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KSU Foundation

Finance and Audit Committee

Approval date 06/19/2017

Charter: The Policy on Standing Committees to the Board of Directors (“Board of Directors”) of the Kansas State University Foundation (“Foundation”) provides for the establishment of the Finance and Audit Committee. The Finance and Audit Committee provides oversight of the Foundation’s finance operations and policies, ensuring the integrity and accuracy of the Foundation’s financial statements, accounting policies, internal controls and financial reporting practices. The Committee provides guidance and recommendations with regards to investment parameters for the Foundation’s unrestricted assets to maximize available resources.

Functions:         Oversight of accounting, audit, budget, and compliance.

Composition:    Minimum three at-large Board of Directors
                         2-3 Board of Trustee members to provide expertise
                         Chairman of Asset Management Committee

                         The committee should include:      

      1. At least one member who shall have accounting or related financial management expertise. The committee may engage trustees or non-trustees (non-board members) to serve as either a voting member, adhoc ex-officio non-voting member or as an advisor for the purpose of providing specific expertise.
      2. Legal counsel (non-voting)

Duties:

Board of Directors

  1. Review and take action on committee recommendations and actions.
  2. Approve committee composition and charter every two years or as needed.
  3. Request that management or the independent auditors undertake special projects deemed necessary to further the mission of the Foundation. 

Committee members

  1. Serve as a liaison between the Foundation and its outside auditors.
  2. Annually evaluate and strategize how to utilize the finance committee to better the Foundation.
  3. Assess how to use the annual audit to improve the effectiveness of the Foundation.
  4. Review and recommend audited financial statements for action by the Board of Directors.
  5. Oversee process of hiring and performance of auditors.
  6. Annually assess how to use the Foundation compliance department to better serve the Foundation, University and donors.
  7. Review and recommend the annual budget for action by the Board of Directors.
  8. Evaluate the allocation of Foundation resources to various Foundation programs via the budget.
  9. Assure that the annual budget is used to pursue the Foundation’s mission.
  10. Establish the return and risk objective of the Foundation’s unrestricted assets and appropriate investment parameters and guidelines. [For implementation by the Asset Management Committee].
  11. Review any proposed financing structures of a related entity transaction if utilizing Foundation assets.
  12. Review, discuss and modify finance and audit policies brought forth by staff. Forward policy recommendations to Governance Committee or Board of Directors as appropriate.
  13. Make recommendations annually to the Board of Directors regarding committee charter, structure and composition.
  14. Review adequacy of procedures and internal controls for financial management.
  15. Monitor financing plans, cash flow, and the Foundation’s financial health.
  16. The Committee will collaborate with the Asset Management Committee to make distribution policy recommendations annually to the Board. The goal is to balance current University and Foundation revenue needs against the needs of future generations by maintaining the sustainability of the endowment as required by Kansas Statutes and the sustainability of Foundation operations.

Foundation staff

  1. Provide expertise and information regarding policies, strategies and techniques to the Committee.
  2. Evaluate policies and implement strategies and techniques related to accounting practices, budgeting, and compliance for review and action by Committee.
  3. Provide reports and information to the Committee to accomplish its oversight responsibilities.
  4. Maintain compliance with all applicable laws and regulations. 
  5. Develop appropriate systems and processes to implement approved policies. Ensure appropriate communication and ongoing review of approved policies.
  6. Develop and establish internal controls, financing plans, and cash flow budgets.

Staff Support

  1. Sr. VP Operations and Finance/CFO/COO
  2. VP for Investments/Chief Investment Officer
  3. Sr. Director of Accounting/ Controller
  4. Sr. Director of Compliance Services
  5. President/CEO
  6. Other staff as needed

Meeting schedule

Meet a minimum of 4 times annually.

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