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Comprehensive Standard 3.2.2

The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure: (Governing board control)    

  • 3.2.2.1   institution’s mission;    
  • 3.2.2.2   fiscal stability of the institution;     
  • 3.2.2.3   institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services; and   
  • 3.2.2.4   related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs.      

3.2.2.1   Institution’s mission    

Judgement: Compliant

Narrative  

The University of South Carolina (USC) Board of Trustees (BOT) Bylaws Article III, Section 1, “Duties of the Board,” states that the board shall define the mission, role and scope of the University System and each of its major component institutions.  The BOT adopted the current USC Upstate Mission Statement on June 2006. 

The Chancellor bears responsibility for carrying out the institution’s mission, for the fiscal stability of the institution, and for institutional policies, including those concerning related and affiliated corporate entities, all auxiliary services, and related foundations and other corporate entities whose primary purpose is to support the institution and/or its programs.

Support Documents:  

3.2.2.2    Fiscal stability of the institution 

Judgement: Compliant

Narrative:  

The legal authority and powers of the governing board are enumerated by the provisions of the South Carolina Code of Laws, Sections 59-117. The University of South Carolina (USC) Board of Trustees (BOT) Bylaws, Article III, Section 1: Duties of the Board, states, "The Board shall define the mission, role and scope of the University System and each of its major component institutions, shall establish the general policies of the University System, shall lay out the University System’s broad program of educational activity, shall approve the budget for the next fiscal year, and shall provide ultimate accountability to the public and the General Assembly.”

Within these fundamental responsibilities, the BOT will perform, where appropriate, many essential functions, including but not limited to:

  • "Levy fees and charges and examine from time to time admissions policies as established by the faculties and the administration;"
  • "Review and approve requests for appropriations;"
  • "Review and approve annual budgets and budget changes;"
  • "Approve all gifts where restrictions are indicated, designate the use of unrestricted gifts, and approve and designate the use of testamentary gifts;"
  • "Approve all loans, borrowing, and issuance of bonds;"
  • "Approve appointments and salaries of principal officials which shall be defined as those persons elected by the Board as well as University officers having the rank of Vice President or Chancellor or equivalent rank;"
  • "Approve compensation policy for faculty and staff."

In accordance with Article XI, Section 3 of the Board's Bylaws, the Chancellor bears responsibility for the financial management and operational control of the University of South Carolina Upstate (USC Upstate) campus and its component parts conforming with the USC management policies and practices. These responsibilities include, but are not limited to, the preparation of budgets, maintenance of financial records and accounts for activities of the campus, the receipt and expenditure of all campus funds, and preparation of required financial reports. The USC BOT minutes on June 2008 and March 2010 reflect actions taken over the last several years relative to USC Upstate’s fiscal stability.

Support Documents: 

3.2.2.3   Institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services  

Judgement: Compliant

Narrative:  

The annual appropriations act of the State of South Carolina includes General Provisions delegating authority to the University of South Carolina (USC) Board of Trustees (BOT) to maintain policies concerning related and affiliated corporate entities and all auxiliary services.  Proviso 89.9 of the 2010-2011 Appropriations Act states:

Notwithstanding other provisions of this act, funds at state institutions of higher learning derived wholly from athletic or other student contests, from the activities of student organizations, and from the operations of canteens and bookstores, and from approved Private Practice plans at institutions and affiliated agencies may be retained at the institution and expended by the respective institutions only in accord with policies established by the institution's Board of Trustees. Such funds shall be audited annually by the State but the provisions of this act concerning unclassified personnel compensation, travel, equipment purchases and other purchasing regulations shall not apply to the use of these funds.

