Common use of ACCOUNTS RECEIVABLE MANAGEMENT AND COLLECTION Clause in Contracts

ACCOUNTS RECEIVABLE MANAGEMENT AND COLLECTION. 2891 The President of the University, acting through the Senior Vice President for Administration and 2892 Finance or designee, shall continue to be authorized to create and implement any and all accounts 2893 receivable management and collection policies as part of a system for the management of University 2894 financial resources. The policies shall be guided by the requirements of the Virginia Debt Collection 2895 Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia, such that the University shall 2896 take all appropriate and cost-effective actions to aggressively collect accounts receivable in a timely 2897 manner. 2898 These actions shall include, but not be limited to, establishing the criteria for granting credit to 2899 University customers; establishing the nature and timing of collection procedures within the above 2900 general principles; and the independent authority to select and contract with collection agencies and, 2901 after consultation with the Office of the Attorney General, private attorneys as needed to perform any 2902 and all collection activities for all University accounts receivable such as reporting delinquent accounts 2903 to credit bureaus, obtaining judgments, garnishments, and liens against such debtors, and other actions. 2904 In accordance with sound collection activities, the University shall continue to utilize the 2905 Commonwealth's debt setoff collection programs and procedures, shall develop procedures acceptable to 2906 the Tax Commissioner and the State Comptroller to implement such programs, and shall provide a 2907 quarterly summary report of receivables to the Department of Accounts in accordance with the reporting 2908 2909 2910 procedures established pursuant to the Virginia Debt Collection Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia. IX. DISBURSEMENT MANAGEMENT. 2911 The President of the University, acting through the Senior Vice President for Administration and 2912 Finance or designee, shall continue to be authorized to create and implement any and all disbursement 2913 policies as part of a system for the management of University financial resources. The disbursement 2914 management policies shall continue to define the appropriate and reasonable uses of all funds, from 2915 whatever source derived, in the execution of the University's operations. These policies also shall 2916 continue to address the timing of appropriate and reasonable disbursements consistent with the Prompt 2917 Payment Act, and the appropriateness of certain goods or services relative to the University's mission, 2918 including travel-related disbursements. Further, the University's disbursement policy shall continue to 2919 provide for the mechanisms by which payments are made including the use of charge cards, warrants, 2920 and electronic payments. 2921 The President of the University, acting through the Senior Vice President for Administration and 2922 Finance or designee, is authorized to independently select, engage, and contract for such consultants, 2923 accountants, and financial experts, and other such providers of expert advice and consultation, and, 2924 after consultation with the Office of the Attorney General, private attorneys, as may be necessary or 2925 desirable in his or her discretion. The University will continue to locally manage and administer the 2926 Commonwealth's credit card and cost recovery programs related to disbursements, subject to any 2927 restrictions contained in the Commonwealth's contracts governing those programs, as it has pursuant to 2928 its Level 2.5 authority under § 4-9.02 of Chapter 780 of the Acts of Assembly of 2016. 2929 The disbursement policies shall ensure that adequate risk management and internal control 2930 procedures shall be maintained over previously decentralized processes for public records, payroll, and 2931 non-payroll disbursements. The University shall continue to provide summary quarterly prompt payment 2932 2933 2934 reports to the Department of Accounts in accordance with the reporting procedures established pursuant to the Prompt Payment Act. The University's disbursement policies shall continue to be guided by the principles of the 2935 Commonwealth's policies as included in the Commonwealth's Accounting Policy and Procedures 2936 Manual. Upon the effective date, the University shall continue to follow its current disbursement 2937 policies, as well as any new disbursement policies that have been developed and submitted to the State 2938 Comptroller for review and comment as a result of the management agreement. Any significant new 2939 2940 2941 disbursement policies developed after the effective date shall be submitted to the State Comptroller for review and comment before being implemented by the University. X. DEBT MANAGEMENT. 