Section 89900 Of Article 1. General Provisions From California Education Code >> Division 8. >> Title 3. >> Part 55. >> Chapter 7. >> Article 1.
89900
. (a) A certified public accountant shall be selected by each
auxiliary organization described in Section 89901. The office of the
chancellor, in cooperation with the Department of Finance, shall
develop and forward the applicable auditing and reporting procedures
to each auxiliary organization for distribution to the selected
certified public accountant. In accordance with procedures prescribed
by the chancellor, the certified public accountant shall annually
audit any and all state university auxiliary funds. The auxiliary
organizations shall contract for and receive the audit annually, and
shall submit the audit to the trustees. Auxiliary organizations shall
annually publish an audited statement of their financial condition,
which statement shall be disseminated as widely as feasible and be
available to any person on request. In the case of an auxiliary
organization primarily serving a single campus of the California
State University, publication in the campus student newspaper shall
be deemed compliance with this requirement. In the case of an
auxiliary organization serving the Trustees of the California State
University, distribution of the published audited statement of its
financial condition at a regularly scheduled meeting of the trustees
shall be deemed compliance with this requirement.
(b) In the case of an auxiliary organization primarily serving a
single campus of the California State University, the president of
that state university shall be responsible for ascertaining that all
expenditures are in accordance with policies of the trustees, the
propriety of all expenditures, and the integrity of the financial
reporting, made by auxiliary organizations.
(c) The operation of auxiliary organizations shall be conducted in
conformity with regulations established by the trustees. The
regulations shall include provisions requiring the governing board of
each auxiliary organization to provide salaries, working conditions,
and benefits for the full-time employees of each auxiliary
organization that are comparable to those provided California State
University employees performing similar services. However, the
regulations may permit retirement benefits or permanent status
benefits, or both, to be withheld from temporary and executive
employees of each auxiliary organization. In addition, the
regulations may exempt from the requirement of providing retirement
benefits any auxiliary organization that is funded primarily by
mandatory student fees collected by the trustees. For the purposes of
this subdivision, a temporary employee is (a) an employee employed
for a research project, workshop, institute, or other special project
funded by any grant, contract or gift; or (b) an employee whose
contract of employment is for a fixed term not exceeding three years.
For the purposes of this subdivision, an executive employee is any
management employee with responsibility for the development and
execution of auxiliary organization policy and includes, but is not
limited to, general managers, business managers, directors, and the
like. For purposes of this subdivision, "full-time employee" means a
person who is employed in a permanent position for 40 hours per week
or for the required number of hours of a particular work shift,
whichever is the lesser. Persons employed on a temporary,
intermittent, irregular time base, or on a limited term basis are not
"full-time employees," unless those employees are engaged on a
continuing 10-month or academic year basis and are employed for 40
hours per week or for the required number of hours of a particular
work shift, whichever is the lesser. For those full-time employees
whose duties are not comparable to classes in California State
University employment, the salaries established shall be at least
equal to the salaries prevailing in other educational institutions in
the area or commercial operations of like nature. This requirement
shall apply to full-time employees of auxiliary organizations even if
there are no California State University employees performing
similar services.
(d) Retirement benefits may be provided by other than the Public
Employees' Retirement System. A contract for participation in the
Public Employees' Retirement System in accordance with the terms and
conditions of the Public Employees' Retirement Law shall be deemed to
satisfy fully the requirements of subdivision (c) with respect to
retirement.
Notwithstanding anything in subdivision (c) to the contrary, the
regulations established by the trustees may exempt the governing
board of any newly created auxiliary organization from the
requirement of providing retirement benefits for a period not to
exceed three years from the date that the auxiliary organization is
established.