Education Code section 89904
(a)
Institute a standard systemwide accounting and reporting system for businesslike management of the operation of such auxiliary organizations.(b)
Implement financial standards which will assure the fiscal viability of such various auxiliary organizations. Such standards shall include proper provision for professional management, adequate working capital, adequate reserve funds for current operations and capital replacements, and adequate provisions for new business requirements.(c)
Institute procedures to assure that transactions of the auxiliary organizations are within the educational mission of the state colleges.(d)
Develop policies for the appropriation of funds derived from indirect cost payments not required to implement subdivision (b). Uses of such funds shall be regularly reported to the trustees.
Source:
Section 89904, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=EDC§ionNum=89904.
(accessed Jun. 2, 2025).