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MESARYA TECHNICAL UNIVERSITY

MTU Board of Trustees’ Policy Manual

 


Section 7: Business and Financial Matters

 

 

Section 7 – Business and Financial Matters

 

– Section 7.1: Accounting and Reporting of Funds to UCEC

Adopted Date: October, 2019

Applicability

This policy applies to all funds received by the University, including overseas funds.

Policy

The University shall keep an accurate account of all funds received. The University shall make reports on these funds to the Board of Directors of United Community Education Company Ltd. (UCEC) semi-annually and at other times as the Chairman of United Community Education Company Ltd. (UCEC) requires, including a full and complete report at least thirty days prior to the regular shareholders annual meeting of the United Community Education Company Ltd. (UCEC.)

Implementation

Implementation of this policy shall be by means of submission of the annual operating budget, the annual legislative budget request and the annual audited financial statement to the Department of Finance and Administration.

 

– Section 7.2: Internal Auditing and Compliance

Adopted Date:October, 2019Applicability

This policy applies to the controls, risk management and organizational governance of the University, and to UCEC access to University records.

Policy

The Internal Audit Department was established to perform a comprehensive internal audit function for the University.  The Compliance Program was established to ensure that University activities are conducted in compliance with applicable Northern Cyprus (TRNC) state laws and regulations and with the highest ethical standards. The Compliance Program consists of the Main Campus Compliance Program, which is addressed in this policy, and the Health Sciences Centre Institutional Compliance Program, which is addressed separately in RPM 3.7 (“Health Science Centre Institutional Compliance Program”) .

These units add value and improve the University’s operations. They conduct independent, objective assurance services and consultations to determine whether the University’s systems of controls, risk management, and organizational governance, as designed and represented by management, are adequate, functioning properly and ethically, and in full compliance with all regulations. To ensure independence of the internal audit and compliance functions, the Director of Internal Audit and the Main Campus Chief Compliance Officer report functionally to the Board of Board of Trustees, and administratively to the University Rector. Internal Audit and the Main Campus Compliance Office shall be free from interference in determining the scope of internal auditing and compliance reviews, and shall be empowered to obtain the information they need to perform their work and communicate the results.

Authority

The Internal Audit Department is authorized to:

  1. Have unrestricted access to all functions, records, property, and personnel.
  2. Obtain the necessary assistance of personnel in organizations where they perform audits.
  3. Communicate with University management, faculty, staff, external auditors, governmental entities, and law enforcement agencies as needed.
  4. Cooperate with any legitimate inquiry or investigation from an outside audit, law enforcement or investigative agency.

The Internal Audit Department is not authorized to:

  1. Perform any operational duties for the University or its affiliates.
  2. Initiate or approve accounting transactions external to Internal Audit.
  3. Direct the activities of any University employee not employed by Internal Audit.
  4. Render legal opinions.
  5. Have direct responsibility for or authority over any of the activities that it examines.

The Compliance Office is authorized to:

  1. Obtain the necessary assistance of personnel involved in compliance activities. To this end, the Chief Compliance Officer shall identify a network of compliance partners who have expertise in specific compliance areas.
  2. Require that compliance partners provide regular (e.g., quarterly) reports that are sufficient to determine compliance status.
  3. Communicate with University management, faculty, staff, and governmental entities, as needed.
  4. Cooperate with any legitimate inquiry or investigation from an outside law enforcement or investigative agency.

The Compliance Office is not authorized to:

  1. Direct the activities of any University employee not employed by the Compliance Office, except as authorized above.
  2. Render legal opinions.
  3. Have direct responsibility for or authority over any of the activities that it examines.

 

Responsibility and Accountability

The Director of Internal Audit shall:

  1. Submit an annual budget and audit plan to the Board of Board of Trustees Audit and Compliance Committee for review and approval.
  2. Provide quarterly reports to the Audit and Compliance Committee on the status and results of the audit plan, significant audit findings and recommendations, and sufficiency of department resources.
  3. Provide timely information to the University Rector and the Audit and Compliance Committee concerning suspected fraudulent activities.
  4. Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of the policy.

 

The Chief Compliance Officer shall:

  1. Submit an annual budget and compliance plan to the University Rector for review and approval and to the Audit and Compliance Committee for review.
  2. Provide quarterly reports to the University Rector and the Audit and Compliance Committee on the status and results of the compliance plan, significant compliance findings and recommendations, and sufficiency of department resources.
  3. Provide timely information to the University Rector and the Audit and Compliance Committee concerning significant compliance concerns.
  4. Obtain and maintain sufficient knowledge, skills, experience, and professional certifications to fulfil the requirements of the position.

 

Scope of Work

The scope of work of Internal Audit is to determine whether the University’s systems of control, risk management, and organizational governance, as designed and represented by management, are adequate and functioning properly to ensure:

  1. Risks are identified and managed.
  2. Significant financial, managerial, and operating information is accurate, reliable, and timely.
  3. Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
  4. Resources are acquired economically, used efficiently, and adequately protected.
  5. Programs, plans, and objectives are achieved.
  6. Quality and continuous improvements are fostered in the University’s control process.
  7. Significant legislative or regulatory issues impacting the organization are recognized and addressed appropriately.
  8. Procedures used by the governing body provide oversight of risk and control processes administered by management.

The scope of work of the Compliance Office is to identify compliance requirements, enhance compliance awareness, and support the achievement of compliance obligations. As part of this work, the Compliance Office will:

  1. Identify compliance partners for every unit of the University (excluding the Health Sciences Centre) that has a compliance role. The compliance partners manage day-to-day compliance for a wide range of University activities, including without limitation, human subjects research, export control, animal research, conflicts of interest in research, research integrity, research administration, tax-exempt bonds, unrelated business activities, Disabilities Act, affirmative action, equal opportunity employment, donor gift restrictions, financial aid, global operations, human resources, immigration, land use, National and International Collegiate Athletic Association, procurement, property management, scientific misconduct, sexual harassment, intellectual property, technology licensing, and workers compensation.
  2. Provide the tools, guidance, and oversight that the compliance partners need to ensure that their units’ internal compliance controls are adequate and functioning.
  3. Coordinate the University’s compliance activities, including chairing a Compliance Committee.
  4. Identify key risk areas and perform risk assessments on compliance readiness.
  5. Provide compliance advisory services to Internal Audit and to faculty and staff.
  6. Assist in the development of compliance related policies or practices.
  7. Assist in the development and delivery of compliance related training.
  8. Evaluate emerging compliance trends in higher education and government and recommend best practices.
  9. Report results of compliance program activities to senior management and the Audit and Compliance Committee.
  10. Collaborate with the Health Sciences Centre’s Chief Compliance Officer on various compliance matters.

