                                 CODE OF VIRGINIA

MANAGEMENT AGREEMENT; DURATION AND OVERSIGHT (§ 23.1-1007)

A. Each initial management agreement shall remain in effect for a period of
three years. Subsequent management agreements shall remain in effect for a
period of five years.

B. If an existing management agreement is not renewed or a new management
agreement is not executed prior to the expiration date, the existing agreement
shall remain in effect on a provisional basis for a period not to exceed one
year. If, after the expiration of the provisional one-year period, the
management agreement has not been renewed or a new agreement has not been
executed, the public institution of higher education shall not exercise such
restructured operational authority until it enters into a new management
agreement with the Commonwealth.

C. The Joint Legislative Audit and Review Commission, in cooperation with the
Auditor of Public Accounts, shall review, for at least the first 24 months from
the effective date of the management agreement, the level of compliance with the
expressed terms of the management agreement, the degree to which the covered
institution has demonstrated its ability to manage successfully the
administrative and financial operations of the institution without jeopardizing
the financial integrity and stability of the institution, the degree to which
the covered institution is meeting the state goals set forth in subsection A of
&#xA7; 23.1-1002, and any impact that the management agreement has had on
students and employees of the covered institution. The Joint Legislative Audit
and Review Commission shall make a written report of its review no later than
June 30 of the third year of the management agreement. The Joint Legislative
Audit and Review Commission may conduct a similar review of any management
agreement entered into subsequent to the initial agreement.

D. The Auditor of Public Accounts or his legally authorized representatives
shall audit annually accounts of all covered institutions and shall distribute
copies of each annual audit to the Governor and to the Chairmen of the House
Committee on Appropriations and the Senate Committee on Finance and
Appropriations. Pursuant to &#xA7; 30-133, the Auditor of Public Accounts and
his legally authorized representatives shall examine annually the accounts and
books of each such institution, but no covered institution shall be deemed a
state or governmental agency, advisory agency, public body, or agency or
instrumentality for purposes of Chapter 14 (&#xA7; 30-130 et seq.) of Title 30
except for those provisions in such chapter that relate to requirements for
financial recordkeeping and bookkeeping. Each covered institution is subject to
such other reviews and audits as are required by law.

E. If the Governor makes a written determination that the covered institution is
not in substantial compliance with the terms of the management agreement or with
the requirements of this chapter, he shall provide a copy of that written
determination to the chairman or rector of the governing board of the covered
institution and to the General Assembly, and the covered institution shall
develop and implement a plan of corrective action. The covered institution shall
provide a copy of such corrective action plan to the Governor and General
Assembly. If the Governor determines that the covered institution is not yet in
substantial compliance with the management agreement or the requirements of this
chapter after a reasonable period of time following the implementation of the
corrective action plan, the Governor may void the management agreement and the
institution&#8217;s status as a covered institution shall terminate and it shall
not exercise such restructured operational authority until the institution
enters into a subsequent management agreement with the Cabinet Secretary
designated by the Governor or the voided management agreement is reinstated by
the General Assembly.

F. An institution&#8217;s status as a covered institution may be revoked by an
act of the General Assembly if the institution fails to meet the requirements of
this article or the management agreement.

HISTORY: 2005, cc. 933, 945, §§ 23-38.88, 23-38.94. 23-38.98; 2006, c. 775;
2009, cc. 827, 845; 2011, cc. 828, 869; 2013, c. 482; 2014, c. 628; 2016, c.
588.