Any institution-related foundation not controlled by the institution has a contractual or other formal agreement that (a) accurately describes the relationship between the institution and the foundation, and (b) describes any liability associated with that relationship. In all cases, the institution ensures that the relationship is consistent with its mission.
Texas Government Code Section 2255.001 referenced in The Texas A&M University System Policy 60.01 on Relationships with Affiliated Organizations requires a state agency (including an institution of higher education) to adopt rules governing the relationship between the donor or affiliated organization and the agency and its employees . Affiliation agreements must execute an agreement with the fund raising organization every five years and the agreement must be reviewed for legal sufficiency by the System Office of General Council (OGC) in accordance with TAMUS Policy 60.01.01 .
Prairie View A&M University has an affiliation agreement signed by the President of the University, the President of the Foundation, the Vice President for Business Affairs, and the Office of General Council with the Prairie View A&M Foundation . The affiliation agreement describes the relationship between the university and the foundation related to fiscal responsibility, university employees, use of University property, audit and reports, disbursement of funds, representation on the foundation board, governance of agreement, and duration of the agreement .
The foundation is organized and operated exclusively for charitable, educational, or scientific purposes. As noted in its Bylaws, the Foundation is formed for the exclusive benefit of Prairie View A&M University . The Mission of the Foundation  is aligned with and supports the University Mission .
Prairie View A&M University ensures that the relationship between itself and the Prairie View A&M Foundation in the Affiliation Agreement is consistent with its mission by a) ex-officio representation on the Foundation Board of Directors by the president of the university who serves as a non-voting member but otherwise participates fully in the activities of the board, and by b) directing through university fiscal accounts and processes which include purchasing regulations, approval processes, and periodic account audits of all funds specified by the foundation to benefit the university .