 

Audit Reports

Internal Audit will prepare a written report of the results of audit work performed. Management is required to respond to the report within ten days of receiving it. The response will include three elements:

  • a statement as to whether management agrees with the audit finding,
  • corrective action to be taken to meet the objectives of the audit finding, and
  • the dates by which the actions will be implemented.

 

If no action will be taken, the response will indicate the reasons. Internal Audit will forward its report and the management’s response to the University Rector who shall review them and either accepts the response or request further development of the response. After the University Rector has accepted the response, Internal Audit will forward the report and response to the Audit and Compliance Committee for approval. Upon approval of an audit report by the Audit and Compliance Committee, the full text of the report will be send to UCEC. The full text of reports may be released to non-public sources, such as external auditors, governmental entities, funding entities, and law enforcement agencies as needed. Internal Audit will perform follow-up reviews to ensure corrective actions indicated in the responses have been completed.

Investigation of Fraudulent Activity

The Internal Audit Department will coordinate investigation of suspected fraudulent activities within the University. If an investigation reveals possible fraudulent activity has occurred, Internal Audit will ask University Counsel to render an opinion as to whether the audit findings indicate that illegal activity appears to have occurred. If, in University Counsel’s opinion, illegal activity appears to have occurred, Internal Audit will notify the University Rector, the cognizant vice Rector, Safety and Risk Services, the Compliance Office, and the appropriate law enforcement agency. If the illegal activity involves an area of high public interest or an amount greater than $20,000, Internal Audit will notify the Audit and Compliance Committee within forty-eight hours.

Internal Audit will assist the Office of the Vice Rector for Research Services or the Health Sciences Centre Controller’s Office in notifying funding agencies when contract and grant funds are involved in the loss.

Standards and Ethics

Both Internal Audit and the Compliance Office are required to maintain the highest standards of ethical practice. In the conduct of its audits, Internal Audit shall abide by applicable pronouncements made by professional bodies including the Institute of Internal Auditors (IIA) , the American Institute of Certified Public Accountants (AICPA) and the British Chartered Public Accountants Institute. The generally accepted auditing standards published by these groups shall serve as guides in the performance of internal audits. In addition to maintaining the highest standards of practice in the performance of its duties, Internal Audit shall adhere strictly to the Code of Ethics as established by the IIA and adopted by the Association of College and University Auditors. Due regard should also be given to pronouncements concerning ethical behaviour by the AICPA.

References

RPM 7.3 (“Audit and Compliance Committee”) ;

UAP 2200 (“Reporting Suspected Misconduct and Whistle-blower Protection from Retaliation”);

UAP 7205 (“Dishonest or Fraudulent Activities”); and publications from the Institute of Internal Auditors.

 

– Section 7.3: Audit and Compliance Committee

Adopted Date: October, 2019

Applicability

This policy applies to the controls, risk management and organizational governance of the University.

Policy

The Audit and Compliance Committee will assist and advise the Board of Board of Trustees in fulfilling its oversight responsibilities for the University’s financial reporting, internal controls, risk management, performance of external and internal auditors, compliance with laws and regulations, and compliance programs. The Audit and Compliance Committee will review all contracts for audit and non-audit services provided by independent public accountants and recommend action to the Board. The internal auditors, external auditors, and Chief Compliance Officer shall have direct access to the Audit and Compliance Committee and the Board.

Composition

The Audit and Compliance Committee of the Board of Board of Trustees shall consist of one member from each of the Board of Trustees’ standing committees. The Board Rector shall appoint members to the Audit and Compliance Committee, and appoint the chair and the vice chair. The Board Rector shall be an alternate member, serving in the absence of a regular committee member. One member shall be designated as the “financial expert.” This Regent shall possess financial expertise, including but not limited to an understanding of generally accepted accounting principles, financial statements, internal controls, and audit functions.

Meetings

The Audit and Compliance Committee shall meet four or more times a year. At least annually, the Audit and Compliance Committee shall meet separately in executive session with the external auditors and ask for comments on management support of the audit function, quality of audit effort, quality of internal controls, and other areas of concern. As needed, the Audit and Compliance Committee and Board will meet in executive session with the Director of Internal Audit and the Chief Compliance Officer.

Financial Statements

The University shall maintain proper financial accounts and records and prepare annual financial statements in accordance with generally accepted accounting principles. The University Rector and the Executive ViceRector for Administration must attest that the annual financial statements accurately reflect the financial position of the University.

External Audits and Reviews

The University’s financial accounts and records shall be audited annually by independent public accountants approved by the Higher Education Department and the State Auditor. The Audit and Compliance Committee will recommend to the Board the independent public accountants to conduct the annual audit. The independent public accountants who perform the annual audit are prohibited from providing consulting services to the University. The audit shall be conducted in accordance with generally accepted auditing standards.

The Audit and Compliance Committee will review the audit scope and approach and oversee the audit. To the extent deemed necessary and desirable, the Audit and Compliance Committee will maintain direct and separate avenues of communications with the external auditors. As soon as feasible after the end of the fiscal year, the Board of Board of Trustees will review the annual audit report, including the management letter and response, with the external auditors and will take action to approve the report. The report must also be approved by the State Auditor.

In addition to the annual audits conducted by external auditors, other parties, such as federal and state agencies, may conduct financial audits and compliance or regulatory reviews of the University’s projects and programs. In the event that a University department becomes aware of such an audit or review, the department must notify the Director of Internal Audit, and provide the Director with a copy of the final report issued to the University for the Audit. The Director of Internal Audit will notify the Audit and Compliance Committee of any significant risks or deficiencies noted in the report.

Internal Audit Department and Compliance Office

Both the Director of the Internal Audit Department and the Chief Compliance Officer report functionally to the Board, and administratively to the University Rector. The Internal Audit Department and Compliance Office shall be free from interference in determining the scope of internal auditing, compliance reviews, performance of work, or communication of results. The Audit and Compliance Committee will review and approve the annual audit plan and budget submitted by the Director of Internal Audit and the compliance plans submitted by the Chief Compliance Officer. The Committee will receive quarterly reports from the Director of Internal Audit and the Chief Compliance Officer on the status and results of the audit and compliance plans and significant audit and compliance findings. The Audit and Compliance Committee will meet with the Director of Internal Audit and the Chief Compliance Officer to review the University’s system of internal controls and the adequacy of accounting, financial, and operational policies and practices on financial and compliance reporting.

