4.3 Multi-level governance

If an institution’s governing board does not retain sole legal authority and operating control in a multiple-level governance system, then the institution clearly defines that authority and control for the following areas within its governance structure: (a) institution’s mission, (b) fiscal stability of the institution, and (c) institutional policy.

Judgment

x Compliance o Non-Compliance o Partial Compliance

Narrative

The legal authority for coordinating higher education institutions in Louisiana is granted by the Louisiana Constitution to the Louisiana BOR and, through the Regents, to the governing or management boards of the four higher education systems. The ultimate legal authority of the Boards derives from Louisiana Revised Statue 17:3351, which lists the powers, duties, and functions of college and university boards. Some of these duties are also outlined in the BOS Bylaws, Part One, Section V, “Duties, Powers and Functions.” These two Boards’ (BOR and BOS) respective responsibilities, and the distribution of authority and responsibility are more fully explained in Standard 4.1.

A. Institution’s mission

The institution’s Mission is defined in two documents: its own Mission, Vision, Values statement, and the Role, Scope, and Mission given in the BOR’s Master Plan for Higher Education. The University’s Mission, Vision, Values statement is approved by the BOS, but must be in accord with the BOR’s Role, Scope, and Mission for UL Lafayette. As the BOR defines the Role, Scope, and Mission, and the BOS approves the University’s Mission, Vision, Values statement, UL Lafayette’s governing boards have authority over UL Lafayette’s Mission. The BOS approves the University’s own Mission, Vision and Values statement.

B. Fiscal stability of the institution

In accordance with Louisiana Revised Statute 17:3351, the BOR has ultimate legal responsibility for developing the funding formula for equitable distribution of funds to state institutions. The BOR reviews annual budget proposals for the operating and capital needs of each public institution prior to compilation of the BOR higher education budget recommendations. Thus, the BOR, through the state universities’ governing (management) boards, ensures the fiscal stability of all state institutions of higher education.

As the University’s governing board, the BOS receives and allocates to the University all state-appropriated funds and ensures that their expenditures accord with the BOR Master Plan for Post-Secondary Education. The BOS also approves student fees and the purchase of land and acquisition of buildings, subject to the approval of the BOR. Legally the BOS is the ultimate employer of University personnel: it fixes salaries, duties, and functions of personnel, and oversees the financial operation of the University.

The BOS executes these responsibilities primarily through two of its standing committees: the Finance Committee, which considers all matters related to institutions’ financial operations, and the Audit Committee. By state law, a representative of the BOS Finance Committee also serves on the BOR Finance Committee. Overlapping membership on these committees promotes transparency in the oversight of institutional fiscal operations. The minutes of two representative BOS meetings illustrate the activities undertaken by the Finance Committee. In the first, the Finance Committee reviewed and approved an Affiliation Agreement and Funds Management Agreement between UL Lafayette and the UL Lafayette Foundation. In the second, the Finance Committee approved the consolidation of two Endowed Chairs at the University.

C. Institutional policy

The BOS Bylaws define the Board’s responsibility for establishing institutional policy within Section V, “Duties, Powers, and Functions”:

General Statement of Administrative Policy. The Board shall determine broad administrative and educational policies for the conduct of all Board, System, and institutional affairs and it shall provide for the execution of its policies by the System President and by the institution Presidents.

Further, the BOS derives from Louisiana law the authority to set policy relative to relationships with external entities and auxiliary services. Specifically, the BOS Bylaws stipulate that the Board may “enter into contracts and agreements with other public agencies with respect to cooperative enterprises and undertakings relating to or associated with its institutions' purposes and programs.”