7.1.1 Allocation of Funds
The Board of Regents shall be the only medium through which formal requests shall be made for appropriations from the General Assembly and the Governor of the State of Georgia. The Board shall make the allocation of funds to the institutions at the April meeting or the next regular meeting following the approval of the Appropriations Act, or as soon thereafter as may be practicable in each year, and shall approve the budgets of the institutions and of the office of the Board of Regents at the regular June meeting in each year, or as soon thereafter as may be practicable.
7.1.2 Accounting and Reporting
Accounting and reporting procedures of the Board of Regents shall be in accord with the Policies of the Board of Regents, approved by the Chancellor, and published by the USG chief fiscal officer.
When any situation develops that would create a deficit at an institution, the president shall take the appropriate corrective action. If the president determines that he/she cannot take adequate corrective action to eliminate the deficit, he/she shall inform the Chancellor and/or the USG chief fiscal officer immediately.
A USG financial report prepared by the USG chief fiscal officer shall be published annually (BoR Minutes, 1946-47, pp. 112-15).
The USG Budget shall comprise all funds received by USG institutions and agencies including, but not limited to, state appropriations, tuition, revenues generated from mandatory and elective fees as defined in Section 7.3.2 of this Policy Manual, federal, state and local grant and contract revenues, revenues from the sales of services, scholarship income, gifts and donations and the income generated therefrom, and any other such sources as are used to provide for teaching, research, and service and the general and educational activities and functions related thereto in support of the goals, objectives, and mission of the system.
7.2.1 Educational and General Revenues and Expenditures
Education and general revenues and expenditures shall be defined as revenues received and expenditures made to support the teaching, research and public service missions of USG institutions, which shall be categorized as follows.
The Instruction category includes expenditures for all activities that are part of an institution’s instruction program. Expenditures should be included for:
- Credit and noncredit courses;
- Academic, vocational, and technical instruction;
- Remedial and tutorial instruction; and,
- Regular, special, and extension sessions.
Expenditures for departmental research and public services that are not separately budgeted should also be included in this classification. This category includes expenditures for academic instruction when the primary assignment is, for example, administration - academic deans. Expenditures for department chairpersons and administrators for whom instruction is an important role are also included.
The Research category includes all expenditures for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Subject to these conditions, the category includes expenditures for individual and/or project research as well as that of institutes and research centers.
This category does not include all sponsored programs, nor is it necessarily limited to sponsored research, since internally supported research programs, if separately budgeted, might be included in this category under the circumstances described. Expenditures for departmental research that are separately budgeted for research are included in this category. However, the research category does not include expenditures for departmental research that are not separately budgeted.
The Public Service category includes expenditures for activities established primarily to provide non-instructional services beneficial to individuals and groups external to the institution. These activities include community service programs, excluding instructional activities, and cooperative extension services.
Included in this category are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting, and similar non-instructional services to particular sectors of the community.
The Academic Support category includes expenditures incurred to provide support services for the institution’s primary missions: instruction, research, and public service. It includes:
- Retention, preservation, and display of educational materials, for example, libraries, museums, galleries;
- Provision of services that directly assist the academic functions of the institution, such as demonstration schools associated with a department, school, or college of education;
- Media such as audio-visual services, and technology such as computing support;
- Academic administration, including academic deans but not department chairpersons, and personnel development providing administration support and management direction to the three primary missions (instruction, research, public service); and,
- Separately budgeted support for course and curriculum development.
For institutions that currently charge some of the expenses directly to the various operating units of the institution, such as computing support, this category does not reflect such expenses.
The Student Services category includes expenditures incurred for offices of admissions and the registrar, and activities with the primary purpose of contributing to students’ emotional and physical well-being and intellectual, cultural, and social development outside of the context of the formal instruction program.
It includes expenditures for student activities, cultural events, student newspapers, intramural athletics, student organizations, intercollegiate athletics (if the program is not operated as an essentially self-supporting activity), counseling and career guidance (excluding informal academic counseling by the faculty), student aid administration, and student health service (if not operated as an essentially self-supporting activity).
In recent years, some institutions have created an office of enrollment management. Expenditures for such an office are best categorized in Student Services.
The Institutional Support category includes expenditures for:
- Central executive-level activities concerned with management and long-range planning for the entire institution, such as the governing board, planning and programming, and legal services;
- Fiscal operations, including the investment office;
- Administrative data processing;
- Space management;
- Employee personnel and records;
- Logistical activities that provide procurement, storerooms, safety, security, printing, and transportation services to the institution;
- Support services to faculty and staff that are not operated as auxiliary enterprises;
- Audit services; and,
- Activities concerned with community and alumni relations, including development and fund raising.
To the extent that fringe benefits are not assigned to other functional categories, those benefits would be charged to Institutional Support.
The Plant Operations and Maintenance category includes all expenditures of current operating funds for the operation and maintenance of the physical plant, in all cases net of the amount charged to auxiliary enterprises, hospitals, and independent operations. It includes all expenditures for operations established to provide services and maintenance related to grounds and facilities. Also included are utilities, fire protection, property insurance, and similar items.
It does not include expenditures made from the institutional plant funds accounts.
The Scholarships and Fellowships category includes expenditures for scholarships and fellowships, from restricted or unrestricted current funds, in the form of grants to students, resulting from selection by the institution or from an entitlement program.
The category also includes trainee stipends, prizes, and awards. Trainee stipends awarded to individuals who are not enrolled in formal course work should be charged to instruction, research, or public service.
7.2.2 Auxiliary Enterprises Revenues and Expenditures
Auxiliary enterprises revenues and expenditures shall be defined as all revenues received and expenditures made for functions and activities that are related to the mission of USG institutions including, but not limited to:
- Food Services;
- Student Health Services;
- Student Activities;
- Intercollegiate Athletics (excluding intercollegiate athletics which are operated under the authority of a separately incorporated athletic association);
- Stores and Shops; and
- Vending and Other Services.
Refer to Section 15.0, Auxiliary Enterprise Funds, of the Business Procedures Manual for more information on auxiliary enterprise funds.
Auxiliary enterprise operations shall operate on a self-supported basis with revenues derived from student fees and other non-state sources, except as provided below. Each auxiliary enterprise operation shall be charged for its share of plant operations and maintenance expense as a direct expense, and/or charged on the basis of an allocation methodology, such as share of total institutional square footage. USG institutions may choose also to charge administrative overhead to recoup general costs expended on behalf of each operation.
Each institution shall develop and update annually a five-year plan for each auxiliary enterprise operation that defines the level and manner of service to be provided, planned expenditures and sources of revenue, including projected fee requirements. The format and content of each plan shall be determined by the USG chief fiscal officer, but must minimally shall contain the following:
- A statement regarding the role of the enterprise in the context of the institution’s academic mission.
- A statement of goals and objectives to be achieved over the course of the five-year plan.
- A statement on operating strategy, including services to be provided and sources of revenue, including student fees.
- A financial pro forma that projects future revenues and expenditures consistent with stated goals and objectives. The method used to allocate plant operations costs and other indirect costs, if charged, also shall be described in the five-year plan.
- The plan shall provide for an adequate reserve to cover anticipated renewals and replacements and other contingencies, as necessary (BoR Minutes, January 2010).
Exceptions to the requirement that institutions operate their auxiliary enterprises on a self-supporting basis shall be recognized as follows:
- Institutions may choose to operate some auxiliary enterprise activities on a loss basis, but must indicate in their five-year plans how the costs of such activities will be covered by revenues generated through other auxiliary operations. It shall be the Board of Regents’ determination as to whether such losses are sustainable based on the institution’s five-year plan.
- Institutions may apply general fund resources to auxiliary enterprise operations where such expenditures can be justified as supporting the primary mission of the institution. In no instance may general fund revenues be used to support athletic scholarships. The use and amount of general revenues applied to the support of auxiliary enterprise operations shall be included in the five-year plan.
Accounting records for auxiliary enterprises will be maintained on the full accrual basis. Therefore, funded depreciation will be required for all auxiliary enterprise service equipment, buildings, infrastructure and facilities, and other improvements. The reserve for depreciation will be used for repair and replacement of auxiliary assets according to guidelines provided in Section 7.0, Capitalization, of the Business Procedures Manual. The funds collected will be left with the institutions (BoR Minutes, February, 2007).
7.2.3 Operating Budgets
Each USG institution shall prepare an operating budget for educational and general activities and an operating budget for auxiliary enterprises of the institution for the fiscal year within the limit of funds allocated plus estimated internal income of the institution. Operating budgets of separately incorporated athletic organizations are specifically excluded from this process, although the transfer of student fees to those separately incorporated organizations must be reflected as a single item in the budget submitted to the Chancellor (BoR Minutes, 1946-47, pp. 214-15).
7.2.4 Budget Amendments
Institutions are authorized to amend their annual operating budgets without prior approval of the Board of Regents except for any amendment that exceeds $1,000,000 and involves state general fund appropriations, auxiliary enterprise funds or student activity funds shall be submitted to the Board of Regents for approval. Prior Board of Regents approval shall not be required for any budget amendment involving special purpose state funds, non-state funds, or internal revenue sources.
Institutions shall be required to report quarterly on all budget amendments to the USG chief fiscal officer under procedures developed by his/her staff. The Chancellor or the USG chief fiscal officer reserves the right to require prior approval of the budget amendments at any USG institution that he/she determines has failed to manage its budget within available resources or in a manner consistent with Board of Regents goals and priorities. Under these circumstances, the Chancellor or the USG chief fiscal officer may request the institution to develop a remediation plan to assure more appropriate decisions on future budget changes (BoR Minutes, 1951-52, pp. 365-66; June, 1999, p. 17).
7.2.5 Liability for Expenditure of Budgets
Bonds of public officials authorizing expenditures for any purpose whatsoever that are in excess of budget amounts approved by the Board shall be liable for such unauthorized expenditures.
Tuition shall be defined as payment required for credit-based instruction and related services and shall be charged to all students. Tuition rates for all USG institutions and programs shall be approved annually no later than the May meeting by the Board of Regents to become effective the following fall semester. Exceptions to this requirement may be granted upon recommendation of the Chancellor and approval by the Board of Regents.
