State University of New York

Role and Operation of Auxiliary Services at SUNY Campuses

Auxiliary Services Corporations (ASCs) are campus-based, not-for-profit corporations established to provide education-related services to SUNY campus communities. Currently operating at 24 of the 29 SUNY campuses, ASCs contract to provide food services, vending services, campus stores, conference services, etc. They have recently been encouraged to pursue entrepreneurial efforts that will generate surplus funds that can help support campus initiatives not financed by the State. Our audit found that the ASCs at five SUNY campuses were generally complying with contract terms and SUNY guidelines, except that the substantial revenues from the Stony Brook ASC's pouring rights agreement with a soda vendor were being deposited directly in a foundation account, the Delhi College ASC was not maintaining sufficient working capital, and the Oswego College ASC was providing services that had not been disclosed in its contract. Our survey of all 24 ASCs found that most have not made significant changes in their operations to become more entrepreneurial. We made recommendations to correct the instances of a noncompliance identified during the audit. In addition, we recommended that SUNY System, in conjunction with the campuses, develop policy and guidelines to address methods to obtain, administer and account for funds to support sports and athletic scholarships.

For a complete copy of Report 98-S-38 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.