(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.A.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Implementation of the Student Trustee Election Law

1. Preamble. To guide the conduct of the student trustee elections authorized under Chapter 124 of the laws of 1979 and subsequent amendments, the Board of Trustees under the authority of RSA 187-A:13 and 16 adopts the following policy:
2. Campus Rotation. Chapter 76 of the New Hampshire Laws of 2011 provides that the 2011 elections for student trustee will occur at the University of New Hampshire and Plymouth State University, the 2012 elections at Plymouth State University and Granite State College, the 2013 elections at Granite State College and Keene State College, and the 2014 elections at Keene State College and the University of New Hampshire. Unless the law is repealed or amended, the election for the student trustee in subsequent years shall rotate among the campuses in the same order.
3. Candidates. Any full-time matriculated undergraduate or graduate student at the institution scheduled for the student trustee election shall be entitled to run as a candidate for student trustee. This student should appear on the ballot provided:
   1. The student has completed at least three semesters or terms at the institution they would represent; and
   2. The student has submitted a petition with not less than 50 student signatures to the appropriate student government representative at least 2 weeks prior to the election, except at Granite State College where the student is required to submit a statement of interest to the President's Office at least 2 weeks prior to the election.
4. Voting. All full-time matriculated undergraduate and graduate students shall be eligible to vote for student trustee.
5. Election Procedures. Each institution shall carry out the election of the student trustee under the same procedures used for the election of the student body president. In case of conflict between those procedures and this policy, the terms of this policy shall control.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.B.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Implementation of the Alumni Trustee Election Law

1. Preamble. In state law, RSA 187-A:13, IV, V, VI and VII provide for four Board members to be elected by the alumni of UNH, one by the alumni of PSU, one by the alumni of KSC, and one by the alumni of GSC, without further specifying the manner in which said elections are to be conducted. In order to provide for the consistent and orderly election of alumni trustees, the Board hereby establishes the following procedures by which all such elections shall be conducted.
2. Authority. The alumni associations, acting through their governing boards, shall conduct the elections of alumni trustees. The alumni associations are authorized to establish such election procedures as may be expedient or desirable, provided that such procedures do not conflict with either state law or the provisions of this policy.
3. Eligibility to Serve. An alumni association shall nominate for election only individuals who are current members of said alumni association. No alumni trustee may be elected to more than two successive four-year terms.
4. Eligibility to Vote. Every member in good standing of the alumni of an institution shall be entitled to cast one vote in the election of the alumni trustee (or trustees) from said institution.
5. Nominations. The alumni association conducting an election shall create a nominating committee to include non-biased representatives of the alumni community and shall develop an election timeline that provides an opportunity for information about the candidates and the process to be broadly disseminated. The nominating committee shall nominate at least one candidate for election and prepare an appropriate form of ballot that explicitly provides for write-in voting.
6. Voting. The alumni association shall establish and publish the procedures by which voting will be conducted, including, if deemed desirable by the association, provision for voting by electronic data communication.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.C.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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C. Authority of the USNH Treasurer and Secretary

1. The Board of Trustees authorizes the Treasurer of the University System of New Hampshire to execute all contracts, leases, grants, deeds, negotiable instruments, and any other legal documents whatsoever on behalf of the USNH and each of its component institutions.
2. The Board of Trustees authorizes the Secretary of the University System of New Hampshire to hold and maintain the seal, minute books, and official records of the USNH and its component institutions and to issue certificates with respect to those minute books and official records and to affix the seal to such certificates.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.D.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. Expectations of Members of the Board of Trustees

1. Membership on the USNH Board of Trustees is an exciting, rewarding, and demanding endeavor. Full and proper execution of the duties and responsibilities of a Trustee requires a substantial commitment of time, intellectual energy, and effort. Every Trustee is expected to meet or exceed shared standards for participation, decorum, collegiality and integrity including, but not limited to, the following.
2. A Trustee shall at all times discharge his or her duties as a Trustee in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances and considering only the best interests of USNH and the component institutions.
3. A Trustee shall carefully prepare for, and regularly attend, all scheduled Board meetings and the meetings of Committees to which he or she is assigned.
4. A Trustee shall commit the time necessary to actively participate and be effective in Board and Committee meetings.
5. A Trustee shall act with decorum and recognize that his or her behavior will be attributed to and reflect on the other members of the Board and USNH. In meetings, other Board events and activities, and in his or her life outside of the Board, a Trustee shall relate to every other member of the Board with a spirit of collegiality, respect, and cooperation.
6. A Trustee shall faithfully execute his or her duties in a manner he or she reasonably believes to be in the best interests of USNH, setting aside all other interests, personal or otherwise. A Trustee shall recuse themself from any matter in which they doubt their ability to execute their duty solely in the best interests of USNH. Upon recusal a Trustee shall take no part in the deliberation or decision of an issue and shall not in any way influence or attempt to influence the Board’s or any Trustee’s position on the matter.
7. A Trustee may challenge the judgment of others when he or she deems it necessary to do so, and shall vote his or her individual convictions after listening to others. A Trustee must, however, work with fellow Board members in the best interests of USNH and should not undermine Board decisions publicly or otherwise.
8. A Trustee shall support the Chancellor's and Presidents' roles as chief executive officers, to whom the Board has delegated broad responsibility for the management and administration of his or her respective institution.
9. A Trustee shall communicate promptly and as appropriate any significant concern or complaint of which he or she becomes aware to the Chancellor or Board Chair.
10. A Trustee shall recognize that he or she is not the official spokesperson for USNH or the Board unless otherwise designated. When a Trustee engages in communications as an individual, whether with USNH students or employees, public officials or citizens, the media, or anyone else, the Trustee shall be guided by the expectations set forth in this statement.
11. A Trustee shall support the fundraising activities of USNH and its component institutions through financial participation and otherwise, according to his or her personal circumstances.
12. The constituency of each Trustee is USNH, regardless of the source of appointment. A Trustee shall act independently for the benefit of USNH as a whole and not for the benefit of a particular program or interest.
13. A Trustee shall comply with the letter and spirit of the Board of Trustees' Policy on Conflict of Interest, BOT III.I.
14. A Trustee shall not engage in conduct that would bring discredit on the Board or USNH or any of its component institutions.
15. The Board Chairman or Executive Committee may refer to the Governance Committee any case in which a member of the Board is reasonably believed to have violated the Board's Bylaws, a Board policy, or their legal duty as a Trustee. The Governance Committee shall fully and fairly review the matter and report to the Executive Committee its findings and recommendations for further action, if any. The Executive Committee, after considering the findings and recommendations, may issue a private reprimand, recommend to the full Board a public vote of censure or, in appropriate cases, no confidence, or take such further action as may be allowed by law. No trustee or other person shall be subject to retaliation in any form for making a complaint against a trustee, or participating in the review of such complaint, provided the trustee or person does so in good faith and with a reasonable belief in the truth of their allegations, testimony, and other statements.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.E.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Strategic Planning

1. Each institution shall develop a strategic plan for presentation to the Board of Trustees. Strategic plans shall include academic, financial, human resources, and capital planning components, and provide for the accomplishment of the respective institutional missions. The plans shall also recognize the institution's role and impact within the larger system of institutions (including opportunities to collaborate and/or adverse impacts that might result). The Administrative Board shall ensure the plans are appropriately well-coordinated.
2. Annually, at the Board of Trustees' retreat, each campus President and the Chancellor should identify the key strategic issues for their respective institutions and set out the strategic priorities and risks for the coming fiscal year. The Administrative Board shall adopt a template acceptable to the Board of Trustees for the institutional presentations to ensure the presentations and associated materials are appropriately strategic and comparable.
3. Following the annual retreat, the Administrative Board will carefully consider the Board of Trustees' responses to the presentations and its members will make such adjustments to their respective institutional strategic plans as may be necessary or desirable.
4. At the Board of Trustees' business meetings the host institution will present a status report on its strategic plan, results, and system-wide impacts.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.E.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F. Submission of Agenda Items

1.  Distribution of Agenda and Materials.  Meeting agendas and supporting materials ordinarily shall be available to Trustees at least eight (8) days in advance of a scheduled meeting of the full Board or any Committee.  In unusual circumstances the Board Chair or Committee Chair may authorize the distribution of an agenda and/or supporting materials closer to the scheduled meeting.

2.  Review and approval of Agenda Items.  The Board Chair or Committee Chair may require the prior review and approval of agenda items and/or supporting materials and can in their discretion establish a deadline for the submission of items and materials for review.

3.  Late Items and/or Materials.  Under extraordinary circumstances and with the approval of the Board Chair or Committee Chair, late items and/or materials may be included on the agenda, clearly labeled on the agenda and in the minutes as a “Late Item.”  The Board’s or Committee’s deliberation of a late item shall include explicit discussion of whether Trustees have had sufficient time to review, understand, and consider the item and any related materials.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.I.A.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Inter-institutional Transfer of Credit

1. Undergraduate
   1. Credits shall be transferable between institutions of the University System and applicable to any undergraduate degree program provided that:
      1. They were earned within the University System for work assigned a grade of C or its equivalent (a grade of P in a "Pass/No Pass" course). Note: A grade of C- or C-D is not equivalent to a grade of C.
      2. They were earned in any undergraduate degree program except the Associate in Applied Science. Credit so earned may be transferred in full or in part, depending on the specific character of the work and upon the program to which the student transfers. Judgments with respect to the transfer of credit are to be made by faculty in the departments or programs into which the student is transferring.
   2. Faculty of each campus, however, retain the authority to evaluate the transferability of credit within the institution.
   3. Institutions will establish an on-going evaluation of transfer of credit policies and procedures.
2. Graduate
   1. The faculty of each campus has the responsibility to evaluate the transferability of graduate credit earned within the University System after consultation with the faculty of the campus from which the student is transferring.
3. General
   1. The faculty on each campus has the responsibility to evaluate the transferability of credit awarded a student by another division within the system if that credit was granted based upon standardized examinations or was transferred to that division from an institution external to the University System.
   2. The faculty on any given campus responsible for a particular degree program shall be responsible for determining the requirements to be completed by the transfer student to be awarded the degree.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.II.B.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Academic Integrity

1. Academic integrity and intellectual truth are among the foremost priorities in institutions of higher education. Without these, there is no real learning, critical thinking, creativity, or development of new knowledge. Therefore, the Trustees of the University System of New Hampshire confirm their commitment to these principles, and express their expectation that, in the pursuit of learning, students and faculty in the various institutions commit themselves completely to integrity and truth. Each institution formulates and administers its own policies and regulations on academic integrity, and communicates these to administrators, faculty, and students on a regular basis.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.II.D.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. Financial Aid