2942 The President of the University, acting through the Senior Vice President for Administration and 2943 Finance or designee, shall continue to be authorized to create and implement any and all debt 2944 management policies as part of a system for the management of University financial resources. 2945 Pursuant to subsection C of § 23.1-1015 of the Act, the University shall have the authority to issue 2946 bonds, notes, or other obligations that do not constitute state tax-supported debt, as determined by the 2947 Treasury Board, and that are consistent with debt capacity and management policies and guidelines 2948 established by its board of visitors, without obtaining the consent of any legislative body, elected 2949 official, commission, board, bureau, or agency of the Commonwealth or of any political subdivision, and 2950 without any proceedings or conditions other than those specifically required by Article 4 of the Act, 2951 provided, however, that the University shall notify the State Treasurer of its intention to issue bonds 2952 pursuant to this policy at the time it adopts the bond issuance planning schedule for those bonds. Any 2953 2954 2955 new or revised debt capacity and management policy shall be submitted to the State Treasurer for review and comment prior to its adoption by the University. The University recognizes that there are numerous types of financing structures and funding sources 2956 available, each with specific benefits, risks, and costs. All potential funding sources shall be reviewed by 2957 the President of the University, acting through the Senior Vice President for Administration and Finance 2958 or designee, within the context of the overall portfolio to ensure that any financial product or structure 2959 is consistent with the University's objectives. Regardless of the financing structure(s) utilized, the 2960 President of the University, acting through the Senior Vice President for Administration and Finance or 2961 designee, shall obtain sufficient documentation to gain a full understanding of the transaction, including 2962 (i) the identification of potential risks and benefits and (ii) an analysis of the impact on University 2963 creditworthiness and debt capacity. All such debt or financial products issued pursuant to the provisions 2964 2965 2966 of §§ 23.1-1014 and 23.1-1015 of the Act shall be authorized by resolution of the board of visitors, providing that they do not constitute state tax-supported debt. The University currently has established guidelines relating to the total permissible amount of 2967 outstanding debt by monitoring University-wide ratios that measure debt compared to University balance 2968 sheet resources and annual debt service burden. These measures are monitored and reviewed regularly 2969 in light of the University's current strategic initiatives and expected debt requirements. The board of 2970 visitors shall periodically review and approve the University's debt capacity and debt management 2971 2972 2973 guidelines. The University shall submit any change in the current guidelines to the Treasury of Virginia for review and comment prior to their adoption. XI. INVESTMENT POLICY. 2974 It is the policy of the University to invest public funds in a manner that will provide the highest 2975 investment return with the maximum security while meeting the daily cash flow demands of the entity 2976 and conforming to all statutes governing the investment of public funds. Investments shall be made with 2977 the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person in 2978 a like capacity and familiar with such matters would use in the conduct of an enterprise of a like 2979 character and with like aims. This policy conforms with the Investment of Public Funds Act, Chapter 45 2980 (§ 2.2-4500 et seq.) of Title 2.2 of the Code of Virginia. 2981 Endowment investments, if any, shall be invested and managed in accordance with the Uniform 2982 2983 Prudent Management of Institutional Funds Act, Chapter 11 (§ 64.2-1100 et seq.) of Title 64.2 of the Code of Virginia. ENROLLED SB1204ER 2984 The University is charged with the responsibility of reporting to the board of visitors on an annual 2985 basis.