As delineated in the USC BOT’s Bylaws, Article III, Section 1: Duties of the Board, "The Board shall define the mission, role and scope of the University System and each of its major component institutions, shall establish the general policies of the University System, shall lay out the University System’s broad program of educational activity, shall approve the budget for the next fiscal year, and shall provide ultimate accountability to the public and the General Assembly." The following are duties delegated to the BOT pertaining to policies related to and affiliated with corporate entities and all auxiliary services:

  • "Establish policies and goals of the University and [to] direct the President to implement and achieve these policies and goals;"
  • ”Levy fees and charges and examine from time to time admissions policies as established by the faculties and the administration;”
  • ”Approve or delegate authority for approval of all major contractual relationships and other major legal obligations executed in the name of the University;”
  • ”Establish auditing policies and standards and appoint independent auditors; and “
  • ”Establish and maintain within the administrative procedures of the University the policy and practice that the administrators [President, Secretary, and Treasurer] of the University...shall serve in such capacities at the will and pleasure of the Board; that the administrators of the University having the rank of Vice president, Chancellor, University Campus Dean, Academic Dean, Director or the equivalent thereof and any other person reporting directly to the President shall serve in such capacities at the will and pleasure of the President.”

Auxiliary services at USC Upstate include bookstore, housing, dining services (Sodexo), health services, vending and concessions. Sources of revenue include housing fees, meal fees, book sales, ticket sales, and sales of other commodities and services. The BOT, as evidenced by the Bylaws, Article III, Section 1, Item P: Authority for Approval, must approve or delegate authority for approval of all major contractual relationships and other major legal obligations executed in the name of the University. With respect to auxiliary services, Board of Trustees Policy 1.04 stipulates that:

  • “The President of the University and the Secretary of the Board of Trustees are delegated authority to sign contracts and agreements which are binding upon the University;”
  • ”The Chancellors of the four-year campuses, and the Vice Provost and Executive Dean for System Affairs and Extended University, are authorized to sign contracts and agreements on behalf of their respective campuses with a total value not in excess of $25,000, excepting research and research-related agreements, and employment agreements;” and
  • ”The Director of Purchasing shall have the authority to sign official University of South Carolina purchase orders, provided such purchase orders comply with the provisions of the South Carolina Consolidated Procurement Code.”

Support Documents:  

3.2.2.4   Related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs  

Judgement: Compliant

Narrative:  

According to the South Carolina Code of Laws, Sections 59-117-40, the University of South Carolina (USC) Board of Trustees (BOT) has the legal authority to approve or delegate authority to approve all major contractual relationships such as contracts of agreements with foundations and other related entities.

As delineated in the BOT's Bylaws, Article III, Section 1: Duties of the Board, "The Board shall define the mission, role and scope of the University System and each of its major component institutions, shall establish the general policies of the University System, shall lay out the University System’s broad program of educational activity, shall approve the budget for the next fiscal year, and shall provide ultimate accountability to the public and the General Assembly."

The following duties are delegated to the BOT pertaining to governing board control of related foundations and other corporate entities whose primary purpose is to support the institution is the responsibility to:

  • "Approve all gifts where restrictions are indicated, designate the use of unrestricted gifts, and approve and designate the use of testamentary gifts;"
  • "Approve or delegate authority for approval of all major contractual relationships and other major legal obligations executed in the name of the University;" and
  • "Establish investment policies and procedures which will provide for prudent investment and preservation of funds entrusted to the University"

The University of South Carolina Upstate (USC Upstate) has the ability to accept gifts and grants of a complex nature due to its relationship with the Spartanburg County Commission for Higher Education.  The Spartanburg County Commission for Higher Education was created under Act. No. 36 of the 1967 Session of the General Assembly of South Carolina and was charged with the encouragement of higher education in Spartanburg County and adjacent areas.  According to the Bylaws of the Spartanburg County Commission for Higher Education “the Commission is empowered to enter into contracts, make binding agreements, negotiate with educators and educational institutions, subject to existing legislative authority and generally, to take such actions in its name as are necessary to secure for Spartanburg County and adjacent areas the necessary educational facilities to provide higher education.”

The Bylaws of the USC Upstate Foundation identify the organization as that of an eleemosynary, nonprofit corporation whose purposes shall be similar to those of any charitable or eleemosynary corporation. The Bylaws of the USC Upstate Foundation state that it “was established to support the University of South Carolina (the “University”) in all of its educational, instructional, scientific, literary, research, service, charitable, and outreach endeavors. The primary purpose of the Foundation is to receive, solicit, accept and hold, administer, use, invest, endow, and disburse gifts, bequests, devises, and all types of property for the exclusive benefit of the University. The Foundation is dedicated to maximizing support from the private sector for the university to provide a margin of excellence beyond that which could be achieved with state appropriated funds only.”

Support Documents:    

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