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Office of General Counsel Policies & Guidelines

Policy Number: 
4:03:02:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

The purpose of this policy is to establish the minimum regulations and procedures concerning the maintenance and operation of motor vehicles by institutions and employees of the institutions within the Tennessee Board of Regents System.

Definitions: 
  • State vehicle or motor vehicle - any motor vehicle owned by the Board or an institution or college of applied technology in the System, or purchased or leased from state funds.
  • Institution - any university, or community college, or college of applied technology within the Tennessee Board of Regents System, and the offices of the Board of Regents.
  • Employee - any person employed full or part-time by an institution or any person serving as an ‘official volunteer’ at an institution. An ‘official volunteer’ is defined as a person whom the institution has properly registered with the Tennessee Board of Claims pursuant to Tenn. Code Ann. § 8-42-101(3)(B).
Policy/Guideline: 
  1. General Provisions
    1. Motor vehicles are maintained at institutions in the System to facilitate the official business of the System. It is the responsibility of all employees who use state vehicles to ensure the efficient and economical utilization of such vehicles.
    2. All state vehicles shall be used in accordance with the provisions of this policy.
    3. All state vehicles shall be marked in accordance with the current TBR Marking Plan as contained in Attachment A.
  2. Presidents, Chancellor, Vice Chancellors, Legal Counsel, and TCAT Directors
    1. The presidents of the institutions, the Chancellor, Vice Chancellors, Legal Counsel, and TCAT Directors may be provided an  assigned motor vehicle for their use or receive an automobile allowance. The terms of such use shall be set forth in their respective employment agreements or letters.
  3. Motor Pools
    1. Each institution is authorized to maintain a central motor pool from which vehicles may be dispatched by employees for official business.
    2. When motor pool vehicles are maintained, an employee who needs to use a motor vehicle on state business shall use a pool dispatched vehicle if one is available, unless the employee elects and obtains authorization to use a personally-owned vehicle as provided in the Board's General Travel Policies and Procedures (No. 4:03:03:00).
    3. Motor pool vehicles shall be available for either trip assignments or special assignments.
      1. Motor pool vehicles available for trip assignments will be centrally controlled by the institution and made available for specific trips and returned to the motor pool upon completion of trips and shall be used only for official business and not for personal use.
      2. Special assignment of motor pool vehicles may be made to a division or a person when necessary for use on a regular basis.
      3. Motor pool vehicles, including those used for trip assignments and special assignments may not be used for commuting purposes unless the employee:
        1. Is departing upon or returning from an official trip away from his or her headquarters or the employee needs the vehicle to conduct institution business after regular working hours or before his or her usual working hours on the next day; or
        2. Has been recommended by the president or director and approved by the Chancellor to be authorized to use the vehicle for commuting purposes.
  4. Authorized Operators and Passengers
    1. Only employees of an institution with proper departmental authorization may be authorized to operate a state vehicle for official business. Authorization to use a state vehicle shall be limited to official use within the scope of employment of the employee.
    2. All employees must have a valid driver's license prior to being authorized to operate a state vehicle.
    3. Passengers in state vehicles shall be limited to the following:
      1. Employees of the institution when within the scope of employment;
      2. Students of the institution engaged in institutional or school sponsored activities; and
      3. Other persons when it is necessary for them to accompany an employee on official business or as guests of the institution. The spouse and children of employees generally are not considered a guest of the institution unless their attendance is required at the event and they are listed on approved travel authorizations. This provision does not apply to those positions listed in Section II.A. 
  5. Penalties for Misuse of Vehicles
    1. Employees who misuse vehicles will be subject to disciplinary sanctions, depending upon the magnitude of the misuse and the frequency with which it has occurred. Misuse includes any of the following:
      1. Utilization of radar detection devices in state vehicles;
      2. Violations of traffic laws; this includes exceeding posted speed limits, reckless driving, and illegal parking;
      3. Careless operation that results in damage to the vehicle or injury to persons or property;
      4. Use of a vehicle for personal business or unauthorized commuting purposes; or
      5. Use of a vehicle contrary to the provisions of this policy.
    2. The president or director of the institution, or the Chancellor should determine the penalty appropriate for each violation; and in addition may require the employee to pay for damages to the vehicle caused by misuse.
  6. Notice of Liability and Penalties for Misuse
    1. A notice of liability and penalties for misuse of motor vehicles (Exhibit 1) shall be posted at the site where vehicles are normally checked out, and be contained in each vehicle for the benefit of drivers.
  7. Exceptions
    1. Any exception to this policy must be approved in writing by the Chancellor.

Attachment A

  1. Marking Plan for State Vehicles
    1. The provisions of the marking plan for licensed vehicles are as follows:
      1. All institutions will develop and/or affix their own individual decal containing a minimum surface area of sixty square inches to all licensed vehicles.
      2. The identifying emblem will be displayed on the passenger and driver’s door unless otherwise stated. Some vans will be marked on the side at mid-panel height, and some institutions will further identify the vehicle as security, maintenance, etc.
      3. Vehicles assigned to the chancellor, vice chancellors, legal counsel, presidents, and directors will carry regular series license plates and no decal identification.
    2. These provisions will remain in full effect until revoked or altered in writing by the Chancellor of the Tennessee Board of Regents.

Source: Memorandum dated February 28, 1986, from Chancellor Thomas J. Garland to the State Commissioners of Finance and Administration and General Services

Sources: 

TBR Meetings, June 29, 1979; June 27, 1980; September 30, 1983; June 29, 1984; June 27, l986; June 24, 1988; September 21, 1990; March 18, 2005; June29, 2007; Board Meeting, September 26, 2014; Board Meeting March 27, 2015.

Policy Number: 
4:02:20:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

The following policies and procedures concerning the disposal of surplus personal property shall be followed by all institutions governed by the Tennessee Board of Regents.