ACCOUNTS RECEIVABLE MANAGEMENT AND COLLECTION. 2891 2892 The President of the University, acting through the Senior Vice President for of Administration and 2892 2893 Finance or his designee, shall continue to be authorized to create and implement any and all accounts 2893 2894 receivable management and collection policies as part of a system for the management of University 2894 2895 financial resources. The policies shall be guided by the requirements of the Virginia Debt Collection 2895 2896 Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia, such that the University shall 2896 2897 take all appropriate and cost-effective actions to aggressively collect accounts receivable in a timely 2897 2898 manner. 2898 2899 These actions shall include, but not be limited to, establishing the criteria for granting credit to 2899 2900 University customers; establishing the nature and timing of collection procedures within the above 2900 2901 general principles; and the independent authority to select and contract with collection agencies and, 2901 2902 after consultation with the Office of the Attorney General, private attorneys as needed to perform any 2902 2903 and all collection activities for all University accounts receivable such as reporting delinquent accounts 2903 2904 to credit bureaus, obtaining judgments, garnishments, and liens against such debtors, and other actions. 2904 2905 In accordance with sound collection activities, the University shall continue to utilize the 2905 2906 Commonwealth's debt setoff set off collection programs and procedures, shall develop procedures acceptable 2907 to 2906 the Tax Commissioner and the State Comptroller to implement such programs, and shall provide a 2907 2908 quarterly summary report of receivables to the Department of Accounts in accordance with the reporting 2908 2909 2910 2911 procedures established pursuant to the Virginia Debt Collection Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia. IX. DISBURSEMENT MANAGEMENT. 2911 2912 The President of the University, acting through the Senior Vice President for of Administration and 2912 2913 Finance or his designee, shall continue to be authorized to create and implement any and all 2914 disbursement 2913 policies as part of a system for the management of University financial resources. The 2915 disbursement 2914 management policies shall continue to define the appropriate and reasonable uses of all 2916 funds, from 2915 whatever source derived, in the execution of the University's operations. These policies also 2917 shall 2916 continue to address the timing of appropriate and reasonable disbursements consistent with the 2918 Prompt 2917 Payment Act, and the appropriateness of certain goods or services relative to the University's 2919 mission, 2918 including travel-related disbursements. Further, the University's disbursement policy shall 2920 continue to 2919 provide for the mechanisms by which payments are made including the use of charge cards, 2921 warrants, 2920 and electronic payments. 2921 2922 The President of the University, acting through the Senior Vice President for of Administration and 2922 2923 Finance or his designee, is authorized to independently select, engage, and contract for such ENROLLED SB1386ER 2924 consultants, 2923 accountants, and financial experts, and other such providers of expert advice and 2925 consultation, and, 2924 after consultation with the Office of the Attorney General, private attorneys, as may 2926 be necessary or 2925 desirable in his or her discretion. The University will continue to locally manage and 2927 administer the 2926 Commonwealth's credit card and cost recovery programs related to disbursements, 2928 subject to any 2927 restrictions contained in the Commonwealth's contracts governing those programs, as it 2929 has pursuant to 2928 as part of its Level 2.5 authority under § 4-9.02 of Chapter 780 of the Acts of Assembly of 2016authority. 2929 2930 The disbursement policies shall ensure that adequate risk management and internal control 2930 2931 procedures shall be maintained over previously decentralized processes for public records, payroll, and 2931 2932 non-payroll disbursements. The University shall continue to provide summary quarterly prompt payment 2932 2933 2934 2935 reports to the Department of Accounts in accordance with the reporting procedures established pursuant to the Prompt Payment Act. The University has operated for many years at Level II and 2.5 as part of the Act. The University's 2936 disbursement policies shall continue to be guided by the principles of the 2935 Commonwealth's policies as 2937 included in the Commonwealth's Accounting Policy and Procedures 2936 Manual. Upon the effective date, the 2938 University shall continue to follow its current disbursement 2937 policies, as well as any new disbursement 2939 policies that have been developed and submitted to the State 2938 Comptroller for review and comment as a 2940 result of the management agreement. Any significant new 2939 2940 2941 disbursement policies developed after the 2941 effective date shall be submitted to the State Comptroller for review and comment before being 2942 implemented by the University. 