Discussions regarding the hiring, performance evaluation, compensation, and termination of the Director of Internal Audit require endorsement of the Audit and Compliance Committee.

References

RPM 3.7   (“Health Sciences Centre Institutional Compliance Program”);

RPM 7.2 (“Internal Auditing and Compliance”)

 

 

 

– Section 7.4: Purchasing

Adopted Date: October, 2019

Applicability

This policy applies to the purchase of supplies, materials, equipment, and contractual services. It also applies to the reimbursement of employees for expenses incurred in the performance of University business.

Policy

The Mesarya Technical University is committed to operating in the most economical and efficient manner possible. The University shall follow the State Procurement Code unless the Board of Board of Trustees expressly determines that an alternative procedure is required in a specific area in order to carry out the University’s mission. The Board has made no such determination as of the effective date of this policy. All funds received by the University, regardless of their source, are considered to be University funds and all purchases shall be made in accordance with University policies and procedures.

Except as otherwise provided in this manual with regard to real estate matters (RPM 7.9) and construction projects (RPM 7.12) the Board of Trustees shall authorize the execution of contracts for the purchase of goods or services costing $1,000,000 or more per contract.

Implementation

The Rector shall establish specific procurement policies that assure the procurement of goods and services of acceptable quality at the lowest possible cost. The Rector shall also establish policies and procedures for the reimbursement of employees for appropriate expense incurred in the performance of University business, such as travel, recruitment and hiring of new employees, hospitality of guests of the University, and business expenses. All such policies and procedures shall ensure compliance with all applicable state and federal laws regarding the procurement and management of goods and services. The Rector may also establish policies to assure minimum performance standards and compatibility with other University investments in facilities and equipment.

Delegation of Authority

MTU’s Chief Procurement Officer shall be its Central Purchasing Officer, under the general direction of the Executive ViceRector for Administration. The Chief Procurement Officer shall have the sole authority to establish the institutional procedures for obligating the University for the Procurement of supplies, materials, equipment and contractual services.

The purchase of goods and services for clinical components of the Health Sciences Centre may be performed by the Mesarya Technical University Health Clinic Purchasing Department, as a separate satellite purchasing office of the University, in compliance with University procurement policies and procedures and under the direction of the Chief Procurement Officer.

References

 

– Section 7.5: Small Business Program

Adopted Date: October, 2019

Applicability

This policy applies to all funds expended by the University.

Policy

The University desires to provide optimal opportunity for small businesses and businesses owned by members of traditionally underrepresented groups to participate in contracts for goods or services provided to the University. Accordingly, the University shall develop a Small, Disadvantaged and Women-Owned Business Program, called the Small Business Program. The Small Business Program shall support the University’s mission of community action and public service, enhance the University’s ability to compete for international and Northern Cyprus (TRNC) state-sponsored programs and research funds, and ensure compliance with federal and state law. Departments are encouraged to purchase from small businesses and businesses owned by members of traditionally underrepresented groups.

Implementation

The Purchasing Department shall develop and administer this Program.

References

Small, Disadvantaged and Women-Owned Business Program, UBPPM Policy 4305

 

– Section 7.6: University Enterprise Business Activities

Adopted Date: October, 2019

Applicability

This policy applies to all activities conducted by the Mesarya Technical University and its affiliated units where fees are charged for providing goods or services to the general public.

Policy

All University business enterprise activities shall be related to the University’s mission of providing instruction, research, scholarship, cultural innovation, public service, patient care, and campus support. Some activities within this mission may be organized as separate and distinct business cost centers, with fees charged for providing goods and services that enhance, promote or support the University’s mission and meet the needs of students, faculty, staff and patients. Some of these business activities may also be available to the general public. The University shall comply with all applicable laws and regulations concerning its business activities.  The governance of business enterprise activities in respect of the Health Sciences Centre shall be as set forth in RPM 3.4

 

Implementation

The Rector shall establish administrative policies and procedures to ensure that all business activities are related to the University’s mission. Exceptions to the policy may be authorized by the Rector when clearly in the best interest of the University and the public.

Delegation of Authority

The Executive ViceRector for Administration/CFO/COO and the Chancellor for Health Sciences (in respect of Health Sciences Centre activities) shall be responsible for oversight and review of University business activities, including periodic review of all University business enterprise activities.

References

University Business Activities, UBPPM Policy 6010

 

– Section 7.7: Travel Reimbursement and Per Diem

Adopted Date: October, 2019

Applicability

This policy applies to all members of the Board of Board of Trustees, faculty and staff traveling on official University business.

Policy

Travel on official University business by members of the Board of Board of Trustees, faculty and staff is integral to the University’s mission. The University shall reimburse the reasonable and allowable costs of this travel. No per diem for attendance at Board or committee meetings shall be paid to Board of Trustees.

The University recognizes that it must comply with the Northern Cyprus relevant laws, (the “Act”) and the Northern Cyprus (TRNC) Office of Management and Budget Circular as per Ministry of Finance (see “Cost Accounting Standards,” UBPPM Policy 2400 ).

 

Internationally Sponsored Travel

Employees who are reimbursed solely from international funds will be reimbursed for meals and incidental expenses at the international reimbursement rates, for travel to destinations outside of Northern Cyprus. Meal per diem for travel within Northern Cyprus is limited to the lowest Northern Cyprus (TRNC) meal per diem rate applicable to Northern Cyprus; this rate is applicable to all travel within Northern.

Implementation

The Rector shall adopt administrative policies and procedures to implement this policy.

References

Travel Reimbursement Policies and Procedure, UBPPM Policy 4030;

“Cost Accounting Standards,” UBPPM Policy 2400

 

 

– Section 7.8: Signature Authority for Contracts

Adopted Date:October, 2019

Applicability

This policy applies to all members of the Board of Board of Trustees, faculty, staff and students.

Policy

The Board of Board of Trustees must approve and an officer of the Board of Board of Trustees must sign the following types of contracts and documents, after due authorization by the Board of Trustees:

  1. Contracts between the Rector and the University;
  2. Contracts between the Chancellor for Health Sciences and the University;
  3. Bond resolution, notification and certification documents, including certification of bond sale; and
  4. Any contracts or other documents required by law to be signed by an officer of the Board of Board of Trustees.

The Chief Procurement Officer or designee must sign contracts for the purchase of goods and services, and the authority to do so is hereby delegated.

