(a) Because university/college personnel are directly responsible to the Board of Regents for their activities and conduct as the same relates to their official positions with their respective universities/colleges, the Board of Regents finds that it is appropriate to set forth certain requirements which are for the best interests of the said Board of Regents and the respective Boards of Control and are to be enforced where university/college personnel responsible to the Board of Regents have any relationship or association with the fiscal management of a separate corporate foundation organized and existing for the purpose of supporting or enhancing the objectives or operations of any university/college under the governance of said Board of Regents. These requirements are as follows:
(1) All university/college personnel handling monies on behalf of a foundation (whether receiving or disbursing) shall be adequately bonded with the amount of the bond and name of the surety being reported to the Board of Regents.
(2) Provide the Board of Regents evidence that at least two signatures are required on any checks written on behalf of such foundation.
(3) Ensure that appropriate written guidelines are developed with the formal advice and recommendation of a qualified accounting firm pertaining to the receiving, depositing, disbursing and accounting of all monies of a foundation and that same has the approval of the foundation’s Board of Control and are systematically enforced by the foundation’s management.
(4) Inform the Board of Regents of the method and frequency and the extent of the detail of the financial reports provided to the Board of Control of such foundation.
(5) Provide information to the Board of Regents pertaining to the procedures implemented and regularly utilized to ensure that any gifts, donations, whether monetary or otherwise, received by such foundation are clearly intended to be given or donated to the foundation and not to the university/college for which the foundation is established to support.
(6) Secure an annual independent audit of the financial statements of such foundation by a reputable certified public accounting firm regularly doing business with the public at large, preferably, with experience in auditing colleges/universities or college/university foundations, and with sufficient experienced accounting personnel on its staff to adequately consult each other on the audit engagement. Accounting firms selected to conduct audits should be selected with as much attention to or concern for qualifications as given by the Board of Regents in selecting auditors for examining the institution’s regular financial statements. A written request should be established prior to each annual audit between a foundation’s Board of Control and the selected auditing firm which states the following provisions:
(A) The audit shall be conducted in accordance with generally accepted auditing standards and will include such tests of accounting records and such other auditing procedures as necessary to enable the auditor to express an opinion on the financial statements of the foundation.
(B) After giving sufficient attention to the requirements stated above, if the auditor is unable to express an opinion on said financial statements, a full written explanation will be provided in the auditor’s report as to why no opinion can be expressed.
(C) An examination shall be made of management controls (normally referred to as “internal controls”) in place and the sufficiency or adequacy of same.
(D) Procedures utilized pertaining to receipts, disbursements and accounting of monies, gifts, donations are to be examined for compliance with policies of the foundation’s Board of Control and to applicable federal and state laws.
(E) In the event any irregularities or discrepancies, etc., are discovered, the same are to be noted in the auditor’s report or management letter (management letters or any supplemental notations to the basic audit report are to be sent annually with a copy of the basic audit report to the Board of Control and Board of Regents).
(F) The auditing firm must formally present and discuss each annual audit report with the foundation’s Board of Control in whatever manner selected by the Board of Control to assure that said Board is adequately and properly informed.
(G) The auditing firm must comment upon the compliance by foundation’s management to the Resolution adopted on February 13, 1987, by the governing Board of Regents for the Oklahoma Agricultural and Mechanical Colleges, and said comment(s) shall be included in or accompany each annual audit report.
(7) The management of the foundation will advise the university/college President and the Board of Regents in writing on an annual basis of when such presentations are made to the Board of Control, specifically indicating how the Board of Control is represented at such presentations.
(b) A copy of this policy shall be forwarded to each university/college president under the governance of the Board of Regents and to each member serving on the Board of Control of a foundation associated with any university/college under the governance of the said Board of Regents with the expressed request of the Boards of Control of the respective foundations to join with the A&M Board of Regents in adopting the requirements listed above and that the same become a part of the official policy of the various Boards of Control pertaining to the management or administration of the affairs of the respective foundations.
(c) The various Boards of Control are requested to provide a copy of the minutes where the contents of this Resolution are considered by the respective Boards of Control of the various foundations referenced herein and a written reply describing actions taken in response to this Resolution is requested to be provided from the respective Boards of Control of the said foundations on the earliest date possible.