much space is devoted to on-campus operations?
Are customers satisfied with the level of service they are getting? Are print jobs returned in a timely manner? Do copiers work well and provide the amenities that the user needs to complete their tasks?
Are customers able to circumvent the current system to obtain what they need when they need it? Are purchases or leases for copiers centrally coordinated? Are there standards or procedures in place to ensure that individual departments or schools are getting high quality copiers, with adequate maintenance, at a reasonable price? What loopholes in the rules or procedures allow individuals to circumvent the system?
Who is responsible for the financial and physical management of the copying function? Who is responsible for the financial and physical management of the printing function? How does the current organizational structure promote financial management activities?
How are copyright issues/legal exposures managed? Who is responsible for ensuring that copyrights are not infringed upon?
11.F. Book Stores (Self Operated)
Data Needs

Policies and procedures pertaining to the operation
Financial reports
Departmental budgets
Organization and staffing charts for the operation
Job descriptions for employees of the department or operation
Copies of contracts for outsourced or contracted services
Compliance/audit reports
Inventory reports
Productivity reports/participation rates for each program
Pertinent internal audit reports

Possible People to Interview
Vice president responsible for the operation
Directors or management staff with oversight responsibility
Chief Financial Officer
Internal Auditor
Employees
Customers
Activities to Perform

11.F.1. Diagram the process whereby faculty determine the books and materials they will need for each course offering and this information is translated into sufficient stock in the book stores for the anticipated student enrollment.
11.F.2. Examine all contracts and agreements concerning the pricing of books, the return and repurchase of books and the provision of other materials and supplies. Note any weaknesses that would result in students receiving detrimental pricing or service.
11.F.3. Diagram the process for using student aid or scholarship monies for the payment of books or related material. Note any weaknesses in the system that would cause delayed delivery of books or delayed payment for books.
11.F.4. Prepare a chart comparing institutional book store pricing to local, off-campus bookstores.
11.F.5. Review and describe the institutional policies that assure that a faculty member's own authored materials are required only where appropriate. Review copied materials such as course packs, which are required and royalties paid to the author.

Questions to Ask
Do students have access to books and related course materials in a timely manner? At a reasonable and affordable price?
How do current faculty processes for the designating of books by course affect the bookstores operations? How is automation used to streamline this process? Are policies and procedures in place to prevent unreasonable requirements for books or materials?
How are profits from bookstore operations shared with the institution? What terms and conditions exist in bookstore contracts to ensure the highest possible level of service for faculty and students?
How do the institutions ensure textbook availability and accessibility for students participating in distance learning educational programs? Can books be purchased on-line?
11.G. Mail Services (Self Operated)
Data Needs

Policies and procedures (local, state and federal) pertaining to the operation
Financial reports
Departmental budgets
Organization and staffing charts for the operation
Job descriptions for employees of the department or operation
Copies of contracts for outsourced or contracted services
Compliance/audit reports
Productivity reports/participation rates for each program
Internal control policies and procedures
Pertinent internal audit reports

Possible People to Interview
Vice president responsible for the operation
Directors or management staff with oversight responsibility
Chief Financial Officer
Internal Auditor
employees
Customers
Activity to perform

11.G.1. Prepare a flow chart of the mail service operation showing both external and internal mail receipt and delivery operations. Identify any points where delivery or receipt is hampered or slowed.

Questions to Ask
How frequently is mail delivered to faculty, staff, and students? Does this frequency provide a reasonable and expected level of service? If not, why not? What could be done to meet the needs of customers?
How frequently is mail sent to the wrong location, lost or misplaced? What steps have been taken to improve the accuracy and quality of the service? What elements of the current operational procedures may contribute to inaccuracies?
How convenient are pick up and delivery sites for faculty, staff and students? Are pick up and delivery sites located so as to improve the efficiency of the mail services staff? Are there other sites that could be used to benefit the customers and improve efficiency?
How are sorting and bulk mail options used to reduce the cost of mailing? What mechanisms are in place to inform users of these options and encourage proper sorting and labeling?
What coordination exists between the printing and copying functions and mail services? At what point in the process are materials collated, folded and made ready for mailing? How far in advance of major mail-outs is the mail service department notified? Could better notification procedures improve services and reduce costs?
What safety and security measures are in place?
11.H. Student Unions
Student unions are often the nerve center of a campus: a place where members of the college or university community can gather for discussion, association with other students and faculty, meals, entertainment and educational events, relaxation and even quiet contemplation. Unions are generally self-supporting, with fees charged for services provided. Facilities are generally built with contributions. Union governing boards are made up of a combination of students, faculty and administration of the institution, but their actions are subject to the approval of the president and/or the chancellor or Board of Regents. Union boards review budgets, revenue centers and fiscal stability; consider facility needs and plan student programs, student services and special events. Further, within a single institution a number of unions may exist for various groups of students.
Data Needs