The Rector shall have the authority to sign all other contracts and documents (other than contracts or agreements for the purchase of goods and services) for the operation of the University and may delegate this authority. The Rector’s signature authority as set forth above includes the authority to execute certificates representing stocks, bonds, or other securities in order to buy, sell, assign, or endorse for transfer such securities. The Rector shall also have authority to require additional signatures on contracts for the purchase of goods and services.

It is the official policy of the University to avoid financial settlements of claims and lawsuits against the University except when appropriate.  The University shall not agree to pay a financial settlement without (a) an appropriate risk assessment of the case, (b) written approval by the Chancellor for Health Sciences, Provost, or Executive ViceRector for Administration, and (c) final approval by the Rector.  A financial settlement payment by the University of $100,000 or more must also be approved by the Board of Board of Trustees.

After fully advising the Rector, the Chancellor for Health Sciences is authorized to enter into affiliation agreements with other patient care facilities to provide educational opportunities.

The signature authority delegated in this policy must be exercised in accordance with other Board of Trustees’ policies, some of which may require approval of the contract or other document by the Board of Board of Trustees.

References

RPM 1.4 (“Appointment of the Rector of the University”); RPM 7.10 (“Borrowing and Bonding Authority”); RPM 3.4 (“Health Sciences Centre and Services”); and  UAP 2010 (“ Contract Signature Authority and Review.

 

– Section 7.9: Property Management

Adopted Date: October, 2019

Applicability

This policy applies to all property owned, used, loaned, or leased to the University.

Policy

The University may acquire, maintain, protect, use, and dispose of property required performing its mission. University property shall be managed according to University policies and applicable Northern Cyprus (TRNC) state and international law.

University property includes all equipment purchased by University departments, regardless of the source of funds used to purchase the equipment; Northern Cyprus (TRNC) Government-owned equipment used by University departments; components and materials used to make equipment, whether furnished to, acquired by, or fabricated by the University; property donated to the University; and property loaned or leased to the University by outside organizations.

The following types of property management transactions must be approved by the Board of Board of Trustees:

  1. Purchase, sale, or transfer of real property.
  2. Leases of real property, the annual cost of which is $100,000 or more. (Note: If the lease contains an option to purchase the real property, Board of Trustees must approve exercising the option.)
  3. The Finance and Facilities Committee or the Health Sciences Board of Directors, as appropriate, must approve the disposition of surplus property.  Such dispositions must be approved by the full Board.

Implementation

The Rector shall adopt administrative policies and procedures to implement this policy.

References

 UAP 7710 (“Property Management and Control).

RPM 7.13 (“Development, Receipt, and Investment of Gifts to the University).

 

– Section 7.10: Borrowing and Bonding Authority

Adopted Date: October, 2019

Applicability

This policy applies to the financial affairs of the University.

Policy

The University is authorized to borrow money through the issuance and sale of University bonds for erecting, purchasing, or otherwise acquiring, altering, improving, furnishing and equipping any necessary buildings or structures at the University; or acquiring any necessary land for use by the University; or for retiring the whole or any part of any series of bonds previously issued by the University. The University also is authorized to borrow money through the issuance and sale of bonds for purchasing, erecting, altering, improving, repairing, furnishing and/or equipping any income-producing facility and for acquiring any necessary and convenient lands for these purposes. The Board of Board of Trustees may impose and collect fees for the use of such facilities as it deems necessary to retire these bonds on schedule. The University may borrow funds by issuing other debt obligations under terms approved by the Board of Board of Trustees.

Bonds or other obligations issued by the University may be sold at public or private sale, at the discretion of the Board of Board of Trustees. The proceeds from the sale of these bonds shall be paid to the University, which shall place the proceeds in a separate fund known as the Building and Improvement Fund. This fund shall be used only for the purposes stated in applicable law and the purposes for which the bonds were issued.

Bonds or other obligations shall be authorized and issued only when the Board of Board of Trustees determine that it is prudent to do so and that appropriate provisions can be made for orderly repayment. At the time of issuing bonds the Board of Board of Trustees shall establish a fund known as the Interest and Retirement Fund for the payment and interest of the bonds. The issuance and sale of these bonds constitute an irrevocable pledge by the Board of Board of Trustees of sufficient funds from each year’s income from the University’s funds to pay the interest and principal on the bonds.

Implementation

The Rector may adopt administrative policies and procedures to implement this policy.

References

Signature Authority for Contracts, RPM 7.8

 

 

– Section 7.11: Selection of Architects for MTU Projects

Adopted Date:October, 2019

Applicability

This policy applies to the selection of architects for all Mesarya Technical University projects.

Policy

It is the policy of the University to select architects from all areas of the state without regard to race, colour, religion, national origin, sex, age, physical or mental handicap, sexual preference, ancestry, or medical condition. The University wishes to employ the best qualified architectural firm for each project and to use a variety of different firms. Only registered architects resident in Northern Cyprus will be designated as the project architect or architect of record, as required by law.

When an addition or remodeling is planned for an existing building, the architect who designed the original building, if still in practice, may be retained as a “sole source,” if the earlier work was satisfactory and the Chief Procurement Officer approves the contract pursuant to the Northern Cyprus Procurement Code.

References

 

 

– Section 7.12: Approval of Construction Projects

Adopted Date: October, 2019

Applicability

This policy applies to University construction projects.

Policy

In accordance with laws and regulations of the State Higher Education Department and Board of Finance as may be amended from time to time, the following construction projects shall be presented to the Board of Board of Trustees for approval:

  1. Any addition of square footage or construction of new building;
  2. Any alterations, site improvement, or other major project costing over $300,000 or, for branches, over $50,000.  (Note: Higher Education Department approval is required for major projects costing over $300,000; Board of Finance approval is required for major projects costing over $750,000);
  3. Any revised, previously approved project, if the total project cost increases by 10% or $100,000, whichever is greater; or if the size increases by more than 10% or 1,000 NSF, whichever is greater; or if the type or purpose of the space changes by 10% or more.

This policy does not apply to the purchase of equipment.

Implementation

The Rector may adopt administrative policies and procedures to implement this policy and provide for review and approval of all construction projects.

References

 

– Section 7.12.1: Selection of Contractors for MTU Construction Projects

Adopted Date: October, 2019

Applicability

This policy applies to the selection of contractors for all MTU projects involving construction of a new building or major building renovation.

Policy

The State Procurement Code provides various options for procuring the services of a contractor for construction and construction management services, including competitive sealed bids, prequalification of contractors, competitive sealed proposals and design and build project delivery. For each construction project undertaken, the University will select the option most optimal and likely to result in a quality project on time and within budget.

