17.2 Memorandum of Agreement
(Last Modified on November 4, 2010)
The relationship that a USG institution has with its affiliated organization or organizations must be defined by a memorandum of agreement that describes each party’s roles and responsibilities. Minimally, the memorandum of agreement must address the affiliated organization’s authority and responsibilities with regard to the following:
Solicitation of gifts, donations and grants
Liability
Adequate capitalization for activities
Evidence of satisfactory insurance coverage
Use of institutional facilities, programs and services subject to established policies and procedures
Expense reimbursement
Use of the institution’s name, symbols and trademarks
Disposition of the affiliate organization assets upon dissolution
Compliance with internal revenue code and state law
Use of generally-accepted accounting principles
Submission of an independent annual audit report and financial statements
Elimination of conflicts of interest concerning institutional employees and in the relationship with the institution
Disclosure of funds and other items of value received by the affiliated organization and assurance that funds intended for institutional accounts are properly deposited