Definitions: 
  • Surplus personal property - means that personal property which has been determined to be obsolete, outmoded, unusable or no longer usable by the institution, or property for which future needs do not justify the cost of maintenance and/or storage. Such property must be declared "surplus personal property" by the president, director, or designee of the transferring institution; provided however, property need not be declared surplus when disposition is through the trade-in method.
Policy/Guideline: 
  1. General Rules
    1. Surplus personal property is either usable property, which shall be transferred or sold, or unusable property, which may be destroyed, as hereinafter provided:
      1. Surplus personal property which is perishable food may be destroyed without delay or notification.
      2. Surplus mattresses may be destroyed or may be otherwise disposed of only upon compliance with T.C.A. § 12-2-403.
      3. Surplus personal property which is determined to be not usable by the institution and of little or no salvage or other economic value may be destroyed by an appropriate method.
      4. The institution shall follow the procedures described in Section II.C of this policy, prior to disposal of all other surplus personal property.
    2. Surplus personal property in which the Federal Government or other entity has a legal interest should be transferred to such entity when no longer needed.
    3. It is unlawful for any state official or employee, including System employees, to purchase from the state except by bid at public auction any surplus property during the tenure of his office or employment, or for six (6) months thereafter. A purchaser who violates this provision is guilty of a misdemeanor under T.C.A. § 12-2-412.
    4. For all sales to individuals except at public auctions including internet auction, the transferring institution conducting the sale shall obtain from the purchaser a signed disclaimer certifying the purchaser is not a state or System employee and that the purchaser is not buying the property for or on behalf of any state or System employee.
    5. All employees of the Tennessee Board of Regents System and their immediate families shall be ineligible to bid for or purchase surplus personal property except by bid at public auction.
    6. Possession of surplus personal property sold to the general public under any method prescribed under Section II.C of this policy shall not pass until payment is made by cash, or if payment is made by cashier’s check or certified check, possession shall not pass until the check is honored by the drawee bank.
    7. Possession shall pass to System institutions, political subdivisions of the state, and other governmental entities upon receipt, by the institution, of purchase vouchers of such institutions, political subdivisions, or other governmental entities. Title to motor vehicles sold as surplus property to political subdivisions and other governmental entities shall be closed as to transferee when title is passed.
  2. General Disposal Procedures
    1. The president or director of each institution or their designee shall declare personal property to be surplus personal property prior to disposition as such; provided however, property need not be declared surplus when disposition is through use of the trade-in method.
    2. The president or director or their designee shall designate the department or individual at the institution responsible (hereinafter referred to as "responsible authority") for the disposal of surplus personal property, and the communications and procedures concerning the disposal of surplus personal property.
    3. No article of personal property may be disposed of as surplus except by one of the following methods:
      1. Trade-in, when such is permitted due to the nature of the property or equipment and subject to the provisions of T.C.A. § 12-2-403 and the rules of this policy;
      2. Transfer to other institutions within the Tennessee Board of Regents system;
      3. Transfer to other state agencies;
      4. Sale to eligible political subdivisions of the state and other governmental entities;
      5. Public auction, publicly advertised and held;
      6. Sale under sealed bids, publicly advertised, opened and recorded;
      7. Negotiated contract for sale, at arm’s length; but only in those instances in which the availability of the property is recurring or repetitive in character, such as marketable waste products;
      8. Disposition through the Department of General Services as provided in the Department Rules and Regulations;
      9. Donations to a public school or public school system;
      10. Sale by Internet auction.
    4. If the president, director or designee declares the property to be surplus personal property, the method of disposal shall be determined by the responsible authority from the alternatives set forth in Section II.C of this policy. Written documentation for the selection of method of disposal shall be maintained.
    5. The trade-in method, when property is of the nature appropriate for trade-in, and transfer to other institutions in the Tennessee Board of Regents System shall be the first and second priority methods, respectively, for disposal of surplus personal property, except for waste products which shall be disposed of as further provided in this policy.
    6. In the selection of other methods of disposal, the following criteria shall be considered:
      1. The character, utility and functionality of the property;
      2. The economics of disposal in light of all relevant circumstances attendant the proposed disposal, including the condition and climate of the potential market and present estimated market value of the property, transportation costs, and other cost factors associated with disposal; and
      3. Sound fiscal and budgetary policy and practices.
    7. The method of disposal selected in the preceding section shall be implemented pursuant to the specific procedures set forth in this policy for such disposition.
    8. The responsible authority at the institution shall be responsible for the maintenance of accountability documentation on all items of surplus personal property, and shall ensure that adequate audit and inventory trails on all items of surplus personal property are maintained.
    9. Such authority shall make the final determination of the fair market value of surplus personal property for purposes of calculating reimbursements to the transferring institution and to determine whether property may be destroyed pursuant to Section I.A.3.
    10. Nothing shall prohibit an institution from simultaneously providing notice of an intended disposition of surplus personal property to all System institutions and all state agencies as specified in Section IV.A and V.A below.
    11. In such event, if no System institution has requested the property within seven (7) days of the initial notice, the first state agency which had requested the property within such time shall be entitled to receive the property upon reimbursement as provided in Section V. below.
  3. Trade-In on Replacement
    1. Items that must be replaced may, subject to the requirements of this section, be traded in on replacement property.
    2. The responsible authority of the institution shall perform the following functions in connection with the trade-in method of disposal:
      1. Issue invitations to bid asking for bids with trade-in and without trade-in and receive and review bids;
      2. Make an evaluation of the condition and fair market value of the property to be disposed of; Through comparisons of bids and the evaluation prepared, make a determination whether it is in the best interests of the institution to dispose of the property by trade-in or by one of the other methods of disposal.
  4. Transfer to System Institutions
    1.  Except when the trade-in method is utilized or when the property is to be disposed of as a waste product, the responsible authority at the institution shall provide to the president, director, or their designee, or appropriate departments and/or individuals at all other institutions in the System and to the offices of the Tennessee Board of Regents, a notice of intended disposition which shall include;
      1. The name of the individual to contact for additional information;
      2. The location of the property for inspection;
      3. A description of the property;
      4. The condition of the property; and
      5. The original cost and fair market value of the property as determined by the responsible authority.
    2. The initial notice of available surplus personal property may be made at periodic intervals for the purpose of consolidating notices on numerous items of such property for convenience.
    3. The first institution which makes a written request for the available surplus personal property shall be entitled to receive such property.
    4. In the event that no institution requests transfer of available surplus personal property within seven (7) days of the date of the initial notice, the property may be disposed by means of another appropriate method of disposal.
  5. Transfer to Other State Agencies
    1. When transfer to other state agencies is the method of disposal selected; the responsible authority of the institution shall provide notice of the intended disposition to the commissioner or chief executive officer of all state agencies which shall include all information specified in the notice required by Section IV.A.
    2. The first state agency which makes a written request for the available surplus personal property shall be entitled to receive such property.
    3. In the event that no state agency requests transfer of available surplus personal property within seven (7) days of the date of the initial notice, the property may be disposed by means of another appropriate method of disposal.
  6. Sale of Surplus Property to Governmental Entities
    1. Political subdivisions of the state and other eligible governmental entities may purchase surplus personal property by submission of sealed bids for such property to the responsible authority of the institution no later than two (2) days prior to a public auction held for disposal of such property.
      1. Such bids shall be opened two (2) days prior to such public auction and the highest bid shall be selected unless the responsible authority decides that the highest bid does not represent the fair market value.
      2. The responsible authority may reject such bids and may negotiate with the political subdivisions of the state and other entities which have submitted bids in order to obtain a fair market value. In the event negotiation does not result in a fair market value, such property shall be disposed of by public auction.
    2. Political subdivisions of the state and other governmental entities shall retain possession of surplus property purchased from System institutions for at least one (1) year unless disposal is approved by the Board of Standards. Any profit realized from the resale of such property shall revert to the state or the System as their interests may appear.
    3. Any sale of automobiles by a System institution to a county, municipality or other political subdivision or governmental entity shall become null and void and such property shall revert to the state, or the System as their interests may appear, in the event that such political subdivision or governmental entity does not transfer the registration of title to such automobile to its name within seven (7) days after the sale.
  7. Public Auctions and Sales Under Sealed Bids
    1. Public auctions and sales under sealed bids, as provided in this policy, shall be publicly advertised and publicly held.
      1. Notice of intended disposal by public auction or sale under sealed bid shall be entered by the responsible authority of the institution in at least one (1) newspaper of general circulation in the county or counties in which the disposal is to be made reasonably describing the property and specifying the date, time, place, manner, and conditions of the disposal.
      2. The advertisement shall be entered in the public notice or equivalent section of the newspaper and shall run not less than three (3) days in the case of a daily paper and not less than twice in the case of a weekly.
      3. The disposal shall not be held sooner than seven (7) days after the last day of publication nor later than fifteen (15) days after the last day of publication of the required notice, excluding Saturdays, Sundays and holidays.
      4. Prominent notice shall also be conspicuously posted for ten (10) days prior to the date of disposal, excluding Saturdays, Sundays and holidays, in at least two (2) public places in the county or counties where the disposal is to be made.
      5. Furthermore, notice shall be sent to the county court clerks of the county in which the sale is to be made, and all contiguous counties in Tennessee, except when the fair market value of all the property to be sold is determined in writing by the president or director or his or her designee to be less than $500.00.
    2. A mailing list shall be developed for mailing to eligible governmental entities and potential buyers of surplus items.
    3. No person, firm or corporation shall be notified of any public auction or sale except as provided by this policy.
    4. Each institution should attempt to include as many items in each sale as is practical and feasible.
    5. All notices of sales of such property shall provide that the property is to be sold "as is" with transportation costs assumed by the purchaser. The notice shall state that the only warranty provided, expressed or implied, is the seller's right, title and interest in the property sold.
    6. All sales by bid or auction shall be with reserve, and when bids received are unreasonably below the fair market value as determined by the responsible authority of the institution or school, all bids shall be rejected and the property shall be thereafter disposed of pursuant to other acceptable methods of disposal.
  8.  Disposal of Waste Products
    1. Marketable waste products such as paper and paper products, used lumber, bottles and glass, rags, and similar materials of nominal value classified as scrap may be sold directly to dealers at the going market rate without soliciting bids. Each institution shall keep a record of the volume and unit price of such materials sold on the scrap market.
    2. Waste products which are subject to storage and are normally accumulated until such quantities are available to make a sale economically feasible shall be sold under sealed bids as follows:
      1. Invitations to bid shall be mailed to known buyers of the particular item;
      2. Three firm bids shall be secured when possible;
      3. Sealed bids shall be publicly opened and recorded ten (10) days, excluding Saturdays, Sundays, and holidays, after the invitations to bid are mailed;
      4. The highest bidder shall be awarded the contract and shall be notified of the date for removal of the property and the method of payment which will be acceptable;
      5. A file shall be maintained for each disposal for the purpose documenting the sale and should include all documents and information pertinent to the disposal.
    3. Anything to the contrary notwithstanding, surplus personal property which is determined to be unusable and of little or no salvage or other economic value may be destroyed by an institution or school as provided in Section I.A.3.
  9. Disposal of Livestock
    1. The Head of the Agriculture Program is responsible for the administration of sales or other disposition of all livestock. The Head of the Agriculture Program shall also ensure that adequate inventory records are maintained. Exceptions must be approved by the President of the Institution.
    2. As applicable for the method of sale, documentation that supports the method of sale, advertisements, invitations to bid, bids received, authorization, minimum prices, and price received should be maintained by the Head of the Agriculture Program.
    3. Consistent with the best interest of the institution, as recommended by the Head of the Agriculture Program, livestock may be sold by the following methods:
      1. Disposition by Public Auction or Sealed Bid - Unless it is in the best interest of the institution to proceed otherwise, livestock shall be sold by invitation of sealed bids or by public auction (i.e., local livestock auctions).
      2. Special Auction/Private Treaty Sales - These methods are used for superior breeding animals, show animals, pedigreed and/or high quality specialty animals.
        1. Prior to advertisement, a responsible faculty member or farm manager shall submit a list of superior animals to be sold at auction or private treaty and obtain written approval from the Head of the Agriculture Program.
        2. The animal(s) available for sale will be advertised through the departmental website, relevant industry publications, or newspaper at least two (2) weeks in advance. A responsible point of contact, who is able to provide information on animal offerings and participate in the selling/bidding process, should be included in the advertisement.
        3. The Agriculture Program will establish minimum sale prices. The farm manager or faculty member in charge of the respective species' research/teaching program shall determine sale prices for each animal. Value shall be based on the genetic, phenotypic, and performance merit of the animal compared to the average of the population.
        4. Sale of the animal will be to the highest bidder at or above the minimum established sale price. In cases of tie bids, a random draw will determine the successful bidder.
      3. Where the price for "commercial" (non-pedigree/non-specialty) livestock can easily be established, the institution may sell directly to "order-buyers" based on current prices when viewed as being in the best interest and most profitable to the institution.
      4. Disposition by Slaughter - Prices for livestock being sold for slaughter shall be based on the National Yellow Sheet prices. The "Yellow Sheet" publication updates prices daily based on a national average. An acceptable alternative for obtaining slaughter animal prices are current USDA Livestock Market Reports.
  10. Sale by Internet
    1. Notice of intended disposal by Internet auction shall be posted on the Internet. Such notice shall specify and reasonably describe the property to be disposed of, the date, time, manner and conditions of disposal, all as previously determined by the responsible authority.
  11. Exceptions
    1. Exceptions to this policy which are consistent with state law may be granted by the Chancellor or his or her designee upon request by the president or director of the transferring institution, or their designees.
    2. The Chancellor or his or her designee may not approve a method of disposal which is not specified in Sections I.A. or II.C. of this policy.
Sources: 

TBR Meetings, June 29, 1979; September 30, 1983; March 7, 1997; September 26, 2003; June 29, 2007; June 24, 2011: March 29, 2012; Dec 13. 2012; TBR Board Meeting June 19, 2015.