1. Authority
   1. ​​​State law (RSA 187-A:16 VII, VIII, and XV) authorizes the Board of Trustees to manage and control the financial affairs of the University System (including all of its institutions) as needed to provide a well-coordinated system of public higher education.
2. Delegation of Authority
   1. The Board of Trustees shall delegate to the Financial Affairs Committee the oversight of matters related to financial aid policy and associated planning.
   2. The Financial Affairs Committee shall report from time to time on an as needed basis to the Board of Trustees on the status of financial aid policy and planning.
   3. The Board of Trustees delegates to the Administrative Board the responsibility for:
      1. Assuring that financial aid planning and policy development is carried on by each institution and that plans and/or policies are submitted to the Financial Affairs Committee, on an informational basis.
      2. Assuring that current, comprehensive information is available and presented annually to the Financial Affairs Committee concerning financial aid program awards, the characteristics of aid recipients, the effectiveness of aid programs in supporting academic retention and graduation of students, and other matters pertinent to the broad goals of the Board of Trustees.
   4. The Board of Trustees delegates to the President/Chief Executive Officer of each University System institution, responsibility for:
      1. Assuring that the institution develops and maintains policies guiding all activities related to the acquisition, disbursement, program compliance and reporting of financial aid.
      2. Assuring that reliable, consistent, and timely information is available concerning financial aid and that such information as needed is provided to the Chancellor for purposes of reporting to the Board of Trustees.
      3. Managing all operations and transactions of financial aid offices and services in a manner that meets all applicable governmental and external agency standards.
3. Reporting
   1. Any material change in University System policy approved by the Administrative Board, and/or any change in campus policy approved by the Chief Executive Officer shall be reported to the Financial Affairs Committee.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.II.E.1.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Honorary Degrees and Awards

1. The Board of Trustees delegates to each president the authority to award and confer honorary degrees and Granite State Awards at their respective institution. The Administrative Board shall adopt a policy governing the (a) granting of honorary degrees and awards, (b) appropriate coordination among the institutions, and (c) periodic reporting to the Board of Trustees.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.II.F.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F. Promotion and Tenure

1. The Board of Trustees of the University System of New Hampshire awards promotion and tenure on the recommendation of a President. The Board also reviews the principles, policies and procedures that the institutions use to recommend candidates for promotion and tenure. In making these decisions the Board considers the institutional missions, future plans, affirmative action goals and other relevant concerns such as numbers of tenured faculty.
2. The Board of Trustees delegates the full authority to award a promotion from the rank of Instructor to the rank of Assistant Professor (without tenure) to the institutional chief executive officer or his/her designee. Such award shall conform to standards and criteria for appointment to the rank of Assistant Professor.
3. The Educational Excellence Committee's annual review of promotion and tenure recommendations shall be conducted as follows:
   1. Institutional promotion and tenure recommendations are presented to the Educational Excellence Committee as a consent agenda action item. The credentials of the candidates are on file in an appropriate location at each institution.
   2. The policies, principles, and procedures used by the institutions for promotion and tenure are reviewed by the Educational Excellence Committee periodically, not less than every three years.
   3. The Trustees monitor the ways in which promotion and tenure recommendations that year affect (a) the percentage of tenured faculty, (b) affirmative action, (c) the appropriateness to the mission of the institution, (d) institutional planning, and (e) retention of good faculty. A select number of successful candidates shall be described by each president at the annual meeting of the Board of Trustees.

Note: OLPM sections on this page may be cited following the format of, for example, "BOT.II.G.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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G. Academic Program Planning and Review

1. The Presidents shall establish effective processes for academic program planning, addition, alteration, deletion and review at each of the component institutions.
2. The processes for academic program planning and review shall take account of the relevant differences among the various types of academic programs (e.g., degree and non-degree, etc.) and shall enable the institutions to effectively meet the public higher educational needs of the citizens of New Hampshire.
3. The Educational Excellence Committee shall:
   1. Require each institution to establish and maintain a long-range academic plan as a component of the institutional strategic plan.
   2. Require each institution to establish and maintain effective processes for the addition, alteration, deletion, and periodic review of all types of academic programs.
   3. Require the Chancellor to coordinate a process whereby the Presidents propose to the Committee a set of appropriate metrics and targets aimed at assuring the education provided by each institution, and USNH as a whole, meets reasonable quality expectations.
   4. Require the System Office to maintain an academic program inventory.
4. Prior to taking action a President shall inform the Educational Excellence Committee of his or her plans to add or delete degree programs (i.e., degrees and majors). After implementing any such change a President shall inform the Committee of the completed action. Such informational reports ordinarily shall be part of the agenda for a regularly scheduled Committee meeting.
5. Each President shall present an annual report to the Educational Excellence Committee which, at a minimum, shall:
   1. Transmit updates to the institutions' long-range academic plans, to include updated academic quality metrics;
   2. Describe the results of the periodic academic program reviews conducted at his or her institution;
   3. Detail the changes made to the academic programs at his or her institution since the last report; and
   4. Describe the educational exchange programs offered by or available through the institution.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.A.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Policy Development and Distribution

1. Statutory Authority
   1. The Board of Trustees, under RSA 187-A:16, has the authority to manage the operation and affairs of the University System and its component institutions. That authority includes the power to adopt policies concerning the general administration of the University System. Those policies shall be called "Board of Trustees Policies" and designated by the initials "BOT."
   2. The presidents, under RSA 187-A:16, are responsible for the general administration and supervision of all aspects of the institutional, research, and service programs of their respective institutions.
   3. The Administrative Board, under RSA 187-A:16, has the authority to coordinate the efforts of the component institutions only as specifically designated by the Board of Trustees and the responsibility to discharge any such other duties as the Board of Trustees may assign.
2. Delegation of Authority
   1. The Board of Trustees delegates to the Administrative Board the authority to adopt University System policies which shall be consistent with Board of Trustees Policies and generally applicable across the component institutions of the University System. Those policies shall be called "University System Policies" and designated by the initials "USY."
   2. The Board of Trustees delegates to each of the presidents the authority to adopt policies applicable to their respective institutions. Those policies shall be consistent with Board of Trustees and University System Policies. Those policies shall be known as "Institutional Policies" and designated by the relevant institutional initials, e.g. "KSC," "PSU," "GSC," and "UNH."
3. Adoption, Amendment, and Repeal of Policies
   1. Proposals to adopt, amend, or repeal a Board of Trustee policy ordinarily will be reviewed by the Administrative Board and, if recommended, reported to an appropriate Trustee committee as established in the Board's Bylaws or determined by the Board Chair. That Trustee committee shall review the proposal and report its recommendation to the full Board.
   2. A Board of Trustees Policy can be adopted, amended, or repealed only by a vote of the Board of Trustees taken in accordance with the Bylaws.
   3. A University System Policy can be adopted, amended, or repealed only by the Administrative Board.
   4. An Institutional Policy can be adopted, amended, or repealed only by written decision of the president of the relevant component institution.
4. Publication and Distribution of Policies
   1. The Chancellor shall develop and administer a system for publishing and distributing the policies adopted by the Board of Trustees, the University System, and the component institutions.
   2. The publication system shall require that uniform numbering and format conventions be followed in the development and adoption of any policy.
   3. The distribution system shall be designed to provide faculty, staff, and students access to all USNH policies.
5. Interpretation and Priority of Policies
   1. The policies of the Board of Trustees, the University System, and each component institution shall be interpreted liberally to give the greatest possible effect to the purposes for which they were adopted.
   2. In the event of an irreconcilable conflict between policies, a policy of the Board of Trustees shall have priority over any conflicting policies of the University System and the component institutions. Similarly, a policy of the University System shall have priority over any conflicting policies of the component institutions.
6. Effective Date of Policies
   1. Unless otherwise specified, a policy shall be effective immediately upon adoption.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.B.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Delegations of Authority

1. Delegation and Redelegation Authorized
   1. Any authority assigned or delegated by any policy of the Board of Trustees may be delegated or redelegated unless a contrary intent is clear from the language or context of the policy.
2. Responsibility for Proper Execution Retained
   1. A delegation of authority shall not relieve the delegating official of the responsibility for ensuring that the delegated authority is properly executed.
3. Form of Delegation
   1. Delegations shall be in writing and retained in an appropriate manner to ensure both preservation for a sufficient period of time and relative ease of reference.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.C.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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C. Foundations Established for the Benefit of USNH or its Component Institutions

1. The term "affiliated foundation" as used herein shall mean any entity formed for the purpose of raising money to be spent for the benefit of USNH, one of its component institutions, or any division or department thereof.
2. USNH and its component institutions shall not accept any gifts, loans, donations, disbursements, or any other thing of value from any affiliated foundation which does not conform to the standards set forth herein. Any such nonconforming foundation shall be prohibited from using the name, seal, and any other word, phrase, or symbol associated with USNH, its component institutions, or any departments or divisions thereof.
3. The USNH Board of Trustees shall retain the ultimate control over the activities of any affiliated foundation including the raising, investing, and disbursing of funds.
4. The USNH Board of Trustees shall have the legal authority to terminate the existence of any affiliated foundation. The assets of any such terminated foundation shall become the property of the institution with which the foundation was affiliated, to be used in accordance with any specific donor restrictions and for the purposes for which the property was given.
5. USNH shall have unimpeded access to the books and records of any affiliated foundation and the right to conduct a full audit of the foundation's financial affairs.
6. Prior to the commencement of each fiscal year, every affiliated foundation shall establish fund raising and disbursement goals and budgets. Those goals and budgets shall be subject to the approval of the USNH Board of Trustees.
7. The USNH Board of Trustees may require an affiliated foundation to have as voting members of its board of directors some minimum number (for example, three) of USNH Trustees. The Chairman of the USNH Board of Trustees shall appoint those members.
8. Voting membership on the board of directors of an affiliated foundation shall be for a specific term (not to exceed five years) or ex officio. In no case shall such voting membership be permanent. An affiliated foundation's policies and practices shall provide for and encourage regular and beneficial turnover in the voting membership of the foundation's board of directors.
9. The USNH Board of Trustees may require an affiliated foundation to adopt personnel policies and employee salary and benefit schedules identical to those in effect for some, or all, classes of USNH employees.
10. The USNH Board shall retain the right to review and approve the adoption of, and any amendment to, the articles of incorporation, charter, partnership agreement, bylaws or any documents which provide for the establishment and structure of an affiliated foundation.
11. The Presidents, consulting as appropriate with the leadership of their affiliated foundations, shall adopt and implement such further policies as may be necessary to carry out their responsibilities under this policy and to otherwise ensure that the operations of all affiliated foundations are legal, prudent, and in the best interests of USNH and the component institutions.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.D.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. Municipal Services

1. State law (RSA 187-A:25 and 72:23) exempts USNH from the payment of property taxes. USNH shall conduct its affairs in a manner which recognizes and gives full effect to the legislative intent and policy embodied in that statute.
2. The Board recognizes that USNH and its component institutions receive certain municipal services which are funded by property tax revenue. The Board also recognizes that the presence of a USNH institution benefits the community in which it is located in many ways, including financially.
3. USNH and its component institutions shall not pay property taxes, make payments in lieu of property taxes, or make any other payments (whether in the form of money, real or personal property, or the provision of services) based upon USNH property valuation for the purpose of compensating a local government for the provision of a municipal service which is funded by property tax revenue.
4. Notwithstanding the provisions of paragraph 3, above, a president is authorized to make payments (in the form of money, real or personal property, or the provision of services) to a local government for the purpose of compensating that government for the provision of a municipal service funded by property tax revenue. The Administrative Board shall adopt a policy to ensure this authority is exercised in a manner that is not detrimental to the interests of any of the component institutions or USNH as a whole, provided, however, that such policy shall only require the presidents to inform each other of the terms and conditions of their institution's municipal service agreements.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.E.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Defense and Indemnification of Trustees, Officers, and Employees

