65
(c) The institution demonstrates that (1) the chief executive officer controls any fund-raising activities of that entity or (2) the fund-raising activities of that entity are defined in a formal, written manner that assures those activities further the mission of the institution.
(Institution-related entities)
Though Foundation representatives noted that the University created the MOU and had it signed in a few days, email correspondence maintained by KSU identify some discussion of a draft MOU between the Foundation and KSU having occurred earlier that fall without being finalized at the time, and subsequent edits appear to have been made by KSU. An official MOU was not signed until March 2019. On December 10, 2019, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) announced KSU’s accreditation was reaffirmed for the next 10 years.
As it relates to communication between KSU and the Foundation, the MOU identifies the President as responsible for communicating KSU's priorities and long-term plans, as approved by KSU's Board, to the Foundation. While no written internal policies or procedures documenting KSU's processes for engaging the Foundation exist, KSU implemented the use of a standardized expenditure request form to document requests and associated approvals. All requests require at least the President's approval but may also include the account administrator and a supervisor or vice president. For the period July 1, 2018, through June 30, 2021, KSU was unable to provide documentation of KSU expenditure requests submitted to the Foundation.
KSU accounting personnel, including one of its former Controllers, noted that KSU’s accounting staff would be unaware of any requests made to the Foundation. As such, they would be unaware if denied expense(s) would be presented to the Foundation for payment or if the Foundation paid for the same expense(s) KSU incurred. While it may be appropriate for some distance to exist in the operations of each entity, this separation should not prevent or restrict communications as this increases KSU’s risk for inappropriate use of funds or for those funds to be improperly recorded.
Between July 1, 2018, and June 30, 2021, KSU transferred over $60,000 from KSU’s current unrestricted funds to the Foundation for the purpose of funding a President’s Recognition account. This funding was provided in accordance with the former President’s employment contract, which identified that KSU would contribute $30,000 each year to a fund to equally benefit KSU students, faculty, and staff.
As identified in his contract and in a letter to the Foundation dated November 16, 2017, the President states:
KSU shall distribute the $30,000 to the Presidential Fund annually in the following manner: