Reinhardt University SACSCOC Compliance Certification

3.2.2.2 Fiscal Stability of the Institution

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)

Judgment check box Compliance

 

Narrative

The legal authority and operating control are clearly delineated in the University’s organizational chart [1] and in the President’s job description. [2] The Board sets broad policies and employs the president. The President is the chief executive officer and the job description delineates responsibility to execute the Board’s general policies through daily operating controls. The University’s Provost and vice presidents provide daily operational direction, carrying out and interpreting the Board’s broad policies and the President’s executive directions. The fiscal stability of the University is the shared responsibility of the Board of Trustees and the President.

The President’s Leadership Team, which comprises the President, Provost, VPs and Director of Athletics, meets in early January each year to approve key budget assumptions as well as tuition and fee increases. Budget assumptions are presented to the Finance Committee in mid-January and, after approval, Finance and Administration distributes the departmental budget templates and functional areas prepare submissions; budget submissions are due to oversight level for review and update in early February; initial submissions are due back to the Finance and Administration in February and reports are compiled; initial reports are sent to the Leadership Team for review and updated until approved. Once the Leadership Team has completed the budget, the Board Chair and the Finance Chair review the budget proposal and revisions are made if necessary.  The full budget is presented to the Finance Committee at their April meeting and, once approved, shared with the Board of Trustees. The proposed Budget Summary presented by the President and recommended for approval by the Finance Committee is presented in May to the full Board, who has the final decision to approve or disapprove the budget. The President has the final authority for the allocation and approval of all budgets within the University. In addition, the Vice President for Finance and Administration is responsible for ensuring adherence to the approved budget and maintaining a sound financial base.  The Finance Committee of the Reinhardt University Board of Trustees meets five (5) times each year in January, April, August, September and November and receives budget updates on a monthly basis. The Reinhardt University Board of Trustees meets three (3) times each year in January, May and September. The Board of Trustees’ minutes [345], along with the Finance Committee minutes [6] and the University’s audit reports [789], show that the operating control of the budget resides with the President of the University.

Article IX of Reinhardt University’s Bylaws identifies the fiduciary responsibilities of the Treasurer of the Board of Trustees as:

The Treasurer shall be responsible for carrying out the mandates of the Board of Trustees and its Finance Committee in overseeing the financial resources of the University including, but not limited to, cash, securities, stocks, bonds and all other property, personal or real, owned by the University. The Treasurer shall assure that all books and accounts are accurately kept and, furthermore, shall present a full and detailed financial statement properly audited by an independent certified public accountant, to the Board at its annual meeting and, if requested, at any other meeting of the Board of Trustees or any meeting of its Finance or Executive Committees. The Treasurer shall monitor the investments of the University, including all funds and endowments, as recommended by the Investment Committee and approved by the Board of Trustees. In addition, the Treasurer may be required to furnish a bond for the faithful performance and discharge of these duties, as may be directed by the Board or required by state statute. The Treasurer shall be an ex-officio member of the Finance Committee and of the Investment Committee. [10]

 

Supporting Documents

[1] Organizational Chart

[2] President’s Job Description

[3] Board of Trustees Minutes September 22, 2015

[4] Board of Trustees Minutes January 26, 2016

[5] Board of Trustees Minutes May 17, 2016

[6] Finance Committee Minutes September 10, 2015

[7] Reinhardt University Audit Report FY 2015

[8] Reinhardt University Audit Report FY 2016

[9] Reinhardt University Audit Report FY 2017

[10] Reinhardt University Bylaws, Article IX