1. In General
   1. Any trustee, officer, or employee of the University System or any of its component institutions shall be entitled to defense and indemnification of legal claims made against them in their individual capacity provided the claims arose as a result of actions which were both (a) within the scope of the individual's official duties, and (b) neither wanton nor reckless.
2. Determination of Eligibility
   1. The Chancellor, in consultation with the General Counsel, shall determine whether an officer or employee sued in his or her individual capacity shall be entitled to defense and indemnification under the standard set forth in subsection 1.1 of this policy.
   2. The Board of Trustees' Chair and Liaison to the General Counsel, in consultation with the General Counsel, shall determine whether the Chancellor or a member of the Board of Trustees sued in his or her individual capacity shall be entitled to defense and indemnification under this policy.
   3. Any trustee, officer, or employee may appeal to the Board of Trustees a decision denying him or her defense and indemnification under this policy. The Board of Trustees' decision shall be final.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.E.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F. Legal Affairs

1. Trustee Authority
   1. The Board of Trustees, under RSA 187-A:16, has authority to manage the operation and affairs of the University System and its component institutions. That authority includes the power to manage the legal affairs of the University System.
2. Delegation of Authority
   1. The Board of Trustees delegates to the Chancellor the authority to administer the legal affairs of the University System consistent with these Board of Trustees policies and to the Administrative Board the authority to promulgate such further University System policies as may be appropriate to protect the legal interests of the University System and its component institutions.
   2. The Board of Trustees further delegates to the Chancellor the authority to appoint, with the approval of the Board of Trustees, a General Counsel who shall have the responsibilities and authority described in this Board of Trustees policy along with such other responsibilities and authority as the Chancellor may assign.
3. Legal Advice, Counsel, and Representation
   1. The General Counsel shall be responsible for the provision of all legal advice, counsel, and representation for all matters involving the University System or any of its component institutions and all matters within the official responsibilities of any officer or employee of the University or its component institutions.
   2. The General Counsel's client shall be the University System of New Hampshire, including its Board of Trustees and component institutions, and his or her professional responsibilities shall run to that enterprise. The Chair of the Board, the Board’s Liaison to the General Counsel, and the General Counsel shall work together to assist, enable and maintain timely and effective communications between the Board and General Counsel on the legal affairs of the University System of New Hampshire.
   3. The General Counsel shall be responsible for ensuring that the administrators of the University System of New Hampshire and its component institutions are aware of and comply with the policies of the Board of Trustees.
4. Retention of Outside Counsel
   1. The General Counsel, in consultation with the Chancellor and the Board of Trustees' Liaison to the General Counsel, is authorized to hire outside counsel when appropriate to protect the legal interests of the University System or any of its component institutions. The Chair of the Board, the Executive Committee, and any other authorized Trustee may retain outside counsel under appropriate circumstances. No other officer or employee is authorized to retain outside legal counsel for any official purpose. When engaging outside legal counsel to represent or advise any of the component institutions the General Counsel shall consult with the president or designee, obtain his or her concurrence on the engagement, and ensure that the engagement is and continues to be effective, efficient, and in the best interests of the component institution.
   2. Unless otherwise directed by the Board of Trustees, all contact with outside counsel shall be under the auspices and at the direction of the General Counsel. Unless otherwise directed by the Board of Trustees, all bills from outside legal counsel shall be reviewed and, if appropriate, approved by General Counsel before being paid.
5. Settlement and Appeal of Claims
   1. The Chancellor and each president, in consultation with the General Counsel, is authorized to settle any claim involving his or her unit of the University System provided the amount of the settlement does not exceed $500,000 and no issues of significant interest to the Board of Trustees are involved. The chief executive officer of the affected institution or General Counsel shall discuss any proposed settlement in which the amount exceeds $100,000 with either the Board of trustees' Chair or Liaison to the General Counsel to confirm that no issues of significant interest to the Board of Trustees are involved.
   2. The Administrative Board, in consultation with the General Counsel and the chief executive officer of any affected component institution, is authorized to settle any claim involving the University System or any of its component institutions provided the amount of the settlement does not exceed $1,000,000, and no issues of significant interest to the Board of Trustees are involved. The chief executive officer of the affected institution or General Counsel shall discuss any proposed settlement with either the Board of trustees' Chair or Liaison to the General Counsel to confirm that no issues of significant interest to the Board of Trustees are involved.
   3. The Board of Trustees' approval shall be required for the settlement of any claims where the amount of the settlement exceeds $1,000,000.
6. Periodic Reports
   1. At least twice every year, and at such other times as the Chancellor may direct, the General Counsel shall provide a written report to the Chancellor describing the status of all litigation and other significant claims pending against the University System or any of its component institutions. The Chancellor shall forward such reports to the members of the Administrative Board and the Board of Trustees' Chair and Liaison to the General Counsel.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.G.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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G. Maintenance, Retention, Disposal, and Disclosure of Records

1. Trustee Authority
   1. The Board of Trustees, under RSA 187-A:16, has plenary authority to manage the operation and affairs of the University System and its component institutions. That authority includes the power to regulate the maintenance, retention, disposal, and disclosure of the records of the University System and its component institutions, consistent with the dictates of state and federal law. The state Right-to-Know Law, RSA 91-A, provides citizens with a right of reasonable access to any public record which is not specifically exempted. In general, exempted records are those which relate to individual employees or students, contain confidential commercial or financial information, or contain information the disclosure of which would constitute an invasion of privacy.
2. ​Delegation of Authority
   1. The Administrative Board, shall establish policies concerning the effective maintenance, retention, disposal, and disclosure of the records of the University System and its component institutions. Those policies shall be designed to ensure compliance with all applicable state and federal laws.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.H.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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H. Naming Facilities and Programs

1. Trustee Authority
   1. The Board of Trustees, under RSA 187-A:16, has plenary authority to manage the operation and affairs of the University System and its component institutions. That authority includes the power to name the facilities and programs of those institutions.
   2. The Board of Trustees delegates to the Financial Affairs Committee the authority to review and make recommendations on proposals to name any of the facilities and programs identified in section 3.1, below.
2. Delegation of Authority
   1. Each president is authorized to name the programs and facilities at his or her institution other than those identified in section 3.1, below.
3. Board of Trustees Approval Required
   1. The Board of Trustees reserves to itself the authority to name any permanent building or college or school within an institution.
   2. Any discussions with potential donors which occur prior to final Board of Trustees approval of a name shall be preliminary and non-binding.
4. Factors to be Considered
   1. In naming a facility or program after a person, whether living or deceased, the Board or a president shall take the following factors into consideration: the person's historical significance, service, philanthropy, and other contributions to the country, state, or University System or any of its component institutions. No facility or program shall be named after a person for partisan political purposes and the Board and each president shall diligently endeavor to avoid even the appearance of such purpose.
   2. No facility or program shall be named after a trustee or employee of the University System or any of its component institutions until at least two years after the individual has left that position.
   3. No facility or program shall be named after an individual who at the time is a declared candidate for elective public office.

Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.I.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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I. Conflicts of Interest and Management of Dual Interests

1.   Scope. This policy applies to all members of the University System of New Hampshire Board of Trustees. The term University System of New Hampshire (“USNH”) includes the USNH Chancellor’s Office, Granite State College, Keene State College, Plymouth State University, the University of New Hampshire, including the University of New Hampshire School of Law.

2.   Fiduciary Responsibilities.

2.1   Trustees of USNH serve the public trust and are required to fulfill their responsibilities with care and loyalty. All decisions and actions of the board are to be made for the sole purpose of advancing the best interests of the institution and the public good. The integrity of USNH must be protected at all times, and the fiduciary relationship of trustees of USNH must be respected in both actuality and appearance.

2.2   A conflict of interest exists when a trustee's direct or indirect personal interests are inconsistent with or interfere in any way with the best interests of USNH. A dual interest exists when a USNH Trustee has a relationship, whether legal, social, or otherwise, to a third party that has the potential to influence the Trustee’s judgment on an issue coming before the Board of Trustees.

2.3   Through this policy, the Board of Trustees intends to implement the highest possible ethical standards and to establish that it will not tolerate conflicts of interest and will require the appropriate management of dual interests. The Board, through its Governance Committee, will administer this policy strictly, with complete transparency, and in accordance with the following principles:

2.3.1   In general, it is the policy of USNH that it will not engage in business or financial relationships with trustees.

2.3.2   No business or financial relationship or transaction between USNH and any trustee, or a member of his or her immediate family, or any entity with which a trustee or a member of his or her immediate family is affiliated, will be permitted unless it has been thoroughly reviewed and considered by the Governance Committee and has been found to be of clear benefit to USNH.

2.3.3   No trustee, or a member of his or her immediate family, may knowingly invest directly in any business, investment fund, limited partnership, separate account, commingled account, mutual fund, or other vehicle ("Investment Vehicle") in which USNH has a material financial interest. Except with the prior approval of the Governance Committee, USNH will not knowingly invest directly in an Investment Vehicle in which a trustee or officer, or a member of his or her immediate family, has a material financial interest. For purposes of this provision, "material financial interest" means a role as general or managing partner, management-level employee, owner or sponsor of the investment firm, or an ownership interest of greater than 5% in the Investment Vehicle.

2.3.4   Any offer of full-time USNH employment to a member of the immediate family of a trustee is subject to the prior review and approvals of the Chancellor and the Chair of the Governance Committee.

2.3.5   Any trustee who serves at USNH's request as a director or trustee of another organization shall turn over to USNH any compensation received from such other organization for such service.

2.3.6   No trustee or member of his or her immediately family may be a trustee, director, employee, or agent of, or otherwise contract with, another institution of higher education unless the relationship or transaction has been thoroughly reviewed and considered by the Governance Committee and has been found to be consistent with the best interests of USNH.

3.   Procedures. As outlined below, effective implementation of this policy requires, first, the full disclosure of individual interests that might conflict with the best interests of USNH (see 3.1 below). Second, the interested trustee must refrain from participating in USNH decision making with respect to any transaction or relationship in which he or she is interested (see 3.2 below). Finally, an independent determination must be made that the transaction or relationship meets the applicable standard and should be entered into or continued (see 3.3 below).

