The legal authority and operating control of the institution are clearly defined for the following areas within the institutionís governance structure: related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs.
As state agencies, institutions of higher education must adopt rules governing the relationship between a donor or affiliated organization and the agency and its employees under Texas Government Code Section 2255.001 referenced in The Texas A&M University System Policy 60.01 on Relationships with Affiliated Organizations . Under this policy, the Chancellor of the Texas A&M University System establishes regulations that sets rules that govern the conduct of the Univeristy and its employees who engage in a relationship with an affiliated organization or agency. System Policy 60.01 states:
1. Section 2255.001 of the Texas Government Code requires a state agency (including an institution of higher education) that is authorized by statute to accept money from private donors, or for which a private organization exists that is designed to further the purposes and duties of the agency, to adopt rules governing the relationship between the donor or affiliated organization and the agency and its employees.
2. The chancellor shall establish regulation(s) setting forth rules governing all aspects of conduct of the system members and their employees who engage in a relationship with an
affiliated organization or donor, and the regulation must specifically address the following criteria:
(a) administration and investment of funds received by the affiliated organization for the benefit of the system member;
(b) use of an employee or property of the system member by the donor or affiliated organization;
(c) service by an officer or employee of the system member as an officer or director of the affiliated organization; and
(d) the prohibition of monetary enrichment of an officer or employee of the system member by the donor or affiliated organization.
3. Regulation(s) adopted under this policy may not conflict with, or supersede, a requirement of a statute, system policy or regulation, or system member rule or procedure regulating the conduct of an employee.
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 . As noted in Comprehensive Standard 3.2.13, Prairie View A&M University has an affiliation agreement signed by the President of the University, the President of the Prairie View A&M 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 .