Tuition for both undergraduate and graduate students enrolled at a USG institution shall be charged at the full rate for students enrolled for fifteen (15) credit hours or more, and at a per credit hour rate for students enrolled for less than fifteen (15) credit hours, effective July 1, 2009. Graduate tuition will be charged at the full rate for students enrolled for twelve (12) credit hours, and at a per credit hour rate for students enrolled for less than twelve (12) credit hours (BoR Minutes, June 2009). Distance education courses and programs as defined in Section 220.127.116.11 of this Policy Manual may be exempted from this policy and charged on a per credit hour basis.
Further, a “finish-in-four” tuition model that provides for a flat tuition based on fifteen (15) hours a semester will be charged at University of Georgia and Georgia Institute of Technology for all students taking in excess of six (6) hours, to encourage students to graduate in four (4) years. Students taking six (6) hours or fewer will pay a flat rate that will be lower than the 15-hour rate. The “finish-in-four” model is effective July 1, 2009 (BoR Minutes, June 2009). Students jointly enrolled in high school and at either the University of Georgia or Georgia Institute of Technology under the Accel program will continue to be charged tuition on a per-credit-hour basis (BR Minutes, August 2009).
In-State Tuition shall be defined as the rate paid by students who meet the residency status requirements as provided in Section 4.3 of this Policy Manual.
Out-of-State Tuition shall be defined as the rate paid by students who do not meet the residency status requirements as provided in Section 4.3 of this Policy Manual. Out-of-state tuition at all USG institutions shall be established by the Board, taking into consideration: (1) out-of-state tuition rates of peer or comparable institutions, and (2) the full cost of instruction. The annual increase in the out-of-state tuition amount must be at least equal to the dollar increase amount in in-state tuition.
Guaranteed Tuition Rate
The Guaranteed Tuition Rate shall be defined as the rate paid by students enrolled in a USG undergraduate program who entered the USG for the first time as new students or as transfer students between fall 2006 and spring 2009 (BoR Minutes, June 2009). The guaranteed tuition rate shall be held constant for each new student or transfer student, except those that may be classified as current and continuing students as noted below, for a period of time as described in Section 18.104.22.168 of this Policy Manual.
Continuing Tuition Rate
The Continuing Tuition Rate shall be defined as the rate paid by students enrolled in a USG undergraduate program who entered the USG for the first time as new students or as transfer students prior to fall 2006.
New Students shall be defined for the purposes of this section as students enrolled in an undergraduate program at a USG institution for the first time between fall 2006 and spring 2009, and who have not previously earned academic credits at a postsecondary institution except as students jointly (or dually) enrolled in high school and a postsecondary education institution or through advanced placement credit (BoR Minutes, June 2009).
Non-USG Transfer Students
Non-USG Transfer Students shall be defined as students who, after high school graduation, entered as a first time freshman to a non-USG postsecondary institution and earned academic credit.
Current and Continuing Students
Current and Continuing Students shall be defined for the purposes of this section as students who entered the USG for the first time as new students or as transfer students prior to fall 2006.
Semester shall be defined for the purposes of this section as the standard term of instruction for each USG institution for fall, spring, and summer. The summer semester shall be defined as the combined terms of instruction provided by USG institutions that begin after the completion of the spring semester and end prior to the start of the fall semester (BoR Minutes, October 2006).
The guaranteed tuition plan is discontinued for new students beginning summer semester 2009, and the provisions outlined below will not apply. The sections will continue to apply for students already on the guarantee for the period of the guarantee (BoR Minutes, June 2009).
Pursuant to Section 22.214.171.124 of this Policy Manual, the Board of Regents shall annually approve guaranteed tuition rates for each USG institution. The provisions of this section shall not apply to courses offered as distance learning courses or to undergraduate programs for which differential rates have been approved, except that the provisions shall apply to the undergraduate programs in Landscape Architecture and Forestry and Natural Resources at the University of Georgia (BoR Minutes, October 2006; March 2007).
Research, Regional, or State University
New students enrolled in an undergraduate program at a USG research, regional, or state university shall be charged the approved guaranteed tuition rates for these institutions, which shall be fixed for new students for a period of four (4) years, or twelve (12) consecutive semesters, including fall, spring, and summer.
New students enrolled in an undergraduate program at a USG state college shall be charged the approved guaranteed tuition rates for these institutions as follows:
- For new students enrolled in lower-division programs, the lower-division guaranteed tuition rate shall be charged and fixed for these new students for a period of three (3) years, or nine (9) consecutive semesters including fall, spring, and summer.
- For new students enrolled in upper-division programs, the upper-division guaranteed tuition rate shall be charged and fixed for these new students for a period of two (2) years, or six (6) consecutive semesters including fall, spring, and summer.
New students enrolled in an undergraduate program at a USG two-year college shall be charged the approved guaranteed tuition rates for these institutions, which shall be fixed for new students for a period of three (3) years, or nine (9) consecutive semesters, including fall, spring, and summer.
University College Programs
New students enrolled initially in the university college programs at Armstrong Atlantic State University’s Liberty Center, Augusta State University, Columbus State University, and Savannah State University who progress to the regular undergraduate programs offered by these institutions shall be charged the approved guaranteed tuition rates, which shall be fixed for a period of five (5) years, or fifteen (15) consecutive semesters, including fall, spring, and summer.
New students who enter the regular undergraduate program at these institutions shall be charged the guaranteed tuition rate for four (4) years, or twelve (12) consecutive semesters) as noted above.
New students enrolling in an undergraduate program at a USG institution in summer 2006 may be charged either the nonguaranteed tuition rate approved by the Board of Regents effective fall 2005, or the guaranteed tuition rate approved by the Board of Regents effective fall 2006 pursuant to the policy established by each USG institution and subject to:
- If charged the non-guaranteed tuition rate for summer 2006, new students shall be charged the guaranteed tuition rate beginning fall 2006, which shall be fixed as noted above.
- If charged the guaranteed tuition rate for summer 2006, new students shall continue to be charged the same guaranteed tuition rate beginning fall 2006, which shall be fixed at that rate beginning with fall 2006 as noted above.
New students enrolling in an undergraduate program at a USG institution for the first time in summer 2007 and any summer thereafter shall be charged the guaranteed tuition rate approved by the Board of Regents for the year in which that summer occurs and be charged the new fall guaranteed tuition rate as noted above.
Transfer students from non-USG institutions shall be charged the guaranteed tuition rate effective the year in which they transferred, which shall be fixed for two (2) years, or six (6) consecutive semesters. This policy shall become effective for such students beginning with spring semester 2007.
Transfer students from USG institutions who first entered the USG in fall 2006 or thereafter shall be charged the guaranteed tuition rate at their new institution that was approved for the year in which they first entered the USG, if that year does not precede the year of transfer by more than the period of time as described above.
This provision, however, shall not apply to students who transfer to the Medical College of Georgia’s health profession programs as third-year students. These students shall pay the guaranteed tuition rate in effect in the year they transfer and shall retain that guaranteed tuition rate for no more than two (2) years, or six (6) consecutive semesters.
Students Enrolled in Programs Requiring More than Four (4) Years to Complete
USG research, regional, and state universities may, under limited circumstances, extend the guaranteed tuition rate up to three (3) additional consecutive semesters for certain selected programs that require more than four (4) years to complete. A list of these programs must be provided to the Board of Regents annually.
Students Jointly Enrolled in High School and a USG Institution
Students jointly enrolled in high school and a USG institution should be charged the prevailing guaranteed tuition rate. The period of time is not fixed. Students who graduate from a high school with college credit are eligible for the guaranteed tuition rate as new students as noted above.
Students in the Georgia Academy for Mathematics and Engineering at Middle Georgia College and the Advanced Academy of Georgia at the University of West Georgia are treated as new students when they first enter the USG. They are eligible for the tuition rate prevailing when they start their program for a period of twelve (12) consecutive semesters.
Students Called to Active Military Duty
A student eligible to receive the guaranteed tuition rate who is called to active duty will receive an extended guarantee for the period of service up to two (2) years, or six (6) consecutive semesters.
Transient and Non-degree-seeking Students
Transient and non-degree-seeking students who enrolled at a USG institution in fall 2006 or later and who are assigned a guaranteed rate shall be charged at the assigned rate at the institution they attend. New non-USG transient students enrolling at a USG institution should be assessed the same rates applicable for non-USG transfer students and have the benefit of maintaining that rate for two (2) years, or six (6) consecutive semesters.
Expiration of the Guaranteed Tuition Rate
The guaranteed tuition rate for new and transfer students will expire at the end of the periods described under this section. Students shall be charged the prevailing guaranteed tuition rates established for the next semester in which they enroll at a USG institution and be charged the new guaranteed tuition rates established each year by the Board of Regents.
At the expiration of the guaranteed tuition rate term, part-time students, as defined in this section, shall be charged the non-guaranteed tuition rate as described in Section 126.96.36.199 of this Policy Manual. This section is applicable only to those part-time students who began as freshmen in the USG in fall 2006 (or later) and who were on the guaranteed tuition plan.
Part-time students shall be defined as attempting no more than 48 cumulative semester credit hours over the four-year period. For students enrolled at two-year institutions, part-time students shall be defined as attempting no more than thirty-six (36) hours over the three-year guarantee period. For students enrolled at state colleges, part-time students shall be defined as attempting no more than an average of twelve (12) credit hours for each year of the guarantee period.
Each USG institution shall establish a process to allow students to appeal their eligibility for the guaranteed tuition rate based upon extenuating circumstances. Each institution shall have the final decision on any appeal.
The continuing tuition rates as defined in Section 188.8.131.52 of this Policy Manual and shown below shall be charged to all students classified as current and continuing students.
The Continuing Tuition Rate shall be defined as the rate paid by students enrolled in a USG undergraduate program who entered the USG for the first time as new students or as transfer students prior to fall 2006.
