The Operations Policy Manual states in Chapter 3, Sect A.7. Auxiliary Leader Flags
Only inspected and approved surface facilities and non-operational facilities may fly elected or appointed leader pennants and past leader’s burgees. Auxiliarists may fly these flags day and night when the leader is aboard. • A vessel facility must not display more than one leader’s flag, pennant, or past leader’s burgee. If an incumbent leader and past leader (of the same position level) are onboard a facility, the coxswain must fly the incumbent leader’s flag or pennant rather than the past leader’s burgee. However, if a senior leader is onboard as a visitor, it is a courtesy to display the flag of the senior leader, whether it is a flag, pennant, or burgee. Past leaders may fly the burgee of the highest office held, or the flag or pennant of the present office. • Auxiliarists must fly a pennant or burgee from the starboard yardarm, if the boat has yardarms (spreaders). If the boat has a mast, but no yardarms (such as a power boat’s mast), Auxiliarists may fly the Auxiliary Ensign from the truck of the mast and the leader’s pennant or burgee from the bow staff. If the boat does not have a mast, an Auxiliarist may fly the pennant or burgee instead of the Auxiliary Ensign from the bow staff. • A vessel facility assigned to duty may fly only a leader’s flag, pennant or burgee, and the National and Patrol Ensigns. The coxswain must remove all other flags, yacht Ensigns, U.S. Power Squadron Ensigns, yacht club burgees, squadron pennants, windsocks, or like items. • Auxiliary leaders, past or present, may not fly their flags, pennants, or burgees on land.
Note: Non-operational facilities have been discontinued.