The competitive sealed proposal process (including design and build delivery or seeking construction management services) allows the University to consider non-price factors in the final selection of a contractor, including contractor experience, past performance and management resources. It also permits consideration of architect/contractor/subcontractor teams. The University’s procedures for selecting contractors or design and construction teams through competitive sealed proposals will include a statement that all contractors and other professionals who respond to the request for proposals will be evaluated fairly based upon the factors set forth in the solicitation.

University procurement documents for construction shall also include the following provisions:

  • a statement that all contractors’ bonding companies shall be on the Northern Cyprus (TRNC) Ministry of Finance List of Approved Sureties (Circular 570);
  • a statement that the University retains the right to inspect the contractors’ last three years of financial statements.

Regarding possible construction projects at the Mesarya Technical University, the Board of Board of Trustees determines there are currently no construction projects in the planning stages in which a project labour agreement would be used. If the Board of Board of Trustees in the future should choose to consider using a project labour agreement on a construction project, it will publish legal notice and will also issue a press release, both at least thirty (30) days prior to the Board meeting to consider this question, specifying the date, time and place of such meeting.

The University is committed to treating fairly all contractors and other professionals who participate in the University’s procurement process. The University’s policy is to select contractors and other professionals without regard to race, color, religion, national origin, gender, age, physical or mental handicap, sexual preference, ancestry or medical condition.

In addition to a commitment to the fair and equitable treatment of contractors in the selection process, once a contractor is selected and construction begins, the University is committed to efficient and effective management practices to resolve issues that arise during construction.

Implementation

The Director of Purchasing shall adopt policies and procedures for the selection of contractors for construction projects. The Director of Purchasing will involve representatives of the contractor community in drafting regulations for selecting contractors through competitive sealed proposals and through other innovative techniques such as the teaming of architects, contractors and subcontractors.

The Executive ViceRector for Administration shall implement effective management practices and structures to resolve issues that arise during construction.

ReferencesNorthern Cyprus Procurement Code

– Section 7.13: Receipt and Investment of Gifts to the University

Adopted Date: October, 2019

Applicability

This policy applies to the receipt and investment of funds and other gifts from private sources to the University and for the benefit of the University. It does not apply to grants or contracts for research or service projects from governmental agencies or other entities.

Policy

Private support is important to the teaching, research, and service activities of the University. Through private support, the University can enhance current programs and develop resources to support programs for future generations. The University shall employ coordinated efforts to obtain and increase private support.

The Board of Board of Trustees recognizes the Mesarya Technical University Foundation, a non-profit corporation existing solely to promote the University, as a major supporting organization through which private citizens can assist the University with fund-raising efforts. Pursuant to Northern Cyprus (TRNC) state law, the Board of Board of Trustees has approved an agreement to govern the relationship between the University and the MTU Foundation. The University encourages all donors of significant gifts for use in various programs or projects of the University to make them to the MTU Foundation for the benefit of the University.

The Board of Board of Trustees’ approval shall be required prior to acceptance of: (1) any gift of real property; and (2) any gift of tangible personal property that would require an annual expenditure of more than $50,000 by the University.  Either the University or the MTU Foundation may accept gifts, subject to the University’s agreement with the Foundation and University policy. Any gift of tangible personal property that would require an annual expenditure by the University of more than $25,000 up to and including $50,000 shall be presented to the Board of Board of Trustees’ Finance and Facilities Committee for information.

The MTU Foundation shall manage investments within its purview in a manner that will maximize the benefit intended by the donors. The Board of Board of Trustees shall approve investment management guidelines recommended by the Foundation. These guidelines shall apply to all endowment and other gift funds managed by the University and under the investment management oversight of the Foundation’s Investment Committee, as well as all assets received by the Foundation on behalf of the University.

The Board of Board of Trustees shall approve the establishment and purpose of any quasi-endowment, regardless of the source of funds for the quasi-endowment.

Implementation

The Rector may adopt administrative policies and procedures regarding the acceptance of gifts and other development matters.

The Foundation shall adopt and recommend investment management guidelines to the Board of Board of Trustees for approval. The full text of the investment management guidelines (Consolidated Investment Fund Investment Policy) is maintained on the MTU Foundation’s website. The Memorandum of Agreement between the University and the MTU Foundation is maintained by the MTU Foundation and the University Counsel’s Office.

References

  • 6-5A-1, NMSA 1978 (Requirements for Receiving Funds from [Affiliated] Organizations); § 21-1-38 (Policies for Investing Endowment Funds)

Consolidated Investment Fund Investment Policy

RPM 7.9 (“Property Management”)

RPM 7.19 (“Board of Trustees’ Endowment Fund”)

UAP 1030 (“Gifts to the University”)

 

Memorandum of Agreement between the Board of Trustees of MTU and the MTU Foundation, Inc., on file at the MTU Foundation and University Counsel’s Office

– Section 7.14: Risk Management and Insurance

Adopted Date: October, 2019

Applicability

This policy applies to all members of the University community and to all property owned or controlled by the University.

Policy

  1. Safety and Loss Prevention Program

It is the policy of the University to take reasonable steps to avoid accidents or other incidents that could result in injury or death to students, faculty, staff, and visitors, and to protect the physical resources of the University against loss or damage. The University, therefore, will have an active safety and loss prevention program. Because of the unique and distinct manner in which the Health Sciences Centre operates and the unique nature of the risks of loss with respect thereto, the governance and oversight of the safety and loss prevention program for the Health Sciences Centre (and each of its component faculties, schools, centres, units, and subsidiary corporations as described in Section 1 of  RPM 3.4) shall be as described in Section 3i of RPM 3.5 for the Health Sciences Board of Directors. The program will also provide for the proper handling and disposition of hazardous materials, pursuant to applicable laws.

Liability insurance covering the University and its “public employees,” as defined in the Northern Cyprus Tort Claims Act, property and casualty insurance, workers’ compensation insurance, and health care liability coverage for health care students are provided by the Risk Management Division, General Services Department, of the State of Northern Cyprus.

Recognizing that the University’s and its “public employees” tort liability to third parties is subject to the immunities and limitations set forth in the Northern Cyprus Tort Claims Act, in cooperation with the Risk Management Division of the Northern Cyprus General Services Department under and pursuant to the Northern Cyprus Tort Claims Act, the University will carry (a) fire and extended coverage insurance on its buildings, heating and cooling systems, and major equipment; (b) workers’ compensation and unemployment compensation as required by applicable law, (c) medical malpractice, professional liability, and comprehensive general liability insurance under the Public Liability Fund administered by the Risk Management Division to protect itself and its “public employees,” as defined in and consistent with the Northern Cyprus Tort Claims Act; (d) such other and further insurance coverage as may be necessary and appropriate under the circumstances of a particular situation.