2943 X. DEBT MANAGEMENT. 2942 2944 The University has a board of visitors-approved debt policy that defines the maximum percent of 2945 institutional resources that can be used to pay debt service in a fiscal year and the maximum amount of 2946 debt that can be prudently issued within a specific period. Annually, the board is provided a report on 2947 the University's debt-related activities. Any change in the debt policy shall be submitted to the State 2948 Treasurer for review and comment prior to their adoption by the University. 2949 The President of the University, acting through the Senior Vice President for of Administration and 2943 2950 Finance or his designee, shall continue to be authorized to create and implement any and all debt 2944 2951 management policies as part of a system for the management of University financial resources. 2945 Pursuant to subsection C of § 23.1-1015 of the Act, the University shall have the authority to issue 2946 bonds, notes, or other obligations that do not constitute state tax-supported debt, as determined by the 2947 Treasury Board, and that are consistent with debt capacity and management policies and guidelines 2948 established by its board of visitors, without obtaining the consent of any legislative body, elected 2949 official, commission, board, bureau, or agency of the Commonwealth or of any political subdivision, and 2950 without any proceedings or conditions other than those specifically required by Article 4 of the Act, 2951 provided, however, that the University shall notify the State Treasurer of its intention to issue bonds 2952 pursuant to this policy at the time it adopts the bond issuance planning schedule for those bonds. Any 2953 2954 2955 new or revised debt capacity and management policy shall be submitted to the State Treasurer for review and comment prior to its adoption by the University. The University recognizes that there are numerous types of financing structures and funding sources 2956 available, each with specific benefits, risks, and costs. All potential funding sources shall be reviewed by 2957 the President of the University, acting through the Senior Vice President for Administration and Finance 2958 or designee, within the context of the overall portfolio to ensure that any financial product or structure 2959 is consistent with the University's objectives. Regardless of the financing structure(s) utilized, the 2960 President of the University, acting through the Senior Vice President for Administration and Finance or 2961 designee, shall obtain sufficient documentation to gain a full understanding of the transaction, including 2962 (i) the identification of potential risks and benefits and (ii) an analysis of the impact on University 2963 creditworthiness and debt capacity. All such debt or financial products issued pursuant to the provisions 2964 2965 2966 of §§ 23.1-1014 and 23.1-1015 of the Act shall be authorized by resolution of the board of visitors, providing that they do not constitute state tax-supported debt. The University currently has established guidelines relating to the total permissible amount of 2967 outstanding debt by monitoring University-wide ratios that measure debt compared to University balance 2968 sheet resources and annual debt service burden. These measures are monitored and reviewed regularly 2969 in light of the University's current strategic initiatives and expected debt requirements. The board of 2970 visitors shall periodically review and approve the University's debt capacity and debt management 2971 2972 2973 guidelines. The University shall submit any change in the current guidelines to the Treasury of Virginia for review and comment prior to their adoption. XI. INVESTMENT POLICY. 2974 It is the policy of the University to invest public funds in a manner that will provide the highest 2975 investment return with the maximum security while meeting the daily cash flow demands of the entity 2976 and conforming to all statutes governing the investment of public funds. Investments shall be made with 2977 the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person in 2978 a like capacity and familiar with such matters would use in the conduct of an enterprise of a like 2979 character and with like aims. This policy conforms with the Investment of Public Funds Act, Chapter 45 2980 (§ 2.2-4500 et seq.) of Title 2.2 of the Code of Virginia. 2981 Endowment investments, if any, shall be invested and managed in accordance with the Uniform 2982 2983 Prudent Management of Institutional Funds Act, Chapter 11 (§ 64.2-1100 et seq.) of Title 64.2 of the Code of Virginia. ENROLLED SB1204ER 2984 The University is charged with the responsibility of reporting to the board of visitors on an annual 2985 basis.

