FOR COMMITTEE ACTION -

BOARD OF REGENTS: 6/18/99

AGENDA ITEM: ll.c/G.9.

RECOMMENDATION:

That the Board of Regents, upon the recommendation of the President of the University, approve the following guidelines as a point of departure for the University's further development of its relationship with the non-affiliated, private non-profit. Racer Foundation in order to provide additional institutional control as required by the National Collegiate Athletic Association.

1. An annual budget of expenditures to be funded by the Racer Foundation must be prepared by the Director of Athletics and approved by the President of the University prior to any funds from the Racer Foundation being expended, requested, or obligated by or on behalf of the University, To the extent practicable, the budget shall delineate all specific expenditures known or expected as of the time the budget is so approved. The budget as planned and approved for the benefit of the University shall reflect spending priorities of the University only. Except as otherwise provided, any expenditure of funding from the Racer Foundation must be in accordance with the approved budget
   
2. Any emergency or unexpected expenditure of funds, not included in the budget, by the Racer Foundation for the benefit of the University must be approved hi advance by the President or his designee, the Vice President for Administrative Services. Any expenditure of this type in an amount less than $500 will require no prior approval from these officials unless otherwise required by NCAA policy. Upon receipt of any necessary approval, all requests for the funding of emergency or unexpected expenditures by the Racer Foundation for the benefit of the University will be presented to the University Director of Athletics, who is the only athletic staff member authorized to forward requests for funding to the Racer Foundation.
   
3. Once a budgeted or emergency or unexpected request for funds has been approved by the designated University official and by the Racer Foundation, the appropriate funds will be transferred from the Racer Foundation to Murray State University and placed in an appropriate athletics account.
   
4. Financial statements, including a balance sheet and statements of income and expenditures as well as a detailed transactions list, from the Racer Foundation will be sent monthly to the President and Vice President for Administrative Services to keep them apprised of the financial condition of, and all income received and disbursements processed through, the Racer Foundation.
   
5. All expenditures by the Racer Foundation for or on behalf of the University shall be subject to an annual financial audit, in addition to any regular financial audit policies and procedures of the University, conducted for the University by a qualified auditor who is not a staff member of the University and who is/selected either by the University President or the Vice President for Administrative Services. (NCAA Policy 62.3.1.)
   
6. All expenditures, of whatever nature or kind and regardless of origination, must be in conformity with applicable NCAA policy. It is the intent of the Board of Regents to comply with all NCAA policies relating to institutional control while preserving the Racer Foundation's non-affiliated status.
   

The Murray State University Athletic Foundation,vlnc., commonly known as the Racer Foundation, was established in July of 1997 as a non-anmated, private non-profit, corporation. The Racer Foundation was created to aid the educational purposes of the University with particular emphasis on assistance to Murray State's intercollegiate athletics program. The Racer Foundation is the primary source of external funding for the athletic programs at Murray State University.

As a result of the NCAA Certification process, it has been recommended that the University take additional steps to implement the concept of institutional control with respect to expenditures of the Racer Foundation for the benefit of the University. This proposal represents a framework for furthering those principles of institutional control as required by the NCAA while preserving the non-affiliated status of the Foundation.


RECOMMEND APPROVAL:


Submitted on ______ to the Board of Regents ____________ Committee COMMITTEE ACTION:- Approved__ Disapproved__ Postponed__ Amended___ BOARD ACTION on _______: Approved__ Disapproved Postponed__