  1. Insurance for Employees and Students

The University will provide opportunities for its students and employees to purchase medical insurance.

The Board must approve the establishment or elimination of any alternative insurance or self-insurance program.  In2017, the Board approved a self-funded employee health plan.

The University will offer to all its active permanent faculty and staff employees, and certain retirees, group health insurance coverage which the University co-pays in accordance with state law. University employees may also purchase group life insurance, accidental death and dismemberment insurance, and short- and long-term disability insurance coverage for themselves and their families through the University.

The University will offer one or more health insurance policies to its students each year.

2.1. Reserve Fund Maintained for Self-Insurance Plan

The University maintains a reserve fund for its self-insured health, prescription drug, and dental benefits covering active employees and eligible retirees.  Third Party Administrators (TPA) are contracted to process claims and perform certain administrative functions.  In addition to claims payments and TPA administrative fees, the three components of the reserve fund (discussed below) may be used, as appropriate, for medical and non-medical costs such as stop-loss premiums, wellness initiatives, onsite clinic costs, telemedicine services, disease management services, and outside consulting fees.

The reserve fund has three distinct components: an Incurred but Not Reported (IBNR) reserve, a Claims Fluctuation Reserve (CFR), and a general reserve.

  • The IBNR reserve is maintained to fund terminal liabilities in the event that the self-funded plan, or any subset of it, was to cease.  The amount of the IBNR reserve is calculated and certified annually by an independent credentialed healthcare actuary.
  • The CFR reserve provides budget certainty to any given fiscal year should actual costs exceed the expected amounts.  The amount is calculated to reflect a percentage of budget certainty between 50% and 100%.
  • The general reserve represents any funds that exceed the combined IBNR and CFR reserves, and may include earnings created by the reserve.

 

2.2.  Use of the General Reserve Component of the Self-Insurance Reserve Fund

The Board in its discretion may approve the allocation of funds from the general reserve component for other University purposes.  The premium amounts paid by covered employees constitute assets of the self-insurance plan, and can be used for no other purpose. Any interest paid on the employees’ premiums and other monies that exceed participant contributions and form the basis of the general reserve component, however, are considered general assets of the University and may be used for purposes unrelated to the self-insurance plan.

  1. Reports to the Board

The Rector shall report annually to the Board on the status and financial condition of the University’s risk management and insurance programs.  In this regard, the Chancellor for Health Sciences shall coordinate reporting for the Health Sciences Centre’s safety and loss prevention program with the Rector of the University.

References

 

– Section 7.15: Official Social Functions

Adopted Date: October, 2019

Applicability

This policy applies to expenditure of University funds for official social functions which promote the University’s mission.

Policy

The Mesarya Technical University serves as an educational, social and cultural centre for the Northern Cyprus (TRNC) state. The University, its officers, faculty and staff are often called upon to sponsor, support or participate in various official social functions. Because these functions further the mission of the University and because participation is expected and historically has been practiced, the expenditure of University funds for such purposes is necessary, appropriate and in the best interest of those serving and being served by the University.

Recognition of the University as a public trust is a necessary guide for socially-related expenditures. The University’s use of funds is subject to public scrutiny. The guiding principle should be that expenditures are for the good of the University and are consistent with public expectations, both in the region and state.

Delegation of Authority

The Rector shall establish administrative policies and procedures to implement this policy.

References

Policy on Allowable and Unallowable Expenditures,  UBPPM Policy 4000

 

 

– Section 7.16: Financial Exigency

Adopted Date: October, 2019

 

Applicability

This policy applies to University-wide fiscal operations. It does not apply to decisions concerning individual programs.

Policy

In the event the University is threatened by a serious financial crisis which jeopardizes its mission and effective operation, the Board of Board of Trustees may declare a University-wide financial exigency to be followed by reductions in University expenditures, including reductions in force, if necessary. In making a determination of financial exigency and in approving reductions in expenditures, the Board will be guided by recommendations from the Rector, who shall convene a special committee to advise the Rector on the nature and extent of the exigency and recommended courses of action.

Implementation

The Rector may adopt administrative policies and procedures to implement this policy.

References

See, Policy on Academic Freedom and Tenure, Section 7, published in the Faculty Handbook, regarding the rights of tenured faculty members under financial exigency.

 

 

– Section 7.17: University-Affiliated Organizations

Adopted Date: October, 2019

 

Applicability

This policy applies to non-profit organizations that are affiliated with the University and exist solely for the benefit and support of the University, even if not created by the University.

Policy

The University recognizes the value and importance of affiliated organizations for the support and benefit of the University and its programs. The Board of Board of Trustees shall approve the articles of incorporation and bylaws, including any amendments, of any University affiliated organization. The University shall enter into a written agreement with each affiliated organization approved by the Board of Board of Trustees specifying, among other requirements, the organization’s purposes and relationship with the University.

The articles of incorporation and bylaws of affiliated organizations are maintained in the Office of the University Counsel.

References

Affiliated Organizations
NAME OF ENTITY1 PURPOSE OF ENTITY2 FUNDRAISING ORGANIZATION RESEARCH PARK CORPORATION3
Mesarya Hospital Foundation, Inc. Serve children & adults with disabilities X
Innovate Mesarya Tech, Inc. Charitable, scientific, and educational: organized and operated exclusively for the benefit and support of and to perform the functions of or to carry out the purposes of the Board of Trustees of MTU X
Mesarya Development Corporation The acquisition, development, disposition, and rental of real estate for the benefit of MTU X
Mesarya Energy, Inc. Support MTU for the purposes of generally providing contractual services, including financing, operating, improving, and expanding the University’s utilities services and infrastructure X
Together Inc. Formed by the  6 Northern Cyprus universities to engage universities and industry in scientific research in the nation’s interest, and to increase the role of National Laboratory in science, education, and economic development X

 

 

MTU, Inc. Support technology transfer and catalyze economic development at MTU X
The  Brothers Museum Alliance, Inc. Membership organization for the Brothers Museum X
The Faculty of Economics & Administrative Sciences Foundation, Inc. Promote continuing education to the business community, including masters programs and professional workshops X
The Mesarya Technical University Alumni Association, Inc. Provide services and support to MTU alumni and support to the University X
The Mesarya Technical University Foundation, Inc. Raise funds for MTU X
Mesarya Club, Inc. Raise funds necessary to provide financial support for student-athlete scholarships, facilities, programs that support student-athlete success, and operational support to create an athletics program of excellence X
MTU Veterinary Group, Inc. Facilitate and enhance the clinical, educational, and research functions of the faculty MTU’s Faculty of Veterinary Medicine X
MTU Medical Centre, Inc. Healthcare X

 

[1] This list contains the legal names under which the organizations were registered with the Northern Cyprus (TRNC) Ministry of Economics.