Policy Number: 
4:02:10:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

To ensure efficiency, fairness, transparency and maximum level of competition in the procurement of goods and services for the Tennessee Board of Regents System.

Definitions: 
  • Institution – means any of the universities, community colleges, colleges of applied technology and System Office departments within the Tennessee Board of Regents.
  • System Office – the administrative offices of the Tennessee Board of Regents.
Policy/Guideline: 
  1.  Purchasing Authority
    1. The authority to approve procurements of goods and services is delineated in TBR Policy 1:03:02:10.
  2. General Procurement Policies
    1. Procurement Generally
      1. Procurements of goods or services shall be in compliance with all applicable federal and state requirements and TBR Policies and Guidelines.
      2. All procurement of goods and services shall be based upon the principle of competitive bidding except when an alternate procurement method is justified in writing and approved by the appropriate authority, as required by TBR Policy 1-03-02-10.
      3. A complete record shall be maintained of each procurement transaction to provide a clear audit trail.
    2. Procurement Guideline
      1. The Office of Business and Finance and the Office of General Counsel in conjunction with the Council of Buyers shall maintain a procurement guideline, which may be in electronic format, setting forth all processes and procedures for the procurement of goods and services to ensure that all procurements are in compliance with federal and state laws, regulations, and all applicable TBR Policies and Guidelines.
      2. All Institutional procurements shall be in compliance with the procurement guideline.
      3. Each Institution shall maintain a procurement guideline, which may be in electronic format, setting forth any procedures of the Institution in addition to or necessary to comply with this Policy.
  3. Council of Buyers
    1. The Chancellor has established a Council of Buyers that shall be chaired by the Chief Procurement Officer for the TBR System Office and shall be comprised of at least one (1) procurement representative from each university and community college and three (3) regional representatives from the Tennessee Colleges of Applied Technology who shall be appointed by the Chancellor or designee.
    2. The Council should meet quarterly, or at minimum semi-annually, or upon request of the Chancellor or designee.
    3. The Council of Buyers shall develop procurement initiatives, procedures and recommendations which shall be submitted to the Chancellor or designee, related to the following:
      1. Development of uniform procedures, forms, and general conditions governing procurements which may be feasible and practicable for use by all Institutions.
      2. Strategic sourcing initiatives to foster cooperation and cost savings efficiencies.
      3. Consideration of the feasibility and advantages of term contracts for the System and of designation of certain Institutions as responsible procurement agents for specific materials, supplies, equipment, and/or services for the System.
      4. Formulation of a uniform code of ethics for governing the professional conduct of employees responsible for procurement.
      5. Any other matters referred to the Council by the Chancellor or designee.
  4. Exceptions
    1. The Chancellor or designee may approve exceptions to the requirements of this Policy in appropriate cases.
Sources: 

Source: TBR Meetings, March 5, 1976; June 30, 1978; December 12, 1980; September 18, 1981; June 25, 1982; September 30, 1983; September 20, 1985 ; December 4, 1987; June 24, 1988; June 30, 1989; September 22, 1989; September 21, 1990; June 28, 1991; June 25, 1993; September 23, 1994; September 20, 1996, March 7, 1997, December 5, 1997; March 27, 1998, December 4, 1998; June 28, 2002; June 27, 2003, April 2, 2004; September 30, 2005; December 8, 2006; March 30, 2007; June 29, 2007; September 28, 2007; March 28, 2008; December 4, 2008; June 19, 2009; TBR Board Meeting September 25, 2009. Revisions to Exhibts: 9/13. March 30, 2016: Complete policy revision and renaming (changed from Purchasing Policies and Procedures) 

Policy Number: 
4:02:09:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

The purpose of this policy is the establishment of procedures for the acquisition of property by the Tennessee Board of Regents.

Policy/Guideline: 
  1. Introduction
    1. Pursuant to T.C.A. §§ 49-8-11 and 49-8-203, the Tennessee Board of Regents (Board) has the authority to purchase and condemn land, and to receive donations of property (Solicitation and Acceptance of Gifts, Board Policy No. 4:01:04:00) on behalf of institutions governed by the Board, and to be vested with title to property so acquired.
    2. Any proposed acquisition of property by any manner shall be subject to the approval of the Chancellor.
  2. Procedures
    1. The approval of land acquisition by purchase or condemnation shall be subject to the following procedures:
      1. Each institution shall submit to the Chancellor for consideration and approval, a campus master plan or an amended master plan which indicates land acquisition needs, or an individual acquisition request.
      2. Upon approval of the campus master plan or amendment or an individual acquisition request, an institution may request a land acquisition by submitting the proper documentation for each proposed acquisition to the System Office. This documentation shall include:
        1. The justification of the need for the property;
        2. A description of and the location of the property;
        3. The estimated amount of funds required for the acquisition and the source of funds;
        4. A plat of the property;
        5. The name(s) of the present owner(s); and
        6. Deed to property.
      3. The property acquisition request will be submitted by the System Office to the Department of Finance and Administration (F&A) for submission to the State Building Commission (SBC) Executive Sub-Committee (ESC) for approval. After SBC ESC approval, F&A staff will obtain a title commitment, an appraisal, and a survey and prepare an option to purchase the property.
      4. If an option to purchase the property is signed by the seller, it will be submitted to the Chancellor for final approval of the proposed acquisition. If negotiations fail, the institution may request that condemnation proceedings be commenced for acquisition of the property.
      5. If acquisition of the property by purchase is approved, F&A will be responsible for recording the warranty deed and forwarding the deed and title insurance to the System Office.
Sources: 

TBR Meetings, September 24, 1976; September 30, 1983; June 29, 2007.

Policy Number: 
4:02:05:01
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities
Purpose: 

The purpose of this policy is to establish the criteria and process for naming of buildings and facilities governed by the Tennessee Board of Regents.

Policy/Guideline: 
  1. Naming Buildings and Facilities
    1. General Statement
      1. The naming of buildings, facilities, grounds, and organizational units of institutions for individuals or groups who have made significant contributions to society is an honored tradition of higher education.
      2. The prerogative and privilege of such naming’s’ on the campuses of the Tennessee Board of Regents System are vested in the Board.
      3. Authority to name identifiable sub-units or components of buildings and facilities, however, is delegated to the institution president or director, subject to the criteria and process set forth below.
      4. This policy applies to all buildings of the institutions governed by the Board.
      5. It also applies to other facilities, grounds, and organizational units which the institution wishes to dedicate in the name of an individual or group.
      6. Buildings designated by their general purpose or function are not subject to this policy.
    2. Criteria
      1. In general, individuals and groups for whom buildings are named must have made a significant contribution to the field of education, government, science, or human betterment.
      2. To preserve the integrity of all buildings named in the System, this honor must be reserved for individuals of recognized accomplishment and character; no building may bear the name of an individual convicted of a felony.
      3. In general, buildings should not be named for active employees of the Tennessee Board of Regents.
      4. With respect to the naming of buildings on a particular campus, special consideration shall be given to:
        1. The historical significance of the contribution of the individual or group to the institution;
        2. The association of the individual or group with the building to be named;
        3. Any financial contribution of the individual or group to the institution; and
        4. State, regional, national, or international recognition of the individual's or group's contributions and achievements.
      5. A given surname may be assigned to only one building on a specific campus.
      6. In all cases, naming rights are considered to be in effect for the duration of the effective and typical useful life of the physical building, space or abject, and not in perpetuity.
      7. If necessary, the Board reserves the right to remove a name associated with any physical building, space, object, or project at any time if the naming gift pledge remains unfulfilled, it is in the best interests of the institution or of the donor to do so, or to protect the reputation of the institution and/or the donor.
    3. Process
      1. The institution president or director shall charge a committee to consider and make recommendations for the naming of a building.
      2. The committee shall be comprised of student, faculty, and administrative representatives; other representatives of the campus community may serve on the committee, as deemed appropriate by the president or director.
      3. The committee shall consider all suggested naming, which satisfy the criteria cited above. Any individual or group associated with the institution may suggest a name for consideration by the committee.
      4. The committee shall submit a report to the president or director, which includes a recommendation for the naming, documentation of all suggestions considered, and justification of its recommendation.
      5. For naming which require Board approval, the president or director shall submit his or her recommendation, along with the committee's report and any additional supporting information deemed appropriate, to the Board through the Chancellor.
      6. No publicity shall be given to the recommendation for naming until it is considered by the Board.
      7. For naming not subject to Board approval, the president or director shall determine and make known the naming in the manner deemed most appropriate.
    4. Dedication Ceremony and Plaque
      1. Upon approval of the naming by the Board, an appropriate dedication ceremony may be planned and conducted by the institution.
      2. The institution also may erect a dedication plaque or comparable marking upon approval of the naming by the Board.
      3. The plaque may be separate from the building plaque provided by State regulations.
      4. In addition to the individual or group for whom the building is named, the dedication plaque should identify the institution president or director, the Chancellor, and the Chairman of the Board at the time the naming was approved.
  2. Building Plaques
    1. An institution may affix a building plaque to a new or newly renovated building or facility.
    2. All building plaques must comply with Tennessee Board of Regents guidelines adopted pursuant to this policy and State Building Commission policy on building plaques.
    3. This section shall apply to any new or newly renovated building or facility.
Sources: 

TBR Meetings, April 13, 1973; September 30, 1983; June 28, 1985; March 21, 1986; September 18, 1992; March 30, 2007; June 24, 2011; June 28, 2012.