ACCOUNTS RECEIVABLE MANAGEMENT AND COLLECTION. 2891 2892 The President of the University, acting through the Senior Vice President for of Administration and 2892 2893 Finance or his designee, shall continue to be authorized to create and implement any and all accounts 2893 2894 receivable management and collection policies as part of a system for the management of University 2894 2895 financial resources. The policies shall be guided by the requirements of the Virginia Debt Collection 2895 2896 Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia, such that the University shall 2896 2897 take all appropriate and cost-effective actions to aggressively collect accounts receivable in a timely 2897 2898 manner. 2898 2899 These actions shall include, but not be limited to, establishing the criteria for granting credit to 2899 2900 University customers; establishing the nature and timing of collection procedures within the above 2900 2901 general principles; and the independent authority to select and contract with collection agencies and, 2901 2902 after consultation with the Office of the Attorney General, private attorneys as needed to perform any 2902 2903 and all collection activities for all University accounts receivable such as reporting delinquent accounts 2903 2904 to credit bureaus, obtaining judgments, garnishments, and liens against such debtors, and other actions. 2904 2905 In accordance with sound collection activities, the University shall continue to utilize the 2905 2906 Commonwealth's debt setoff set off collection programs and procedures, shall develop procedures acceptable 2907 to 2906 the Tax Commissioner and the State Comptroller to implement such programs, and shall provide a 2907 2908 quarterly summary report of receivables to the Department of Accounts in accordance with the reporting 2908 2909 2910 procedures established pursuant to the Virginia Debt Collection Act, Chapter 48 (§ 2.2-4800 et seq.) of 2910 Title 2.2 of the Code of Virginia. 2911 IX. DISBURSEMENT MANAGEMENT. 2911 2912 The President of the University, acting through the Senior Vice President for of Administration and 2912 2913 Finance or his designee, shall continue to be authorized to create and implement any and all 2914 disbursement 2913 policies as part of a system for the management of University financial resources. The 2915 disbursement 2914 management policies shall continue to define the appropriate and reasonable uses of all 2916 funds, from 2915 whatever source derived, in the execution of the University's operations. These policies also 2917 shall 2916 continue to address the timing of appropriate and reasonable disbursements consistent with the 2918 Prompt 2917 Payment Act, and the appropriateness of certain goods or services relative to the University's 2919 mission, 2918 including travel-related disbursements. Further, the University's disbursement policy shall 2920 continue to 2919 provide for the mechanisms by which payments are made including the use of charge cards, 2921 warrants, 2920 and electronic payments. 2921 2922 The President of the University, acting through the Senior Vice President for of Administration and 2922 2923 Finance or his designee, is authorized to independently select, engage, and contract for such ENROLLED HB2290ER 2924 consultants, 2923 accountants, and financial experts, and other such providers of expert advice and 2925 consultation, and, 2924 after consultation with the Office of the Attorney General, private attorneys, as may 2926 be necessary or 2925 desirable in his or her discretion. The University will continue to locally manage and 2927 administer the 2926 Commonwealth's credit card and cost recovery programs related to disbursements, 2928 subject to any 2927 restrictions contained in the Commonwealth's contracts governing those programs, as it 2929 has pursuant to 2928 as part of its Level 2.5 authority under § 4-9.02 of Chapter 780 of the Acts of Assembly of 2016authority. 2929 2930 The disbursement policies shall ensure that adequate risk management and internal control 2930 2931 procedures shall be maintained over previously decentralized processes for public records, payroll, and 2931 2932 non-payroll disbursements. The University shall continue to provide summary quarterly prompt payment 2932 2933 2934 reports to the Department of Accounts in accordance with the reporting procedures established pursuant 2934 to the Prompt Payment Act. 2935 The University has operated for many years at Level II and 2.5 as part of the Act. The University's 2936 disbursement policies shall continue to be guided by the principles of the 2935 Commonwealth's policies as 2937 included in the Commonwealth's Accounting Policy and Procedures 2936 Manual. Upon the effective date, the 2938 University shall continue to follow its current disbursement 2937 policies, as well as any new disbursement 2939 policies that have been developed and submitted to the State 2938 Comptroller for review and comment as a 2940 result of the management agreement. Any significant new 2939 2940 2941 disbursement policies developed after the 2941 effective date shall be submitted to the State Comptroller for review and comment before being 2942 implemented by the University. 