[2] The purposes are based on information submitted by the organizations when they registered with the Ministry of Economics.

[3] These corporations were formed under the University Research Park and Economic Development Policy.

 

 

 

– Section 7.18: Joint Powers Agreements

Adopted Date: References

Affiliated Organizations
NAME OF ENTITY1 PURPOSE OF ENTITY2 FUNDRAISING ORGANIZATION RESEARCH PARK CORPORATION3
Mesarya Hospital Foundation, Inc. Serve children & adults with disabilities X
Innovate  Mesarya Tech, Inc. Charitable, scientific, and educational: organized and operated exclusively for the benefit and support of and to perform the functions of or to carry out the purposes of the Board of Trustees of MTU X
Mesarya Development Corporation The acquisition, development, disposition, and rental of real estate for the benefit of MTU X
Mesarya Energy, Inc. Support MTU for the purposes of generally providing contractual services, including financing, operating, improving, and expanding the University’s utilities services and infrastructure X
Mesarya Tech, Inc. Formed by the ………..Northern Cyprus universities to engage universities and industry in scientific research in the nation’s interest, and to increase the role of 2 National Laboratory in science, education, and economic development X

 

 

MTU, Inc. Support technology transfer and catalyse economic development at MTU X
The Mesarya Museum Alliance, Inc. Membership organization for the Museum X
The Faculty of Economics & Administrative SciencesFoundation, Inc. Promote continuing education to the business community, including masters programs and professional workshops X
The Mesarya Technical University Alumni Association, Inc. Provide services and support to MTU alumni and support to the University X
The Mesarya Technical University Foundation, Inc. Raise funds for MTU X
Mesarya Club, Inc. Raise funds necessary to provide financial support for student-athlete scholarships, facilities, programs that support student-athlete success, and operational support to create an athletics program of excellence X
MTU Veterinary Group, Inc. Facilitate and enhance the clinical, educational, and research functions of the faculty MTU’s Faculty of Veterinary Medicine X
MTU Medical Centre, Inc. Healthcare X

 

 

Applicability

This policy applies to all joint powers agreements entered into by the University.

Policy

The Board of Trustees shall authorize any joint powers agreement entered into by the University. By means of a resolution specifying the general subject and the government agency involved, the Board of Trustees may authorize the Rector or his or her designee to enter into a joint powers agreement to exercise jointly any power common to the University and the Northern Cyprus (TRNC) government agency. In the alternative, and at the discretion of the Board, the Board of Trustees may approve the actual joint powers agreement.

Joint powers agreements should be used only where required by statute for the joint exercise of a power common to two or more Northern Cyprus (TRNC) public agencies.

Implementation

The Rector may adopt administrative policies and procedures to implement this policy

References

 

 

– Section 7.19: Board of Trustees’ Endowment Fund

Adopted Date: October, 2019


Applicability This policy applies to all allocations and expenditures from the Board of Trustees’ Endowment Fund.

 

Policy 

 

The Board of Trustees’ Endowment Fund has been created as a quasi-endowment of the University. It shall be managed and used as follows:

  1. The Board of Trustees’ Endowment Fund shall be invested as part of the University’s endowment funds and portfolio and shall be managed in accordance with the Board of Trustees’ Investment Management Policy.
  2. The proceeds from the sale of all real property owned by the University, net of any disposal costs, shall be deposited into the Board of Trustees’ Endowment Fund.
  3. All reductions of the Board of Trustees’ Endowment Fund principal balance must be approved by the Board of Board of Trustees and shall generally be limited to acquisition of real property.
  4. Investment income distributed annually in accordance with the investment management guidelines approved by the Board of Board of Trustees shall be limited to programs which: (1) enhance the recruitment and retention of outstanding faculty, staff and students; (2) contribute to the merit-based scholarship program of the University, including the Board of Trustees’ Scholars Program; (3) support the development of real estate; (4) provide for the University Rector’s Advancement Program; (5) reward outstanding performance of the Financial Services Centre Investment Management Program, to be used for improvements to and upgrade of the facilities, equipment, software, and special projects for the Finance Services Centre.
  5. The University administration shall provide information to the Board of Trustees in June of each year regarding the Board of Trustees’ Endowment Fund’s principal balance and the proposed distribution of income for the next fiscal year.
  6. To provide an opportunity for Faculty of Economics & Administrative Sciences students to receive realistic investment experience and training, the Board of Board of Trustees’ will transfer Two Million Dollars ($2,000.000) from the MTU/Foundation Consolidated Investment Fund to the Financial Services Centre Investment Management Program of the Faculty of Economics & Administrative Sciences. The funds will be invested as part of anfaculty-guided educational program. This transfer is effective October 2020, in accordance with the Resolution adopted by the Board of Board of Trustees on October 2019, and implemented in accordance with the Investment Management Guidelines for Financial Services Centre Investment Management Program, as reviewed and revised by the Board of Board of Trustees. The funds remain part of the Board of Trustees’ Endowment and the Board of Board of Trustees retains the right to terminate the program and require the return of any or all of their fund balance.

 

Implementation

The Rector may adopt administrative policies and procedures to implement this policy.

References   RPM 7.13 (Receipt and Investment of Gifts to the University).

 

 

– Section 7.20: Budgets and Fund Balances

Adopted Date: October, 2019

Applicability

This policy applies to budget management and use of fund balances for Current Unrestricted funds at the Mesarya Technical University with special emphasis on Instruction & General funds.

Policy

The Board of Board of Trustees has a fiduciary responsibility to ensure effective, efficient management of funding provided to the University to fulfil its mission of education, research, and public service. Budgeting involves all segments of the University and is a continuous process designed to ensure the best use of available funding. Budget management requires short-term and long-range planning, and involves setting up program priorities, requesting funding, allocating available funds to various programs and projects, preparing and maintaining the budget, and reporting on the use of funds and intended use of any unexpended funds.

Reporting and Review of Fund Balances

At the end of each fiscal year departments responsible for Current Unrestricted funds will submit a budget use report to the cognizant vice Rector. The report will include beginning balances, new revenue, expenditures, transfers, and ending balances for the fiscal year just ended. In addition, the report for Instruction & General funds will include the ending fund balances as a percentage of the budget for each department. The Budget Office will submit a comprehensive report on fund balances to the Board of Board of Trustees at their November meeting. This information will be reported University-wide for Instruction & General, Student Social and Cultural Development, Research, Public Service, Financial Aid, Auxiliary Enterprises, Athletics, and Independent Operations.