Policy Number: 
4:01:07:02
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
Community Colleges, Universities, System Office
Purpose: 

The purpose of this policy is to assure that, with regard to any foundation established to support any TBR institution or its programs, the relationship of the foundation to the institutions is clearly defined and is set forth in a formal, written manner that (1) defines the legal authority and operating control of the institution with respect to the foundation; (2) describes the relationship of the foundation to the institution and the extent of any liability arising out of that relationship; and (3) demonstrates that the fund‐raising activities of the foundation further the mission of the institution.

Definitions: 
  • Foundation - For purposes of this policy, a foundation is defined as a tax-exempt, not-for-profit corporation, chartered within the State of Tennessee for the sole purpose of supporting and advancing the mission of an institution or its programs. This policy does not apply to foundations established solely to support an institution’s research activities.
Policy/Guideline: 
  1. The Foundation's Relationship to the institutions
    1. A foundation is not an operational function of an institution; it is a separate legal entity. A foundation’s identity must be maintained separate from the institution. 
    2. The foundation's relationship to the institution is based upon a shared interest in the institution's development and success of the institution's mission. Therefore, institutional participation in and support of foundation operations and activities are, therefore, appropriate and desirable.
    3. The accountability of a foundation and of the institution as it relates to the foundation is a concern common to the foundation, the institution, and the Board. Institutions should not promote, encourage or agree to use of a foundation in ways that are, or appear to be, abusive, inappropriate, or do not follow sound business practices.
  2. General Requirements
    1. The governance structure of a foundation must be determined by the foundation. To ensure an appropriate level of institutional participation in the foundation governance, the institution’s president or the president’s designee should hold a voting membership on the foundation’s governing body. In order to assure that the foundation acts as a separate entity, a quorum of its governing body may not consist of a majority of members who are employed by the institution.
    2. Each institution shall enter into a written agreement with any foundation(s) governed by this policy that documents their understanding of their relationship and describes their respective responsibilities. Institutions must use the standard agreement that is attached to this policy or another agreement approved by the Chancellor. Every agreement must contain, at a minimum, the provisions of the standard agreement.
    3. The foundation shall adopt an annual budget. In order to assure that the foundation’s objectives are aligned with those of the institution, the institution shall advise the foundation of its needs and priorities for the fiscal year in question.
    4. The foundation shall develop policies and procedures concerning its operations, including, but not limited to, the following:
      1. Policies that address the solicitation and acceptance of contributions to the foundation. The policies must incorporate sound business principles and safeguard compliance with donor intent and conditions. Such policies shall provide that, prior to acceptance of any gift to the foundation that will require substantial institutional support such as staff, financial assistance, storage, on‐going maintenance, etc., approval must be obtained from the president of the institution and, if applicable, from the Chancellor.
      2. Policies and procedures that address the management and investment of contributions to the foundation, subject to the requirements of the Uniform Prudent Management of Institutional Funds Act, T.C.A. Title 35, Chapter 10, Part 2.
      3. Policies and procedures that address the foundation’s procurement and contracting activities.
        1. Such policies and procedures shall implement sound business practices and prudent use of foundation funds, including encouragement of the use of competitive procurement of goods and services, when practicable.
        2. Such policies and procedures must include a process for determining authority for authorizing contracts on behalf of the foundation and for authorizing expenditure of foundation funds. Authority for these functions cannot be delegated solely to an employee of the institution.
      4. Policies that, in accordance with T.C.A. § 49‐7‐107(c), establish and adopt a code of ethics that apply to and govern the conduct of all members of the foundation’s governing body. Such policies shall require that members review and acknowledge the code of ethics annually.
      5. Policies that identify who may release the foundation’s records upon receipt of a request.
    5. No institutional funds, including contributions to the institution, may be transferred directly or indirectly to the foundation; provided, however, this shall not prohibit the institution from providing in‐kind services to the foundation, such as office space and the use of support staff. It is understood that instances may occur where a donor inadvertently directs a contribution to the institution which is intended for the foundation. Procedures shall be established to clarify donor intent.
    6. Foundations must respect Board and institutional authority over personnel administration. Foundation expenditures for compensation and other payments to or for the benefit of institutional personnel and reportable as income to the recipient,such as salary, expense accounts, automobiles, club or other organization memberships and dues, etc., must be approved in advance, annually, by the institution president, unless the salaries funded by the foundation are in accordance with institution’s compensation plan and included in the institution’s personnel budget. Advance approval of the Chancellor shall be required if payments outside the institution’s compensation plan are made to or for the benefit of any institutional employee, including the president, and if the aggregate value of such payments to any individual institutional employee exceeds fifteen hundred dollars ($1,500) per fiscal year. This provision does not apply to reimbursement of business expenses incurred by institutional employees or to non‐ taxable recognition awards given to institutional employees.
    7. The foundation’s governing body shall issue reports, at least annually, on the activities of the foundation, which shall be submitted to the president of the institution. An annual financial report shall be issued, prepared in accordance with generally accepted accounting principles, including all required note disclosures.
    8. In accordance with T.C.A. § 49‐7‐107(b), all annual reports, books of account and financial records of the foundation shall be subject to audit by the Comptroller of the Treasury of the State of Tennessee. Records and accounts maintained by the foundation shall be audited on the same cycle as the institutional audit performed by the Comptroller, or, with the prior approval of the Comptroller, an independent public accountant may perform such an audit. The contract between the independent public accountant and the foundation shall be approved in advance by the Board of Regents and the Comptroller and shall be on forms prescribed by the Comptroller. All annual reports, books of account and financial records of a foundation shall be available for audit by the internal auditors of the affiliated institution or the Tennessee Board of Regents.
    9. Copies of the initial and amended foundation charters and bylaws filed with the Secretary of State shall be submitted by the president of the institution to the Board of Regents’ Office of General Counsel.
    10. The Chancellor shall have the authority to grant exceptions to this policy when deemed appropriate and necessary. An exception must be requested and granted in writing.
  3. Implementation
    1. No later than twelve (12) months after adoption of this policy, all institutions shall have conformed any existing agreement with foundations to the requirement of this policy.
Sources: 

TBR Meeting, August 17, 1973; TBR Meeting, September 20, 1985; September 21, 1990; June 28, 1991; December 3, 2004; TBR Meeting March 30, 2007; Revised at TBR Board Meeting September 16, 2015.

Policy Number: 
4:01:05:60
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

The Tennessee Board of Regents, on behalf of its Institutions, adopts this Identity Theft Prevention Policy and enacts this program in an effort to detect, prevent and mitigate identity theft, and to help protect the Institutions, their faculty, staff, students and other applicable constituents from damages related to the loss or misuse of identifying information due to identity theft.

