Direct Support Organizations; Health Services Support Organizations

REGULATIONS OF THE

UNIVERSITY OF FLORIDA

1.300 Direct Support Organizations; Health Services Support Organizations.

(1) The Board of Trustees (“BOT”) may establish direct support organizations (“DSO”) and health services support organizations (together with DSOs, “support organizations”) and certify them to use University property, facilities, and personal services. Such support organizations shall be organized and operated to serve the best interests or missions of the University, including the University’s research, education, and service missions, and may receive, hold, invest, and administer property and make expenditures to or for the benefit of the University or for the benefit of a research and development park or research and development authority affiliated with the University.

(2) Each support organization must comply with the conditions in this regulation in order to use University property, facilities, or personal services, as well as the requirements for appropriate budget and audit review and oversight. In addition, the following conditions are established:

(a) Thresholds to be established by BOT that delineate when approval by BOT is required for the purchase of goods and services by a DSO.

(b) All debt issued by a DSO is subject to the State University System Debt Management Guidelines and all public-private partnership transactions involving a DSO are subject to the State University System Public-Private Partnership Guidelines.

(c) Thresholds to be established by BOT that delineate when approval is required by BOT for the acquisition of real property and the construction or renovation of facilities by a DSO.

(d) University personal services used by a DSO are subject to the remuneration requirements set forth in section 1012.976, Florida Statutes.

(e) No DSO may use state funds for travel expenses incurred by the DSO.

(f) No DSO may give, either directly or indirectly, any gift to a political committee as defined in section 106.011, Florida Statutes, for any purpose.

(3) The Director or Chief Executive Officer of the support organization shall report to the University President or designee.

(4) Operating budgets of supporting organizations shall be prepared at least annually, and approved by the organization’s governing board and the BOT. Significant changes in planned expenditures in the approved budget must be reported to BOT as soon as practicable but no later than the deadline established by BOT.

(5) Support organizations shall provide for an annual audit conducted pursuant to university regulations or policies. The annual audit report shall be submitted to BOT for review. The audit report shall be submitted to the Board of Governors and the Auditor General. BOT or its designee, the Board of Governors, the Auditor General, and the Office of Program and Policy Analysis and Government Accountability may require and receive any records relative to the operation of a support organization from the organization or its independent auditors.

(6) Each support organization shall submit its federal Internal Revenue Service application for Recognition of Exemption form (Form 1023) and its federal Internal Revenue Service Return of Organization Exempt from Income Tax form (Form 990) to BOT or its designee at the times required by regulation or policy of BOT. Copies of such forms shall be provided by the University to the Board of Governors.

(7) Any transfer of a state appropriation to a DSO is limited to funds pledged for capital projects.

(a) This regulation does not prohibit the transfer of non-state funds between University DSOs, or the transfer of non-state funds to a DSO, as long as the original source of funding was not a state appropriation.

(b) A DSO may transfer funds and provide the use of DSO property, facilities, or personal services without any charge to the University.

(c) The University will report annually to the Legislature and the Board of Governors all transfers of state funds to each DSO, using the format and instructions specified by the Chancellor.

(8) Each support organization shall provide equal employment opportunities to all persons, regardless of race, color, national origin, sex, religion, age, disability, marital status, veteran status, or any other basis protected by law.

(9) The BOT Chair shall appoint at least one representative to each DSO board of directors and executive committee (if any). The University President or designee shall also serve on each DSO board of directors and executive committee, if any. BOT shall approve all appointments to any DSO board other than the Chair’s representative(s) or the President or President’s designee. The Chair’s designee may not be the University President; nor may the Chair and President appoint the same person to represent both the Chair and the President on any one DSO board.

(10) BOT shall decertify a support organization if the BOT or designee determines that the organization is no longer serving the best interest or mission of the University and decertification is appropriate. In decertifying a support organization, BOT shall require an accounting of the organization’s assets and liabilities and take such reasonable action as necessary to secure the return of all University property and facilities as requested by the University.

(11) In order to ensure each support organization is operating in a manner consistent with the goals of the University and in the best interest of the state, each support organization shall conduct due diligence on potential members of its board prior to any appointment, nomination, or election. BOT or designee shall identify the appropriate level of due diligence to be performed, by regulation or policy, and issue guidelines for the process to be followed in reviewing and evaluating any information obtained.

Specific Authority: 1001.74(4), 1004.28(2) FS.

Law Implemented: 1001.74(37), 1004.28 FS.

History: New 1-7-03, Amended 6-3-03, 12-3-21.