USG institutions that offer graduate programs may request Board approval for graduate tuition rates as follows:
- Effective for the fall semester 2007, each institution that offers graduate programs shall request a “core” graduate tuition rate that shall apply to all graduate courses and programs, based on market comparators for in-state and out-of-state tuition (BoR Minutes, June 2009).
- Each institution may request separate graduate tuition rates for specialized programs, subject to the provisions of Section 184.108.40.206 of this policy manual.
The regular graduate tuition rates normally shall be charged to all graduate students. However, where a graduate student is classified as a research, teaching, or graduate assistant, the institution may waive all or part of the graduate tuition and/or waive the differential between in-state and out-of-state graduate tuition. A registration fee of no less than $25 shall be charged to all students for whom a full waiver is provided (BoR Minutes, October 2006).
Board approval shall be required for in-state and out-of-state differential tuition rates for nationally competitive graduate and professional programs, as deemed appropriate by the institution based upon the academic marketplace and the tuition charged by peer institutions with similar missions (BoR Minutes, June 2009).
An institution seeking such approval from the Board shall provide the Board with an impact analysis and a plan for enhancing the quality of the program.
The professional program tuition rates normally shall be charged to all program students. However, the institution, on a degree program basis, may waive the graduate tuition in accordance with such policies noted or limit the waiver to the amount associated with the regular graduate tuition where a graduate student is:
- Classified as a graduate assistant under Section 220.127.116.11 of this Policy Manual; or,
- Eligible for an out-of-state tuition waiver under Section 18.104.22.168 of this Policy Manual.
(BoR Minutes, June 2005)
Institutions may charge special tuition rates for distance education courses and programs. For the purposes of this policy, distance learning courses and programs shall be defined as those courses and programs in which 95% or more of class contact time is delivered by a distance technology.
If the rate is either less than the institution’s in-state tuition rate or greater than its out-of-state rate, Board approval is required.
Institutions shall report annually to the USG chief fiscal officer on all tuition rates charged for distance learning courses and programs.
Notwithstanding other provisions in Sections 7.3 of this Policy Manual, rates shall apply to all students regardless of residency status.
USG institutions may enter into agreements with customers, defined as corporations, organizations, agencies, or other legal entities, for the delivery of credit courses and programs. The course/program delivery shall be restricted to members of the customer group and their dependents, except upon agreement between the institution and the customer to permit nonmembers or nonemployees to enroll in courses/programs on a space-available basis.
The amount institutions may charge for the course/program delivery shall be agreed upon between the institution and the customer, such that the total cost shall represent the reasonable and fair market value of the instruction and provided that the charges are not less than the total direct and indirect costs to the institution for the delivery of instruction and related services. Such costs may include, but are not necessarily limited to, course development, direct instruction, textbooks, consumables, non-instructional services, hardware, software, and indirect costs such as administrative overhead, maintenance, and security.
The charges agreed upon between the institution and the customer shall be assessed to the customer on a per seat, per student, or per agreement (flat-rate) basis.
Institutions shall be required to report annually to the Chancellor regarding these agreements.
7.3.2 Student Fees and Special Charges
Mandatory student fees are defined as fees that are paid by all students as required by the Board of Regents or as required by the institution subject to approval by the Board of Regents. When there is a change in the purpose of the mandatory fee, it shall be subject to approval by the Board of Regents (BoR Minutes May 2010).
Mandatory fees shall include, but not be limited to:
- Intercollegiate athletic fees;
- Student health service fees;
- Transportation or parking fees (if the latter are charged to all students);
- Student activity fees;
- Technology fees; and
- Facility fees. (BoR Minutes, January 2010)
All mandatory fees shall be approved by the Board of Regents at its meeting in April to become effective the following fall semester. Exceptions to this requirement may be granted upon recommendation of the Chancellor and the approval of the Board of Regents.
An institution may waive mandatory fees for students who are enrolled for fewer than six (6) credit hours. Alternatively, institutions may prorate mandatory fees on a per-credit-hour basis for students taking fewer than twelve (12) credit hours. Institutions may elect to reduce Board-approved mandatory fees for students enrolled in summer courses.
Proposals submitted by an institution to increase mandatory student fees, proposals to create new mandatory student fees, or a change in the purpose of a mandatory fee, shall first be presented for advice and counsel to a committee at each institution composed of at least fifty percent (50%) students, except in special circumstances when a general purpose fee is instituted system-wide by the Board of Regents (BoR Minutes, June 2009, revised May 2010). The committee shall include at least four students, who shall be appointed by the institution’s student government association. Institutions and student government associations should make a concerted effort to include broad representation among the students appointed to the committee (BoR Minutes, January 2010).
All mandatory student fees collected by an institution shall be budgeted and administered by the president using proper administrative procedures, which shall include the advice and counsel of an advisory committee composed at least fifty percent (50%) students, except in special circumstances when a general purpose fee is instituted system-wide by the Board of Regents (BoR Minutes, June 2009). The committee shall include at least four students, who shall be appointed by the institution’s student government association. Institutions and student government associations should make a concerted effort to include broad representation among the students appointed to the committee (BoR Minutes, January 2010).
Mandatory student fees shall be used exclusively to support the institution’s mission to enrich the educational, institutional, and cultural experience of students (BoR Minutes, January 2010). All payments from funds supported by student mandatory fees shall be made according to approved business procedures and the appropriate business practices of the institution (BoR Minutes, 1999-2000, p. 364).
Institution presidents are authorized to approve elective fees and special charges as outlined below; however, any fee or special charge that is required to be paid by all fulltime, undergraduate students at the institution or by all undergraduate students in a specific degree program, with the exception of specific course fees for supplementary costs, shall be approved by the Board (BoR Minutes, January 2010).
Housing fees are defined as fees paid by students who elect to live in institutional residential facilities. All housing fees, except for housing fees that are proposed to support debt service and operating costs on new housing projects funded with private funds, shall be approved by the institution president in April of each year. The housing fees that support debt service shall be approved by the Board (BoR Minutes January 2010). Each institution shall notify the Chancellor annually of all institutionally-approved housing fees (BoR Minutes, February 2007; January 2010).
Food Service Fees
Food service fees are defined as fees paid by students who elect to choose an institutional food service plan. All elective food service fees and those required for residential students shall be approved by the institution president in April of each year. All food service fees that support debt service shall be approved by the Board. Each institution shall notify the Chancellor annually of all institutionally-approved food service fees (BoR Minutes, January 2010).
Other Elective Fees and Special Charges
Other elective fees and special charges are defined as those fees and charges that are paid selectively by students. These fees and charges may include, but are not limited to:
- Resident hall deposits;
- Penalty charges;
- Non-mandatory parking fees and parking fines;
- Library fines;
- Laboratory fees;
- Post office box rentals; and
- Course fees to cover supplementary costs for specific courses, such as art materials, course packets/kits, software/videos, and special equipment (BoR Minutes, January 2010).
Institutional presidents are authorized to establish and adjust these fees, as appropriate. Prior to implementation of such fees, institutions shall be required to report to the Chancellor any establishments and adjustments made thereto under procedures established by the USG chief fiscal officer (BoR Minutes, January 2010).
Continuing Education Fees
Institutional presidents shall be authorized to establish fees for non-credit-hour courses and programs as defined in Section 5.2 of this Policy Manual.
7.3.3 Tuition and Fee Payment and Deferral
All tuition and fees (mandatory and elective) are due and payable upon registration. Exceptions to the time of payment are as follows:
- An institution may defer tuition and fees up to the amount authorized for a specific academic term for students whose fees are guaranteed and will be paid by an outside agency under a documented agreement with the institution.
- An institution may defer tuition and fees up to the amount of the aid granted for a specified academic term for students who have an institution-administered loan or scholarship in process.
- An institution may defer tuition and fees up to the limit stated in the certificate or other document for a specified academic term for foreign students who have a certificate or other acceptable documented evidence that payment will be made after a statement of charges from the student has been presented for payment.
- An institution may elect to collect fees specifically for housing on an installment basis, in advance of service provided (BoR minutes Jan. 2012).
- An institution filing an approved plan with the Office of Fiscal Affairs may elect to collect tuition and mandatory fees on an installment basis, in advance of services provided (BoR minutes, April 2012).
7.3.4 Out-of-State Tuition Waivers and Waiver of Mandatory Fees
An institution may award out-of-state tuition differential waivers and assess in-state tuition for certain non-Georgia residents under the conditions listed below. Notwithstanding any provision in this policy, no person who is unlawfully present in the United States shall be eligible for any waiver of the tuition differential (BoR Minutes, June 2010).
Note: For the definition of residency status, see Section 4.3 of this Policy Manual.
Academic Common Market
Students selected to participate in programs offered through the Academic Common Market.
International and Superior Out-of-State Students
International students and superior out-of-state students selected by the institution president or an authorized representative, provided that the number of such waivers in effect does not exceed four percent (4%) for the University of Georgia, Georgia Institute of Technology, Georgia State University, Georgia Health Sciences University, and two percent (2%) for all other institutions of the equivalent full-time students enrolled at the institution in the fall term immediately preceding the term for which the out-of-state tuition is to be waived (BoR Minutes, April 2012).
University System Employees and Dependents
Full-time USG employees, their spouses, and their dependent children.
Medical/Dental Students and Interns
Medical and dental residents and medical and dental interns at the Medical College of Georgia (BoR Minutes, 1986-87, p. 340).
Full-Time School Employees
Full-time employees in the public schools of Georgia or the Technical College System of Georgia (BoR Minutes, October 2008), their spouses, and their dependent children. Teachers employed full-time on military bases in Georgia shall also qualify for this waiver (BoR Minutes, 1988-89, p. 43).
Career Consular Officials
Career consular officers, their spouses, and their dependent children who are citizens of the foreign nation that their consular office represents and who are stationed and living in Georgia under orders of their respective governments.