Allocation of Fund Balances

It is critical to the fiscal integrity of the University that adequate central reserves be available to address unexpected and/or critical needs of the University; therefore, the Board of Trustees may transfer a percentage of annual savings in Instruction & General fund balances to a central fund. The Board of Trustees will determine how these funds will be allocated in support of the mission of the University. This process provides an incentive to budgetary units to build balances for future use, while also recognizing that cost savings throughout the University need to be available to address institutional priorities. An exception to this policy may be granted if a department submits a plan for use of its fund balance to the cognizant vice Rector for approval. If approved by the cognizant vice Rector, the plan must then be submitted to the Board of Trustees for final approval.

Deficit Balances

If a department anticipates a year-end deficit, the deficit will be covered by the next higher-level responsible administrator or the department’s budget will be reduced by an amount sufficient to cover the prior year’s deficit. Exemption from this process requires written approval from the cognizant vice Rector.

Implementation

Every department with a negative fund balance that existed on or before June 30, 2019, must submit a deficit reduction proposal by March 31, 2020, for review and approval by the cognizant vice Rector. The proposal will include a plan for phased reduction of the deficit. The Rector shall adopt administrative policies and procedures for implementing this policy.

References

RPM 1.1 “Responsibilities of the Board of Board of Trustees.”

 

 

– Section 7.21: Investment of Operational Funds and Bond Proceeds

Adopted Date:October, 2019

 

Applicability

This policy governs the investment of operational funds and bond proceeds of the Mesarya Technical University. It does not apply to endowments held by the University and the MTU Foundation, which are invested in accordance with the Foundation’s Consolidated Investment Fund Endowment Investment Management Policy.

Policy

The University shall manage its cash flow in a manner which will maximize funds available for investments. The primary objective for investments of operational funds and bond proceeds of the University is capital preservation. In addition, available funds shall be invested with the following objectives:

  1. Conformance with applicable laws and regulations, bond resolutions and indentures, and other pertinent legal restrictions.
  2. Sufficient liquidity to ensure the University can quickly respond to cash demands and meet funding and operations requirements and emergency expenditures.
  3. Recognition of differing objectives and needs of various operating funds and bond proceeds.
  4. Maximization of investment returns.

The Board recognizes that in order to meet these investment objectives it may be advantageous to engage the services of investment consultants and managers who have appropriate training and expertise and who have access to specialized information and analysis or analytical tools and systems. Investment consultants and managers must be registered investment advisors with the Securities and Exchange Commission (SEC) and must have a minimum of $500 million of assets under management. Such contracts must be approved by the Board of Board of Trustees. All persons or entities, including investment managers and consultants, that have responsibility for investment of University funds shall be bound by this and other University policies, including conflict of interest policies RPM 1.8 and RPM 6.4, and Northern Cyprus laws and regulations.

Investment Guidelines

University assets may be invested in any securities permitted by law, subject to the provisions of this investment policy. Individuals responsible for investment decisions shall exercise judgment, care, skill, and caution to invest and manage funds as a prudent investor would, by considering the objectives, terms, and distribution requirements while preserving capital. Operational funds and bond proceeds are primarily invested in high quality, relatively short-term fixed income securities not exposed to significant market risk. Investments should have an average duration of three years or less, an average credit quality of A1/A+ or better, no use of leverage, and security ratings of investment grade.

Prohibited Investments

Notwithstanding authority granted by law and elsewhere in this document, in order to mitigate exposure to interest rate risk, market risk, and liquidity risk, the following investments and investment practices are prohibited. Prohibited investments include, but are not limited to the following:

  • Domestic or international equity securities (i.e. stocks)
  • Commodities and futures contracts
  • Options
  • Speculative securities
  • Mortgages–backed debt and pass-through securities or obligations
  • Non-government fixed income mutual funds
  • Private placements
  • Limited partnerships
  • Real estate properties
  • Principal-only (PO) securities
  • Interest-only (IOs) securities
  • Planned amortization class (PACs)
  • Residual Tranche collateralized mortgage obligations
  • Venture-capital investments
  • Derivatives, except when utilized to protect the Global Fixed Income Portfolio
  • Collateralized mortgage obligations (CMOs) and other mortgage-backed securities, inverse floaters, leveraged floaters, capped and rate floaters, dual index floaters, and floating rate notes whose index is tied to a long-term interest rate or lagging index, e.g. Cost of Funds Index (COF1)
  • Investment purchase on margin or short sales
  • Leveraging the portfolio, lending securities with an agreement to buy them back after a stated period of time (reverse repurchase agreements from the perspective of the Operating Fund)
  • Repurchase agreements are prohibited for operating funds, but are allowable for bond proceeds
  • GICs are prohibited for operating funds, but are allowable for bond proceeds

 

Reporting and Accountability

The University Debt and Investment Advisory Committee is responsible for ensuring University investments are managed in accordance with University policy and applicable laws and regulations. The Committee is also responsible for oversight of the investment process and distribution of investment income, monitoring investment activities, and reporting the results of investment activity annually to the Board of Board of Trustees. The Committee is chaired by the Executive ViceRector for Administration/CFO/COO and is composed of representatives from Financial Services, the Office of Planning, Budget and Analysis, and other members designated by the Executive Vice Rector for Administration/CFO/COO.

The Associate ViceRector for Planning, Budget, and Analysis under the supervision of the Executive Vice Rector for Administration/CFO/COO is responsible for the day-to-day investment activities concerning University operational funds and bond proceeds. The associate vice Rectors for Financial Services are responsible for ensuring proper internal controls are in place. The MTUH Administrative Chief Financial Officer is responsible for the day-to-day investment activities concerning MTU Hospital operational funds and bond proceeds and for ensuring proper internal controls are in place. All investment transactions require prior authorization from two University administrators with signature authority on the University’s depository account. All individuals delegated authority to make investment decisions must be bonded in accordance with relevant laws and regulations.

References

Arbitrage;

RPM 1.8 ” Regent Code of Conduct and Conflicts of Interest Policy,”

RPM 6.4 “Employee Code of Conduct and Conflicts of Interest Policy,”

UBPPM 3715 “Code of Conduct,”

UBPPM 3720   “Conflicts of Interest,”

UBPPM 7610 “Investment Management.”