Copy of charter, mission and other organizing documents of all student unions operating in the institution
History of the Unions
Union planning documents
Financial statements
Audit reports (internal and/or external)
List of services and fees
Event calendars
Priority of Use procedures
List of union board members
List of union advisory councils or committees
Fee lists

Possible People to Interview
President
Vice president of Student Affairs
Student union building director(s)
Union board members and/or advisory council members
Internal Auditor
Students
Faculty/staff
Food Service director
Alumni
Activities to Perform

11.H.1. Diagram the organization and governance of the union(s) showing the reporting and decision-making flows between the union(s) and the institution and between the union and its members.
11.H.2. Examine the financial condition of the unions based on financial statements. Prepare a list of services, fees, total revenues and expenditures for each service. Where financial instability exists, determine the major cause and note any efforts that are underway to improve the financial condition.

Questions to Ask
How does the union align its goals and objectives to the mission and goals of the institution? How does the union's strategic plan link to the master planning documents of the institution? How does this union contribute to the educational goals of institution? How does the mission statement of the union recognize the union's role in the life of the campus? How does the union link to the campus community?
What "other" costs are recoverable, that are not currently being recovered (i.e., use by outside groups)?
Does the union's master plan, board policy or other facility-planning document identify short-term and long-term facilities needs, which are included in the institution's master plan? What provisions exist for the publication and dissemination of policies and the facilities master plan to staff and community members if the institution is a community college?
Are services provided by the union self-operated or contracted? How does the union decide whether self-operation or contracting is best?
Are there sufficient institutional controls/checks and balances in place to limit the institution's liability for union operations? Does the institution have to subsidize the operation of the union? If so, why? What type of funds is used when subsidizing operations of the union?
What revenue centers contribute to the fiscal health of the union? What centers or services are detracting from the fiscal health of the union? What is being done to mitigate revenue loses?
How many students use the union daily? Is the number of students using the union growing or declining? Are facilities sufficient to meet the needs of the current customer base? Why or why not? How does the union encourage a cross-section of the student population to participate?
How are alumni involved in the operations of the union? In financing the operation of the union?
How does the board or decision-makers work to achieve an appropriate balance among student programs, student services, special interests, revenue centers and fiscal stability?
How often does the union examine services offered to determine if new service elements are to be introduced? What process is in place to discontinue or modify services that are not popular? How often are services evaluated?
Have there ever been times with the union governance board and the institution have been at odds? Why, or why not? Is there a balance of students, faculty and administrators on the board of the union? How are elections and appointments to the board controlled? Are there non-voting members that provide institutional perspective to the decision-making processes such as the vice president for Student Affairs or the union director?
11.I. Contracted Services
There are numerous opportunities within the auxiliary services area for contracting. Many services could be purchased or contracted for through private companies or interagency contracts with neighboring colleges or universities or other governmental entities. It is important to regularly evaluate whether there are goods or services that can be obtained from the private sector at a lower cost, higher quality or both. It is equally important to continually evaluate existing contracts to determine if the institution is getting the best value possible through the contracting arrangement. This is particularly important in the Auxiliary Services area where contracting is prevalent. This evaluation process is discussed in great detail in the Purchasing Chapter.

11.E.1.	Examine the capacity, cost and profitability of the current printing and copying function based on the type of equipment, staffing and physical plant.
11.E.2.	Diagram the printing process from the point that a request for services is made until the finished product is returned to the requestor. Specify turn-around times for each phase of the operation.
11.E.3.	Examine policies, procedures and practices associated with copyright and copyright infringements. Highlight any weaknesses in the system that would allow or encourage copyright infringement.
11.E.4.	Examine the cost and quality of jobs produced in-house versus the cost and quality of jobs contracted to local print shops.

11.F.1.	Diagram the process whereby faculty determine the books and materials they will need for each course offering and this information is translated into sufficient stock in the book stores for the anticipated student enrollment.
11.F.2.	Examine all contracts and agreements concerning the pricing of books, the return and repurchase of books and the provision of other materials and supplies. Note any weaknesses that would result in students receiving detrimental pricing or service.
11.F.3.	Diagram the process for using student aid or scholarship monies for the payment of books or related material. Note any weaknesses in the system that would cause delayed delivery of books or delayed payment for books.
11.F.4.	Prepare a chart comparing institutional book store pricing to local, off-campus bookstores.
11.F.5.	Review and describe the institutional policies that assure that a faculty member's own authored materials are required only where appropriate. Review copied materials such as course packs, which are required and royalties paid to the author.

11.H.1.	Diagram the organization and governance of the union(s) showing the reporting and decision-making flows between the union(s) and the institution and between the union and its members.
11.H.2.	Examine the financial condition of the unions based on financial statements. Prepare a list of services, fees, total revenues and expenditures for each service. Where financial instability exists, determine the major cause and note any efforts that are underway to improve the financial condition.