2943 X. DEBT MANAGEMENT. 2942 2944 The University has a board of visitors-approved debt policy that defines the maximum percent of 2945 institutional resources that can be used to pay debt service in a fiscal year and the maximum amount of 2946 debt that can be prudently issued within a specific period. Annually, the board is provided a report on 2947 the University's debt-related activities. Any change in the debt policy shall be submitted to the State 2948 Treasurer for review and comment prior to their adoption by the University. 2949 The President of the University, acting through the Senior Vice President for of Administration and 2943 2950 Finance or his designee, shall continue to be authorized to create and implement any and all debt 2944 2951 management policies as part of a system for the management of University financial resources. 2945 Pursuant to subsection C of § 23.1-1015 of the Act, the University shall have the authority to issue 2946 bonds, notes, or other obligations that do not constitute state tax-supported debt, as determined by the 2947 Treasury Board, and that are consistent with debt capacity and management policies and guidelines 2948 established by its board of visitors, without obtaining the consent of any legislative body, elected 2949 official, commission, board, bureau, or agency of the Commonwealth or of any political subdivision, and 2950 without any proceedings or conditions other than those specifically required by Article 4 of the Act, 2951 provided, however, that the University shall notify the State Treasurer of its intention to issue bonds 2952 pursuant to this policy at the time it adopts the bond issuance planning schedule for those bonds. Any 2953 2954 2955 new or revised debt capacity and management policy shall be submitted to the State Treasurer for review and comment prior to its adoption by the University. The University recognizes that there are numerous types of financing structures and funding sources 2956 available, each with specific benefits, risks, and costs. All potential funding sources shall be reviewed by 2957 the President of the University, acting through the Senior Vice President for Administration and Finance 2958 or designee, within the context of the overall portfolio to ensure that any financial product or structure 2959 is consistent with the University's objectives. Regardless of the financing structure(s) utilized, the 2960 President of the University, acting through the Senior Vice President for Administration and Finance or 2961 designee, shall obtain sufficient documentation to gain a full understanding of the transaction, including 2962 (i) the identification of potential risks and benefits and (ii) an analysis of the impact on University 2963 creditworthiness and debt capacity. All such debt or financial products issued pursuant to the provisions 2964 2965 2966 of §§ 23.1-1014 and 23.1-1015 of the Act shall be authorized by resolution of the board of visitors, providing that they do not constitute state tax-supported debt. The University currently has established guidelines relating to the total permissible amount of 2967 outstanding debt by monitoring University-wide ratios that measure debt compared to University balance 2968 sheet resources and annual debt service burden. These measures are monitored and reviewed regularly 2969 in light of the University's current strategic initiatives and expected debt requirements. The board of 2970 visitors shall periodically review and approve the University's debt capacity and debt management 2971 2972 2973 guidelines. The University shall submit any change in the current guidelines to the Treasury of Virginia for review and comment prior to their adoption. XI. INVESTMENT POLICY. 2974 It is the policy of the University to invest public funds in a manner that will provide the highest 2975 investment return with the maximum security while meeting the daily cash flow demands of the entity 2976 and conforming to all statutes governing the investment of public funds. Investments shall be made with 2977 the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person in 2978 a like capacity and familiar with such matters would use in the conduct of an enterprise of a like 2979 character and with like aims. This policy conforms with the Investment of Public Funds Act, Chapter 45 2980 (§ 2.2-4500 et seq.) of Title 2.2 of the Code of Virginia. 2981 Endowment investments, if any, shall be invested and managed in accordance with the Uniform 2982 2983 Prudent Management of Institutional Funds Act, Chapter 11 (§ 64.2-1100 et seq.) of Title 64.2 of the Code of Virginia. ENROLLED SB1204ER 2984 The University is charged with the responsibility of reporting to the board of visitors on an annual 2985 basis.

