Board reviews first readings of foundation reporting and local advisory committee policy changes

The Minnesota State Board of Trustees reviewed first readings on two policy amendments related to campus foundations and advisory committees at Monday’s meeting.

Jen Daubessy, who led the staff team drafting the changes, outlined proposed amendments to Policy 8.3, College and University Related Foundations, and said the revisions were the result of a year-long consultation with foundation directors, the finance division, internal audit and campus presidents. "The key points of the proposed policy amendment added descriptions that further define the work of advancement and include the terms development and stewardship," she said.

A major change in the draft is a revised reporting regime for related foundations with annual revenues under $750,000. For foundations below that threshold, the proposed amendment would require one of the following once every three years: an audited financial statement; a financial statement review performed by a certified public accounting firm; or the results of agreed-upon procedures focused on internal controls as specified in operating instruction 8.3.0.1. "The proposed revision is to provide a less burdensome option in addition to an audit for those foundations that again have revenues under 750 ks in a fiscal year," Daubessy said.

Staff confirmed that foundations with revenues above $750,000 would continue to provide audited financial statements annually.

Noelle Houghton, introduced the related outreach context and said the system has worked with presidents and foundation leaders on the draft language. Board members asked for additional detail about how foundation boards exercise spending authority and whether any institutions grant presidents unilateral discretion over foundation funds. Staff replied that responsibility for managing foundation financial resources lies with the related foundation board and that donor restrictions determine allowable uses. A staff speaker noted that foundations are accountable to the Attorney General of Minnesota and the Internal Revenue Service for donor-restricted gifts.

Trustees then reviewed Policy 8.5 on local advisory committees; staff described the proposed changes as technical edits intended to clarify that advisory committees are, by design, advisory and to reaffirm their purpose in advising presidents and promoting program responsiveness to community needs. Trustees asked about opportunities to coordinate advisory boards across institutions in overlapping service areas and about guidance for making advisory boards effective and diverse.

Both items were presented as first readings. No motions or votes on amendments were recorded during this session; staff said the proposals would return to the board for subsequent consideration after any additional review and comment.