McNeese State University

Section 2:
Core Requirements
2.1	2.2	2.3
2.4	2.5	2.6
2.7.1	2.7.2	2.7.3
2.7.4	2.8	2.9
2.10	2.11	2.12
Section 3:
Comprehensive Standards
3.1.1	3.2.1
3.2.2.1	3.2.2.2	3.2.2.3
3.2.2.4	3.2.3	3.2.4
3.2.5	3.2.6	3.2.7
3.2.8	3.2.9	3.2.10
3.2.11	3.2.12	3.2.13
3.2.14	3.3.1	3.4.1
3.4.2	3.4.3	3.4.4
3.4.5	3.4.6	3.4.7
3.4.8	3.4.9	3.4.10
3.4.11	3.4.12	3.4.13
3.4.14	3.5.1	3.5.2
3.6.1	3.6.2	3.6.3
3.7.1	3.7.2	3.7.3
3.7.4	3.7.5	3.8.1
3.8.2	3.8.3	3.9.1
3.9.2	3.9.3	3.10.1
3.10.2	3.10.3	3.10.4
3.10.5	3.10.6	3.10.7
Section 4:
Federal Requirements
4.1	4.2	4.3
4.4	4.5	4.6
4.7	4.8

McNeese State University
Compliance Plan for Reaffirmation

Section 3.2.13: Governance and Administration

Judgment of Compliance

Compliance

Partial Compliance

Non-compliance

Requirement

Any institution-related foundation not controlled by the institution has a contractual or other formal agreement that (a) accurately describes the relationship between the institution and the foundation, and (b) describes any liability associated with that relationship. In all cases, the institution ensures that the relationship is consistent with its mission.

Narrative

McNeese State University is in compliance with Comprehensive Standard 3.2.13.

The MSU Foundation was created as a 501 (c) (3) corporation in 1965 to support the University’s mission and core values. Its primary responsibility is to provide management and investment services and act as a depository for donations, gifts, and funds. Annual audits ensure that the Foundation is financially healthy and abiding by laws governing such services. Careful auditing practices would disclose any liabilities or financial indiscretions. Should audit findings indicate misuse of funds or exceptions involving public funds, the Agreement stipulates that the relationship between entities may be terminated by a 120-day written notice by either party.

Affiliation Agreements for each of the various fund-raising programs currently authorizing the Foundation to act were executed on August 14, 2003. The Affiliation Agreement between the Foundation and the University stipulates that the general contract is to “continue in force and effect from year to year hereafter unless either party, at least 60 days prior to an anniversary date thereof, notifies the other party in writing of its desire to modify or terminate the agreement” (Affiliation Agreement, 4).

MSU Foundation and Its Commitment to the University Mission

The McNeese State University Foundation, the only institution-related foundation with which the University is affiliated, is a voluntary non-profit organization of business and professional leaders. Incorporated in 1965 to establish scholarships for McNeese students and to promote academic excellence, the Foundation supports and embraces the University’s core values and its mission. Committed to academic excellence, student success, university-community alliances, and fiscal responsibility, the four core values which drive the University mission, the

Foundation awards over $1,000,000 annually in scholarships, faculty development awards, and academic enhancements.

The Foundation's purpose is to solicit, receive, and administer funds of all kinds, including property both real and personal, by way of outright, limited, or conditional gifts, grants, and bequests. The information below reported in the Office of Development and Public Affairs 2006 Master Plan/Progress Report provides information regarding use of Foundation funds during the fiscal year July 1, 2004-April 30, 2005:

• Funded fifty-one professorships of which $60,000 was donated by the private sector and $40,000 was matched from state funds;

• Funded two academic chairs;

• Funded over 320 endowed named scholarships;

• Inducted 96 Inner Circle Members (donors who give in excess of $5,000 or more on an annual basis). This figure represents an eleven percent increase over the previous year;

• Inducted 162 President Circle Members (donors who give $1,000 - $4,999 on an annual basis). This figure represents a seventeen percent increase over the previous year;

• Recruited twenty-six members of the Heritage Society, including two planned-giving gifts (donors who leave a bequest or trust to the McNeese Foundation);

• Reported by the Investment Firm of Equitas Capital an overall investment review at the end of the fiscal year 2004: $35,244,616.00. This figure represents a thirteen percent increase over the previous year;

• Raised $23,200 in endowed scholarship funds for the McNeese Athletic Foundation. This figure represents a forty-five percent decrease in funds raised by the Athletic Foundation during the last fiscal year.

University-Foundation Affiliation Agreements

The <http://www.mcneese.edu/faculty/chart.pdf][Office of Development and Public Affairs]], which reports directly to the President of the University, is the University-Foundation liaison. This office coordinates Foundation activities and executes affiliation agreements. Several formal agreements establish the obligations of both parties and guarantee that the relationship between the two entities is mutually agreeable:

Affiliation Agreement
The Affiliation Agreement establishes the parameters of the Foundation and states its commitment to the University and to the authority of the President as Chief Executive Officer. It identifies the Foundation’s purpose as “promoting the well-being and advancement of the University and all the colleges, schools, departments, and divisions comprising it, and to develop, expand, and improve the University’s curricula, programs, and facilities so as to provide greater educational advantages and opportunities; encourage teaching, research, scholarship, and service; and increase the University’s benefits to the citizens of the State of Louisiana and the United States of America” (2).
The Affiliation Agreement also stipulates that an annual audit be conducted by “an independent professional auditor in accordance with generally accepted auditing standards and other agreed upon procedures, if any, as required by the legislative auditor, the management board, and Board of Regents” (3).
Funds Management Agreement: Endowed Professorships and Chairs
The Funds Management Agreement for Endowed Professorships and Chairs authorizes the Foundation to “provid[e] management and investment services and [act] as a depository for matching funds” provided to the University by the State of Louisiana. This agreement charges the Foundation with making investments that are consistent with “prudent investment management principles and state law” (1). This agreement acknowledges the obligation to submit to an annual audit. The Funds Management Agreement for Endowed Professorships is determined by the Board of Regents Policy. Board of Regents policy also determines the investment guidelines for the Endowed Professorships and Chairs.
Funds Management Agreement: Gaming Revenues
The Funds Management Agreement for Gaming Revenues authorizes the Foundation to “provid[e] management and investment services and [act] as a depository for such Gaming Funds” (1). This agreement stipulates that “[t]he Foundation recognizes that the Executive Committee of the University may at certain times need to declare an emergency and need to withdraw funds. An emergency may be for major equipment or building failure or the loss of a major revenue source” (1). This agreement acknowledges the obligation to submit to an annual audit.
Funds Management Agreement: License Plate Scholarship Funds
The Funds Management Agreement for License Plate Scholarship Funds authorizes the Foundation to “provid[e] management and investment services and [act] as a depository for such License Plate Scholarship Funds” (1). These funds are designated for “scholarships to Alumni dependents” (1). As with Gaming Funds, the University is permitted by Agreement to withdraw funds in the event of an emergency.
By-Laws of the McNeese State University Foundation
By-laws stipulate the duties of Foundation officers, Board of Directors, and Committee members. Also stipulated in the By-laws are rules for the order of business at membership meetings, terms of office for officers and directors, procedures for expenditures, and membership circles.

McNeese Athletic Foundation

Because of the wide-spread community support for collegiate athletics and because the community has expressed a desire to coordinate with the Athletics Department, the McNeese Foundation has established a separate Foundation to provide an opportunity for community members and University alumni to contribute to the various athletic programs sponsored by the University. In keeping with requirements to ensure that all such entities be carefully regulated, the Foundation has established a set of guidelines specific to the Athletic Foundation. The Foundation Agreement clearly indicates the organization’s commitment to the University mission and a desire to promote collegial athletics at the University.

McNeese Athletic Foundation Agreement
The McNeese Athletic Foundation Agreement authorizes the Foundation to “ (1) promote interest in, and strengthen, McNeese State University Athletic Programs and (2) to assist the Athletic Department in strengthening McNeese State University Athletic Programs by[,] among other things, helping the Athletic Department raise funds for McNeese State University Athletic Programs and by providing information and advice to the Athletic Department” (1). The University President, as with Foundation Agreements, maintains autonomy in authorizing these accounts: “[. . .] [T]he Athletic Foundation Board of Directors, after consultation with the Athletic Department and approval by the President of McNeese State University or an official designated by the President of McNeese State University, shall recommend to the Foundation Board of Directors what funds, if any, raised by the Athletic Foundation should be given to the Athletic Department” (2).
To make certain that Athletic Foundation resolutions are congruent with NCAA regulations, the Athletic Foundation has indicated in its bylaws the following caveat: “In the case of NCAA rules conflict with these resolutions, these resolutions will be changed to coincide with NCAA ruling” (5).

The McNeese Alumni Association

The MSU Alumni Association, a 501 (c) (3) non-profit organization, is committed to assisting the University in a variety of ways. The Alumni Association periodically sponsors fundraisers to assist the University in enhancing the student learning experience, in enriching the quality of campus-life, and in developing University-community linkages. Its mission statement identifies its goals:

The purpose of the Alumni Association shall be to assist and encourage the advancement of material prosperity, academic progress, and extracurricular growth at McNeese State University by reconnecting graduates with their alma mater in ways that encourage their financial and personal support of the university and its mission.

The Director of the Alumni Association reports to the Vice President of Development, who is kept informed of all alumni activities. The President of the University retains authority to approve fundraising campaigns on behalf of the University.

In order to support the University in its efforts to enhance the student learning experience, the Alumni Association sponsors periodic fundraising activities. The association conducts its Annual Fund Drive by direct mail during the fall semester and by conducting a phonathon in the spring semester. The alumni phonathon takes place during the last week of January and the first week of February when McNeese students call 6,000 alumni in an effort to update alumni records and enlist alumni in helping to support the university with a financial contribution. The Association is currently conducting the Pathway to Excellence Campaign by selling bricks for a walkway near the Entrance Plaza. The Alumni Association also solicits corporate and associate sponsorships for alumni activities. In past years, it has assisted the College of Engineering and the Department of Agriculture with endowment campaigns.

The Alumni Association has made the following contributions to the University in recent years:

• Funded $209,000 in scholarships for McNeese students;

• Provided $20,000 in student research projects;

• Established and funded a Student Alumni Association;

• Sponsored the annual In Honor of Excellence recruiting banquet;

• Assisted with Cowboy Q&A recruiting event;

• Sponsored two Grad Fests for students;

• Hosted Golden Scholar Reunion weekend;

• Hosted homecoming activities;

• Coordinated Alumni Round-ups in outlying areas;

• Produced newsletters to keep graduates informed about University activities;

• Managed the alumni website;

• Sponsored the annual Outstanding Faculty Award;

• Sponsored the Distinguished Alumnus Award;

• Sponsored the Distinguished Service Award;

• Coordinated McNeese Mavericks in their work with area schools. McNeese Mavericks is a volunteer group of 20-25 alumni and friends who host a spring luau fundraiser, which supports educational activities for local youth.