Definitions: 
  • Covered account - includes:
    • Any account that involves or is designated to permit multiple payments or transactions; or
    • Any other account maintained by the Institution for which there is a reasonably foreseeable risk of identity theft to students, faculty, staff or other applicable constituents, or for which there is a reasonably foreseeable risk to the safety or soundness of the Institution from identity theft, including financial, operational, compliance, reputation or litigation risks.
  • Identifying information - is any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including but not limited to:  name, address, telephone number, social security number, date of birth, government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number, student identification number, computer Internet Protocol address or routing code, credit card number or other credit card information.
  • Identity theft - means a fraud committed or attempted using the identifying information of another person without authority.
  • Red flag - is a pattern, practice or specific activity that indicates the possible existence of identity theft.
Policy/Guideline: 
  1. Background
    1. The risk to the institutions of the Tennessee Board of Regents (hereinafter referred to as "Institutions"), its faculty, staff, students and other applicable constituents from data loss and identity theft is of significant concern to the Board and its Institutions, and the Institutions should make reasonable efforts to detect, prevent, and mitigate identity theft.
    2. Under this Policy the program will:
      1. Identify patterns, practices or specific activities (“red flags”) that could indicate the existence of identity theft with regard to new or existing covered accounts (see Definitions);
      2. Detect red flags that are incorporated in the program;
      3. Respond appropriately to any red flags that are detected under this program to prevent and mitigate identity theft;
      4. Ensure periodic updating of the program, including reviewing the accounts that are covered and the identified red flags that are part of this program; and,
      5. Promote compliance with state and federal laws and regulations regarding identity theft protection.
    3. The program shall, as appropriate, incorporate existing TBR and institutional policies and guidelines such as anti-fraud programs and information security programs that establish controls for reasonably foreseeable risks.
  2. Identification of Red Flags
    1. The following examples of red flags are potential indicators of fraud or identity theft. The risk factors for identifying relevant red flags include the types of covered accounts offered or maintained; the methods provided to open or access covered accounts; and, previous experience with identity theft. Any time a red flag or a situation closely resembling a red flag is apparent, it should be investigated for verification.
    2. Alerts, notifications or warnings from a credit or consumer reporting agency.  Examples of these red flags include the following:
      1. A report of fraud or active duty alert in a credit or consumer report;
      2. A notice of credit freeze from a credit or consumer reporting agency in response to a request for a credit or consumer report;
      3. A notice of address discrepancy in response to a credit or consumer report request; and,
      4. A credit or consumer report indicates a pattern of activity inconsistent with the history and usual pattern of activity of an applicant such as:
        1. A recent and significant increase in the volume of inquiries;
        2. An unusual number of recently established credit relationships;
        3. A material change in the use of credit, especially with respect to recently established credit relationships; or,
        4. An account that was closed for cause or identified for abuse of account privileges by a financial institution or creditor.
    3. Suspicious documents. Examples of these red flags include the following:
      1. Documents provided for identification that appears to have been altered, forged or are inauthentic.
      2. The photograph or physical description on the identification document is not consistent with the appearance of the individual presenting the identification.
      3. Other information on the identification is not consistent with information provided by the person opening a new covered account or individual presenting the identification.
      4. Other information on the identification is not consistent with readily accessible information that is on file with the Institution, such as a signature card or a recent check.
      5. An application appears to have been altered or forged, or gives the appearance of having been destroyed and reassembled.
    4. Suspicious personal identifying information. Examples of these red flags include the following:
      1. Personal identifying information provided is inconsistent when compared against other sources of information used by the Institution. For example:
        1. The address does not match any address in the consumer report; or,
        2. The Social Security number (SSN) has not been issued or is listed on the Social Security Administration's Death Master File.
      2. Personal identifying information provided by the individual is not consistent with other personal identifying information provided by that individual. For example:
        1. There is a lack of correlation between the SSN range and date of birth.
      3. Personal identifying information provided is associated with known fraudulent activity. For example:
        1. The address on an application is the same as the address provided on a fraudulent application; or,
        2. The phone number on an application is the same as the number provided on a fraudulent application.
      4. Personal identifying information provided is of a type commonly associated with fraudulent activity. For example:
        1. The address on an application is fictitious, a mail drop, or a prison; or
        2. The phone number is invalid or is associated with a pager or answering service.
      5. The social security number provided is the same as that submitted by another person opening an account.
      6. The address or telephone number provided is the same as or similar to the address or telephone number submitted by that of another person.
      7. The individual opening the covered account fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete.
      8. Personal identifying information provided is not consistent with personal identifying information that is on file with the Institution.
      9. When using security questions (mother's maiden name, pet's name, etc.), the person opening that covered account cannot provide authenticating information beyond that which generally would be available from a wallet or consumer report.
    5. Unusual use of, or suspicious activity related to, the covered account. Examples of these red flags include the following:
      1. Shortly following the notice of a change of address for a covered account, the Institution receives a request for a new, additional, or replacement card, or for the addition of authorized users on the account.
      2. A covered account is used in a manner that is not consistent with established patterns of activity on the account. There is, for example:
        1. Nonpayment when there is no history of late or missed payments;
        2. A material change in purchasing or usage patterns.
      3. A covered account that has been inactive for a reasonably lengthy period of time is used (taking into consideration the type of account, the expected pattern of usage and other relevant factors).
      4. Mail sent to the individual is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the individual's covered account.
      5. The Institution is notified that the individual is not receiving paper account statements.
      6. The Institution is notified of unauthorized charges or transactions in connection with an individual's covered account.
      7. The Institution receives notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with covered accounts held by the Institution.
      8. The Institution is notified by an employee or student, a victim of identity theft, a law enforcement authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft.
      9. A breach in the Institution’s computer security system.
  3. Detecting Red Flags
    1. Student enrollment. In order to detect red flags associated with the enrollment of a student, the Institution will take the following steps to obtain and verify the identity of the individual opening the account:
      1. Require certain identifying information such as name, date of birth, academic records, home address or other identification; and,
      2. Verify the student’s identity at the time of issuance of the student identification card through review of driver’s license or other government-issued photo identification.
    2. Existing accounts. In order to detect red flags associated with an existing account, the Institution will take the following steps to monitor transactions on an account:
      1. Verify the identification of students if they request Information;
      2. Verify the validity of requests to change billing addresses by mail or email, and provide the student a reasonable means of promptly reporting incorrect billing address changes; and,
      3. Verify changes in banking information given for billing and payment purposes.
    3. Consumer/Credit Report Requests. In order to detect red flags for an employment or volunteer position for which a credit or background report is sought, the Institution will take the following steps to assist in identifying address discrepancies:
      1. Require written verification from any applicant that the address provided by the applicant is accurate at the time the request for the credit report is made to the consumer reporting agency; and
      2. In the event that notice of an address discrepancy is received, verify that the credit report pertains to the applicant for whom the requested report was made and report to the consumer reporting agency an address for the applicant that the Institution has reasonably confirmed is accurate.
  4. Responding to Red Flags
    1. Once a red flag or potential red flag is detected, the Institution must act quickly with consideration of the risk posed by the red flag.
    2. The Institution should quickly gather all related documentation, write a description of the situation and present this information to the Program Administrator for determination.
    3. The Program Administrator (see Section VI) will complete additional authentication to determine whether the attempted transaction was fraudulent or authentic.
    4. The Institution may take the following steps as is deemed appropriate:
      1. Continue to monitor the covered account for evidence of identity theft;
      2. Contact the student or applicant for which a credit report was run;
      3. Change any passwords or other security devices that permit access to covered accounts;
      4. Close and reopen the account;
      5. Determine not to open a new covered account;
      6. Provide the student with a new student identification number;
      7. Notify law enforcement;
      8. Determine that no response is warranted under the particular circumstances;
      9. Cancel the transaction.
  5. Protecting Personal Information
    1. In order to prevent the likelihood of identity theft occurring with respect to covered accounts, the Institutions may take the following steps with respect to its internal operating procedures:
      1. Lock file cabinets, desk drawers, overhead cabinets, and any other storage space containing documents with covered account information when not in use.
      2. Lock storage rooms containing documents with covered account information and record retention areas at the end of each workday or when unsupervised.
      3. Clear desks, workstations, work areas, printers and fax machines, and common shared work areas of all documents containing covered account information when not in use.
      4. Documents or computer files containing covered account information will be destroyed in a secure manner. Institution records may only be destroyed in accordance with the Board's records retention guideline, TBR Guideline G-070 Disposal of Records.
      5. Ensure that office computers with access to covered account information are password protected.
      6. Ensure that computer virus protection is up to date.
      7. Avoid the use of social security numbers.
      8. Utilize encryption devices when transmitting covered account information.
    2. Institutional personnel are encouraged to use common sense judgment in securing covered account information to the proper extent.
    3. Furthermore, this section should be read in conjunction with the Family Education Rights and Privacy Act (“FERPA”), the Tennessee Public Records Act, and other applicable laws and policies.
    4. If an employee is uncertain of the sensitivity of a particular piece of information, he/she should contact his/her supervisor. The Office of the General Counsel may be contacted for advice.
  6. Program Administration
    1. Oversight and Appointment of the Institutional Program Administrator
      1. The Identity Theft Prevention Policy is the responsibility of the governing body, the Tennessee Board of Regents. Approval of the initial plan must be appropriately documented and maintained.
      2. Each individual institution is required to tailor this program taking into consideration its size, complexity, and nature of its operation.  Each institution will consider the types of accounts it offers and maintains, the methods it provides to open those accounts, the methods it provides to access its accounts and its previous experience with identity theft.
      3. Operational responsibility of the program at each individual institution is delegated to a Program Administrator appointed by the President or Director and shall include but not be limited to;
        1. The oversight, development, implementation and administration of the program;
        2. Approval and implementation of needed changes to the program; and,
        3. Staff training.
      4. The Program Administrator is also responsible for ensuring that appropriate steps are taken for preventing and mitigating identity theft, for reviewing any staff reports regarding the detection of red flags, and for determining which steps should be taken in particular circumstances when red flags are suspected or detected.
      5. A report to the Institution’s President or Director should be made annually concerning institutional compliance with and effectiveness of the program, and the responsibility for such report may be placed with the Program Administrators. This report should address;
        1. Service provider arrangements;
        2. The effectiveness of the program in addressing the risk of identity theft;
        3. Significant incidents of identity theft and the institution’s response; and,
        4. Any recommendations for material changes to the program.
    2. Staff training
      1. Staff training shall be conducted for all employees for whom it is reasonably foreseeable, as determined by the Program Administrator, that may come into contact with covered accounts or identifying information.
    3. Periodic Updates to the Program
      1. At periodic intervals established in the program, or as required, the program will be re-evaluated to determine whether all aspects of the program are up to date and applicable.
      2. Consideration will be given to the Institution’s;
        1. Experiences with identity theft situations;
        2. Changes in identity theft methods, detection methods or prevention methods; and,
        3. Changes in the Institution’s business arrangements with other entities. 
      3. Periodic reviews will include an assessment of which accounts are covered by the program.
        1. As part of the review, red flags may be revised, replaced or eliminated. Defining new red flags may also be appropriate.
      4. Actions to take in the event that fraudulent activity is suspected or discovered may also require revision to the program.
    4. Overview of service provider arrangements
      1. It is the responsibility of the Institution to ensure that the activities of all service providers are conducted in accordance with reasonable policies and procedures designated to detect, prevent, and mitigate the risk of identity theft.
      2. In the event the Institution engages a service provider to perform an activity in connection with one or more covered accounts, the Institution will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent and mitigate the risk of identity theft.
        1. Require, by contract, that service providers have such policies and procedures in place; or,
        2. Require, by contract, that service providers review the Institution’s program and report any red flags to the Program Administrator.
          1. Specific language for inclusion in contracts can be found in TBR Guideline G-030 Contracts and Agreements.
      3. A service provider that maintains its own identity theft prevention program, consistent with the guidance of the red flag rules and validated by appropriate due diligence, may be considered to be meeting these requirements.
Sources: 

March 26, 2009 Board meeting; June 19, 2009.

