September 19-20, 2002

 

SUBJECT: FINANCIAL AFFAIRS
Policy___________ - Full Financial Disclosure and Public Accountability of Foundations and Affiliated Organizations

Constitutional authority:

The government and control of the Montana university system is vested in a board of regents of higher education which shall have full power, responsibility and authority to supervise, coordinate, manage and control the Montana university system...(Article X, Section 9(2)(a), Montana Constitution).

WHEREAS, the Governmental Accounting Standards Board (GASB) establishes standards for fair and complete financial reporting for governmental entities;

AND WHEREAS, GASB, in statement No. 39, has determined that in order to have fair financial reporting, full disclosure, and public accountability, the financial resources of affiliated organizations shall be included in university unit financial reports;

AND WHEREAS, the board to properly execute its constitutional duty to supervise, coordinate, manage and control the Montana university system, needs to be fully informed as to the audits and all expenditures of all foundations and affiliated organizations that support university units.

Board Policy:

The Montana university system shall fully comply with Statement No. 39 of the Governmental Accounting Standards Board (GASB) for the Fiscal Year beginning July 1, 2003 and thereafter.

The Office of the Commissioner of Higher Education shall annually identify to the board all foundations and affiliated organizations that support university units.

The Office of the Commissioner of Higher Education shall annually identify to the board all foundations and affiliated organizations that must be reported as "component units" as a part of the university system financial statements under GASB 39.

The units of the university system shall provided to the board the current audits of all foundations and affiliated organizations and every six months provide the board a detailed description of the expenditures of the foundations and affiliated organizations.