3.1   Disclosure. All trustees are required to disclose on the Conflict of Interest and Dual Interest Disclosure Form: (1) any business or financial relationship or transaction they or members of their immediate families have or propose to have with USNH, either directly or through another entity in which they have a significant interest, and (2) any other organizations as to which they serve as a director, officer, or employee, except where such service is only nominal with no material compensation or decision-making authority, (3) any other institution of higher education for or with which the trustee or member of their immediate family is a trustee, director, employee or other agent, or has a contract, and (4) any relationships, whether legal, social, or otherwise, which create, or have the potential to create, a dual interest, whether real or reasonably apparent. The disclosure form is to be filed annually; an amended form must be filed promptly in the event of a material change in circumstances. Disclosure forms will be reviewed by the Director of Internal Audit and the General Counsel for compliance. The General Counsel shall provide the Chancellor, Chair of the Board, and Chair of the Governance Committee a summary of all reported disclosures. Unless already included on the most recent annual disclosure form, a trustee shall provide advance written disclosure of any proposed business or financial relationship or transaction covered by this policy to the Chancellor, Chair of the Board, and the Chair of the Governance Committee. All trustees shall also annually certify in writing their understanding of and commitment to comply with the Board of Trustees’ policies on conflicts of interest and management of dual interests (BOT III.I) and expectations of Board Members (BOT I.D).

3.1.1   The following guidelines are provided to help trustees determine whether a relationship or transaction should be disclosed:

• A business or financial relationship or transaction includes the sale or acquisition of goods, property, or services; the commitment of resources to a common venture; or, in the case of a member of one’s immediate family, an employment relationship. It does not include attending USNH as a student.

• For purposes of this policy, the term “transaction” shall mean any exchange of goods, services, or funds with the following exceptions: (1) an exchange of value worth $50 or less; (2) a purchase of a good or service generally available to the public at the same price; (3) the payment of tuition, room, board, or other fees; (4) a philanthropic gift; (5) services rendered as a Trustee without compensation other than reimbursement of reasonable expenses as permitted by state law and Board policy; (6) meals, beverages, and lodging provided by USNH in conjunction with a USNH event or function; and (7) tickets or free admission provided by USNH to a USNH event or function.

• A member of one's immediate family means (1) a spouse; (2) a child, grandchild, parent, grandparent, sibling, uncle, aunt, nephew, or niece, or the spouse of any such person; (3) a person having a step-relationship described in (2) above; (4) a parent-in-law or a brother- or sister-in-law; or (5) any other person who resides in the same household as the trustee, officer, or employee.

• A significant interest in another entity includes service as a trustee, director, partner, or management-level employee; the actual or beneficial ownership of more than 5% of the entity; or a compensation arrangement that is dependent upon a business or financial relationship with USNH.

3.1.2   The foregoing guidelines are not intended to be exclusive; other relationships or interests that might conflict with the best interests of USNH should also be disclosed. If a trustee is uncertain whether to disclose a particular business or financial relationship or transaction, the Chair of the Governance Committee or the USNH General Counsel should be consulted.

3.2   Restraint on Participation. Trustees who have disclosed a potential conflict of interest shall refrain from participating in USNH's consideration of any proposed business or financial relationship or transaction in which he or she is interested, except to respond to questions or to provide further information. If a transaction or relationship requires a vote, the interested party should not be present at the time of the vote. Any Trustee who has a dual interest with the potential to influence their action or decision on a matter coming before the Board, shall carefully consider their ability and commitment to consider only the best interests of USNH and the component institutions. After careful consideration they shall proceed to act or decide the matter only if reasonably satisfied they can do so while honoring their fiduciary duty. When in doubt the Trustee shall recuse themself from the matter, taking no part in the deliberation or decision.

3.3   Approval of Business or Financial Relationship or Transaction. The Governance Committee will determine whether a business or financial relationship or transaction involving a trustee or officer should be entered into or continued. In the case of any such relationship involving a trustee, such a determination shall be set forth in a written report of the Governance Committee signed by the Chair and a majority of the Committee, and provided to the Board of Trustees.

J. Public Safety on USNH Owned or Leased Property

1. Preface
   1. The mission of the University System can be fully realized only in an environment where students, faculty, staff, and visitors are reasonably safe and secure. The Board of Trustees believes that the relative safety and security of our campuses is one of USNH's most precious assets. In this policy the Board of Trustees empowers the Chancellor and Presidents with the responsibility and authority to maintain USNH properties reasonably free from threats to the safety of our community, including crimes, other forms of violence, and hazardous conditions, and to protect USNH properties from vandalism and other destructive acts. Under section 3.2, below, the Chancellor will present to the Board an annual report on crimes, conduct code violations, and serious injuries occurring on USNH property.
2. System and Institutional Policies
   1. Each President shall establish such institutional policies as may be necessary to ensure that his or her institution is reasonably safe and secure, and shall dedicate such resources and take such other steps as are necessary to ensure such polices are carried out.
      1. Said institutional policies, at a minimum, shall address the following issues:
         •   Student safety;
         •   Employee safety;
         •   Campus visitor safety;
         •   Security of property, facilities and equipment; and
         •   Hazardous conditions in facilities and on property.
      2. The Presidents shall take the steps necessary to ensure a good working relationship with other law enforcement agencies, including the municipal police department and county attorney's office.
3. Reports
   1. Each president shall report annually to the Administrative Board the crimes, conduct code violations, and serious injuries occurring in the previous calendar year at USNH facilities at his or her institution.
   2. The Administrative Board shall report annually to the Board of Trustees the information collected pursuant to the previous section.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.K.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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K. Fraud

1. Standard of Conduct
   1. The University System of New Hampshire and its Board of Trustees and executive leadership are committed to the highest standards of ethical and professional conduct.
   2. Every person working on behalf of USNH – including faculty, staff, student employees, and volunteers – has a basic responsibility to safeguard and preserve the assets and resources of USNH and its component institutions and to conduct work duties in an ethical and professional manner.
   3. This basic responsibility includes the following components:
      1. The use of any USNH equipment, supplies, or facilities for any unlawful or improper purpose is prohibited.
      2. The assignment of any employee or volunteer for any personal, unlawful, or improper purpose is prohibited.
      3. Managers shall ensure that reasonable and appropriate controls for the prevention, detection and punishment of fraud are in place and enforced in the offices and departments for which they are responsible.
      4. All revenues and expenditures shall be recorded and accounted for in the USNH financial accounting system in accordance with (a) procedures established by the Controller and (b) the relevant standards of professional practice.
      5. No intentionally false or artificial entries shall be made into any official USNH records or documentation, including, but not limited to, entries into the financial accounting system, the human resources information system, and the student information system.
      6. All personal employment information and credentials shall be presented without misrepresentation.
      7. All forms, such as leave forms and benefit information, and other paperwork shall be completed in a true and accurate manner to the best of the completer's knowledge and ability.
      8. Conduct of non-USNH business, professional, and all other personal affairs should be done in such a manner that it is not misconstrued as to being work on behalf of USNH (see, Conflict of Interest Policy, USY V.D.7).
2. Reporting of Fraud
   1. USNH's ability to maintain the highest standards of ethical and professional conduct depends in large part on the willingness of each individual to report potential, perceived, or suspected instances of internal or external fraud.
   2. USNH employees and volunteers are encouraged to make such reports to their immediate supervisor but may also report to more senior management, the Director of Internal Audit Office, the Controller, the General Counsel, or to an anonymous USNH–designated hot line. Any person who receives a report shall in turn inform the Director of Internal Audit. Retaliation against anyone reporting fraud is strictly prohibited.
   3. Reports shall be treated confidentially to the extent permitted by law and consistent with the best interests of USNH.
   4. All employees and volunteers shall cooperate fully in the investigation of any alleged misconduct, including fraud.
   5. The Director of Internal Audit shall report annually to the Vice Chancellor and Treasurer, the Chancellor and the Board of Trustees Audit Committee on the reports, investigations, and findings of fraud occurring during the preceding year.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.III.L.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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L. Conflict of Interest – Employees

1. The Administrative Board shall adopt a policy and take such other steps as may be necessary or useful in the prevention and management of employee conflicts of interest.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.A.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Financial Planning and Budgeting

1. State Delegation of Authority
   1. State law (RSA 187-A:16) delegates to the Board of Trustees powers for "... the management and control of all property and affairs of the University System of New Hampshire, the University of New Hampshire (including the New Hampshire college of agriculture and the mechanical arts), and all its divisions and departments, the Keene State College, the Plymouth State University, and the Granite State College." Further, the law specifically authorizes the University System to accept and retain "all monies appropriated by or received from the government of the United States or the state of New Hampshire, all dividends and interest accruing to these institutions, all gifts of securities and property, real and otherwise, all grants and matching funds from any source, ... income received and due from all sources, including bequests, trusts, student fees and tuition charges, rents, sales, and any other income from whatever source derived, and to authorize the use thereof in such manner as the trustees may determine or as may be provided by law or by the conditions incident to the trusts, gifts, and bequests involved."
2. Trustee and Financial Affairs Committee Authority
   1. In cases of conflict among policies, the most restrictive policy will govern. Institutional policies may be more restrictive than USNH BOT policies but in no case may they be more lenient.
   2. The Board of Trustees, upon recommendation of the Financial Affairs Committee, retains sole responsibility for approval of tuition and fees, annual operating budgets, proportion of nonresident students attending UNH if greater than 25%, and certain other authorities as it deems necessary.
   3. The Board of Trustees delegates to its Financial Affairs Committee responsibility for all other financial planning and budget matters, including overseeing the development, coordination, implementation, and monitoring of all long-range financial planning for USNH and its component institutions.
   4. The Financial Affairs Committee will be engaged at the beginning of each budget cycle by reviewing and approving certain global and institution-specific preliminary financial planning and budget assumptions, parameters and targets to be used in the development of the budget and multiyear financial plan.
   5. The final assumptions, parameters and targets will be approved by the Financial Affairs Committee before the start of each fiscal year, and will include significant drivers of the budget including:
      •   global assumptions, such as state appropriation, inflation, investment earnings, and fringe benefits rate;
      •   campus parameters, such as price of attendance, aggregate increase to total non-grant non-union benefits-eligible salaries, and annual transfer to plant funds for renewal and replacement ("R&A") to address deferred maintenance;
      •   campus targets, such as operating margin and unrestricted financial resources to debt ("UFR:Debt"); and
      •   campus-specific drivers, such as enrollment, enrollment mix, financial aid, and grants revenue.
   6. Use of beginning unrestricted net resources that were not approved as part of the original operating or capital budget for the fiscal year are limited to the greater of (a) 3% of the most recent final audited institutional unrestricted financial resources ("UFR"; previously known as unrestricted net assets, or "UNA") with System-wide balances allocated, or (b) $2 million, in aggregate by institution unless approved in advance by the Financial Affairs Committee. In addition, uses of unrestricted net resources greater than $1 million that were not approved as part of the original operating or capital budget are to be communicated to the Treasurer's Office as far in advance as possible to permit accurate assessment of future cash flows and fund balance impacts.
3. Financial Affairs Committee Delegation of Authority to Chancellor
   1. The Financial Affairs Committee delegates to the Chancellor, in consultation with institutional presidents, the responsibility for determining the format, content, process, frequency and timing of institutional and USNH consolidated financial plans and budget reports to enable appropriate oversight, control and decision-making on behalf of the Financial Affairs Committee.
   2. At a minimum, the Financial Affairs Committee shall require a financial plan for each institution and consolidated USNH that utilizes at least a five-year planning horizon, is updated at least semi-annually on a 'rolling' basis, and models all planned revenues, expenses, liquidity, unrestricted financial resources and debt.
   3. Institutional and consolidated USNH financial plans and budgets will be developed on an 'all funds' basis in a format that is easily reconcilable to the audited financial statements and that will enable comparison to projected ratios commonly used by independent rating agencies to assess the financial strength, trends and debt capacity of the institutions and USNH.
4. Financial Affairs Committee Delegation of Authority to Presidents
   1. The Financial Affairs Committee delegates to the Presidents the responsibility for developing (utilizing the format and instructions as determined by the Chancellor) and maintaining multiyear financial plans and budgets that fully incorporate all financial implications of multiyear capital plans and fundraising plans, and that support and articulate with the institution's multiyear strategic plan.
   2. Presidents are responsible for recommending annual operating budgets in accordance with assumptions, parameters and targets as established by the Financial Affairs Committee.
   3. Presidents are responsible for management of operations in accordance with approved budgets, strong internal controls, and good business practices.
   4. Presidents are responsible for monitoring budget to actual results and adjusting expenditures during the year as necessary to enable achievement of approved targets. Periodic reporting of budget to actual results, projected full fiscal year results, and analysis of significant variations to budget and management actions to align operations to the approved target will be made to the Financial Affairs Committee at least three times annually.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.B.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Internal Borrowing