Policy Number: 
4:01:05:50
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office
Purpose: 

The Tennessee Board of Regents is committed to the responsible stewardship of its resources. Management of each TBR institution is responsible for maintaining a work environment that promotes ethical and honest behavior. Additionally, it is the responsibility of management of each TBR institution to establish and implement internal control systems and procedures to prevent and detect irregularities, including fraud, waste and abuse. Management at all levels should be aware of the risks and exposures inherent in their areas of responsibility, and should establish and maintain proper internal controls to provide for the security and accountability of all resources entrusted to them.

Definitions: 
  • Fraud - An intentional act to deceive or cheat, ordinarily for the purpose or result of causing a detriment to another and/or bringing about some benefit to oneself or others. Fraudulent activities may include, but are not limited to the following:
    • Theft, misappropriation, misapplication, destruction, removal, or concealment of any institutional assets or resources, including but not limited to funds, securities, supplies, equipment, real property, intellectual property or data.
    • Improper use or assignment of any institutional assets or resources, including but not limited to personnel, services or property.
    • Improper handling or reporting of financial transactions, including use, acquisitions and divestiture of state property, both real and personal.
    • Authorization or receipt of compensation for hours not worked.
    • Inappropriate or unauthorized use, alteration or manipulation of data, computer files, equipment, software, networks, or systems, including personal or private business use, hacking and software piracy.
    • Forgery or unauthorized alteration of documents.
    • Falsification of reports to management or external agencies.
    • Pursuit of a personal benefit or advantage in violation of the TBR Conflict of Interest Policy.
    • Concealment or misrepresentation of events or data.
    • Acceptance of bribes, kickbacks or any gift, rebate, money or anything of value whatsoever, or any promise, obligation or contract for future reward, compensation, property or item of value, including intellectual property.
  • Waste - Waste involves behavior that is deficient or improper when compared with behavior that a prudent person would consider a reasonable and necessary business practice given the facts and circumstances. Waste is a thoughtless or careless act, resulting in the expenditure, consumption, mismanagement, use, or squandering of institutional assets or resources to the detriment or potential detriment of the institution. Waste may also result from incurring unnecessary expenses due to inefficient or ineffective practices, systems, or controls. Waste does not necessarily involve fraud, violation of laws, regulations, or provisions of a contract or grant agreement.
  • Abuse - Abuse involves behavior that is deficient or improper when compared with behavior that a prudent person would consider a reasonable and necessary business practice given the facts and circumstances. Abuse also includes misuse of authority or position for personal financial interest or those of an immediate or close family member or business associate. Abuse does not necessarily involve fraud, violation of laws, regulations, or provisions of a contract or grant agreement. (U.S. Government Accountability Office, Government Auditing Standards, July 2007.)
Policy/Guideline: 
  1. Preventing Fraud, Waste or Abuse
    1. Maintaining an Ethical Work Environment
      1. Management is responsible for maintaining a work environment that promotes ethical and honest behavior on the part of all employees, students, contractors, vendors and others.
      2. To do so, management at all levels must behave ethically and communicate to employees and others that they are expected to behave ethically.
      3. Management must demonstrate through words and actions that unethical behavior will not be tolerated.
    2. Implementing Effective Internal Control Systems
      1. Management of each TBR institution has the responsibility to establish and implement internal control systems and procedures to prevent and detect irregularities, including fraud, waste and abuse.
      2. Internal controls are processes performed by management and employees to provide reasonable assurance of:
        1. Safeguards over institutional assets and resources, including but not limited to cash, securities, supplies, equipment, property, records, data or electronic systems;
        2. Effective and efficient operations;
        3. Reliable financial and other types of reports; and
        4. Compliance with laws, regulations, contracts, grants and policies.
      3. To determine whether internal controls are effective, management should perform periodic risk and control assessments, which should include the following activities:
        1. Review the operational processes of the unit under consideration.
        2. Determine the potential risk of fraud, waste, or abuse inherent in each process.
        3. Identify the controls included in the process (or controls that could be included) that result in a reduction in the inherent risk.
        4. Assess whether there are internal controls that need to be improved or added to the process under consideration.
        5. Implement controls or improve existing controls that are determined to be the most efficient and effective for decreasing the risk of fraud, waste or abuse.
      4. Most managers will find that processes already include a number of internal controls, but these controls should be monitored or reviewed for adequacy and effectiveness on a regular basis and improved as needed. Typical examples of internal controls may include, but are not limited to:
        1. Adequate separation of duties among employees.
        2. Sufficient physical safeguards over cash, supplies, equipment and other resources.
        3. Appropriate documentation of transactions.
        4. Independent validation of transactions for accuracy and completeness.
        5. Documented supervisory review and approval of transactions or other activities.
        6. Proper supervision of employees, processes, projects or other operational functions.
    3. Reviews of Internal Control Systems
      1. Audits or other independent reviews may be performed on various components of the internal control systems.
    4. Internal Audit
      1. Internal Audit is responsible for assessing the adequacy and effectiveness of internal controls that are implemented by management and will often recommend control improvements as a result of this assessment.
      2. During an audit of a department or process, Internal Audit will also perform tests designed to detect fraud, waste or abuse that may have occurred.
    5. External Audits
      1. The Tennessee Department of Audit, Division of State Audit, performs periodic financial audits of Tennessee Board of Regents universities and community colleges.
      2. One purpose of this type audit is to evaluate an institution’s internal controls, which will often result in recommendations for control improvements.
      3. State Audit will also perform tests designed to detect fraud, waste or abuse that may have occurred.
    6. Other Reviews
      1. Various programs may be subject to audits or reviews by federal, state or other outside agencies based on the type of program, function or funding.
      2. Although audits and reviews may include assessments of internal controls, the primary responsibility for prevention and detection of fraud, waste or abuse belongs to management.
      3. Therefore, management should take steps to review internal controls whether or not audits are to be performed.
  2. Reporting Fraud, Waste or Abuse
    1. Responsibility for Reporting Fraud, Waste or Abuse
      1. Any official of any agency of the state having knowledge that a theft, forgery, credit card fraud, or any other act of unlawful or unauthorized taking, or abuse of, public money, property, or services, or other shortages of public funds has occurred shall report the information immediately to the office of the Comptroller of the Treasury (T.C.A. § 8-19-501(a)), To ensure compliance with this statute, the Tennessee Board of Regents system office provides a means for institutional employees and others to report such matters, which are subsequently reported to the Comptroller's Office.
        1. Institutional administration with knowledge of fraud, waste or abuse will report such incidents immediately.
        2. Others, including institutional management, faculty and staff with a reasonable basis for believing that fraud, waste or abuse has occurred are strongly encouraged to immediately report such incidents (T.C.A. § 8-50-116).
        3. Students, citizens and others are also encouraged to report known or suspected acts of fraud, waste or abuse.
        4. Although proof of an improper activity is not required at the time the incident is reported, anyone reporting such actions must have reasonable grounds for doing so.
        5. Employees with knowledge of matters constituting fraud, waste or abuse, that fail to report it or employees who knowingly make false accusations may be subject to disciplinary action.
    2. Protection from Retaliation
      1. State law (T.C.A. § 8-50-116) prohibits discrimination or retaliation against employees for reporting allegations of dishonest acts or cooperating with auditors conducting an investigation.
      2. The Higher Education Accountability Act of 2004 directs that a person who knowingly and willingly retaliates or takes adverse action of any kind against any person for reporting alleged wrongdoing pursuant to the provisions of this part commits a Class A misdemeanor.
    3. Confidentiality of Reported Information
      1. According to T.C.A. § 49-14-103, detailed information received pursuant to a report of fraud, waste or abuse or any on-going investigation thereof shall be considered working papers of the internal auditor and shall be confidential.
      2. Although every attempt will be made to keep information confidential, circumstances such as an order of a court or subpoena may result in disclosure.
      3. Also, if TBR or one of its institutions has a separate legal obligation to investigate the complaint (e.g. complaints of illegal harassment or discrimination), TBR and its institutions cannot ensure anonymity or complete confidentiality.
    4. Methods for Reporting Fraud, Waste or Abuse
      1. Any employee who becomes aware of known or suspected fraud, waste or abuse should immediately report the incident to an appropriate departmental official. Incidents should be reported to one of the following officials or offices:
        1. A supervisor or department head;
        2. an institutional official;
        3. the institutional internal auditor;
        4. the Office of System-wide Internal Audit at 615-366-4441 or reportfraud@tbr.edu; or
        5. the Tennessee Comptroller of the Treasury’s Hotline for fraud, waste and abuse at 1-800-232-5454.
      2. If the incident involves their immediate supervisor, the employee should report the incident to the next highest-level supervisor or one of the officials or offices listed above. Employees should not confront the suspected individual or initiate an investigation on their own since such actions could compromise the investigation.
      3. A department official or other supervisor who receives notice of known or suspected fraud, waste or abuse must immediately report the incident to the following:
        1. President/Vice President for Business and Finance/TCAT Director (or designee)
        2. Internal Audit Department
        3. Safety and Security Office/Campus Police (when appropriate)
      4. The President/Vice President/TCAT Director or designee receiving such notice will immediately notify the TBR Vice Chancellor for Business and Finance and the System-wide Chief Audit Executive regarding the acknowledged or suspected fraud or misconduct.
      5. TCAT Directors should also report such matters to the Vice Chancellor for Tennessee Colleges of Applied Technology and the Lead Institution Vice President for Business and Finance.
      6. The System-wide Chief Audit Executive will notify the Comptroller of the Treasury of instances of fraud, waste or abuse.
      7. After initial notification, each institution should refer to TBR Guideline B-080, Reporting and Resolution of Institutional Losses, for additional reporting procedures.
  3. Investigations/Actions
    1. Cooperation of Employees
      1. Individuals involved with suspected fraud, waste or abuse should assist with and cooperate in any authorized investigation, including providing complete, factual responses to questions and either providing access to or turning over relevant documentation immediately upon request by any authorized person.
      2. The refusal by an employee to provide such assistance may result in disciplinary action.
    2. Remedies Available
      1. The Tennessee Board of Regents will evaluate the information provided and make a determination concerning external reporting obligations, if any, and the feasibility of pursuing available legal remedies against persons or entities involved in fraud, waste or abuse against the institution.
      2. Remedies include, but are not limited to;
        1. terminating employment,
        2. requiring restitution, and
        3. forwarding information regarding the suspected fraud to appropriate external authorities for criminal prosecution.
      3. In those cases where disciplinary action is warranted, the Office of Personnel/Human Resources, Office of General Counsel, and other appropriate offices shall be consulted prior to taking such action, and applicable institutional and Board policies related to imposition of employee discipline shall be observed.
    3. Resignation of Suspected Employee
      1. An employee suspected of gross misconduct may not resign as an alternative to discharge after the investigation has been completed.
      2. Exceptions to this requirement can only be made by the institution’s President/Director, and require advance consultation with and approval by the Vice Chancellor for Business and Finance.
      3. If the employee resigns during the investigation, the employment records must reflect the situation as of the date of the resignation and the outcome of the investigation (General Personnel Policy, 5:01:00:00).
    4. Effect on Annual Leave
      1. An employee who is dismissed for gross misconduct or who resigns or retires to avoid dismissal for gross misconduct shall not be entitled to any payment for accrued but unused annual leave at the time of dismissal (Annual Leave Policy, 5:01:01:01; T.C.A. § 8-50-807).
    5. Student Involvement
      1. Students found to have participated in fraud, waste or abuse as defined by this guideline will be subject to disciplinary action pursuant to the TBR Policy 3:02:00:01, General Regulations on Student Conduct and Disciplinary Sanctions.
      2. The Dean of Students/Vice President of Student Affairs/TCAT Director (or designee) will be responsible for adhering to applicable due process procedures and administering appropriate disciplinary action.
    6. Confidentiality during Investigation
      1. All investigations will be conducted in as strict confidence as possible, with information sharing limited to persons on a “need to know” basis.
      2. The identities of persons communicating information or otherwise involved in an investigation or allegation of fraud, waste or abuse will not be revealed beyond the institution and staff of the TBR Offices of General Counsel, Business and Finance and System-wide Internal Audit unless necessary to comply with federal or state law, or if legal action is taken.
    7. Management’s Follow-up Responsibility
      1. Administrators at all levels of management must implement, maintain, and evaluate an effective compliance program to prevent and detect fraud, waste and abuse.
      2. Once such activities have been identified and reported, the overall resolution should include an assessment of how it occurred, an evaluation of what could prevent recurrences of the same or similar conduct, and implementation of appropriate controls, if needed.
Sources: 

