Education Code section 89904

All expenditures and fund appropriations of auxiliary organizations described in Section 89903 shall be approved by the governing board of the auxiliary organization. Appropriations of funds for use outside of the normal business operations of the auxiliary organization shall be approved in accordance with trustee policy and regulations by an officer designated by the trustees.
The trustees in consultation with the Department of Finance and the governing boards of the various auxiliary organizations described in Section 89903, on or before the beginning of the 1970–1971 fiscal year, shall:

(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.­ (updated Jan. 1, 1976; accessed Jun. 25, 2025).

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Verified:
Jun. 25, 2025

§ 89904's source at ca​.gov