1. Loans will be considered only after all other sources of funds have been reviewed and when the loan is needed to support a pressing need or special opportunity for an institution. Internal and external borrowing will be considered, and a recommendation made by the Treasurer based on the specific facts and circumstances including impact on key financial indicators, current and future debt capacity and credit ratings, eligibility for HEFA funding or state capital appropriation, cost of capital, debt issuance costs, terms of repayment, etc.
2. All borrowing must be repaid within five to 20 years. In no case may the term of the borrowing exceed the estimated useful life of the asset being financed.
3. Operating losses may not be capitalized through internal borrowing.
4. All loans must be supported by a payback schedule that defines a source of revenue that is of sufficiently low risk to reasonably assure repayment over time. Where there is any discernible risk identified in the revenue streams for repayment (e.g., fund raising or revenues from a new venture), the borrowing institution must identify appropriate backstop funding to ensure repayment of the internal borrowing.
5. All loans must be repaid with interest. The interest rate applied will be based on the rate that would have been earned had the capital been invested. For borrowings of five years or less, the interest rate may be variable or fixed and may not be less than the average short-term investment rate of return for the University System. For borrowings of more than five years, the interest rate will be fixed and may not be less than the current applicable U.S. Treasury rates as depicted on the Treasury yield curve in the Wall Street Journal.
6. Requests for internal loans are submitted to the Treasurer by the campus chief executive officer. The Treasurer reviews loan requests and submits them with recommendations to the Administrative Board.
7. Each instance of internal borrowing of greater than $5 million or with a repayment period exceeding 5 years, and any instance of internal borrowing where 100% concurrence of the Administrative Board does not exist, must be approved by the Financial Affairs Committee.
8. Each instance of internal borrowing of $5 million or less and with a repayment period of 5 years or less must be approved by the Administrative Board and Treasurer and reported on a timely basis to the Financial Affairs Committee. No loans may be made from quasi-endowment funds without the approval of the full Board of Trustees. The General Counsel will review loans to ensure that they do not conflict with state statutes.
9. Each new internal borrowing reported to or submitted for consideration by the Financial Affairs Committee will be accompanied by a statement from the Treasurer showing the current status of all outstanding internal loans and the current remaining internal borrowing capacity as determined annually as specified by the Investment Guidelines. Total internal borrowings may not cause the projected remaining cash balances to be less than projected cash needs as determined by the Treasurer. (See also BOT VI.A, Capital Planning and Budgeting, for additional stipulations with respect to project and financing approvals.)

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.C.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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C. Internal Audit

1. Internal Audit Department Mission (Purpose)

1.1 The USNH Internal Audit Department is an objective assurance and consulting activity designed to provide the Board of Trustees and management with appraisal of the adequacy of, compliance with, and improvement for existing internal controls. The Internal Audit Department helps the USNH accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes through both audits and consulting services.

2. Internal Audit Function

2.1 The internal auditing function is an objective appraisal activity within the USNH's overall organizational structure. The Internal Audit Department is specifically authorized and directed to:

2.1.1 Have full, free and unrestricted access, consistent with all applicable laws, to all USNH functions, files, records, property and personnel. All employees are requested to assist Internal Audit activity in fulfilling its roles and responsibilities. Internal Audit will also have free and unrestricted access to the Board through its Audit Committee.
2.1.2 Determine whether management's policies, procedures and instructions are followed in a manner consistent with USNH's objectives.
2.1.3 Evaluate any matter that comes to its attention that, in the judgment of the Internal Audit Director, would require a change in policy, procedure, or instruction in order to safeguard USNH assets.
2.1.4 Issue reports to members of management who should be informed or who should take appropriate action, showing the results of the internal audit review and offering recommendations for required improvements. The Internal Audit Director will ensure that all formal audit reports are delivered to each member of the Audit Committee of the Board of Trustees.
2.1.5 Obtain and evaluate plans or actions taken to implement audit recommendations from internal or external auditors and recommend further plans or actions if appropriate.
2.1.6 Review and document the adequacy of internal controls of areas under review.

3. Independence and Objectivity

3.1 The internal audit activity will remain free from interference by any element in the organization, including matters of audit selection, scope, procedures, frequency, timing, or report content to permit maintenance of a necessary independent and objective mental attitude.
3.2 Internal auditors will have no direct operational responsibility or authority over any of the activities audited. Accordingly, they will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair internal auditor’s judgment.
3.3 Internal auditors will exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors will make a balanced assessment of all the relevant circumstances and not be unduly influenced by their own interests or by others in forming judgments.

4. Professionalism and Standards of Internal Audit Practice

4.1 The internal auditing department strives to comply with the International Standards for the Professional Practice of Internal Auditing of The Institute of Internal Auditors.
4.2 The Institute of Internal Auditors' Practice Advisories, Practice Guides, and Position Papers will also be adhered to as applicable to guide operations. In addition, the internal audit activity will adhere to USNH’s relevant policies and procedures and the internal audit activity's standard operating procedures.

5. Internal Audit Operations

5.1 The Internal Audit Director will prepare a proposed audit budget for the next year. The audit budget will outline the scope and objectives of audit programs, projects and other activities, and resources necessary to perform them. The Audit Committee will approve the audit budget and will have overall responsibility for oversight of the performance of internal audit activities.The Chancellor's Office is responsible for providing the Internal Audit Department with adequate resources to perform the scope of its responsibilities. The Chancellor, through the Vice Chancellor for Financial Affairs, will provide administrative oversight for the performance of the Internal Audit Department.

6. Quality Assurance Program

6.1 Internal Audit will strive to maintain a quality assurance and improvement program that covers all aspects of the internal audit activity.

7. Audit Committee Function

7.1 The Board of Trustees' Audit Committee has the responsibility for reviewing the activities of the Internal Audit Department to make certain it operates in accordance with this policy.

8. Audit Committee Operations

8.1 The Audit Committee will meet with USNH management, the Internal Audit Director and the external auditors at least three times per year and fulfill the duties and responsibilities of the Audit Committee of the Board as outlined in the Audit Committee Charter, Appendix 9 in the Board of Trustees On Line Policy Manual and provide the Board with a report of each meeting.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.D.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. External Audit

1. State Law Regarding External Auditors
   1. The Board of Trustees shall submit to the Governor, for his concurrence, the Board recommendation with respect to the selection of external auditors.
   2. The external auditors selected by the Board of Trustees shall render their report and findings to the Board of Trustees, to the Governor, and to the Legislative Fiscal Committee. Such auditors shall provide to the Governor and to the Legislative Fiscal Committee any information normally provided to the audit committee and shall respond to any request from the Governor or from the Legislative Fiscal Committee relative to the financial conditions, operations, and systems of the university that the board reviewed during its audit. (From RSA 187-A:25-a)
2. Board of Trustees' External Audit Policy
   1. The Board of Trustees shall engage an external auditing firm which will conduct an examination of the financial records of the University System at the close of each fiscal year.
   2. The Audit Committee shall establish the qualifications and standards desired and shall prescribe and carry out the selection process and make appropriate recommendations to the Board of Trustees. The selection process shall consider the firm's experience in the auditing of higher educational institutions, with particular attention to the auditing of state universities.
   3. External auditing firms shall be engaged from among the major national public accounting firms, subject to the Board's continuing satisfaction with the firm's services and with re-proposals to be reviewed after each five to seven year period.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.E.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Classification of Students for Tuition Purposes (Residency Rules)

1. Basic Rule?.

1.1   All students enrolled in credit-bearing programs in any division of the University System of New Hampshire in any capacity shall be charged tuition at a rate to be determined by their domicile. Those domiciled within the State of New Hampshire shall pay the in-state rate. Those domiciled elsewhere shall pay the out-of-state rate.

?2.   Definitions.

2.1   "Parent" means:

2.1.1   The individual or individuals named on the student's birth certificate;

2.1.2   The student's legal guardian or legal custodian provided that there are no circumstances indicating that such guardianship or custodianship was created primarily for the purpose of conferring the status of an in-state student on the un-emancipated person; or

2.1.3   An individual who can claim the student as a dependent on his or her IRS 1040 tax return.

2.2   "Domicile" means a person's true, fixed and permanent home and place of habitation, to the exclusion of all others. It is the place where the person intends to remain and to which he or she expects to return when he or she leaves without intending to establish a new domicile elsewhere.

?2.3   "Veteran" means "veteran" as defined in RSA 21:50, I.

3.   Determination of Student Status.

3.1   A student shall be classified as in-state or out-of-state for tuition purposes at the time of his or her first admission to the University System unit. The decision shall be made by the dean or director of admissions of the appropriate division in the first instance based upon information furnished by the student's application and other relevant information available to the dean or director.

4.   Application Form.

4.1   Anyone applying for in-state status for tuition purposes at the same time he or she is applying for admission shall complete and submit the form "Notarized Residency Statement for New Hampshire Residents",  which shall include a sworn statement certifying that the applicant is legally domiciled within the State of New Hampshire and is a lawful resident of the United States. In the event the campus residency officer possesses facts or information indicating that a student's status should be changed from in-state to out-of state, whether or not the information was received from the student in compliance with notification requirements set forth in BOT IV.E.13, the campus residency officer can require submission of additional information establishing domicile from any in-state student prior to the commencement of each semester the student plans to attend the University System unit.

5.   Burden of Proof.

5.1   In all cases of application for in-state status for tuition purposes, the burden of proof shall be on the applicant. At the applicant's request the dean or director of admissions shall state the reason or reasons for the decision in writing.

6.   Determination of Domicile.

6.1   No person shall be eligible for in-state status unless he or she has been domiciled within New Hampshire for 12 consecutive months immediately preceding registration for the term for which in-state status is claimed and meets all other requirements for domicile.

6.2   In accordance with RSA 187-A:20-c, any veteran of the armed forces who establishes a residence in New Hampshire shall be eligible for the in-state rate immediately, and the twelve-month waiting period for establishing domicile shall not apply.

