 | Board of Visitors minutes May 23, 1992 |  |
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RESOLUTION REGARDING UNIVERSITY-RELATED FOUNDATIONS
The following resolution was adopted:
- WHEREAS sundry foundations are organized and operated to benefit the University of Virginia or one or more of the University's schools and departments;
- WHEREAS in recent years the University has developed agreements and adopted policies that describe the role of these affiliated foundations and regulate their relationship with the University, as manifested by a standard "Foundation Agreement" initiated in 1987, the "Management Principles and Guidelines Pertaining to University-Related Foundations" adopted by the Board of Visitors in 1989, and the establishment of the External Relations Committee of the Board of Visitors in 1991;
- WHEREAS the policy provisions embodied in the "Foundation Agreement" and the "Management Principles and Guidelines" stipulate specific standards, highlighted below, that are designed to ensure that University-related foundations are operated in accordance with sound managerial and accountability principles, and in a manner consistent with the University's purpose and mission:
- ▾ Board approval of new foundations and subsidiaries;
- ▾ University representation on foundation boards of directors;
- ▾ distribution of foundation assets to the University upon dissolution;
- ▾ advance review of changes in foundation charter and bylaws;
- ▾ restricted use of University name, logo, and seal;
- ▾ foundation legal responsibility for debts, contracts, and torts;
- ▾ sponsorship of educational programs;
- ▾ deposit of funds and gifts;
- ▾ transfer of assets, loans, and other foundation-University business transactions;
- ▾ access to, and reimbursement for, use of University personnel, facilities, or other services;
- ▾ procurement and conflict of interest rules;
- ▾ audit and financial accountability measures;
- annual financial reports and supplemental submissions detailing noteworthy foundation activities and expenditures;
- WHEREAS in anticipation of the Capital Campaign and the critical need to coordinate all fund-raising activities undertaken on the University's behalf; in recognition of particular problems revealed by the recently concluded inquiry of the University's athletic program and the operations of its affiliated foundation; and in furtherance of the University's overriding interest to promote efficiency and accountability among, as well as maintain independence and integrity within, all University-related foundations, the Board of Visitors believes that it is appropriate to re-examine and to reinforce, where appropriate, policy provisions pertaining to University-related foundations;
- RESOLVED that the Senior Vice President and Chief Financial Officer be and hereby is directed to undertake a thorough review of all University policy provisions pertaining to University-related foundations, and to prepare, with the advice and assistance of appropriate University offices including the General Counsel, a revised policy that, among other things, accommodates the following objectives:
- (1) consolidates the requirements contained in the "Foundation Agreement" and the "Principles and Guidelines" into one policy document that has overarching application to all University-related foundations;
- (2) establishes expectations regarding the nature and scope of foundation activities, consistent with the precise purpose contemplated when the foundation was created;
- (3) increases University representation on foundation boards of directors and executive committees;
- (4) stipulates basic standards for foundation protocols encompassing such areas as procurement, personnel, conflicts of interest, non-discrimination, investments, insurance, and gifts acceptance;
- (5) coordinates fund-raising and development policies and activities;
- (6) mandates periodic submission of foundation financial and operational reports;
- (7) prescribes University review of foundation budgets and personnel compensation contracts; and
- (8) describes administrative staffing responsibility, under the direction of the Senior Vice President and Chief Financial Officer, to ensure sufficient University monitoring of the foundations' compliance with pertinent University policies.
- RESOLVED FURTHER that the Senior Vice President and Chief Financial Officer circulate any proposed policy changes among the various foundations for their review and comment;
- RESOLVED FURTHER that any such proposal be subsequently presented to the Board of Visitors.
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| Board of Visitors minutes May 23, 1992 | |