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Affiliated Fund Raising Organizations85.02 Affiliated Fund Raising Organizations Issued: March 25, 2002 1. General 1.1 The University will administer all relationships with affiliated fund raising organizations in accordance with System Policy 60.01 and System Regulation 60.01.01. 1.2 For purposes of these procedures, affiliated fund raising organizations are private organizations whose primary purpose is to further the University. Examples include alumni associations and organizations, development foundations, booster clubs, etc. 1.3 These procedures do not pertain to private donors, nor do they relate to private companies, foundations, or other organizations whose primary mission is unrelated to the University. 2. Requirements for Affiliation To become and to remain an affiliated fund raising organization of the University, the organization must meet the following requirements: 2.1 Be a legally incorporated private organization whose primary purpose is to financially support the University. 2.2 Be approved for affiliation by entering into an affiliation agreement with the University. 2.3 Comply with requirements contained within the affiliation agreement. 3. Financial and Reporting Requirements of External Fund Raising Organizations 3.1 Affiliated Fund Raising Organizations - Independent A. Properly account for all financial activities of the organization and provide periodic reports of activity to the University. B. Issue an annual financial report. C. Obtain an independent audit from a licensed Certified Public Accountant in the State of the organization's incorporation. D. Periodically distribute net proceeds from fund raising activities to the University. 3.2 Affiliated Fund Raising Organizations - Shared Services A. Deposit all funds raised into an agency or restricted fund account established at the University. B. Process all requests for disbursements through the University's Director of Institutional Development. C. Financial activities will be included in the University's annual financial report and subject to audits by the System, State and federal auditors. D. Initiate periodic transfers of net proceeds from fund raising activities to the appropriate University account for the intended purpose. E. Provide periodic reports of activities to the University. 4. Reporting and Compliance Monitoring of the University 4.1 The Director of Institutional Development will maintain a current listing of all affiliated organizations and publicize this listing with the University's various constituency groups. 4.2 The Director of Institutional Development will perform the following compliance monitoring activities with affiliated organizations: A. Schedule annual meetings for organization to present an annual report of activities to executive staff at the University. Furnish a copy of the report to the University's Controller for review. B. Obtain required annual audit reports from organization. Furnish a copy of the report to the University's Director of Special Projects for review. C. Verify that distributions from organizations are received and properly accounted for in accordance with System Regulations 21.01.02 and 21.99.03, University Rule 21.99.03.P1, and Administrative Procedures 30.01 and 30.02. D. Verify that affiliated organization is in compliance with other requirements of the affiliation agreement. 4.3 The Controller will review the organization's financial report and provide comments and observations to the Vice President for Finance & Administration and the Director of Institutional Development. 4.4 The Director of Special Projects will review the audit report and provide comments and observations to the Vice President for Finance & Administration and the Director of Institutional Development. The Director of Special Projects will forward a copy of the audit report to the System Internal Audit Department for their review. 4.5 Any identified issues requiring action will be addressed by the Director of Institutional Development with appropriate members of the affiliated organization. Unresolved issues will be brought to the attention of the Vice President for Research and Development. 5.0 Unaffiliated Organizations 5.1 Any organization with a primary purpose to raise funds for the benefit of the University that is not included on the approved list of affiliated fund raising organizations should be brought to the attention of the Director of Institutional Development. 5.2 The Director of Institutional Development will contact the organization to advise them of the University's affiliation requirements and to request that they take the necessary actions to become affiliated. Organizations failing to cooperate with the University or to take timely actions to become affiliated, will be notified in writing of the University's requirements for affiliation. 5.3 The Director of Institutional Development will disseminate through all reasonable avenues to its faculty, staff, students, alumni, and supporters, a notice of unaffiliated organizations. Recipients of the notice will be advised that the University neither receives nor accepts any funding from the listed organizations. Recipients will be advised to make their contributions directly to the University or to one of its affiliated fund raising organizations. Point of Contact: Vice President for Research and Development Vice President for Business Affairs |