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3.2.2.3 Institutional Policy

The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure: Institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services.

Judgment of Compliance

PVAMU SACS Accreditation - Judgement Compliance

Narrative of Compliance

Under Texas A&M University System Policy 28.02 Educational Business Activities, the president is authorized to "approve the establishment of all educational business activities" that meet the criteria given in the policy and which comply "with all other state or federal regulations pertaining thereto." [1] The policy makes clear that:

1. The system member CEOs are authorized to approve the establishment of all educational business activities which meet the criteria set forth below and which comply with all other state or federal regulations pertaining thereto.
1.1 In pursuing their mission of creating and disseminating knowledge, the system members may find it necessary to charge fees for providing goods and services that further the purposes and functions of instructional, research, extension, public service, and all other educationally related activities.
1.2. System educational business activities must meet the following three criteria:

1.2.1 the activity is integral to and directly related to the fulfillment of the member’s educational, research, extension, public service, or campus support function without regard to profit;
1.2.2 the activity is needed to provide reliable goods or services on a consistent basis, at a reasonable price, on reasonable terms, and at a convenient location and time; and
1.2.3 the activity is required to meet educational needs and objectives and is carried out for the primary benefit of the students, faculty, staff or constituency of the system member but with sensitivity to the impact upon the total community.

1.3. No member shall establish any educational business activity until such activity has been reviewed and approved by its CEO, who shall be responsible for compliance with the above criteria.
1.4. Members establishing educational business activities shall submit to the associate vice chancellor for budgets and accounting a report detailing the purpose of the business activity and an assurance of compliance.
1.5. All members shall comply with applicable laws and regulations pertaining to educational business activities with particular attention to taxation, conflict of interest and unfair competition.
2. Privatization of business activities shall be undertaken only with approval of the chancellor and the Board of Regents. The chancellor shall ensure that each contract shall provide a mechanism to assure quality control of services provided, with adequate provisions for noncompliance.

Related Statutes, Policies, or Requirements include System Policy 25.07, Contract Administration [2]; System Regulation 21.01.01, Financial Accounting and Reporting [3]; and System Regulation 21.01.05, Service Departments [4].

Prairie View A&M University defines auxiliary services as essential elements of support of educational programs. These auxiliary services include: University Residence Halls, Bookstore, Student Union, Campus Food Service, Debit Card Operations, Laundry Services, Campus Mail and Vending Operations. Three auxiliary services are provided by corporate entities. The University contracts with Sodexho for all campus food services, with American Campus Communities for campus housing, and with Follett College Stores for operation of the campus bookstore. Information about these three can be furnished on campus. All related and affiliated corporate entities and all auxiliary services at Prairie View A&M University comply with stated policies.

Supporting Documentation and Links

Comprehensive Standards 3.2.2.3
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