TBR Board Meeting, March 28, 2008; TBR Board Meeting, December 8, 2011; TBR Board Meeting, March 27, 2015.

Policy Number: 
4:01:05:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities, System Office, Board Members
Purpose: 

This policy addresses staffing, responsibilities of the internal audit function, audit planning and reporting on internal audit activities.

In addition to this policy, the Office of System-wide Internal Audit maintains an audit manual. The purpose of the audit manual is to provide for consistency, continuity, and standards of acceptable performance.

Definitions: 
  • Definitions are provided in the body of the policy.
Policy/Guideline: 
  1. General Statement
    1. The internal audit function contributes to the improvement of the institution's operations by providing objective and relevant assurance regarding risk management, control and governance processes to management and the Board.
    2. Management is responsible for evaluating the institution's risks and establishing and maintaining adequate controls and processes.
    3. To provide relevant information, the internal audit activity will consider the goals of the institution, management's risk assessments and other input from management in determining its risk-based audit activities.
  2. Internal Audit Standards
    1. Each internal audit function shall adhere to The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing and Code of Ethics (T.C.A. § 4-3-304(9)). The Institute of Internal Auditors, International Professional Practices Framework (IPPF), incorporates the definition of internal auditing, the International Standards for the Professional Practice of Internal Auditing and Code of Ethics into one document. It includes the following definition of internal auditing:
      1. Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
    2. Risk is the possibility of an event occurring that will have an impact on the achievement of an institution's goals and objectives.
      1. Risk is measured in terms of the impact an event may have and the likelihood that the event will occur.
      2. To optimize the achievement of the institution's goals and objectives, the Board and management acts to minimize the related risks by implementing reasonable procedures to control and monitor the risks.
    3. Governance processes are the combination of processes and structures implemented by the Board to inform, direct, manage, and monitor the activities of the organization toward the achievement of its objectives.
      1. Examples of such processes include;
        1. The organizational structure within an institution or a department;
        2. Policies, guidelines and procedures instituted by the Board or management to direct and control a particular activity such as maintenance fees or hiring practices; and
        3. Preparation and review procedures for preparing reports such as annual financial statements or federal grant or financial aid reports.
    4. The IPPF includes attribute standards, which address the expected characteristics of organizations and individuals performing internal audit activities and performance standards, which describe the nature of internal audit activities and establish criteria to evaluate the performance of internal audit activities.
    5. To assure compliance with the IIA Standards, internal audit offices must implement and maintain a quality assurance and improvement program that incorporates both internal and external review activities.
      1. Internal reviews include both ongoing and periodic review activities.
      2. External reviews must be performed at least every five years by a qualified, independent reviewer.
      3. Results of quality assurance reviews will be communicated to the Audit Committee and management.
  3. Internal Audit Personnel
    1. Universities
      1. Each university shall employ at least two individuals with full-time responsibility as internal auditors.
      2. Additional internal audit staff shall depend upon institutional size and structure.
    2. Two-year Institutions
      1. Two-year institutions shall employ at least one full-time internal auditor or have an approved agreement with a university or other two-year institution to provide required audit services.
    3. Titles of internal audit staff shall be consistent within the overall institutional structure.
    4. Internal Audit Staff
      1. Internal audit staff must possess the professional credentials, knowledge, skills, and other competencies needed to perform their individual responsibilities.
      2. The internal audit function collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.
      3. The campus Internal Audit Director and the System-wide Chief Audit Executive must be licensed as a Certified Public Accountant or a Certified Internal Auditor, maintain an active license and annually complete sufficient, relevant continuing professional education to satisfy the requirements for the professional certification held.
      4. Other system auditors should annually complete sufficient, relevant continuing professional education to satisfy the requirements for their related professional certification or, at a minimum, forty hours of relevant continuing professional education.
      5. Internal Audit Directors should communicate concerns to management and the System-wide Chief Audit Executive regarding the lack of sufficient resources to complete the objectives of an engagement or the audit plan.
      6. Such resources may include the need for additional personnel or personnel with specialized knowledge, such as those with knowledge of fraud, information technology or other technical areas.
    5. Appointments
      1. The appointment of campus Internal Audit Directors as recommended by the President is subject to approval by the Chancellor or designee (T.C.A. §.49-14-106).
      2. The appointment of the System-wide Chief Audit Executive is subject to review and approval by the Audit Committee of the Board of Regents (T.C.A. §.49-14-102).
    6. Compensation
      1. Compensation of the internal auditors is subject to review by the Audit Committee of the Board of Regents.
      2. Compensation of the System-wide Chief Audit Executive and the system office internal auditors is subject to review and approval by the Audit Committee of the Board of Regents.
    7. Termination or Change of Status
      1. The termination or change of status of campus Internal Auditor Directors (T.C.A. § 49-14-106) requires the prior approval of the Chancellor and the Audit Committee of the Board of Regents.
      2. The System-wide Chief Audit Executive (T.C.A. §.49-14-102) may be removed only for cause which requires a majority vote of the Board of Regents.
  4. Internal Audit Role and Scope
    1. Reporting Structure
      1. In accordance with T.C.A. § 49-14-102, the System-wide Chief Audit Executive reports directly to the Audit Committee and the Tennessee Board of Regents.
      2. Campus internal auditors report to the respective campus President with audit reporting responsibility to the Audit Committee and the Board through the System-wide Chief Audit Executive.
      3. This reporting structure assures the independence of the internal audit function.
    2. The TBR, Office of System-wide Internal Audit, hosts periodic meetings and communicates with the audit directors on matters of mutual interests.
    3. The Office of System-wide Internal Audit maintains an internal audit manual to guide the internal audit activity in a consistent and professional manner at each institution.
    4. The internal auditors’ responsibilities include:
      1. Working with management to assess institutional risks and developing an audit plan that considers the results of the risk assessment.
      2. Evaluating institutional controls to determine their effectiveness and efficiency.
      3. Coordinating work with external auditors, program reviewers, and consultants.
      4. Determining the level of compliance with internal policies and procedures, state and federal laws, and government regulations.
      5. Testing the timeliness, reliability, and usefulness of institutional records and reports.
      6. Recommending improvements to controls, operations, and risk mitigation resolutions.
      7. Assisting the institution with its strategic planning process to include a complete cycle of review of goals and values.
      8. Evaluating program performance.
      9. Performing consulting services and special requests as directed by the Audit Committee, the Chancellor, or the institution’s President.
    5. The scope of internal auditing extends to all aspects of institutional operations and beyond fiscal boundaries. The internal auditor shall have access to all records, personnel, and physical properties relative to the performance of duties and responsibilities.
    6. The scope of a particular internal audit activity may be as broad or as restricted as required to meet management needs.
    7. Objectivity is essential to the internal audit function. Therefore, internal audit personnel should not be involved in the development and installation of systems and procedures, preparation of records, or any other activities that the internal audit staff may review or appraise. However, internal audit personnel may be consulted on the adequacy of controls incorporated into new systems and procedures or on revisions to existing systems.
    8. Management is responsible for identifying, evaluating, and responding to potential risks that may impact the achievement of the institution’s objectives. Auditors continually evaluate the risk management, internal control, and governance processes. To facilitate these responsibilities, Internal Audit will receive notices or copies of external audit reviews, program reviews, fiscally related consulting reports, cash shortages, physical property losses, and employee misconduct.
  5. Audit Plans and Activity Reports
    1. Internal Audit shall develop an annual audit plan using an approved risk assessment methodology.
    2. At the beginning of each fiscal year, after consultation with the Chancellor or President and other institution management, Internal Audit will prepare an annual audit plan. The audit plan must be flexible to respond to immediate issues and will be revised for such changes during the year.
    3. Audit plans and revisions will be reviewed by the System-wide Chief Audit Executive and approved by the Audit Committee.
    4. At the end of each fiscal year, Internal Audit will prepare an annual activity report of all significant audit services performed.
    5. Annual activity reports and approved audit plans will be provided to the Comptroller's Office, Division of State Audit.
  6. Audit Engagements
    1. Audit engagements will be planned to provide relevant results to management and the Audit Committee regarding the effectiveness and efficiency of processes and controls over operations. To ensure management's expectations are met, auditors will communicate with management regarding the objectives and scope of the engagement.
    2. In planning and during the engagement, auditors should consider and be alert to risks that affect the institution's goals and objectives, operations and resources. Auditors should consider risks based on the operations under review, which include but are not limited to the risk of financial misstatements, noncompliance and fraud.
    3. An audit work program will be designed to achieve the objectives of the engagement and will include the steps necessary to identify, analyze, evaluate and document the information gathered and the conclusions reached during the engagement.
    4. Working papers that are created, obtained or compiled by an internal audit staff are confidential and are not an open record (T.C.A. § 4-4-304(9)).
  7. Communicating Audit Results
    1. A written report that documents the objectives, scope, conclusions, and recommendations of the audit will be prepared for audit engagements providing assurance to the Board and management. Management will include corrective action for each reported finding.
    2. Internal Audit will perform audits to follow-up on findings or recommendations included in internal audit reports, investigation reports and State Audit reports. A written report will be prepared and for any findings that have not been corrected, management will be asked to include a revised corrective action plan. The Chancellor or institution’s President, along with the Audit Committee, will be notified at the conclusion of a follow-up audit if management has not corrected the reported finding or implemented the recommendation.
    3. A written report that documents the objectives, scope, conclusions and recommendations will be prepared for investigations resulting from allegations or identification of fraud, waste or abuse. As appropriate in the circumstances, management will include corrective action for each reported finding. In a case where allegations are not substantiated by the review and there are no other operational concerns to report to management regarding the review, the case may be closed by writing a memo to the working paper file documenting the reasons for closing the case.
    4. Reports on special studies, consulting services, and other non-routine items should be prepared as appropriate, given the nature of the assignment.
    5. All internal audit reports will be signed by the institution's Internal Audit Director and transmitted directly to the Chancellor, President, or TCAT Director in a timely manner.
    6. The Internal Audit Director will transmit an electronic copy of the internal audit report to the System-wide Chief Audit Executive.
    7. The System-wide Chief Audit Executive will present significant results of internal audit reports to the Audit Committee quarterly.
    8. The System-wide Chief Audit Executive will provide a copy of each report to the Comptroller's Office, Division of State Audit.
  8. Exceptions
    1. Any exceptions to the policy established herein shall be subject to the approval of the System-wide Chief Audit Executive and the Audit Committee.
Sources: 