Military personnel, their spouses, and their dependent children stationed in or assigned to Georgia and on active duty. The waiver can be retained by the military personnel, their spouses, and their dependent children if:
- The military sponsor is reassigned outside of Georgia, and the student(s) remain(s) continuously enrolled and the military sponsor remains on active military status;
- The military sponsor is reassigned out-of-state and the spouse and dependent children remain in Georgia and the sponsor remains on active military duty; or,
- The active military personnel and their spouse and dependent children are stationed in a state contiguous to the Georgia border and live in Georgia. (BoR Minutes, February 2009)
Research University Graduate Students
Graduate students attending the University of Georgia, the Georgia Institute of Technology, Georgia State University, and the Medical College of Georgia, which shall be authorized to waive the out-of-state tuition differential for a limited number of graduate students each year, with the understanding that the number of students at each of these institutions to whom such waivers are granted, shall not exceed the number assigned below at any one point in time:
|University of Georgia||80|
|Georgia Institute of Technology||60|
|Georgia State University||80|
|Medical College of Georgia||20|
Border County Residents
Students domiciled in an out-of-state county bordering Georgia, enrolling in a program offered at a location approved by the Board of Regents, and for which the offering institution has been granted permission to award Border County waivers (BoR Minutes, October 2008).
Georgia National Guard and U.S. Military Reservists
Active members of the Georgia National Guard, stationed or assigned to Georgia or active members of a unit of the U.S. Military Reserves based in Georgia, and their spouses and their dependent children (BoR Minutes, October 2008).
Students Enrolled in USG Institutions as Part of Competitive Economic Development Projects
Students who are certified by the Commissioner of the Georgia Department of Economic Development as being part of a competitive economic development project.
Students in Georgia-Based Corporations
Students who are employees of Georgia-based corporations or organizations that have contracted with the Board of Regents through USG institutions to provide out-of-state tuition differential waivers.
Students in ICAPP® Advantage Programs
Any student participating in an ICAPP® Advantage program.
International and Domestic Exchange Programs
Any student who enrolls in a USG institution as a participant in an international or domestic direct exchange program that provides reciprocal benefits to USG students (BoR Minutes, October 2008).
As of the first day of classes for the term, an economic advantage waiver may be granted to a U.S. citizen or U.S. legal permanent resident who is a dependent or independent student and can provide clear evidence that the student or the student’s parent, spouse, or United States court-appointed legal guardian has relocated to the State of Georgia to accept full-time, self-sustaining employment and has established domicile in the State of Georgia. Relocation to the state must be for reasons other than enrolling in an institution of higher education. For U.S. citizens or U.S. legal permanent residents, this waiver will expire twelve (12) months from the date the waiver was granted.
As of the first day of classes for the term, an economic advantage waiver may be granted to an independent non-citizen possessing a valid employment-related visa status who can provide clear evidence of having relocated to the State of Georgia to accept full-time, self-sustaining employment. Relocation to the state must be for employment reasons and not for the purpose of enrolling in an institution of higher education. These individuals would be required to show clear evidence of having taken legally permissible steps toward establishing legal permanent residence in the United States and the establishment of legal domicile in the State of Georgia. Independent non-citizen students may continue to receive this waiver as long as they maintain a valid employment-related visa status and can demonstrate continued efforts to establish U.S. legal permanent residence and legal domicile in the State of Georgia.
A dependent non-citizen student who can provide clear evidence that the student’s parent, spouse, or United States court-appointed legal guardian possesses a valid employment-related visa status and can provide clear evidence of having relocated to the State of Georgia to accept full-time, self-sustaining employment is also eligible to receive this waiver. Relocation to the state must be for employment reasons and not for the purpose of enrolling in an institution of higher education. These individuals must be able to show clear evidence of having taken legally permissible steps toward establishing legal permanent residence in the United States and the establishment of legal domicile in the State of Georgia.
Non-citizen students currently receiving a waiver who are dependents of a parent, spouse, or United States court-appointed legal guardian possessing a valid employment-related visa status may continue to receive this waiver as long as they can demonstrate that their parent, spouse, or United States court-appointed legal guardian is maintaining full-time, self-sustaining employment in Georgia and is continuing efforts to pursue an adjustment of status to U.S. legal permanent resident and the establishment of legal domicile in the State of Georgia (BoR Minutes, amended October 2008.)
Recently Separated Military Service Personnel
Members of a uniformed military service of the United States who, within twelve (12) months of separation from such service, enroll in an academic program and demonstrate an intent to become domiciled in Georgia. This waiver may also be granted to their spouses and dependent children. This waiver may be granted for not more than one (1) year (BoR Minutes, June 2004, amended October 2008).
As of the first day of classes for the term, a non-resident student can be considered for this waiver under the following conditions:
- Students under 24.
- If the parent, or United States court-appointed legal guardian has maintained domicile in Georgia for at least twelve (12) consecutive months and the student can provide clear and legal evidence showing the relationship to the parent or United States court-appointed legal guardian has existed for at least twelve (12) consecutive months immediately preceding the first day of classes for the term. Under Georgia code, legal guardianship must be established prior to the student’s 18th birthday (BoR Minutes, October 2008, title amended February 2010); or
- If the student can provide clear and legal evidence showing a familial relationship to the spouse and the spouse has maintained domicile in Georgia for at least twelve (12) consecutive months immediately preceding the first day of classes for the term (BoR Minutes, February 2010).
- Students 24 and Older.
- If the student can provide clear and legal evidence showing a familial relationship to the spouse and the spouse has maintained domicile in Georgia for at least twelve (12) consecutive months immediately preceding the first day of classes for the term. This waiver can remain in effect as long as the student remains continuously enrolled (BoR Minutes, October 2008, title amended February 2010).
This waiver can remain in effect as long as the student remains continuously enrolled (BoR Minutes, October 2008).
If the parent, spouse, or United States court-appointed legal guardian of a continuously enrolled non-resident student establishes domicile in another state after having maintained domicile in the State of Georgia for the required period, the non-resident student may continue to receive this waiver as long as the student remains continuously enrolled in a public postsecondary educational institution in the state, regardless of the domicile of the parent, spouse or United States court-appointed legal guardian (BoR Minutes, June 2006, amended October 2008).
Vocational Rehabilitation Waiver
Students enrolled in a USG institution based on a referral by the Vocational Rehabilitation Program of the Georgia Department of Labor (BoR Minutes, October 2008).
An institution may waive mandatory fees, excluding technology fees, for:
- Students who reside or study at another institution.
- Students enrolled in practicum experiences (e.g., student teachers) or internships located at least 50 miles from the institution.
- Students enrolled in distance learning courses or programs who are not also enrolled in on-campus courses nor residing on campus. If a student is enrolled in courses from more than one institution during the same term, only the home institution will charge the approved technology fee to the student. Students who participate in distance education offerings as transient students will not be charged a technology fee by the transient institution. No separate technology fee shall be established for collaborative distance learning courses or programs.
- Students enrolled at off-campus centers, except that the institution shall be authorized to charge select fees to these students for special services subject to approval by the Board of Regents.
22.214.171.124 Waiver of Mandatory Fees for U.S. Military Reserve and Georgia National Guard Combat Veterans
Eligible participants must be Georgia residents who are active members of the U.S. Military Reserves and/or the Georgia National Guard and were deployed overseas for active service in a location or locations designated by the U.S. Department of Defense as combat zones on or after September 11, 2001 and served for a consecutive period of one hundred and eighty-one (181) days, or who received full disability as a result of injuries received in such combat zone, or were evacuated from such combat zone due to severe injuries during any period of time while on active service. Additionally, eligible participants must meet the admissions requirements of the applicable USG institution and be accepted for admission.
Eligible participants shall receive a waiver of all mandatory fees charged by USG institutions including, but not limited to:
- Intercollegiate athletic fees;
- Student health services fees;
- Parking and transportation fees, where such fees are mandated for all students:
- Technology fees;
- Student activity fees;
- Fees designated to support leases on facilities such as recreation centers, parking decks, student centers, and similar facilities; and,
- Any other such mandatory fees for which all students are required to make payment.
Students receiving this waiver shall be eligible to use the services and facilities these fees are used to provide. This benefit shall not apply to housing, food service, any other elective fees, special fees, or other user fees and charges (e.g., application fees).
An institution may, at its discretion, waive that portion of the mandatory fees not covered by ACCEL, the State of Georgia’s dual admission funding program, for high-school students enrolled in a dual academic credit program at one of the USG institutions.
Institutions of the University System of Georgia shall waive that portion of the tuition and mandatory fees not covered by the per student state funds amount reimbursed by the Department of Education for high-school students enrolled in Georgia’s “Move on When Ready” Program.
The policy for determining refunds to be made on institutional charges and other mandatory fees at USG institutions, except for those institutions for which special refund policies have been approved by the Board of Regents, follows. For the purposes of this section, “institutional charges” are as defined in the Statutory and Regulatory Citations Section 484B of the Higher Education Act of 1965, as amended (Title IV, HEA and 34 668.22).
Tuition and fees awarded by scholarship or grant from an agency or authority of the State of Georgia on behalf of a student receiving a refund under this policy shall be reimbursed to such agency or authority.
The Chancellor is authorized and empowered to take or cause to be taken any and all such other and further action as, in the judgment of the Chancellor, may be necessary, proper, convenient or required in connection with the execution of this policy. Such authority may be further delegated to the president of the institution.
The presidents are authorized and empowered to take or cause to be taken any and all such other and further action as may be necessary, proper, convenient, or required in connection with the execution of this policy (BoR Minutes, February, 2007).
The refund amount for students withdrawing from an institution shall be based on a pro rata percentage determined by dividing the number of calendar days in the semester that the student completed by the total calendar days in the semester. The total calendar days in a semester includes weekends, but excludes scheduled breaks of five (5) or more days and days that a student was on an approved leave of absence.
The unearned portion shall be refunded up to the point in time that the amount earned equals sixty percent (60%). Students who withdraw from the institution when the calculated percentage of completion is greater than 60% are not entitled to a refund of any portion of institutional charges.
A refund of all nonresident fees, matriculation fees, and other mandatory fees shall be made in the event of the death of a student at any time during the academic session (BoR Minutes, 1979-80, p. 61; 1986-87, pp. 24-25; 1995, p. 246).