6.3   No un-emancipated person shall be eligible for in-state tuition status unless his or her parent(s), as defined in BOT IV.E.2.1, shall have established domicile in this state.

6.4   No person shall be eligible for in-state tuition status unless he or she establishes that his or her residence in New Hampshire is for some purpose other than the temporary or primary one of obtaining an education.

6.5   When a person has established eligibility for in-state tuition based on his or her parent's domicile and the parent subsequently establishes domicile outside of New Hampshire, the person shall be eligible for in-state tuition for one academic semester following the academic semester during which the parent established out-of-state domicile. The student shall notify the campus residency officer of any changes affecting the student's eligibility for the in-state tuition rate, pursuant to BOT IV.E.13.

6.6   All evidence relevant to determining domicile shall be considered, including the following, which shall be relevant but not necessarily conclusive:

6.6.1   Payment or non-payment of any tax levied by the State of New Hampshire or any political subdivision on persons resident or domiciled thereon;

6.6.2   Residence reported on any federal or state tax return;

6.6.3   Registration of one's automobile;

6.6.4   State issuing one's driver's license;

6.6.5   Receipt of support from parents who are resident or domiciled outside the State of New Hampshire;

6.6.6   Voting residence;

6.6.7   Claim by any non-resident parent that the applicant is a dependent for tax or any other financial purpose;

6.6.8   Regular departure by an applicant from the State of New Hampshire during recesses or vacations from the University System unit;

6.6.9   The filing of any claim for benefits under any policy of insurance or any federal, state or local benefit legislation based on residence or domicile outside the State of New Hampshire; or

?6.6.10   Status in some other state which would qualify a person for in-state tuition in that state.

7.   Emancipation.

7.1   No person shall be deemed to be emancipated unless his or her parent, as defined in BOT IV.E.2.1 above, has entirely surrendered the right to the care, custody and earnings of such person and unless his or her parent is no longer under any legal obligation to support or maintain such person or, having supported and maintained such person even though under no legal obligation to do so, has ceased to support or maintain such person. Emancipation shall not be found unless all such tests are met.

7.2   Evidence of the following shall be submitted by an applicant and requested by the dean or director of admissions:

7.2.1   Lack of financial support of the person by the parents;

7.2.2   Lack of contribution by the parents to any earnings or other income received by the person;

7.2.3   Failure of the parent to claim the person as a dependent on his or her income or other tax returns;

7.2.4   Establishment by the person of a domicile separate and apart from that of the parent; and

7.2.5   Failure of the person to return to the home of the parent during vacations and other recesses from school.

8.   Presumptions.

8.1   Unless the contrary appears to the satisfaction of the dean or director of admissions in individual cases, the following presumptions shall prevail:

8.1.1   A student shall be presumed to be emancipated from his or her parent(s) when he or she reaches the age of 24;

8.1.2   The domicile of an un-emancipated person shall be that of his or her parent(s), as defined in BOT IV.E.2.1.

8.1.3   The domicile of any person who first enters the University System from the domicile of his or her parent(s), as defined in BOT IV.E.2.1, above, shall be that of the parent until he or she abandons such domicile and, for purposes other than that of education, acquires a new domicile;

8.1.4   The domicile of any person who first enters the University System from a domicile other than New Hampshire shall be such a domicile until he or she abandons such domicile and, for purposes other than that of his or her education, acquires a new domicile; and

8.1.5   Attendance at a unit of the University System or at any other educational institution in this state in itself shall not be evidence of intention to establish or establishment of a domicile in this state.

9. Waiver.

9.1   Nothing contained in these rules shall preclude the dean or director of admissions or campus residency officer from waiving any requirements hereof under special circumstances in individual cases. Waivers shall not be routinely granted.

10.   Military Personnel.

10.1   A member of the Armed Forces of the United States stationed in New Hampshire under military orders shall be entitled to classification for himself or herself, his or her spouse and his or her dependent children as in-state for tuition purposes while on active duty in New Hampshire pursuant to such orders. Pursuant to RSA 187-A:20-e, a spouse or dependent child of an active member of the Armed Forces who is assigned to duty elsewhere immediately following assignment to duty in New Hampshire shall remain eligible for the in-state rate as long as the spouse or child resides continuously in New Hampshire while enrolled in the USNH institution.

10.2   Pursuant to Section 702 of the Veteran's Choice Act of 2014, students using Ch. 30 Montgomery GI Bill Active Duty (MGIB-AD), Ch. 31 Vocational Readiness and Employment (VR&E), or Ch. 33 Post 9/11 of the GI Bill (including dependents utilizing transferred Ch. 33 benefits) are eligible for the in-state tuition rate while living in New Hampshire, regardless of length of residency. Students will no longer be eligible for the in-state rate upon exhaustion of the benefits, if they elect not to use the benefits in a particular academic term, or if they relocate out of state.

10.3   Out-of-state students using Ch. 35 Survivors' and Dependents' Educational Assistance (DEA) of the GI Bill will receive the in-state rate while utilizing those benefits pursuant to the Colonel John M. McHugh Tuition Fairness for Survivors Act of 2021 (PL 117-68). Students will no longer be eligible for the in-state rate upon exhaustion of the benefits, or if they elect not to use the benefits in a particular academic term.

11.   Review of Student Status.

11.1   Any student who is aggrieved by the decision of the dean or director of admissions classifying him or her as an out-of-state student for tuition purposes may appeal to the campus residency officer on forms and in accordance with procedures which shall be made available to the student in the office of the dean or director of admissions. Any student aggrieved by the campus residency officer's decision may appeal that decision to the University System's Residency Appeals Board (the "Board").

11.2   The student may present to the Board such additional evidence as he or she deems appropriate in processing the appeal and may appear before the Board and be heard. The decision of the Board shall be the final decision of the University System.

11.3   The University System Residency Appeals Board shall be comprised of four members who shall be designated by the presidents of each of the System's institutions. At the first meeting of each academic year, the Board members shall designate one member to serve as chair for the remainder of the academic year and until a successor has been designated for the following year. The chair may delegate authority to chair particular meetings of the Board to any member of the Board.

12.   Change in Status.

12.1   Any student who has, on his or her first admission to the University System, been classified as out-of-state for tuition purposes may apply to the campus residency officer for a change in status.

12.2   Students applying for a change in status shall file their applications with the campus residency officer prior to the first day of the semester for which the student is seeking the in-state tuition rate. Applications shall be considered in the chronological order in which they are presented. No changes approved during a semester shall be effective until the beginning of the next following semester. However, where a change of status from out-of-state to in-state has been denied by the campus residency officer prior to the commencement of a semester, and that decision is reversed by the Residency Appeals Board during the semester, the student's status shall be effective as of the commencement of the semester.

12.3   In the event the campus residency officer possesses any fact or information indicating that a student's status should be changed from in-state to out-of-state, the student shall be informed in writing of the change of status. The student can appeal the decision of the campus residency officer as set forth in BOT IV.E.11.1. No such change made by the campus residency officer after the commencement of any semester shall be effective until the beginning of the next semester. Change to out-of-state status made by the campus residency officer prior to the commencement of any semester, but reversed during the semester by the Residency Appeals Board shall be effective as of the commencement of the semester.

?13.   Student Responsibility to Notify Institution of Changes in Status.

13.1   It shall be the responsibility of students on all campuses to notify the campus residency officer of any change in their eligibility for the in-state tuition rate as a result of:

13.1.1   Change in the domicile of their parents; or

13.1.2   Change in their own domicile.

13.2   Failure to notify the campus residency officer of any changes affecting eligibility for the in-state tuition rate shall subject a student to disciplinary action under the provisions of the code of student conduct or to such actions that may be available under law, or both.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.F.1.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F. Student Fees

1. Use of Student Fees to Engage Legal Representation for Students
   1. No student fees shall be used for the purpose of engaging representation for, or providing advice to, any student in any way relating to, or arising out of, a matter that is:
      1. Criminal in nature (i.e., a charge, whether the original charge or otherwise) that is at the Class B misdemeanor level or above; or
      2. Against a student who has a criminal record that includes an offense at the Class B misdemeanor level or above, committed while a student at a USNH institution; or
      3. Related to the theft, damage, or destruction of property belonging to a USNH institution, the state, a municipality or other political subdivision, or any private party; or
      4. Adverse to the interests of any USNH institution which is, or is reasonably likely to become, a party to the matter.
2. Use of Student Fee Reserves to Pay Municipal Expenses
   1. Under its plenary authority to manage and control the property and affairs of USNH and it component institutions, including its authority to establish, collect, and expend student fees, the Board delegates to each President the following authority.
   2. Should a President determine that reimbursement is appropriate, he or she is authorized to use the student fee reserves available at his or her institution for the purpose of paying the expenses incurred by a municipality relating to or arising out of a student disturbance.
   3. The authority to so use student fee reserves shall extend only to then-current reserves. In no case shall future student fees or student fee reserves be pledged to make such payments.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.G.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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G. Quasi-endowments (also known as Funds Functioning as Endowments)

1. Trustee Delegation of Authority
   1. The Board of Trustees delegates to its Financial Affairs Committee responsibility and authority for final approval of all interfund transfers, including transfers of current, loan and plant funds to establish or add to quasi-endowment funds.
   2. The Financial Affairs Committee delegates to the Treasurer responsibility and authority for approval of transfers to quasi-endowments in amounts of $1,000,000 or less upon request from a President or the Chancellor with respect to their institution's identified funds. It is the intent of this policy to aggregate like transactions when determining the applicable approval procedure.
2. Definition of and Accounting for Quasi-endowment Funds
   1. Quasi-endowments are funds that have been transferred from another source to be retained and invested in the Consolidated Endowment Pool (CEP) with the true endowment at the direction of the Financial Affairs Committee (or in the case of amounts under $1,000,000 at the direction of a President or the Chancellor). Quasi-endowments differ from true endowments, which are amounts received by USNH subject to a requirement by a donor or other external provider that the funds be invested in perpetuity.
   2. The original source of quasi-endowment funds may be current restricted, current unrestricted, loan, or plant funds. If the original source of funds was restricted as to purpose by a donor or other external resource provider, the quasi-endowment will be classified as restricted and the use of the annual distribution of endowment earnings will be similarly restricted.
   3. Ordinarily the Treasurer will not authorize the establishment of a quasi- endowment of less than $25,000 unless there is a plan to build the fund to at least $25,000 through future transfers or a commitment to reinvest the annual earnings in the fund until it reaches a $25,000 balance.
3. Revocation of Quasi-endowment Funds
   1. Because a quasi-endowment results from an internal designation as opposed to a legally binding external requirement, a quasi-endowment may be revoked in the future. A revocation of a quasi-endowment of any amount requires the vote of the Financial Affairs Committee.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.H.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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H. Investment Policy

