Companies such as Coca-Cola Enterprises, Inc., Sodexho Services of Texas and Texas Book Company are examples of auxiliary services contractual relationships that Texas A&M University-Commerce has with outside companies to provide services to students.
According to the Auxiliary Services Contractual Relationships spreadsheet, prepared by Auxiliary Services, A&M-Commerce has contracts for snack and drink vending, food service, the bookstore, games and videos, laundry and trademark licensing.
hese companies generate revenue on campus and the University receives a commission based on total sales.
“The commission rate the university earns is based on a percentage of products that are sold on campus. The total sales are calculated by the company; and then commissions are reported and paid to the university,” Jennifer Perry, Auxiliary Services assistant, said.
The disposition of funds goes towards entities like athletics, auxiliary enterprises, the Memorial Student Center and Residence Life.
“Auxiliary enterprises include operations on campus like Residence Life, children’s Learning Center, Memorial Student Center, Morris Recreation Center and athletics to name a few,” Perry said.
According to Perry, the university can choose to provide the services directly or can choose to contract the services to third party vendors. Auxiliary Services as a whole must be self-supporting. Since these vendors are experts in their areas, it has become more cost efficient for the university to maintain these relationships.
Not only does A&M-Commerce receive a commission based off of the sales, but many of the companies provide scholarships for students on campus that go through the scholarship office.
Sodexho Services of Texas provides five students with meal scholarships, the Texas Book Company gives $1,000 annually for student book scholarships and Coca-Cola Enterprises, Inc. gives $500 annually for student scholarships, according to the spreadsheet.
“They, as an off campus vendor, realize that type of offer usually generates a positive influence to the University,” Perry said. “They are interested in our students, and they are interested in doing something above and beyond providing a service on campus.”
In 2007, $149,030 of the total $709, 882 revenue generated by these contracts went towards the athletic department.
“Athletics currently does not have a fee that is directly dedicated as a revenue source, and does not generate sufficient revenues to be totally self supporting; therefore, the program receives additional funding through snack and drink vending commissions,” Alicia Currin, assistant vice president and director of Budgeting and Financial Analysis, said. “Additionally, athletics receives the commissions that are generated solely from concessions at athletic events.”
According to Currin, revenues and commissions from auxiliary contracts account for less than one percent of the total revenue that A&M-Commerce receives.
A&M-Commerce runs a fiscal year from Sept. 1 through Aug. 31, and is currently operating fiscal year 2008, according to Perry. An increase from $16,395 in 2007 to projected $60,000 revenue in 2008 from Sodexho Services of Texas for equipment repair is due to the construction of the new student center.
“In 2008, we anticipate moving into the new MSC, therefore, most of the funds will be used for equipment in the new building,” Perry said.
In a press release dated Nov. 2, Vice President for Business and Administration Bob Brown was quoted saying, “There are many questions swirling around in the media and in varying levels of government relating to the contracts held by universities, which generate revenues from non-educational services.” He added, “I believe it is best that the university disclose these relationships continually.”