Subject to institutional policies, full refunds of tuition and mandatory fees and pro rata refunds of elective fees are hereby authorized for students who are:
Military reservists (including members of the National Guard) who, after having enrolled in a USG institution and paid tuition and fees, receive orders to active duty or are reassigned for temporary duty or mandatory training that prevents completion of the term; (BoR Minutes, June 2011)
Commissioned officers of the United States Public Health Service Commissioned Corps (PHSCC) who receive deployment orders in response to a public health crisis or national emergency after having enrolled in a USG institution and paid tuition and fees; (BoR Minutes, February 2010)
Active duty military personnel who, after having enrolled in a USG institution and paid fees, receive reassignment or a temporary duty assignment or a training assignment that would prevent completion of the term; (BoR Minutes, June 2011) or,
Otherwise unusually and detrimentally affected by the activation of members of the reserve components or the deployment of active duty personnel of the Armed Forces of the United States who demonstrate a need for exceptional equitable relief. (BoR Minutes, June 2011)
Regulations on banking and investments will be published and distributed periodically to the various operating units in Section 9.0, Banking and Investments, of the Business Procedures Manual.
The Board of Regents of the University System of Georgia, recognizing that public institutions are dependent, in part, on private funding (just as private institutions are partially dependent on public funding) encourages the institutions under its control to seek the support of alumni, friends, corporations, and other private individuals and organizations that might be interested in contributing to the welfare of the institutions, their students, and their faculties.
Funds raised from private donations may be used in support of the mission and objectives of the institution, including funds for student scholarships, salary supplements, construction of physical facilities, and gifts and grants for other purposes as may be designated by the donor. However, institutions are not authorized to commit any state funds for challenge or matching grants or gifts for the construction of facilities or for other purposes without prior approval of the Chancellor.
The Board of Regents shall not consider gifts, contributions, or income from endowments held for the benefit of any USG institution in determining the allocation of state funds to that institution.
Private donations to separately incorporated cooperative organizations established pursuant to Section 12.5 of this Policy Manual shall not subject to control by the Board of Regents or the college or university administration except as provided in Section 12.5 or by the memoranda of agreement established between institutions and their cooperative organizations.
A USG institution may accept gifts, bequests, agreements, or declarations of trust, except gifts of real property. By accepting such gifts, donations, bequests, or declarations of trust, the president of the institution affirms that the gift or donation carries no obligations to the institution that may conflict with state law or Board of Regents policy. The president also affirms that acceptance of the gift or donation will not impose a financial burden on the institution beyond that which can be managed within its current budget. If acceptance of the gift or donation would require the institution to incur additional cost that cannot be borne within current resources, the institution shall be required to obtain the approval of the Board of Regents before the gift or donation is formally accepted.
Each institution shall provide a summary report as required to the Chancellor on all gifts received by the institution and its cooperative organizations through private donations under procedures established by the USG chief fiscal officer.
Each president is authorized to execute those documents necessary to provide proper fiscal management of those funds accepted under this authorization and, at their discretion, to further delegate the authority to execute such documents to the chief business officers of the institutions. Gifts of real property are addressed in Section 9.9, Real Property Ownership and Asset Management, of this Policy Manual (BoR Minutes, 1980-81, p. 241; January 1997, p. 24).
All depositories, where funds of the Board of Regents of the University System of Georgia are held in time and demand deposits, shall either give a depository bond in some acceptable security company qualified to do business in Georgia or, in lieu thereof, may deposit with some other depository satisfactory to the Treasurer of the Board of Regents securities of the following classes, the current market value of which shall be not less than 110% of the amount after the deduction of the amount of the deposit insurance (BoR Minutes, October 2010):
- Direct obligations of the United States Government;
- Obligations unconditionally guaranteed by the United States Government;
- Direct obligations of the State of Georgia;
- Direct obligations of any political subdivision of the State of Georgia; and/or,
- Georgia municipal, county, or State of Georgia Authority Bonds acceptable to the Treasurer of the Board of Regents.
(BoR Minutes, 1970-71, p. 691)
The president of each USG institution shall determine the bank or banks where funds are deposited through a best value competitive contract bid process to be undertaken every five (5) years (BoR Minutes, April 2005). The president shall inform the USG chief fiscal officer of the bank or banks where funds are deposited. It shall be the duty of the Treasurer of the Board to handle all details relative to the bank or banks furnishing the required depository protection (BoR Minutes, 1949-50, p. 251; February 1996).
The USG chief fiscal officer shall appoint a person or persons at each USG institution with authority to sign checks drawn on banks where funds of the respective institutions are deposited. Persons so appointed shall be authorized to sign any documents that may be required by the banks concerned (BoR Minutes, 1952-53, p. 365).
The chief business officer of each USG institution and any other officer or employee who participates in the selection of the institution’s depository (bank) are prohibited from serving on the governing boards of banks and other financial institutions if such banks or other financial institutions have or seek a commercial relationship with that institution (BoR Minutes, 1996).
A president of an institution may serve on the governing board of a bank or financial institution that does not have a commercial relationship with the institution. However, such a bank or financial institution will not be considered by the institution for establishment of a commercial relationship with that USG institution for not less than two (2) years after the termination of the president as a member of the board.
Electronic funds transfer is the required method for payroll payments to employees, making funds available to the employee by the authorized pay date, unless the employee can provide documentation of having an “un-bankable” status; i.e., the employee is unable to obtain a bank account. Direct deposit is defined as the electronic transfer of funds from the employer to a depository institution designated by the employee, which makes the funds available to the employee by the authorized pay date.
Electronic withdrawal of funds (auto-debit) is the required method of payment from retirees for benefit premiums; i.e., the payment is electronically withdrawn from an account at a depository institution that is designated by the retiree to the employer, occurring on a specified date each month. Where auto-debit is not possible, the institution can determine the appropriate alternative method of employee share of premiums collection.
Requiring an auto-debit for all retirees participating in the health insurance plan will streamline the process, eliminate invoicing and greatly reduce premium collection and reconciliation efforts. (BoR Minutes, May 2011)
It is the intent of the Board that each institution develop an investment policy that fosters sound and prudent judgment in the management of assets to ensure safety of capital consistent with the fiduciary responsibility each institution has to the citizens of Georgia and that conforms with Board of Regents investment policy. Each institution shall be required to have a written investment policy statement on file with the USG chief fiscal officer. The policy should be reviewed and updated at least once every two (2) years. Each institution shall submit an annual report on its investment performance to the USG chief fiscal officer that asserts that investments have been made in accordance with the institution’s written investment policy.
The investment policy should specify overall investment objectives. There may be several different investment objectives depending on the type of funds to be invested and period of investment to be considered. These may include objectives that attempt to preserve the purchasing power of income and principal, maximize current income, or maximize capital values. Each investment objective should clearly state the time horizon for achieving investment objectives.
The investment policy should identify the general type of investments permitted under each investment objective. Investment must be consistent with donor intent, Board of Regents’ policy, and applicable federal and state laws (BoR Minutes, April 2005).
The investment policy should include asset allocation guidelines that outline the asset classes and subclasses that will constitute permissible areas for investment of funds. The guidelines should indicate the maximum and normal distribution of funds among the different asset classes or subclasses and the rationale for selecting these criteria. Asset allocation guidelines should also be tied to the investment objective and consider the potential risks associated with different asset allocations. The investment policy should outline the factors to be considered when an institution proposes a change in asset allocation, such as during times of significant rate shift affecting the investment portfolio and instability in inflationary trends
Diversification is fundamental to the management of risk and is therefore a pervasive consideration in prudent investment management. The investment policy should include a diversification plan that considers the asset classes and investment products to be utilized in an attempt to achieve desired return with an acceptable level of risk.
The investment policy should include spending rules and relate these to investment objectives. Variables to be considered include the percentage of return allocated to prevent principal erosion by inflation versus the percentage to be expended currently.
The investment policy should provide for appropriate collateralization of invested funds, which, by law, require the pledge of collateral.
Management’s plan for authorization of investment activity, periodic reporting of investment activity, and monitoring of investment results should be outlined in detail in the investment policy.
Criteria to be used in the selection of investment managers and the evaluation of their performance should be described if the institution chooses to use outside investment managers. These criteria should address the investment manager’s:
- Professional background and experience;
- Investment philosophy relative to the institution’s stated investment objectives;
- Organizational structure and overall product line;
- Control with respect to ensuring that individual managers adhere to policy objectives and guidelines;
- Total size of managed assets;
- Record of performance measured against appropriate benchmarks; and,
- Ability to communicate results effectively and in timely fashion.
7.5.3 Loan Funds for Matching Purposes
USG institutions shall be authorized to use money in student loan funds of the respective institutions for the purpose of matching funds available under federal loan programs for loans to students when terms of the gift to the institution permit such use for matching purposes (BoR Minutes, 1958-59, pp. 209-10).
7.5.4 Sale of Securities
The USG chief fiscal officer, with the approval of the Chair or Vice Chair of the Board, is authorized and empowered to sell and assign, or request payment or re-issue of any and all United States securities of any description registered on the books of the Treasury Department, or registered securities with respect to which the Treasury Department acts as the transfer agency, now or hereafter held by the Board of Regents of the University System of Georgia as executor, administrator, guardian, trustee, or in any fiduciary capacity whatsoever, and also to sell and assign any such securities which the Board of Regents is, or shall be, authorized or empowered to sell and assign as attorney for, or other representative of, the owner thereof.
The USG chief fiscal officer, with the approval of the Chair or Vice Chair of the Board, is authorized and empowered to receive payment for any matured security and to reinvest the principal or the sum total in a like or similar security. The USG chief fiscal officer shall make reports of such transactions to the Board as information.
7.5.5 Georgia Eminent Scholars Endowment Trust Fund
The Board of Regents shall serve as trustees of the Georgia Eminent Scholars Endowment Trust fund, which shall, as provided by law, be a budget unit for the purpose of appropriation of state funds.
The funds appropriated to the Board of Regents under this program shall be used exclusively to endow academic chairs in an effort to attract eminent scholars to join the faculties of USG institutions. The criteria for persons selected to hold such chairs shall be established by the president of the institution concerned.
