As required by Alabama State Board of Education Policy 213.01, the relationship between Athens State University and the Athens State University Foundation is clearly defined in an agreement entered into by the two entities. The term of this agreement is three years and is subject to early termination by law or other provisions stated in the agreement.

The agreement specifically states that the Foundation is a separately incorporated 501 (c) (3) nonprofit supporting organization created to support the mission of the University and address the long-term priorities of the institution. The President is responsible for communicating these priorities to the Foundation, and serves as an ex-officio member of the Foundation board of directors. The agreement ensures that the leadership of the Foundation works in a cooperative, but separate fashion from the leadership of Athens State University. While the financial position of the Foundation complements the efforts and activities of the mission of the University, its financial position does not constrain, limit, or prevent the University from achieving its mission. The use of any Foundation funds on University property, or the financial obligation of the University by the Foundation in any way, must first be approved in writing by the President.

The Foundation is responsible for the performance and oversight of all aspects of its operations, including management of all Foundation assets and the employment, compensation and evaluation of all its employees. The Foundation by-laws include policies for the allocation, disbursement and spending of assets. The Foundation must prepare annual financial statements that conform to standard accounting practices and that conform to all state and federal requirements. These statements must be audited by an independent certified public accountant no less than annually, and these audits must be performed in a timely fashion so as to conform to the University’s financial reporting cycle. Additional information concerning the Foundation’s financial statements can be found in the narrative for Comprehensive Standard 3.2.2.4.

As part of the agreement, Athens State University may make available to the Foundation confidential information on alumni, students, and customers of the University in accordance with all state and federal requirements. The Foundation must conform to all state and federal requirements with respect to these records, must protect the security and confidentiality of the records, and must prevent unauthorized access to the records. In addition, the Foundation must ensure, when contracting with any third-party services in fulfilling the agreement, that such third parties implement practices that protect all personal information that they are permitted to access.