ACCOUNTS RECEIVABLE MANAGEMENT AND COLLECTION. 2891 2892 The President of the University, acting through the Senior Vice President for of Administration and 2892 2893 Finance or his designee, shall continue to be authorized to create and implement any and all accounts 2893 2894 receivable management and collection policies as part of a system for the management of University 2894 2895 financial resources. The policies shall be guided by the requirements of the Virginia Debt Collection 2895 2896 Act, Chapter 48 (§ 2.2-4800 et seq.) of Title 2.2 of the Code of Virginia, such that the University shall 2896 2897 take all appropriate and cost-effective actions to aggressively collect accounts receivable in a timely 2897 2898 manner. 2898 2899 These actions shall include, but not be limited to, establishing the criteria for granting credit to 2899 2900 University customers; establishing the nature and timing of collection procedures within the above 2900 2901 general principles; and the independent authority to select and contract with collection agencies and, 2901 2902 after consultation with the Office of the Attorney General, private attorneys as needed to perform any 2902 2903 and all collection activities for all University accounts receivable such as reporting delinquent accounts 2903 2904 to credit bureaus, obtaining judgments, garnishments, and liens against such debtors, and other actions. 2904 2905 In accordance with sound collection activities, the University shall continue to utilize the 2905 2906 Commonwealth's debt setoff set off collection programs and procedures, shall develop procedures acceptable 2907 to 2906 the Tax Commissioner and the State Comptroller to implement such programs, and shall provide a 2907 2908 quarterly summary report of receivables to the Department of Accounts in accordance with the reporting 2908 2909 2910 procedures established pursuant to the Virginia Debt Collection Act, Chapter 48 (§ 2.2-4800 et seq.) of 2910 Title 2.2 of the Code of Virginia. 2911 IX. DISBURSEMENT MANAGEMENT. 2911 2912 The President of the University, acting through the Senior Vice President for of Administration and 2912 2913 Finance or his designee, shall continue to be authorized to create and implement any and all 2914 disbursement 2913 policies as part of a system for the management of University financial resources. The 2915 disbursement 2914 management policies shall continue to define the appropriate and reasonable uses of all 2916 funds, from 2915 whatever source derived, in the execution of the University's operations. These policies also 2917 shall 2916 continue to address the timing of appropriate and reasonable disbursements consistent with the 2918 Prompt 2917 Payment Act, and the appropriateness of certain goods or services relative to the University's 2919 mission, 2918 including travel-related disbursements. Further, the University's disbursement policy shall 2920 continue to 2919 provide for the mechanisms by which payments are made including the use of charge cards, 2921 warrants, 2920 and electronic payments. 2921 2922 The President of the University, acting through the Senior Vice President for of Administration and 2922 2923 Finance or his designee, is authorized to independently select, engage, and contract for such ENROLLED SB1386ER 2924 consultants, 2923 accountants, and financial experts, and other such providers of expert advice and 2925 consultation, and, 2924 after consultation with the Office of the Attorney General, private attorneys, as may 2926 be necessary or 2925 desirable in his or her discretion. The University will continue to locally manage and 2927 administer the 2926 Commonwealth's credit card and cost recovery programs related to disbursements, 2928 subject to any 2927 restrictions contained in the Commonwealth's contracts governing those programs, as it 2929 has pursuant to 2928 as part of its Level 2.5 authority under § 4-9.02 of Chapter 780 of the Acts of Assembly of 2016authority. 2929 2930 The disbursement policies shall ensure that adequate risk management and internal control 2930 2931 procedures shall be maintained over previously decentralized processes for public records, payroll, and 2931 2932 non-payroll disbursements. The University shall continue to provide summary quarterly prompt payment 2932 2933 2934 reports to the Department of Accounts in accordance with the reporting procedures established pursuant 2934 to the Prompt Payment Act. 2935 The University has operated for many years at Level II and 2.5 as part of the Act. The University's 2936 disbursement policies shall continue to be guided by the principles of the 2935 Commonwealth's policies as 2937 included in the Commonwealth's Accounting Policy and Procedures 2936 Manual. Upon the effective date, the 2938 University shall continue to follow its current disbursement 2937 policies, as well as any new disbursement 2939 policies that have been developed and submitted to the State 2938 Comptroller for review and comment as a 2940 result of the management agreement. Any significant new 2939 2940 2941 disbursement policies developed after the 2941 effective date shall be submitted to the State Comptroller for review and comment before being 2942 implemented by the University. 