A total sum of not less than $1,000,000 shall be required to endow a chair under this program. The respective foundations of the institutions concerned shall be required to contribute not more than seventy-five percent (75%) of such amount ($750,000) and the fund shall contribute not less than twenty-five percent (25%) of such amount ($250,000). No funds shall be granted to a foundation except upon the express written condition that the funds and the earnings therefrom shall be used to endow an academic chair as provided herein.
Approved grants may be made to foundations previously established to enhance the educational purposes of the USG institution concerned. The income from the grant funds and the foundation funds contributed shall be used to endow academic chairs that shall be known as the Eminent Scholars Chair.
The funds received by a foundation for this purpose, together with the funds contributed by the foundation, shall be managed and invested by the governing board of directors of the foundation of the institution concerned and kept separate from other funds of the foundation.
Funds raised by the respective foundations to qualify for the grants may come from more than one donor, but the gifts of not more than ten (10) donors shall be aggregated to raise the minimum sum required ($750,000). All donations must be accompanied by a statement from the donor acknowledging that the funds donated will be used to endow a chair authorized under this program. USG institutions having chairs endowed by the fund may petition the Board to add the name of the donor or benefactor to the name of the chair (BoR Minutes, 1984-85, pp. 324-25).
From time to time, the Board of Regents will develop and approve new travel regulations. Such regulations will be published and distributed periodically to the various operating units in Section 4.0, Travel, of the Business Procedures Manual, and shall constitute the official Policy of the Board governing travel by USG employees (BoR Minutes, 1980-81, pp. 55-59).
Purchasing regulations will be published and distributed periodically to the various operating units in Section 3.0, Purchasing and Contracts, of the Business Procedures Manual.
7.7.1 General Policy
The USG shall utilize the sources of the Georgia Department of Administrative Services (DOAS) rather than establish a separate control purchasing office. In doing so, the Board directs that each of its institutions comply with the various statutes, rules, and regulations governing purchases with state-appropriated funds. In addition, the same regulations shall apply to purchases from funds to which the USG has title.
All purchasing by USG institutions will be centralized under the direct management and control of the chief business officer of the institution concerned.
Funds held by USG institutions in an agency capacity are not subject to the rules and regulations of the central purchasing agency of the State, although the services of that agency may be used for purchasing from agency funds at the election of the chief business officer. Refer to Section 14.0, Agency Funds, of the Business Procedures Manual for more information on agency funds.
When purchases are made by a USG institution, as opposed to being made by the central purchasing agency of the State, professional practices for purchasing in the public environment are to be employed at all times.
7.8.1 Property Insurance
All USG institutions are to participate in the self-insured State Insurance Plan, a section within the Fiscal Division of the Department of Administrative Services, to the fullest extent possible. For lines of insurance not available under the self-insured plan, USG institutions are to purchase additional coverages only when authorization to do so has been secured in advance from the State Insurance Plan.
7.7.2 Employee Purchasing
Absent a specific and approved exemption, USG employees shall not purchase goods or services for personal use through channels used in the purchase of goods and services for USG operation (BoR Minutes, 1955-56, pp. 254-55).
7.8.2 Liability Insurance
Vehicles titled to the Board of Regents or vehicles on long-term lease arrangements are to be insured by the State Insurance Plan, as are the authorized drivers of those vehicles.
The Board of Regents shall establish or participate in a program of self-insurance whereby employees of the Board, as defined by the self-insurance plan adopted by the Board, are insured against losses incurred and arising out of, or in the course of, their employment. USG institutions shall bear the cost of the program as determined by the Board.
7.8.3 Fidelity Bond
A blanket position fidelity bond shall cover all employees in an amount which shall be determined from time to time by the Board of Regents. This bond shall be purchased through the State Insurance Program with the cost distributed to the various USG institutions. This coverage shall indemnify the Board of Regents from any loss it suffers from all acts of its employees that can be described as anything other than the full and faithful performance of the employee’s duty to the employer.
Contract regulations will be published and distributed periodically to the various operating units in Section 3.0, Purchasing and Contracts, of the Business Procedures Manual.
7.9.1 Contracting Authority
Except for the contracts that are reserved to the Board or Chancellor by this Policy Manual, all contracts necessary for the daily operation of the institution and all contracts for goods and services not regulated by the Georgia Department of Administrative Services can be executed by the head of each institution or his/her designee. This limited delegation of contracting authority to the executive head of each institution or his/her designee is in addition to all other delegations contained in this Policy Manual.
7.9.2 Construction Contracts
Unless otherwise provided by these policies, major construction contracts entered into by the Board of Regents shall require prior approval by the Board.
Construction contracts that involve expenditures of $25,000 or more shall require certification by the contractor that a drug-free workplace is provided to the contractor’s and subcontractor’s employees in accordance with laws of the State of Georgia. All such construction contracts shall contain a certification that the contractor will not engage in the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana during the performance of the contract (BoR Minutes, 1989-90, p. 387).
Regulations on auditing will be published and distributed periodically to the various operating units in Section 16.0, Audits, of the Business Procedures Manual.
7.9.3 Contracts with Veterans Administration
USG institution presidents and/or the Treasurer of the Board of Regents of the University System of Georgia shall negotiate, execute, and sign in the name of the Regents, all contracts between USG institutions and the Veterans Administration or other agencies of the United States Government with respect to education and training, vocational rehabilitation, advisement, and guidance of veterans and otherwise under the provisions of Public Laws 16 and 346, 78th Congress, as amended, and subsequent laws passed by the Congress providing for education and training of veterans.
It is understood that the institution covered by such contracts shall submit to the Veterans Administration or other agencies of the United States Government vouchers for services rendered under the provisions of the contract in the name of the institution concerned. Such vouchers will be certified by an official of the institution. Checks drawn on the Treasury of the United States of America in payment of such services shall be made payable to the institution concerned and mailed directly to the institution (BoR Minutes, 1948-49, pp. 301-02).
7.10.1 State Audits
The State Auditor shall be requested to perform a financial statement audit or perform agreed upon procedures at each USG institution and the University System Office. The president of each USG institution and the USG chief fiscal officer shall make available all information to the State Auditing Department so that such an audit may be made.
The foregoing shall not apply to separate corporate entities that are organized to provide support services to the institution.
7.10.2 Internal Audits
The Board of Regents shall establish and support an internal audit function to assist the Board, the Chancellor, and institution presidents in the effective discharge of their responsibilities. The internal audit function shall be governed by an audit charter approved by the Board, which shall describe the purpose of an internal audit, reporting requirements, responsibility, authority and scope of work. Responsibility for approving an annual audit plan, reviewing audit results, reports and recommendations, and approving the Chancellor’s appointment and termination of the USG chief audit officer shall be assigned to the Committee on Internal Audit, Risk and Compliance of the Board of Regents. (BoR Minutes, August 2010)
All directors of internal audit at institutions having an internal auditor or internal audit department shall have a direct reporting relationship to the president of that institution and the USG chief audit officer. The president of each institution having an internal auditor shall determine the organizational and operating reporting relationships of the internal auditors at their institution and exercise oversight of institutional risk management as defined in Section 7.15 of this Policy Manual. However, the USG chief audit officer shall have the authority to direct the internal auditors to audit specific functions at their institutions as needed to address system-wide issues or directives. The president of each institution having an internal auditor shall consult with the USG chief audit officer on significant personnel actions involving the institutional internal auditor to include appointment and termination. The president may also consult with the Committee on Internal Audit, Risk, and Compliance as to proposed personnel actions involving the institutional internal auditor. (BoR Minutes, August 2010)
The director of internal audit of each USG institution with an internal auditor shall meet at least annually with the USG chief audit officer to discuss audits, audit findings, audit department independence and a proposed audit schedule.
The USG chief audit officer is responsible for internal auditing and the directors of internal audit for USG institutions with an internal auditor. The USG chief audit officer shall provide a system-wide annual report to the Committee on Internal Audit, Risk and Compliance of the Board of Regents (BoR Minutes, 1935, p.73; 1991, p. 378).
7.11.1 Sales of Institutional Products
A USG institution shall not enter into competition with private industry.
An institution shall not be prohibited from selling milk, food, and other supplies to its dining halls and cafeterias or to the dining halls and cafeterias of other USG institutions, or to fraternity or sorority dining halls in which students of the institution only are regularly served meals.
USG institutions are not prohibited from making sales on the wholesale market. However, in no event are such sales to be made to the general public (BoR Minutes, 1947-48, p. 20; 1951-52, pp. 254-55).
7.11.2 Business Enterprises
USG institutions shall not permit the operation of private business enterprises on their campuses, except as otherwise provided by contract. All business enterprises operated on a campus of a USG institution shall be operated as auxiliary enterprises and shall be under the direct management, control, and supervision of the chief business officer of the institution (BoR Minutes, 1948-49, pp. 219-20; 1966-67, p. 354). Refer to Section 15.0, Auxiliary Enterprise Funds, in the Business Procedures Manual for more information on auxiliary enterprises.
7.11.3 Use of Institution Names
The name of any institution within the purview of the USG shall not be incorporated as a part of the name of an independent business enterprise that is not under the complete control of the USG in a manner to imply an official relationship (BoR Minutes, 1967-68, p. 459).
7.11.4 Motor Vehicles
USG institutions may purchase, lease, or otherwise acquire passenger automobiles on a use-by-use basis when approved by the presidents and the Chancellor.
USG institutions may purchase vehicles to be used exclusively for institution security purposes (BoR Minutes, 1932, p. 39; 1979-80, p. 60).
Various departments and activities of each institution requiring the use of an institution-owned bus will be charged for the use of the bus at a rate adequate to cover all maintenance and operating expenses as well as the replacement cost of the bus. Money collected from such charges shall be placed in a revolving fund from which shall be paid all maintenance and operating expenses of the bus, with the balance accumulating in the fund to an amount adequate for replacement of the bus.
USG institutions are authorized to adopt appropriate traffic regulations, including the authority to impose reasonable penalties and/or fines for violations of the regulations (BoR Minutes, June, 1971).