June 3, 1981 TBR Presidents’ Meeting; July 1, 1984; May 20, 1986; February 14, 1989; November 14, 1989; August 13, 2002; February 10, 2004; November 18, 2004; Changed from Guideline B-050 at TBR Board Meeting, June 29, 2007; TBR Board Meeting, December 6, 2007; TBR Board Meeting, December 8, 2011; TBR Board Meeting March 27, 2015.

Policy Number: 
4:01:04:00
Policy/Guideline Area: 
Business and Finance Policies
Applicable Divisions: 
TCATs, Community Colleges, Universities
Purpose: 

The purpose of this policy is to establish responsibilities and procedures regarding the solicitation and acceptance of gifts to the institutions governed by the Tennessee Board of Regents.

As cited in Board Policy (No. 1:02:02:00, Duties of the Board), T.C.A. § 49-8-203 provides:

Board shall have the power to receive donations of money, securities, and property from any source on behalf of the institutions..., which gifts shall be used in accordance with the conditions set by the donor.

The Board considers the solicitation and acceptance of gifts to be appropriate administrative responsibilities of institutional presidents and directors, and therefore delegates to the presidents and directors the authority to solicit and accept gifts in accordance with the provisions of this policy.

Policy/Guideline: 
  1. General Statement
    1. The Board recognizes the vital importance of gifts to institutional development.
    2. Gifts of real and personal property from individuals and organizations often benefit institutions by making possible the accomplishment of objectives for which support from other sources is limited or unavailable.
    3. Gifts also often represent a means by which the donor may contribute to an aspect of postsecondary education that is of particular interest to the donor.
    4. The Board authorizes and encourages the institutions to solicit and accept gifts for purposes that are consistent with their missions.
    5. All activities related to the solicitation and acceptance of gifts shall be implemented in a manner which serves the mutual interests of the donors and institutions.
    6. To this end, each institution shall develop policies and procedures which incorporate the following provisions.
      1. Solicitation of Gifts
        1. The president/director shall designate the campus official(s) authorized to approve and conduct activities for the purpose of soliciting gifts to the institution.
        2. Criteria and procedures for soliciting gifts shall be established which clearly define appropriate activities and the campus approval process.
        3. Solicitation of gifts which may require a commitment of institutional resources must be approved by the president/director.
      2. Acceptance of Gifts
        1. The president/director is authorized to accept gifts on behalf of the institution, subject to the following conditions:
          1. Only the Board may accept a gift if board acceptance is a condition set by the donor;
          2. Only the Chancellor and Board may accept gifts of real property or any permanent interest in real property, and title must be conveyed to the Board on behalf of the institution; in the name of the Tennessee Board of Regents for the use and benefit of the institution.
          3. Any acquisition of real property by gift or devise which obligates the institution, Tennessee Board of Regents or State of Tennessee to expend State of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission in accordance with T.C.A. § 4-15-102(d)(2) prior to acceptance by the Chancellor and Board. Any such Deed transferring title to the Tennessee Board of Regents shall not be recorded until the State Building Commission has approved the acceptance of the gift property.
          4. Gifts with conditions that ultimately will require consideration by the Board or Chancellor must be approved by the Chancellor prior to acceptance (e.g., gifts to support the initiation of a new academic program or capital improvement project); and
          5. Gifts of property subject to an indebtedness must be approved by the Chancellor prior to acceptance.
          6. The cost of accepting or keeping a gift in accordance with donor restrictions should not cost more than the benefit of the gift.
        2. The president/director may recommend approval by the Chancellor or Board prior to acceptance of any gift.
        3. The president/director may delegate to a campus official or officials his/her authority to accept gifts on behalf of the institution; however, institutional policies must identify the specific types of gifts that may be accepted by the designated official(s). The acceptance of all gifts is subject to confirmation by the president/director.
        4. Corporate stock given to an institution may be sold by the institution through or in consultation with a registered security broker within 60 days of receipt of the stock certificate, and the sale may be executed by the president/director or a designated representative.
        5. Appropriate procedures must be established for acknowledging acceptance of gifts and for ensuring compliance with conditions set by the donors and in compliance with IRS regulations.
      3. Records and Reporting
        1. Adequate records of all gifts shall be maintained by the institution in accordance with accepted accounting procedures to allow a proper audit trail.
        2. A summary of all gifts to the institution during a fiscal year shall be included in the institution's annual report to the Board, as required by Board Policy (No. 1:02:10:00, Annual Reports).
      4. Foundations
        1. For purposes of distinguishing institutional gifts and related procedures from those of foundations established pursuant to Board Policy (No. 4:01:07:02, Foundations):
          1. The institution may not accept gifts specifically intended for the foundation, and only gifts specifically intended for a foundation may be accepted by a foundation.
          2. In general, institutional resources may not be used to meet conditions of gifts to a foundation; however, exceptions may be approved by the president or the Chancellor in accordance with the provisions of this policy on acceptance of gifts.
          3. The institution must maintain records of gifts to the institution separate from those of gifts to the foundation.
          4. The institution shall report gifts to foundations in the summary of gifts during a fiscal year to be included in its annual report, as provided in this policy in b. under Records and Reporting.
Sources: 

TBR Meeting, September 30, 1983; September 21, 1990; TBR Meeting, March 15, 1991; TBR Meeting March 20, 1992; TBR Meeting March 30, 2007; Board Meeting June 20, 2014.

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