External Affairs - Board of Trustees Relations
Effectiveness and efficiency of operations
A. Board or audit committee members receive sufficient and timely information to allow input to and oversight of management's objectives and strategies, forecasting and budgeting, financial reporting, and terms of significant agreements.
- Do non-executive trustees on the board have sufficient independence, knowledge, experience, and qualifications to command credibility with outside commentators and other external parties?
- Does the board periodically review management's forecasts and budgets and requests explanations of historical trends and results?
- Is the board required to meet frequently enough to minimize the number of "board of trustees-level decisions" between board meetings?
- Is the board required to periodically review the adequacy and reliability of information provided to it and to provide feedback to management?
- Has a sufficient number of experienced outside trustees been appointed to the board to develop and assert a strong independent view on the issues?
- Has a nomination committee been assigned to conduct the selection process and make proposals to the board of trustees?
- Has a process been established for trustees to seek independent professional advice in discharging their duties, if necessary, at the University's expense?
B. Trustees meet frequently with executive management, chief financial and accounting officers, internal auditors, and external auditors.
- Has the audit committee been assigned with the key task of examining management plans for engaging external auditors, reviewing their independence and performance, and approving selection and retention of auditors?
- Has the audit committee been engaged to review and approve the internal auditors' charter and mission, qualifications, plans, and reports of findings?
- Has the audit committee been engaged to monitor management's response and action plans resulting from the recommendations of internal and external auditors?
- Does the audit committee review audit results, paying special attention to significant issues and their resolution, scope limitations, and client cooperation?
C. The board of trustees or audit committee receives sufficient and timely notification about sensitive information, investigations, or improper acts affecting the University. (Examples include significant litigation, investigations by regulatory agencies, misappropriation of University assets, political payments, or other illegal payment.)
- Does the compensation committee include a sufficient number of trustees with access to adequate supporting resources to fulfill the committee's responsibilities?
- Does the compensation committee evaluate compensation and retention issues regarding
the internal audit function?