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AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
May 7, 2012
Establish Auxiliary Services Fund
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
C.3
BACKGROUND:
The bookstore has experienced dramatic declines in sales in the last few years as have all college
bookstores nationwide. Textbook sales are expected to continue to decline in the future. The largest
operational expense consists of salary and benefit costs for personnel as well as operational infrastructure
costs such as rent and utilities. An existing food services contract also prohibited the bookstore from
selling grab and go sandwiches and other food that would help sustain the operation. The existing
contracts and different managers for bookstore, food, vending services and duplications services on
campus created competition amongst the various services. The campus community supported exploring
other service delivery models for these services and other ways of organizing services on campus to make
them sustainable.
The college formed a task force to review bookstore, food services, duplications and vending services on
campus. The following goals were developed by the task force:
1. Support student success, efficiency, revenue generating operations and/or decreased
costs. If a service has cost the college money in the past, now it needs to break even or
generate income.
2. Consider the cost to students and faculty—marking up the cost of textbooks is a
disservice.
3. Increase the ease of use and accessibility of services to students.
4. The services should be dynamic and change to meet new needs of our community.
FISCAL IMPACT:
Bookstore, food services, and duplications will be maintained in the following enterprise funds: (51)
Bookstore (existing), (52) Food Services (existing and will include both cafeteria and vending accounts)
and (59) Duplications (requires the establishment of a new fund).
RECOMMENDATION:
It is recommended that the Governing Board approve the establishment of an enterprise fund, (59) for
Duplications and authorize the funding plan recommended by the subcommittee.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
Approved
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As a result of the committee’s work, the college is moving forward with the creation of a new department
on campus; Auxiliary Services. The Auxiliary Services department will combine Bookstore, Food
Services, Vending and Duplications. The long term goal of the department is to develop a holistic
approach to deliver food services, duplications and affordable course materials to students. The
bookstore management position has been converted to an auxiliary services management position. The
new manager will manage the new department. All positions included in the new department will be
funded by the revenue generated from the services.
Currently, the college tracks revenue and expenditures related to bookstore, food services, duplications
and vending in separate funds. The new combined service unit will be tracked through the use of three
enterprise funds: (51) Bookstore, (52) Food Services and (59) Duplications effective July 1, 2012. The
new structure requires the creation of a new fund to track duplications revenue and expenses. The 201213 Preliminary Budget will include the fund as outlined above.
Auxiliary Services Fund
Nature and Purpose
Pursuant to the Governmental Fund Group descriptions contained in the California Community Colleges
Budget and Accounting Manual, the Auxiliary Services will be contained within the enterprise fund
group. Enterprise funds are used to account for an operation when it is the intent to operate as a business
and to account for total operating costs (direct and indirect, including depreciation). Such costs are
financed or recovered primarily through user charges. The new fund for duplications will be established
by transferring cash to a separate bank account and will require an accounting entry to book the transfer
of funds and the reassignment of assets as a capital contribution.