Auxiliary Reserve Funds Policy

Section I

Purpose

To ensure that funds are available for needed capital requirements such as buildings, improvements, equipment, furniture, fixtures, and land. Such funds may also be used for educational and general needs.

Section II

Procedure

Annually, this fund will be reviewed for replenishment by the Executive Vice President and the President. Continual funding of the reserve should be at a level equal to annual depreciation charges for Auxiliary operations.

The University will add to this fund on a periodic basis to replenish and maintain the fund. Generally, the addition to the fund would be in the nature of funding depreciation of the auxiliary enterprise fixed assets and such depreciation will be reflected in the financial statements of the various auxiliary enterprises of the University.