7.11.5 Farming Operations
USG institutions shall not operate any farms that are not essential to the teaching or research programs of the respective institutions (BoR Minutes, 1953-54, p. 262).
7.11.6 Faculty Housing
Rental rates for faculty housing units shall be fixed to:
- Provide for all operating costs of the faculty housing program;
- Provide the reserve for future renovations and replacements required to conform with the policy of the Board in the operation of auxiliary enterprises;
- Provide for liquidation of any outstanding indebtedness that relates to the specific faculty housing project. No such project is covered by Georgia Education Authority (University) leases, and no lease rental funds will be required from any faculty housing project; and,
- Keep the rates at a level which will be competitive with the rates charged for privately owned comparable quarters in the immediate area.
Each USG institution with faculty housing shall develop a policy that will describe the priority by which renters will be selected. This policy shall note the fact that faculty housing is primarily a tool for recruiting able faculty members, that faculty housing is offered as an option available to faculty members as a temporary, additional employee benefit, and that tenured faculty members will not be permitted to continue occupancy in faculty housing indefinitely (BoR Minutes, 1968-69, pp. 363-65; 1984-85, pp. 113-14).
7.11.7 Student Housing
Each institution that provides, or plans to provide, a residential student program shall develop a student housing comprehensive plan that addresses all facets of the creation, expansion, and operation of the student housing facilities.
The student housing plan will address the:
- Academic mission;
- Specific role or purpose of student housing within that mission including student life programs;
- Access to the campus or other needs;
- Enrollment projections in relation to housing goals, geographic, economic, and demographic factors at the institution and in the local community; and,
- Financial considerations, including an evaluation of the desirability and practicality of achieving these student housing objectives through private sector partnerships on institution lands or lands proximate to the institution.
The student housing plan will include the following:
- A business plan that explains the role of the student housing program in the context of the institution’s academic mission, includes concrete goals and objectives, and defines an operating strategy including marketing plans, programs and services, fees, assignment of indirect costs, and use of reserves for repair and maintenance, major renovation and, if planned, expansion of capacity. The plan should also contain a financial pro forma that projects future revenues and expenditures consistent with stated goals and objectives and includes plans for capitalization, maintenance and operations, and facilities renewal;
- A facility evaluation assessing the appropriateness of rehabilitation versus demolition and new construction;
- A market needs assessment, including justification for additional student housing capacity where appropriate; and,
- The housing facilities component of the institution’s physical master plan, including site, circumstance, and impact on other campus functions.
(BoR Minutes, October 1997)
To support requests for changes in housing fees, each institution shall submit, in accordance with procedures established by the USG chief fiscal officer and Treasurer, a financial statement that projects revenues and expenditures based on estimated housing enrollments, salary adjustments, inflationary expense, and other relevant factors (BoR Minutes, October 1997).
For purposes of this policy, the term “trademark” shall include all trademarks, service marks, trade names, seals, symbols, designs, slogans, and logotypes developed by or associated with the USG or any of its institutions, or not yet registered under federal and state trademark statutes.
All trademarks of USG institutions constitute property of the Board of Regents of the University System of Georgia and all applications for registration under Federal and State laws pertaining to trademark registration shall be made in the name of the Board of Regents of the University System of Georgia.
Authorization by the Board of Regents shall be required for the private or commercial use by any person, firm, association, corporation, institution, or other entity of any trademark developed by, or associated with the USG or any of its institutions.
The presidents of USG institutions are authorized to execute on behalf of the Board of Regents:
- Certain applications for trademark and service mark registration;
- Declarations of continuing use;
- Declarations concerning use of specimens;
- Conversions of applications from Principal to Supplemental Register;
- Applications for renewal; and,
- License agreements that permit the manufacture, sale, use, or distribution of services or goods bearing USG trademarks representative of the institution.
(BoR Minutes, 1990-91, pp. 388-389)
Notice of trademark and service mark applications shall be sent to the Chancellor within ten (10) days after filing (BoR Minutes, 1990-91, pp. 388-389).
License agreements shall name the Board of Regents as licensor, and shall be effective for the period of time as specified in the agreement. All such license agreements shall be executed on forms approved by the Attorney General, and, if not, shall be null and void and of no effect whatsoever. Funds derived from such license agreements shall remain at the institution, shall be used for educational purposes, and shall not inure to the benefit of any individual. A signed or conformed copy of each license agreement shall be filed in the office of the chief business officer of the institution (BoR Minutes, 1990-91, pp. 388-389).
The content of licensing agreements authorized as aforesaid shall follow guidelines as established and promulgated by the Chancellor (BoR Minutes, 1982-83, pp. 124-25).
7.11.9 Home or Off-Campus Use of USG Equipment for Business Purposes
USG property such as portable personal computers or similar items may be removed from an institution to the home of an employee or an off-campus site when the purpose is for business only. Such use shall be tightly controlled, and documentation as to the location and use shall be available at all times (BoR Minutes, 1990-91, pp. 378-79).
Regulations on information security will be published and distributed periodically to the various operating units in Section 12.0, Protection and Security of Records, of the Business Procedures Manual.
The Board of Regents’ Retiree Health Benefit Fund (“the Benefit Fund”) is established by Georgia state law to provide a steady stream of support for the mission of the Benefit Fund. As such, its assets are to be invested in a prudent manner that seeks to ensure the Benefit Fund assets grow to support the spending requirements of the Benefit Fund.
The minimum funding requirements of O.C.G.A. 47- 20-10 shall not apply to prefunding, in whole or in part, of anticipated future costs of providing other post-employment benefits as defined by Governmental Accounting Standards Board Statements Number 43 and Number 45 for retired employees of a political subdivision, including those presently retired and those anticipated to retire in the future, as provided in O.C.G.A. 47-20-10.1.
This investment policy provides a set of guidelines that govern the investment of these assets. The guidelines include asset allocation, allowable investments, quarterly standards, and performance standards overall and by specific category.
7.13.2 General Objectives
Investments will be made for the sole benefit of the Board of Regents Retiree Health Insurance Benefit Fund. Specifically, the portfolio should be guided by the following objectives:
- The assets must be invested with the skill, care and diligence that a prudent investor would use in a similar capacity.
- The Benefit Fund should seek to earn the projected spending rate plus inflation over a full market cycle, generally forty-eight (48) to sixty (60) months.
- The Benefit Fund should seek to outperform relevant market indices over a full market cycle.
The Board of Regents has oversight regarding all trust fund decisions. The Board has delegated the oversight role to the Finance and Business Operations Committee, which has the responsibility to ensure that the Benefit Fund assets are managed:
- For the exclusive benefit of the Retiree Health Insurance Benefit Fund;
- Prudently and in compliance with applicable laws and regulation; and,
- Effectively so that the assets will increase over time, on an inflation adopted basis.
- Developing investment goals, objectives and performance measurement standards that are consistent with the needs of the Benefit Fund;
- Determining how the Benefit Fund assets should be allocated among asset classes; and,
- Communicating the investment goals, objectives, and standards to the professional money manager(s), as noted below, including any material changes that may subsequently occur.
The Committee, with the consent of the Board, has the power to appoint professional money manager(s) to execute the Benefit Fund’s investment strategy. The Committee will also review and evaluate the results of the professional money manager(s) in the context of mutually accepted standards of performance.
7.13.4 Monitoring of Objectives
The Retiree Benefit Fund will be monitored for adherence to investment philosophy, returns relative to objectives, and investment risk as measured by asset concentration, exposure to extreme economic conditions, and volatility. The Committee will conduct periodic reviews of the professional money manager in order to confirm that the factors underlying the performance expectations remain in place. The Committee shall meet with the professional money manager(s) at least semi-annually.
7.13.5 Short-term Investment Portfolio
The Benefit Fund’s short-term portfolio should seek to provide preservation and enhancement of capital. The Fund will need liquidity and income annually and therefore will only accept minimal short-term volatility in those assets providing income. However, a portion of short-term assets may be invested for the longer term, and volatility in these asset categories is to be expected and managed.
The short-term investment objective is to consistently outperform selected weighted market indices, and is expected to rank at or above the median when compared to a universe of its peers managing similar portfolios and following a similar investment style such as the Georgia One fund, or the Georgia Extended Asset Pool.
The long-term investment objective for the Fund’s short-term portfolio is to achieve an average annual total rate of return in excess of the inflation rate (as measured by the Consumer Price Index) plus one percent (1%) for the aggregate investments under this investment policy evaluated over rolling three (3) to five (5) year periods, net of investment management and advisory fees. This is based on targeting allocations in fixed income assets and cash equivalents to meet the current period plan obligations, as outlined in the investment statement. A secondary objective to be considered is diversification and risk management. A third objective is to invest principally in liquid and marketable instruments consistent with anticipated cash requirements.
7.13.6 Long-term Investment Portfolio
The Fund’s long-term investment portfolio should seek to provide annual income growing in line with inflation, with the secondary investment objective to seek growth of principal over time. The Fund will need liquidity and income annually and therefore will only accept minimal short-term volatility in those assets providing income. However, the majority of assets are to be invested for the long-term, and some volatility in these asset categories is to be expected and managed.
The long-term investment objective for the Trust’s long-term portfolio is to achieve an average annual total rate of return in excess of the inflation rate (as measured by the Consumer Price Index) plus five percent (5%) for the aggregate investments under this Investment Policy Statement evaluated over rolling three (3) to five (5) year periods. This return, which is to be net of investment management and advisory fees, is based on targeting allocations in equities, fixed income, and other assets and cash equivalents, as outlined in the investment statement.
The short-term investment objective is to consistently outperform selected weighted market indices. The overall short-term objective is the preservation and enhancement of capital. A secondary objective to be considered is diversification and risk management. A third objective is to invest principally in liquid and marketable instruments.
(BoR Minutes, January, 2008).
The USG shall have a program and policies on or before May 1, 2009 designed to protect against identity theft and to safeguard personal and/or financial information maintained by the USG and its institutions and offices. The program shall comply with all federal and Georgia credit reporting and electronic transaction laws, shall be reviewed at least annually for effectiveness and legal compliance, and shall be widely distributed.