2943 X. DEBT MANAGEMENT. 2942 2944 The University has a board of visitors-approved debt policy that defines the maximum percent of 2945 institutional resources that can be used to pay debt service in a fiscal year and the maximum amount of 2946 debt that can be prudently issued within a specific period. Annually, the board is provided a report on 2947 the University's debt-related activities. Any change in the debt policy shall be submitted to the State 2948 Treasurer for review and comment prior to their adoption by the University. 2949 The President of the University, acting through the Senior Vice President for of Administration and 2943 2950 Finance or his designee, shall continue to be authorized to create and implement any and all debt 2944 2951 management policies as part of a system for the management of University financial resources. 2945 Pursuant to subsection C of § 23.1-1015 of the Act, the University shall have the authority to issue 2946 bonds, notes, or other obligations that do not constitute state tax-supported debt, as determined by the 2947 Treasury Board, and that are consistent with debt capacity and management policies and guidelines 2948 established by its board of visitors, without obtaining the consent of any legislative body, elected 2949 official, commission, board, bureau, or agency of the Commonwealth or of any political subdivision, and 2950 without any proceedings or conditions other than those specifically required by Article 4 of the Act, 2951 provided, however, that the University shall notify the State Treasurer of its intention to issue bonds 2952 pursuant to this policy at the time it adopts the bond issuance planning schedule for those bonds. Any 2953 2954 2955 new or revised debt capacity and management policy shall be submitted to the State Treasurer for review and comment prior to its adoption by the University. The University recognizes that there are numerous types of financing structures and funding sources 2956 available, each with specific benefits, risks, and costs. All potential funding sources shall be reviewed by 2957 the President of the University, acting through the Senior Vice President for Administration and Finance 2958 or designee, within the context of the overall portfolio to ensure that any financial product or structure 2959 is consistent with the University's objectives. Regardless of the financing structure(s) utilized, the 2960 President of the University, acting through the Senior Vice President for Administration and Finance or 2961 designee, shall obtain sufficient documentation to gain a full understanding of the transaction, including 2962 (i) the identification of potential risks and benefits and (ii) an analysis of the impact on University 2963 creditworthiness and debt capacity. All such debt or financial products issued pursuant to the provisions 2964 2965 2966 of §§ 23.1-1014 and 23.1-1015 of the Act shall be authorized by resolution of the board of visitors, providing that they do not constitute state tax-supported debt. The University currently has established guidelines relating to the total permissible amount of 2967 outstanding debt by monitoring University-wide ratios that measure debt compared to University balance 2968 sheet resources and annual debt service burden. These measures are monitored and reviewed regularly 2969 in light of the University's current strategic initiatives and expected debt requirements. The board of 2970 visitors shall periodically review and approve the University's debt capacity and debt management 2971 2972 2973 guidelines. The University shall submit any change in the current guidelines to the Treasury of Virginia for review and comment prior to their adoption. XI. INVESTMENT POLICY. 2974 It is the policy of the University to invest public funds in a manner that will provide the highest 2975 investment return with the maximum security while meeting the daily cash flow demands of the entity 2976 and conforming to all statutes governing the investment of public funds. Investments shall be made with 2977 the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person in 2978 a like capacity and familiar with such matters would use in the conduct of an enterprise of a like 2979 character and with like aims. This policy conforms with the Investment of Public Funds Act, Chapter 45 2980 (§ 2.2-4500 et seq.) of Title 2.2 of the Code of Virginia. 2981 Endowment investments, if any, shall be invested and managed in accordance with the Uniform 2982 2983 Prudent Management of Institutional Funds Act, Chapter 11 (§ 64.2-1100 et seq.) of Title 64.2 of the Code of Virginia. ENROLLED SB1204ER 2984 The University is charged with the responsibility of reporting to the board of visitors on an annual 2985 basis.