1. State Delegation of Authority
   1. State law (RSA 187-A:16) delegates to the Board of Trustees authority and responsibility for the management and control of all income received and due from all sources, including the authority to use the same in such manner as the Trustees may determine.
   2. State law (RSA-187-A:17) states that the Governor, the Treasurer of the University System, and 3 members of the Board of Trustees, to be selected by the Board of Trustees, shall constitute a finance committee responsible for the investment of the University System institutions' funds.
2. Trustee Delegation of Authority
   1. The Board of Trustees delegates to its Investments and Capital Planning Committee the responsibility and authority for all pooled cash and investments for (a) development of formal investment guidelines, to be reviewed and approved by the Committee at least annually; (b) selection, assessment and termination of endowment investment advisors and managers; (c) oversight of specific investments and methods of investing; (d) recommendation to the Financial Affairs Committee for the percentage and payout methodology used to determine amounts to annually distribute from endowment for operations; and (e) periodic assessment of investment strategy and results, including asset allocation, risk, return and liquidity, to ensure investment of USNH funds in accordance with the statement of investment principles below. The Investments and Capital Planning Committee delegates to the Treasurer the responsibility and authority for (a) developing and maintaining appropriate staffing, systems, procedures and controls to carry out these policies and the investment guidelines; (b) daily management of cash and investment transactions and relations with external advisors, managers, funds, banks, and other financial services firms; (c) monitoring general economic and financial conditions, determining the short-term and long-term cash needs of the University System and its institutions, and effecting timely tactical decisions to meet the best interests of the University System in the judgment of the Treasurer; (d) support and advise the Board, as appropriate, on USNH capital investments; and (e) from time to time recommending modifications to policies, guidelines, processes and advisors as appropriate.
3. Policy Scope
   1. This policy covers pooled cash and investment assets under the direct control of the USNH Board of Trustees. It does not cover non-pooled investments where affiliated boards have primary fiduciary responsibility for investment of certain funds (including UNH Foundation, and Keene Endowment Association). This policy also does not cover specifically-invested funds for which USNH is the beneficiary but that cannot be pooled together due to donor, state or other legal restrictions prohibiting commingling (including Elliott Trust Fund, bond proceeds invested by the Bond Trustee, and certain UNH Alumni Association funds).
4. Investment Principles
   1. State law (RSA 292-B:3 and 292-B:5) also known as the Uniform Prudent Management of Institutional Funds Act ("UPMIFA"), forms the conceptual framework for USNH investment policies, guidelines and procedures, for both endowment and non- endowment funds. UPMIFA states that an institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of New Hampshire. Other applicable provisions of UPMIFA require that:
      1. Each person responsible for managing and investing USNH funds shall do so with loyalty to USNH, in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
      2. Factors be considered in managing and investing USNH funds, including general economic conditions; the possible effect of inflation or deflation; the role that each investment or course of action plays within the overall investment portfolio; the expected total return from income and the appreciation of investments; other resources of USNH; and USNH needs to make distributions and to preserve capital.
      3. Investment decisions about an individual asset must be made in the context of the USNH endowment or non-endowment portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the portfolio and to USNH.
      4. USNH investments of its endowment and non-endowment funds shall generally be diversified.
      5. A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing USNH funds.
      6. If USNH chooses to delegate to an external agent the management and investment of endowment or non-endowment funds, USNH shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in: selecting an agent; establishing the scope and terms of the delegation consistent with the purposes of the funds; and periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
   2. Other investment principles delineated in the formal investment guidelines to be adopted by the Investments and Capital Planning Committee include identification of risks; determination of tolerance of risk; asset allocation targets; diversification of investment strategy; diversification of investment managers; permitted investment securities; collateralization requirements; safekeeping of assets; ethics and conflicts of interest; measurement of investment performance; and periodic monitoring and reporting.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.I.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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I. Ancillary Financial Policies

1. Receipt of Negotiable Instruments
   1. All gifts received in the form of negotiable instruments shall be immediately forwarded to the University System of New Hampshire Treasurer for pricing through recognized reference publications or brokers as of the date of transfer of title, and immediately offered for sale through a registered broker by the Treasurer.
   2. When retention of the stock is requested by the donor, gifted instruments may be dealt with in accordance with the following procedures:
      1. For gifts of stock valued at $25,000 or less, the Chair of the Investment Committee, at his/her discretion, may invoke an exception to policy and retain the gifted stock in its original form for a period determined by the Chairman.
      2. For gifts of stock valued in excess of $25,000, the Chair of the Investment Committee through the Treasurer shall poll the Committee as to the donor's request before invoking an exception to policy.
      3. All action taken by the Chair of the Investment Committee and the Committee shall be reported to the Board of Trustees.
2. Holding Equity in Start-up Companies
   1. The Board supports the transfer of technology and intellectual property from USNH institutions to industry by a variety of means including the granting of licenses to start-up companies in exchange for equity interests. Subject to the conditions established in this policy, USNH and its component institutions may acquire and hold equity interests in one or more start-up companies in exchange for the transfer of technology and other intellectual property.
   2. The Chancellor, in consultation with the Administrative Board shall establish such System-wide policies as may be necessary to ensure the prudent management of equity interests acquired or held under this policy.
   3. The Presidents shall establish such institutional policies as may be necessary to ensure the prudent management of equity interests acquired or held under this policy at their respective institutions.
      1. Said institutional policies, at a minimum, shall address the following issues:
         •   Conflicts of interest
         •   By whom the decision to divest is made
         •   On what basis the decision to divest is made
         •   Distribution of the proceeds of divestiture
      2. In no case shall an institution hold an equity interest after the start-up company's initial public offering, or as soon as permitted under governmental regulations.
   4. On or before September 1 of each year, the President of any institution holding an equity interest in a start-up company at any time during the previous fiscal year shall report those holdings to the USNH Treasurer including, at a minimum, the date acquired, number of shares, book value, and name of the company.
   5. On or before November 1 of each year, the USNH Treasurer shall report to the Finance Committee on Investments the information collected pursuant to the previous section.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.J.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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J. Gift Acceptance Policy

1. State Delegation of Authority
   1. State law (RSA 187-A:16) delegates to the Board of Trustees authority and responsibility for the management and control of all income received and due from all sources, including the authority to use the same in such manner as the Trustees may determine.
   2. Further, State law states that the Trustees are authorized to "accept legacies and other gifts to or for the benefit of the university or any of its divisions or departments" and "...all gifts of securities and property, real and otherwise..."
2. Trustee Delegation of Authority
   1. The Board of Trustees delegates to the President of each University System institution responsibility and authority for approving, overseeing and acknowledging all unrestricted cash gifts, as well as all restricted or conditional gifts, gifts of securities, deferred gifts, and gifts of real or personal property, in accordance with this and other relevant USNH policies.
   2. The USNH Treasurer will notify the Executive Committee of the USNH Board of Trustees of any gift with a value of $10 million or greater prior to any public announcement.
3. General Policy on Gift Acceptance
   1. Definitions
      1. A gift is a voluntary, irrevocable transfer of assets (e.g., cash, securities, real or personal property) made by a donor without any expectation or receipt of direct economic benefit or tangible compensation (i.e., goods or services) from the recipient commensurate with the worth of the gift. In other words, a gift is a nonexchange transaction where there are no reciprocal transfers for approximate equal value.
      2. A grant, contract, or other sponsored agreement is not a gift. It is a written agreement representing the voluntary transfer of money or property by a sponsor in exchange for the specifically enumerated performance of services (i.e., an exchange transaction), often including rights and access to results of this performance, and always including some formal financial and/or technical reporting by the recipient as to the actual use of money or property provided. The agreement is enforceable by law, and performance is usually to be accomplished under time and fund use constraints with the transfer of support revocable for cause.
   2. Gift Acceptance Committees. Each University System component unit shall establish a Gift Acceptance Committee consisting of officials from the institution. At a minimum, the institutional Committees shall include the component unit's Chief Financial Officer and Chief Advancement Officer, or their designees. The role of the Gift Acceptance Committee is to review and recommend gifts for final approval by the President.
      1. Prior to acceptance of any complex or unusual gift, any gift of real property, or any gift with a gross value in excess of $100,000 other than cash and/or publicly-traded securities, the Gift Acceptance Committee will review the facts and circumstances surrounding restrictions, conditions, pledge schedules, and other terms to determine whether accepting the gift is in the best long-term interests of the institution. To be acceptable, gifts must be consistent with the mission, purpose, and priorities of the institution, and comply with all applicable laws, regulations and USNH policies.
      2. Prior to acceptance of any complex or unusual gift, any gift of real property, or any gift with a gross value in excess of $1,000,000 other than cash and/or publicly-traded securities, the Gift Acceptance Committee shall consult with the USNH Treasurer and General Counsel in its review and acceptance under 3.2.1 above. Institutional Gift Acceptance Committees are encouraged to seek consultation from the USNH General Counsel and the USNH Treasurer in all instances whenever there is a question.
   3. Gift Acceptance Policies and Procedures. Each University System component unit (i.e., University of New Hampshire, Keene State College, Plymouth State University, Granite State College, UNH Foundation, Keene Endowment Association, etc.) is responsible for developing their own gift acceptance policies and procedures consistent with this USNH policy. Institutional policies may be more restrictive than USNH policy but not less restrictive. Institutions are encouraged to seek review of their policies and procedures by the USNH General Counsel and USNH Treasurer.
      1. USNH component unit policies shall provide for the sound administration of current use gifts, endowed funds, capital gifts and planned giving programs at USNH, and ensure that gifts and donor recognition are consistent with the purpose and mission of USNH.
      2. For all pledges, conditional gifts, restricted gifts, and gifts of real or personal property, USNH component unit policies shall require written documentation such as a memorandum of understanding from the donor that specifies the required use of the contributed funds, conditions associated with the pledge (if any), and expected payment schedule of the pledge to USNH. This documentation shall be signed by the donor and all required campus representatives prior to public announcement or recording in the official institutional development records or the USNH financial statements.
      3. Acceptance of a gift by the institution is demonstrated by the full execution of the Memorandum of Understanding, the formal acknowledgement of the gift by the institution, the public announcement of the gift, the recording of the gift in the official records, or any of the above.
      4. All gifts naming facilities or programs shall comply with USNH BOT policy III. H.
      5. All gifts of real and personal property must comply with USNH BOT policy VI.B.
      6. All gifts of negotiable instruments must comply with USNH BOT policy IV.I.1.
      7. All conditions and restrictions of gifts must comply with USNH BOT policies on conflict of interest III.I and III.L.
      8. USNH institutions will follow the Internal Revenue Code and Regulations regarding the acknowledging and receipting of charitable contributions.
      9. USNH institutions shall comply with IRS reporting obligations including, but not limited to, the following forms, as required: Form 1098-C - Contributions of Motor Vehicles, Boats, and Airplanes; Form 8282 – Donee Information Return (Sale, Exchange or Other Disposition of Donated Property); Form 8283 – Noncash Charitable Contributions.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.K.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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K. Gift Counting Policy