Risk refers to the probability of an event and potential consequences to an organization associated with that event’s occurrence. Risks do not necessarily exist in isolation from other risks; as a result, a series of risk events may result in a collective set of consequences that is more impactful than the discrete set of consequences associated with risk events taking place in isolation. Risk is inherent to any activity. It is neither possible, nor advantageous, to entirely eliminate risk from an activity without ceasing that activity. The safest ships are the ones that do not sail, but that is not what they are designed for.
A risk is defined as Major when the combination of an event’s probability and the potential consequences is likely to:
- Impair the achievement of a University System of Georgia (USG) strategic goal or objective;
- Result in substantial financial costs either in excess of the impacted institution’s ability to pay or in an amount that may jeopardize the institution’s core mission;
- Create significant damage to an institution’s reputation or damage to the USG’s reputation; or,
- Require intervention in institutional or USG operations by the Board of Regents and/or an external body.
Major Risks are a subset of the larger category of Significant Risks referenced in the Risk Management Policy. Major Risks are the most critical risks and must meet the definition of Major Risk as defined in Section 7.15.1 of this Policy Manual. Significant Risks includes Major Risks but also include less critical risks. The definition of Significant Risk will be detailed in the System-level procedures manual referenced in Section 126.96.36.199 of this Policy Manual. However, the level at which a risk becomes Significant will vary by institution given each institution’s risk tolerance, resources, and ability to manage risk events. (BoR Minutes, August 2010)
The Board of Regents recognizes that the proper management of risk is a core leadership function that must be practiced throughout the USG. The Enterprise Risk Management (ERM) framework shall be the accepted framework for USG risk management. ERM is defined as a process-driven tool that enables management to visualize, assess, and manage significant risks that may adversely impact the attainment of key organizational objectives. It is the responsibility of USG and institutional leaders to identify, assess, and manage risks using the ERM process. The successful implementation of ERM policies and practices can enhance potential opportunities to help achieve organizational objectives.
Some level of risk is not only expected in normal everyday activities but can be beneficial. However, acceptance of risk shall not include:
- Willful exposure of students, employees, or others to unsafe environments or activities;
- Intentional violation of federal, state, or local laws;
- Willful violation of contractual obligations; or,
- Unethical behavior.
Risk management decisions should be made after conducting a cost-benefit analysis; such analysis should take into account the potential costs associated with the identified risk should the risk event take place as compared to the costs associated with mitigating the risk. It should be noted that these costs are not only financial but may also include substantial damage to reputation, opportunity costs, potential litigation, distraction from core missions, obsolescence and others.
While it is challenging to properly assess some risk events prior to them happening, Major Risks that could result in significant long-term damage to the USG or a USG institution must be identified to the Board and the Chancellor as soon as possible. Acceptance of Major Risks must be at the discretion of the Board and the Chancellor. The System-level procedures manual referenced in Section 188.8.131.52 of this Policy Manual shall provide additional guidance on the timing and form pertaining to the reporting of Major Risks. Significant Risks should be identified in a timely manner. Significant Risks specific to an institution or unit shall be accepted and/or managed by the institution’s president or the president’s designee.
Categories of risks managed through the ERM framework include:
- Strategic Risks – Affect ability to carry out goals and objectives as articulated in the USG Strategic Plan and individual Institution Strategic Plans;
- Compliance Risks – Affect compliance with laws and regulations, student, faculty and staff safety, environmental issues, litigation, conflicts of interest, etc;
- Reputational Risks – Affect reputation, public perception, political issues, etc;
- Financial Risks – Affect loss of or ability to acquire assets, technology, etc; and,
- Operational Risks – Affect on-going management processes and procedures.
An identified risk may fall into multiple categories. (BoR Minutes, August 2010)
7.15.3 General Objectives
The purpose of the Risk Management Policy is to strengthen the proper management of risks through proactive risk identification, risk management, and risk acceptance pertaining to all activities within the University System Office and USG institutions.
The Risk Management Policy is intended to:
- Ensure that Major Risks are reported to the Board and the Chancellor for review and acceptance;
- Result in the management of those risks that may significantly affect the pursuit of the stated strategic goals and objectives;
- Embed a culture of evaluating and identifying risks at multiple levels within the USG and USG institutions;
- Provide a consistent risk management framework in which the risks concerning USG and institutional business processes and functions are identified, considered, and addressed in key approval, review and control processes;
- Ensure that institutions communicate Significant Risks to the USG level so risk can be measured across the System;
- Inform and improve decision-making throughout the University System;
- Meet legal and regulatory requirements;
- Assist in safeguarding USG and institutional assets to include people, finance, property and reputation; and,
- Ensure that existing and emerging risks are identified and managed within acceptable risk tolerances.
(BoR Minutes, August 2010)
The Risk Management Policy applies to all USG institutions and the University System Office. (BoR Minutes, August 2010)
An institution-wide approach to risk management shall be adopted by all USG institutions. It is expected that risk management processes will be embedded into the institution’s management systems and processes. All risk management efforts will be focused on supporting the institution’s objectives. Therefore, each institution president shall develop a campus risk management framework and associated procedures that include:
- Formal and ongoing identification of risks that impact the institution’s goals;
- Development of risk management plans;
- Monitoring the progress of managing risks;
- Periodic updates of risk management plans; and
- Reporting of risks so that Significant Risks can be rolled up to the System level.
Risks may be managed by using one or more of the following methods:
- Avoid (eliminate, withdraw from or do not become involved in an activity creating risk);
- Retain (accept the risk and plan for the expected impact);
- Transfer/Share (move the risk to another party by hedging against undesired outcome or reduce the risk through processes such as insurance); and,
- Reduce (control the risk through additional or optimized controls).
Each president shall designate in writing a Risk Management Policy coordinator to assist campus administrators in maintaining the campus risk management framework and procedures. The Risk Management Policy coordinator shall have sufficient authority to ensure high-level management of the institution’s risk management efforts.
At the System level, the Chancellor shall designate an executive-level position to oversee implementation of the Risk Management Policy across the University System of Georgia. The Chancellor also shall designate a Risk Management Policy coordinator to assist University System Office (USO) administrators in maintaining the USO risk management framework and procedures. The Committee on Internal Audit, Risk and Compliance is the Board committee that shall provide oversight to implementation of the Risk Management Policy and review Major Risks on behalf of the Board of Regents.
Campus risk management framework and procedures shall be reviewed annually. Periodic reviews for compliance with the system wide guidelines shall also be conducted by internal audit or a similar accountability function. Additional procedures for risk management policy reporting and implementation shall be established in a System-level procedures manual. (BoR Minutes, August 2010)
It is the policy of the University System of Georgia (USG) to comply with applicable Federal and State laws, rules, and regulations and to encourage ethical conduct as detailed in the USG Ethics Policy (see Board Policy 8.2.20 University System of Georgia Ethics Policy). The USG Compliance and Ethics Program (Program) refers to the USG policies and procedures designed to ensure ethical conduct and compliance with legal requirements and ethical conduct.
Adherence to Federal guidelines for an effective compliance and ethics program is also a key Program purpose. Effectively implementing the Program will ensure that USG institutions are equipped with the information needed to effectively follow applicable laws and regulations while also reducing potential fines and penalties should a USG institution inadvertently not adhere to a legal or regulatory requirement.
Effectively implementing the Program will also ensure that USG institutions are equipped with the information needed to effectively comply with applicable laws, rules and regulations. A system wide compliance program can help identify subject matter experts in various fields and assist in making their expertise known across the University System. Program implementation will focus on leveraging current resources and Board Policy 7.15 Risk Management in support of Program implementation.
Program objectives are to:
- Identify applicable laws, regulations, policies, and contractual requirements which pertain to each institution and to the USG;
- Ensure that responsibility for ensuring compliance has been properly assigned to responsible personnel;
- Monitor compliance with applicable requirements; and,
- Provide training and expertise to assist institutions and the USG in meeting its compliance requirements.
An effective Program is designed to meet the following elements and ensure that:
- Standards have been adopted that require compliance with applicable law;
- High-level personnel have been assigned the authority and responsibility to implement the Program and that the Board of Regents is periodically updated on Program status;
- Individuals with substantial discretionary authority and/or charged with implementing the Program have not engaged in illegal activities or other conduct inconsistent with an effective compliance program;
- Program requirements and ethical standards are periodically communicated to all employees through effective training and regular communication;
- Effective monitoring is implemented to detect misconduct, evaluate Program effectiveness, and provide a reporting system whereby employees can report misconduct without fear of retribution;
- Program standards are enforced through appropriate incentives and sanctions; and,
- Responses to misconduct are appropriate and that reasonable steps are taken to prevent further offenses to include modifying the Program to prevent and detect violations of the law.
The Compliance Policy applies to all USG institutions and the University System Office.
An institution-wide approach to compliance shall be adopted by all USG institutions. It is expected that compliance processes will be embedded into the institution’s management systems and processes. All compliance efforts will be focused on supporting the institution’s objectives. Therefore, each institution president or designee shall develop a campus compliance framework and associated procedures to:
- Identify and document applicable policies, procedures, laws and regulations;
- Establish job positions and/or oversight committees within the institution that have responsibility for ensuring compliance with each identified policy, procedure, law or regulation as applicable;
- Appoint one or more Compliance Officers where there are a substantial number of high risk policies, procedures, laws and regulations in a single area and in a manner as deemed appropriate for the specific institution (examples may include athletics, research, and human subject research);
- Communicate the policies, procedures, laws and regulations and their associated Compliance Officers or owners to institution staff as applicable and to the USG Office of Internal Audit and Compliance; and,
- Develop procedures where Compliance Officers and other individuals with responsibility for ensuring compliance: a. Conduct assessments of compliance requirements; b. Identify steps to implement these requirements; and, c. Report on the progress thereof.
There are multiple offices within the USG that have responsibility for compliance activities. The Chancellor shall designate a position responsible for coordinating the Program system wide.