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University Policy

Affiliated Entities (Affinity Principles)

Policy Number: 3349-03-190
Effective Date: 06/25/2014
Updated:
Reviewed:
Responsible Department: Office of the President, Office of the Vice, President for Administration and Finance, Office of the General Counsel
Applies To: All Affiliate Entities

Appendix B

Items Addressed in Memorandum of Agreement/Understanding

Governance Matters
  • 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.
Financial Matters
  • 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
    University.
  • 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.

University Policies

Office of General Counsel