3.2.2: The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure:  Narrative:  3.2.2.3 institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services:  Legal authority and operating control of UT Arlington are clearly defined by the Texas Education Code. According to Texas Education Code Sections 51.352 [1] and 65.31, [2] the Board of Regents is authorized to govern, operate, support and maintain component institutions within the UT System. Auxiliary enterprises fall under this section of the Texas Education Code. Furthermore, Texas Education Code, Section 65.31, states that the Board is authorized to: (a) “govern, operate, support, and maintain each of the component institutions that are now or may hereafter be included in a part of The University of Texas System; (b) prescribe for each of the component institutions courses and programs leading to such degrees as are customarily offered in outstanding American universities, and to award all such degrees; (c) promulgate and enforce such other rules and regulations for the operation, control, and management of the university system and the component institutions thereof as the Board may deem either necessary or desirable; (d) make joint appointments in the component institutions under its governance; (e) administer gifts, grants, or donations of any kind, from any source, for use by the system or any of the component institutions of the system and (f) delegate a power or duty of the Board to a committee, officer, employee, or other agent of the Board.”   Texas Government Code, Section 2252.061, [3] defines auxiliary services as a business activity that provides a service to an institution, but is not paid for with appropriated funds. Therefore, auxiliary enterprises and services are designed to be self-supportive entities that support educational programs. As noted by excerpts from UT Arlington’s 2005-2006 Operating Budget, UT Arlington has several auxiliary enterprises [4] and service departments. [5] As suggested by Series 20501 of the Rules and Regulations of the Board of Regents, all business activity contracts are reviewed and approved by the Vice President (VP) for Business Affairs and Controller. [6] It is the VP’s responsibility to ensure that the Institution has adequate information regarding the auxiliary enterprises and service departments that UT Arlington conducts business activities with, and that the said contracts clearly indicate that the legal authority and operating control of the Institution remains with UT Arlington. Auxiliary enterprise and service department contracts are located in the Office of Finance and Administration, Davis Hall Room 305.