SACSCOC Off-Site Committee’s Response

Non-Compliance

The institution utilizes a contractual arrangement known as the Uniform Affiliation Agreement to define the legal authority and operating control of separate entities organized and formed for the purpose of supporting the institution.  Such agreements have been made with the LSU Foundation, the LSU Property Foundation, the LSU Marine Property Foundation, the LSU Alumni Association, and the Tiger Athletic Foundation.  The agreement provides a level of legal and familial separation between the university and the affiliate, while also guaranteeing the university the right to inspect affiliates’ records. However, the Uniform Affiliate Agreement does not define the extent of any liability for either the institution or the affiliate arising out of their relationship.

While the Uniform Affiliate Agreement does not demonstrate that the chief executive officer controls any fund-raising activities of that entity, it does state, under the Affiliate General Duties and Responsibilities section 3.1 that the affiliate will “solicit and accept (whether by way of outright, limited or conditional gifts, grants and bequests, in trust or otherwise) things of value of all kinds, including property, both real and personal, whether principal or income, tangible or intangible, vested or contingent, within the limits of the law, for the purpose of providing funds for the general purposes of Affiliate and for purposes of providing scholarships, activities in research, or other such designated benefits for the University and its faculty, staff, and students as may be prescribed by testators or donors to Affiliate.
 

LSU A&M’s Response

The SACSCOC Off-Site Committee states the following:

The institution utilizes a contractual arrangement known as the Uniform Affiliation Agreement to define the legal authority and operating control of separate entities organized and formed for the purpose of supporting the institution.  Such agreements have been made with the LSU Foundation, the LSU Property Foundation, the LSU Marine Property Foundation, the LSU Alumni Association, and the Tiger Athletic Foundation.  The agreement provides a level of legal and familial separation between the university and the affiliate, while also guaranteeing the university the right to inspect affiliates’ records.

However, the Off-Site committee has expressed concerns because “the Uniform Affiliation Agreement does not define the extent of any liability for either the institution or the affiliate arising out of the relationship.”  A copy of a representative UAA is attached [1].

The LSU Board of Supervisors (including its institutions) and LSU’s affiliated organizations are separate legal entities.  Unless an obligation is assumed, neither has any liability for the obligations of the other.  The Uniform Affiliation Agreement (UAA) carefully defines the rights and responsibilities of the parties.  Under the UAA, neither the university nor the affiliate assumes any legal liability for obligations incurred by the other party.  The UAA concludes with the express statement that “nothing herein shall be construed to affect the private and separate legal status of the Affiliate.”

LSU respectfully submits that the Uniform Affiliation Agreement enforces LSU’s compliance with Principle 3.2.13 in its substantive provisions and through confirmation that the affiliate is a “private and separate” legal entity.