Original Issuance Date: May 5, 2020

Revised: June 8, 2020

Expiration Date: December 31, 2020

1.     Interim Policy Purpose

The purpose of the interim policy is to provide campuses with greater flexibility in transferring fund balances between auxiliary operations and from auxiliary operations to other funding sources, to address financial needs resulting from the COVID-19 pandemic.

Specifically, this interim policy waives the following policies or stated sections thereof which require auxiliary transfer requests be considered at the time of the Board of Regents’ annual budget deliberations and provide UW institutions with some flexibility to transfer surplus funding from one auxiliary activity to another:

Regent Policy Document 21-1, Internal Management Flexibility

Regent Policy Document 21-2, Auxiliary Transfer Policy

UW System Administrative Policy 314, Financial Management of Auxiliary Operations (Section IV.4)

UW System Administrative Policy 314 Attachment 1, Transfers from Auxiliary Enterprises

UW System Administrative Policy 822, Student Services Funding (Section IV)

2.     Related Policies

This interim policy action affects the following Regent Policy Documents and UW System Administrative Policies:

Regent Policy Document 21-1, Internal Management Flexibility

Regent Policy Document 21-2, Auxiliary Transfer Policy

UW System Administrative Policy 314, Financial Management of Auxiliary Operations (Section IV.4)

UW System Administrative Policy 314 Attachment 1, Transfers from Auxiliary Enterprises

UW System Administrative Policy 822, Student Services Funding (Section IV)

3.     Scope

This policy applies to all UW auxiliary operations, excluding the portion of those operations funded with:

1) segregated fees which must statutorily be used for the purposes for which they are charged [Wis. Stat. 36.27(6(a)].

2) parking revenues, which must statutorily be used for developing and operating parking or other transportation facilities and program or for campus safety [Wis. Stat. 36.11(8)(b)].

4.     Definitions

Auxiliary operations: Entities that exist predominantly to furnish goods and services to students, faculty and staff and that charge a fee directly related to, although not necessarily equal to, the cost of goods or services.  The general public may be incidentally served by some auxiliary operations.  Such operations may include but are not limited to residence halls, dining services, unions, childcare centers and bookstores. (Definition from the National Association of College and University Business Officers (NACUBO).

5.     Interim Policy Statement

This interim policy action waives the following policies or stated sections thereof which require auxiliary transfer requests be considered at the time of the Board of Regents’ annual budget deliberations and provide UW institutions with some flexibility to transfer surplus funding from one auxiliary activity to another:

Regent Policy Document 21-1, Internal Management Flexibility

Regent Policy Document 21-2, Auxiliary Transfer Policy

UW System Administrative Policy 314, Financial Management of Auxiliary Operations (Section IV.4)

UW System Administrative Policy 314 Attachment 1, Transfers from Auxiliary Enterprises

UW System Administrative Policy 822, Student Services Funding (Section IV)

Implementation of Policy Waiver:

In response to needs arising from the COVID-19 pandemic, UW institutions may transfer program revenue balances generated by one auxiliary operation, excluding segregated fees and parking operations, to another auxiliary operation or another UW fund for expenditure by that operation or fund, including student services activity.

When transferring auxiliary balances, UW institutions must notify UW System Administration at least ten (10) business days in advance of the transfer occurring by submitting the Auxiliary Balance Transfer Notification Form to the Vice President for Finance.  During the period outlined in this policy, Board of Regents approval prior to an auxiliary transfer covered by this interim action is not required.

The transfer must not adversely affect future rates charged by the auxiliary operation. Institutions must continue to consider existing debt service requirements and future operational and facility maintenance needs that will require balances from the auxiliary operation from which funds are being transferred.

All transfers must be recorded in the financial system utilizing account code 9945.

All transfers must be reported to the Board of Regents annually.

6.     Supplemental Documents

Transfer of Auxiliary Balance Notification Form