Affiliated Entities (Affinity Principles)
Policy Number: 3349-03-190
Effective Date: 06/25/2014
Responsible Department: Office of the President, Office of the Vice, President for Administration and Finance, Office of the General Counsel
Items Addressed in Memorandum of Agreement/Understanding
- Acknowledgment that Affiliate is legally independent from the University, and neither party assumes the other’s liabilities.
- Affiliate is identifiably separate from University.
- University representation on Affiliate governing board.
- Requiring reserve powers to be exercised by the University in certain actions by Affiliate, including University review/approval of new business ventures and subsidiaries or other entities.
- Fundraising Affiliates organized and operated as non‐profit, non‐stock corporations.
- Disposition of assets upon dissolution of Affiliate.
- Creation of an audit committee of the governing board.
- Adoption of policies on ethics, conflict of interest, whistleblowers, compensation, and procurement.
- Provision of legal services.
- Requiring an accounting system with appropriate controls and reporting functions and an annual audit by an independent certified public accountant.
- Annual adoption by the Affiliate governing board of a detailed operating budget and capital expenditure plan.
- Transactions between Affiliate and University treated as ordinary business transactions, with proper review and approvals.
- Provisions regarding use of University registered marks.
- Recovery of costs incurred for provision of personnel, facilities, or services by the
- Provision of administrative services by University to Affiliate.
- Responsibilities for insurance.
- Requiring an accounting system with reporting in accordance with GAAP.
- Detailed operating budget and capital expenditure plan.
- Officers/staff members bonded as appropriate; general liability and D&O insurance.
- University’s right to inspect books and records.
- Requiring that no substantial part of operations devoted to lobbying/participating in political campaigns.
- Requiring that no fees or remuneration shall be paid to University employees without University approval.