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164A.610 Organization and operation of affiliated corporations.
(1)
(2)
(3)
An institution may organize and operate one (1) or more affiliated corporations to
assist it in carrying out its programs, missions or other functions. A qualified firm
of certified public accountants experienced in the auditing of colleges and
universities and their affiliated corporations shall be engaged to conduct an annual
examination of the corporation's financial statements in accord with generally
accepted auditing standards for the purpose of rendering an independent opinion
thereon and preparing a report of findings and recommendations concerning
appropriate accounting controls and compliance with applicable statutes. The
affiliated corporation shall adhere to the principles of accounting and purchasing
used by the institution with which it is affiliated.
The affiliated corporation shall provide the institution with an accounting at least
quarterly, of all income and expenditures of said corporation in connection with
contracts or grants with entities external to the institution and the corporation, for
the conduct of research or other projects carried out, in whole or in part, through the
use of institutional facilities or personnel.
The affiliated corporation shall pay to, or for the benefit of, the institution any and
all funds received by it from any person, corporation, association or governmental
agency external to the institution and the affiliated corporation as reimbursement for
indirect expenses incurred by the institution in carrying out research or furnishing
other goods or services, deducting from such payments only the expenses
attributable to the procurement and performance of research grants and contracts
and other contracts for the provision of such goods and services and such sums as
may be essential to meet contractual obligations incurred at the request of the
institution's governing board.
Effective: July 15, 1982
History: Created 1982 Ky. Acts ch. 391, sec. 14, effective July 15, 1982.
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