Troy University
SACS Reaffirmation of Accreditation
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:

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


X Compliance   Partial Compliance   Non-Compliance

Narrative:  

Troy University is in compliance with this Comprehensive Standard.

Troy University has relationships with two separately incorporated entities: the Troy University Foundation and Center Services, Incorporated. Both incorporated entities support the overall mission of the University. Although organizationally separated from the University, both entities work cooperatively with the University. The legal authority and operating control of these entities by the University are clearly defined within the University’s governance structure.

Troy University Foundation

The Troy University Foundation was incorporated on July 16, 1968, after approval by the Board of Trustees. The Foundation is a tax exempt organization under Section 501 (c) (3) of the United States Internal Revenue Code, and gifts to the Foundation are deductible under Section 170 (c) (2) of the Code. Specific information about the Troy University Foundation is maintained by the Associate Vice Chancellor of Development. Specific information about the Foundation’s roster, by-laws, and minutes of meetings are provided.

The Troy University Foundation complements the University's purpose and objectives and contributes to the University's effectiveness. The Foundation was created to attract private support for Troy University. The purposes of the Foundation are to promote, support, and carry out broader educational opportunities and provide services to the faculty, students, and alumni of Troy University. The mission of the Foundation is “To assist Troy University in building its endowment through a coordinated donor program and sound investment policy, thereby ensuring reliable resources for the future.” As is typical of similar foundations at peer institutions, the Troy University Foundation accepts gifts of cash, real estate, securities, life income gifts, bequests through wills, life insurance policies, charitable trusts, life estate agreements, named funds and approved gifts-in kind.

The Foundation is subject to proper operating controls and risk-liability containment. An elected Board of Directors sets the governing policies. Standing committees of the Board include: the Stewardship Committee, Nominating Committee, and Advancement Committee. According to the Foundation bylaws (revised in July 2005):

Supervisory authority for the Foundation is vested in the Chancellor of Troy University who in turn reports to an appointed Board of Trustees. The Chancellor delegates Foundation supervisory responsibility to the Senior Vice Chancellor for Advancement and External Relations. The Chancellor further delegates daily Foundation responsibility to the Associate Vice Chancellor for development who, in turn, coordinates appropriate financial transactions with the Vice Chancellor for Financial Affairs. These four positions are assigned ex-officio membership on the Foundation Board. (Section III. B.)

In Jan. 2008, the role of Vice Chancellor for Financial Affairs was changed to Senior Vice Chancellor for Finance and Business Affairs. This Senior Vice Chancellor for Finance and Business Affairs serves the Foundation as its treasurer. The Troy University Foundation Board of Directors integrates University officials with other University stakeholders, including individuals external to the University, and in so doing, ensures that the leadership of the Foundation works in a cooperative, but separate fashion, from the leadership of Troy University. While the financial position of the Foundation complements the efforts and activities of the mission of Troy University, its financial position does not constrain, limit, or prevent the University from achieving its mission. Independent audits of the Foundation reported that the entity follows prescribed accounting practices and confirmed no irregularities with the Foundation financial documents.

Center Services, Incorporated

Center Services, Incorporated, (CSI) was incorporated on Aug. 23, 1976, as a tax exempt organization under Section 501 (c) (3) of the United States Internal Revenue Code, and gifts to CSI are deductible under Section 170 (c) (2) of the Code. A current file, outlining the mutual benefit and mutual relationship, is maintained by the Associate Vice Chancellor of Auxiliary Services, who also serves as president of CSI. Specific information, including articles of incorporation, mission and current Board members, is provided. Two senior vice chancellors as well as the Associate Vice Chancellor of Development and the Dean of Student Services from the Troy campus sit on the board of CSI. Current year financial audits are still in process but prior audit materials are provided at the following: CSI Audit July 23, 2004, CSI Audit July 24, 2004, and CSI Financial Statements. Center Services, Incorporated, complements the University's purpose and objectives and contributes to the University's effectiveness. The purpose of CSI is, in general, "to promote, sponsor, and carry out broader opportunities and services for the benefit of the students, faculty, staff, alumni, and supporters of Troy University." The activities of the CSI include:

  • Provide members with services determined by the board as necessary or desirable.
  • Encourage gifts, grants, loans, devises and bequests of all types of property.
  • Receive, hold, own and administer such property.
  • Primary object- serving needs of members and Troy University.
  • Become party to contracts of every type.
  • Purchase, use, mortgage, pledge, lease, sell and otherwise dispose of property.
  • General advancement of educational environment of Troy University.
  • Have and exercise all rights, powers and privileges of a non-profit corporation as provided by the Code of Alabama.

CSI contracts with the University to provide services such as the students’ washers and dryers (and other equipment) in student housing, vending services for the University Library on the Troy Campus, the production of student identification cards, and student utility deposit guarantees for services from the city of Troy.

While Center Services, Incorporated provides valuable assistance to the University and operates to complement the University’s overall mission, its specific financial position does not constrain, limit, or prevent the University from achieving its stated missions. Independent audits of Center Services, Incorporated reported that the entity follows prescribed accounting practices and confirmed no irregularities with the Foundation financial documents.

Troy University is in compliance with this Comprehensive Standard.

 

Supporting Documentation Location
Center Services, Incorporated Audit July 23, 2004 http://sacs.troy.edu/reference/03-02-02-04/
Center_Services_WilsonPrice_July_23_04.pdf
Center Services, Incorporated Audit July 24, 2004 http://sacs.troy.edu/reference/03-02-02-04/
Center_Services_WilsonPrice_July_24_04.pdf
Center Services, Incorporated Bylaws http://sacs.troy.edu/reference/03-02-02-04/CSI_ByLaws.pdf
Center Services, Incorporated Certificate of Incorporation http://sacs.troy.edu/reference/03-02-02-04/
CSI_Certificate_of_Incorporation.pdf
Center Services, Incorporated Financial Statements, August 31, 2004 http://sacs.troy.edu/reference/03-02-02-04/
Center_Services_Financial_Statements_Aug_31_03.pdf
Center Services, Incorporated Purpose and Board Members http://sacs.troy.edu/reference/03-02-02-04/CSI-2007.pdf
Foundation Board Bylaws http://sacs.troy.edu/reference/03-02-02-04/
Foundation_Board_By-Laws.pdf
Foundation Board Certificate of Incorporation http://sacs.troy.edu/reference/03-02-02-04/
Foundation_Certificate_of_Incorporation_1968.pdf
Foundation Board Financial Statements http://sacs.troy.edu/reference/03-02-02-04/
Foundation_Financial_Statement_Sept_07-06.pdf
Foundation Board Minutes, March 1, 2007 http://sacs.troy.edu/reference/03-02-02-04/
Foundation_Meeting_Minutes_3-1-07.pdf
Foundation Board Rosters and Purpose http://sacs.troy.edu/reference/03-02-02-04/
Foundation_Board_Roster_and_Purpose_3-28-07.pdf

 

Last Updated: 08/22/2008