                                 CODE OF VIRGINIA

COVERED INSTITUTIONS; OPERATIONAL AUTHORITY; FINANCIAL OPERATIONS GENERALLY (§
23.1-1012)

A. Each covered institution may (i) independently manage its operations and
finances, including holding and investing its tuition, fees, research funds, and
auxiliary enterprise funds and all other public funds; (ii) create any policy
deemed necessary to conduct its financial operations; (iii) adopt the budget for
the institution; and (iv) control the expenditures of all moneys generated or
received by the institution, including tuition, fees, and other nongeneral fund
revenue sources.

B. Subject to the express terms of the management agreement, the governing board
of each covered institution has the sole authority to establish tuition,
mandatory fees, room and board, and other necessary charges consistent with sum
sufficient appropriation authority for all nongeneral funds as provided by the
Governor and the General Assembly in the general appropriation act. In the event
that the institution retains any nongeneral funds, it shall invest such funds
consistent with an investment policy established by the governing board and
retain all income earned on such investments. In the event that the Commonwealth
holds any nongeneral funds on behalf of the institution, the institution shall
receive a share of the income earned by the Commonwealth on the investment of
such funds as provided in subsection C of &#xA7; 23.1-1002.

C. The governing board of each covered institution shall include in its six-year
plan pursuant to &#xA7; 23.1-306 its commitment to providing need-based grant
aid for middle-income and lower-income Virginia students in a manner that
encourages student enrollment and progression without respect to potential
increases in tuition and fees.

D. Each covered institution&#8217;s management agreement shall include the
quantification of cost savings realized as a result of the restructured
operational authority pursuant to this article.

E. Each covered institution may enter into any contract that it determines to be
necessary or appropriate to place any bond or investment of the institution, in
whole or in part, on the interest rate, cash flow, or other basis desired by the
institution, including contracts commonly known as interest rate swap
agreements, futures, and contracts providing for payments based on levels of, or
changes in, interest rates. Each covered institution may enter into such
contracts in connection with, incidental to, or for the purpose of entering into
or maintaining any (i) agreement that secures bonds, notes, or other obligations
or (ii) investment or contract providing for investment, otherwise authorized by
law, including &#xA7; 23.1-1013. Such contracts may contain such payment,
security, default, remedy, and other terms and conditions as determined by the
institution after giving due consideration to the creditworthiness of the
counterpart or other obligated party, including any rating by any nationally
recognized rating agency, and any other criteria that may be appropriate. Any
money set aside and pledged to secure payments of bonds, notes, or other
obligations or any contract entered into pursuant to this section may be pledged
to and used to service any such contract.

F. The governing board of each covered institution shall adopt a system of
independent financial management that includes bookkeeping and accounting
procedures that have been prescribed for governmental organizations by the
Government Accounting Standards Board.

HISTORY: 2005, cc. 933, 945, §§ 23-38.104, 23-38.106; 2016, c. 588.