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Article VII. Fiscal Matters
Section 1. Fiscal Year
The fiscal year for the corporation shall begin on July 1 and end on June 30 of the following year.
Section 2. Operating Budget
An operating budget for the corporation is required each fiscal year. The operating budget shall be prepared, reviewed, and approved by the Finance and Audit Committee prior to presentation to the Foundation Board for a vote. The operating budget must also be approved by the Trustee Board and will not be deemed final until such approval. Significant changes in planned expenditures in the Foundation’s final budget must be reported to the Trustee Board as soon as practicable, but no later than the next regular meeting of the Trustee Board. Proposed changes to the final budget that would require a significant commitment of University resources shall be reviewed and approved quarterly by the University President or President’s designee, who shall be a University vice president or other senior officer of the University reporting directly to the President.
The President of the University shall assure compliance with any requirements that may be established by the Trustee Board or State concerning budgetary review or approval.
Section 3. Financial Statements
The Foundation Treasurer shall render to the Foundation Board at their first meeting of each fiscal year, preliminary and unaudited financial statements for the year just completed. The Treasurer will submit a Treasurer’s Report at each regular meeting of the Finance and Audit Committee and full Foundation Board.
Section 4. Audit
The Foundation Treasurer shall engage an independent, certified public accountant to perform an annual audit of the Foundation’s financial statements, with the objective being to render an opinion on the financial statements and to provide a management letter. The Certified Public Accountant shall conduct the annual audit in accordance with Generally Accepted Auditing Standards, and rules adopted by the Auditor General pursuant to S. 11.45(8) and by the Trustee Board.
The auditor shall present the audit to the Finance and Audit Committee and shall be available to meet with the Foundation Board. The Finance and Audit Committee shall discuss the audit findings with the Foundation Board and, in accordance with the management letter, shall recommend to the Foundation Board such changes as it deems advisable.
The audit report shall be submitted to the Trustee Board for review. The audit report shall be submitted to the Florida Board of Governors and the Auditor General. The Trustee Board or its designee, the Board of Governors, the Auditor General, and the Office of Program and Policy Analysis and Government Accountability may require and receive any records relative to the operation of the Foundation from the Foundation or its independent auditors.
Section 5. Federal Tax Reporting
The Foundation Treasurer will submit federal Internal Revenue Service applications for Recognition of Exemption forms (Form 1023) to the Trustee Board or its designee for review prior to filing and shall annually submit its federal Internal Revenue Service Return of Organization Exempt from Income Tax forms (Form 990) to the Trustee Board or its designee for review.
Section 6. Transfers of State Funds
Since transfers of state appropriations are restricted as provided in Section II(D)(1) of University Regulation 3.001R, and since, annually, the University is required to report to the Legislature and Board of Governors all transfers of state funds to Foundation, using a format and instructions specified by the Chancellor of the State University System, the Foundation will coordinate with the University to provide any information necessary to fulfill the University’s reporting obligation.
Section 7. Use of University Property
The Foundation must provide to the Trustee Board at least annually a report detailing the Foundation’s use of University property, facilities, and personal services for the preceding year. The annual report must identify the direct expenditures of the Foundation reimbursed by the University and the square footage of University building space and number of University employees dedicated to the Foundation’s operations.
Section 8. Purchases in Excess of $1 Million
The Foundation’s Executive Director will ensure that any purchase of goods and services, acquisition of real property, or construction or renovation of facilities by the Foundation in excess of $1 million receives the recommendation of the University’s Vice President for Administration and Finance and Vice President and General Counsel and the prior approval of the chair of the Finance and Facilities Committee of the Trustee Board, which approval will be subsequently reported to the Trustee Board.
Section 9. Issuance of Debt
The Foundation Treasurer will ensure that all debt issued by the Foundation will be consistent with the State University System Debt Management Guidelines, and all public-private partnership transactions involving the Foundation will be consistent with the State University System Public-Private Partnership Guidelines.
Section 10. Personal Services; Travel Expenses; Political Contributions
The Foundation’s Executive Director will ensure that (a) University personal services used by Foundation are remunerated in accordance with the remuneration requirements set forth in section 1012.976, Florida Statutes; (b) no state funds are used for travel expenses incurred by the Foundation; and (c) no Foundation funds are given, directly or indirectly, to a political committee, as defined in section 106.011, Florida Statutes, for any purpose.