1. State Delegation of Authority
   1. State law (RSA 187-A:16) delegates to the Board of Trustees authority and responsibility for the management and control of all income received and due from all sources, including the authority to use the same in such manner as the Trustees may determine.
   2. Further, State law (RSA 187-A:16 VII and VIII) states that the Trustees are authorized to "accept legacies and other gifts to or for the benefit of the university or any of its divisions or departments" and "...all gifts of securities and property, real and otherwise..."
2. Introduction
   1. Purpose
      1. The purpose of this policy is to provide guidance on valuation methods to be used when counting different types of gift revenues accepted by the campus. Note that there may be instances where gift values reported using the below criteria vary from the revenue amount recorded for the gift in the USNH financial system. In all instances the USNH financial system value will represent the gift total determined using Generally Accepted Accounting Principles for governmental entities.
   2. Gift Counting Policies and Procedures
      1. Each Each University System component unit (i.e., University of New Hampshire, Keene State College, Plymouth State University, Granite State College, UNH Foundation, Keene Endowment Association, etc.) is responsible for developing their own gift counting policies and procedures consistent with this USNH policy. Institutional policies may be more restrictive than USNH policy but not less restrictive. Institutions are encouraged to seek review of their policies and procedures by the USNH Treasurer.
   3. Appraisals
      1. The value of certain gifts must be determined by a qualified independent appraisal as described below. In such instances the cost of the appraisal should be paid by the donor.
3. ​Valuation Methods Required for Counting Specific Types of Gifts
   1. Gift Counting Standards
      1. Gifts of Cash and Securities
         1. Gifts of cash shall be reported at full value as of the date of receipt.
         2. Gifts of publicly-traded securities should be valued at the average of the high and low quoted selling prices on the date the donor relinquishes control of the assets to USNH. The date control has been relinquished by a donor depends upon the method of delivery of the securities to USNH. Internal Revenue standards will be followed in determining whether or not a gift has been made.
         3. Gifts of closely held stock will be valued at the per-share cash purchase price of the closest transaction, if available and reasonably recent. If the total value using this method exceeds $10,000 a qualified independent appraisal of the gift must be done prior to receipting the donor. In such cases the gift should be counted at the appraised value.
      2. Gift Pledges
         1. Pledges of future gifts in the form of cash or publicly-traded securities, whether for endowment or current use gifts, may be counted at the full value of the future payment stream as of the date the signed pledge commitment is received.
      3. Gifts-in-Kind - Real and Personal Property
         1. All gifts of real property including land, buildings, and easements, must be accompanied by a qualified independent appraisal which will be used to determine the value of the gift.
         2. Gifts of personal property should be counted at their fair market value. If the fair market value as declared by the donor is $5,000 or less, the gift may be counted at that amount after review by a qualified expert on the faculty or staff of the institution. Gifts of equipment shall generally be counted at their educational discount value which, for purposes of these gift counting standards, shall be deemed to be fair market value.
         3. If the value of a gift of personal property is deemed to exceed $5,000, a qualified independent appraisal of the gift must be done prior to receipting the donor. In such cases the gift should be counted at the appraised value.
      4. Gifts of Royalties, Patents and Copyrights
         1. Gifts of royalties from property that USNH does not own (possible examples could be oil, gas and mineral rights) should be counted as a gift each time a separate royalty payment is received. No pledge should be counted in anticipation of receipt of future royalty payments as there is no guarantee of the amount or continuation of such payments.
         2. The fair market value of certain forms of intellectual property rights such as patents, copyrights, or software under development may not be known or readily ascertainable at the time the gift is made. In such instances, the value of the gift shall be recorded and reported in the year the value becomes known.
      5. Planned Giving
         1. Planned giving arrangements include gifts from Charitable Remainder Trusts, Charitable Lead Trusts, Pooled Income Funds, Charitable Gift Annuities, and gifts to separately-held trusts with directives to distribute periodic payments to USNH. The value of these gift instruments is generally counted at the discounted present value of the related payment streams. Most often these values can be determined using existing software programs, or with the assistance of third-party administrators. Due to the complexity and unique terms of individual arrangements, such calculations should be reviewed by the USNH Treasurer whenever there is a question of valuation.
      6. Gifts of Retirement Plan Assets
         1. USNH may be named as the beneficiary of individual retirement accounts. USNH institutions may count pledges of retirement plan assets if the following requirements have been satisfied: (i) the donor is at least 65 years of age at the time of the pledge; (ii) USNH has a means to establish a credible estimate of the future value of the retirement plan account at the time the commitment is made; and (iii) USNH must receive verification of the commitment in the form of a letter from the donor or donor's representative.
      7. Testamentary Gifts
         1. USNH may also be named as a beneficiary in individual wills. USNH institutions may count testamentary pledges if the following requirements have been satisfied: (i) the donor is at least 60 at the time of the pledge; (ii) if the pledge is a joint pledge to be paid at the death of a survivor, all named survivors must also be at least 60 at the time of the pledge; (iii) the commitment must be for a specified amount or specific asset or assets or, if based on a percentage of the estate, the donor must be willing to provide a credible estimate of the value of the estate at the time the commitment is made; and (iv) the commitment must be verified through one of the following forms: a letter from the donor or donor’s attorney, a deferred pledge agreement or a contract to make a will.
      8. Gifts of Life Insurance
         1. USNH institutions may count commitments of life insurance gifts if the institution is the owner and irrevocable beneficiary of the policy using the following valuation methods.
            1. Paid-up life insurance policies will be valued at the cash surrender value, or at the discounted present value of the policy's death benefits provided the donor is age 60 at the time of the pledge. If a policy is a 'second to die policy', each insured must be at least age 60 at the time of the pledge.
            2. A life insurance policy that is not fully paid up on the date of pledge may be counted at the existing cash surrender value. Note that increases in the cash surrender value will not be counted until the time the policy benefit is received. In addition, where the payment of premiums is pledged over a fixed period, the discounted value of premiums to be paid may also be counted as part of the pledge.
            3. Premiums paid for policies owned by the institution may also be counted as current gifts.
4. ​Fundraising Reports
   1. Grant income from private, non-government sources may be counted in fundraising reports only if the award is a non-exchange transaction and significant effort of Advancement staff was spent in securing the award.
   2. Amounts reported in internal fundraising reports should agree with revenues reported annually for Strategic Indicator 16, "Gifts by Donor Category and Intention".

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.V.A.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Employee Benefits¹

1. State Delegation of Authority
   1. State law (RSA 187-A:16, I, II, III, V, VI, and XVI) delegates to the Board of Trustees authority to hire, employ, and compensate such personnel as are "needed to provide a well-coordinated system of public higher education."
2. General Policy on Benefits
   1. The University System shall provide an employee benefits program designed to attract and retain competent faculty and staff in a cost-effective manner.
   2. The University System benefits program may include a flexible benefits plan. Benefits offered under such a plan may include, but are not necessarily limited to, medical and dental coverage, and life and disability insurance.
   3. The Board of Trustees is committed to a single program of University System-wide benefits consistent with its status as a single employer. The University System will continue to review industry specific data; however, the benefit programs will be designed with the expectation that there is a single set of benefits for all faculty and staff.
      1. Standards for Exceptions. There are circumstances where USNH may seek to differentiate benefits for a specific employee group. The standard for these exceptions will require: a clearly articulated rationale; an analysis of the cost effectiveness including ease of administration; an analysis of the internal equity and fairness; and an analysis of the extent to which other organizations make the proposed differentiation in benefits (for example, other universities commonly provide sabbatical leave options to tenured faculty but not necessarily to other employee groups).
      2. Procedure for approval of the exception. A proposal to establish a different benefit for a specific group of employees will require a recommendation from the Administrative Board and approval by the Board of Trustees' committee on Financial Affairs.
3. Trustee Delegation of Authority
   1. The Board of Trustees delegates to the Administrative Board oversight responsibility for the administration of the employee benefits plan.
   2. The Board of Trustees delegates to the Administrative Board the authority to design the University System benefits plan in accordance with financial and benefits parameters authorized by the Board of Trustees. The Administrative Board shall report at least annually to the Board of Trustees on the effectiveness and suitability of the current plan with recommendations for changes to such plan if appropriate.

¹See, USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT V.B.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Affirmative Action¹

1. Policy of Commitment to Affirmative Action
   1. The University System of New Hampshire is committed to seeking full participation and utilization of women and minorities in the workplace and all members of the USNH community shall act affirmatively in recruitment, selection and employment of women and minorities.
   2. The University System of New Hampshire shall comply with all state and federal legal mandates to take affirmative action in its personnel policies and practices.
2. Adoption of an Affirmative Action Plan
   1. The Administrative Board shall adopt an Affirmative Action Plan and related personnel policies covering the University System and each of its component institutions. The Plan shall be consistent with all relevant state and federal legal mandates.
3. Appointment of Affirmative Action Officers
   1. The Chancellor shall designate a University System employee to perform the functions of an affirmative action officer as required by state and federal law. The president of each of the component institutions shall likewise designate an employee to perform the functions of an affirmative action officer for his/her respective institutions.

¹See, USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT V.C.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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C. Employment Policies¹

1.   State Law

1.1   State law (RSA 187-A:16 I, II, III, V, VI, and XVI) authorizes the Board of Trustees to hire, employ, and compensate such personnel as are "needed to provide a well-coordinated system of public higher education."

2.   Authority

2.1   Establishment of Executive Positions. The Board of Trustees shall be the authority for the establishment of Executive positions, including those governed by the Administrative Board.  Executives are the highest ranking leadership roles within a USNH institution or System Office and, as such, have the uppermost level and broadest scope of authority with System-wide impact.  The institution’s ability to meet its mission is significantly impacted by the Executive’s performance of that authority and responsibility. The two types of Executives are: Chief Executive Officers and Executive Officers.

2.2   The Board of Trustees reserves to itself the authority to establish and amend any employment policies applicable to the Chief Executive Officers.

3.   Delegation of Authority

3.1   ?The Administrative Board shall adopt such University System employment policies as are necessary to meet the requirements of this policy and provide a well-coordinated system of public higher education. The University System employment policies shall establish terms and conditions of employment which will maximize the efficient and effective utilization of USNH human resources and ensure compliance with all applicable federal and state laws. 

3.1.1   At a minimum those policies shall cover the following topics: Equal Opportunity Employment, recruitment and selection, placement, orientation, appointments, performance evaluation, probation and discipline, termination and lay-off, and benefits and compensation, and specific policies outlined below.

3.1.1.1   Reduction in Force. The Administrative Board shall adopt a policy for Reduction-in-Force which provides the greatest amount of management flexibility consistent with fair and equitable treatment of USNH employees.

3.1.1.2   Separation Incentive Plans. The Board of Trustees delegates to the Administrative Board the authority to establish policy and approve programs which will encourage faculty and staff voluntary separation from USNH including regular retirement, early retirement and termination. The goal of these programs shall be to provide sufficient predictability to enable and encourage succession and transition planning as well as to provide flexibility to encourage voluntary separations when programmatic and organizational needs make such termination desirable. Such authority includes the obligation to comply with the principles noted below. Any such program shall be less valuable per participant than the previous program offered to any of the potential participants; prior authorization by the Board of Trustees is required for any non-conforming plan proposal.

        3.1.1.2.1   All incentives offered must be within legal constraints.

        3.1.1.2.2   Financial parameters shall require that plans do not include any new long-term liabilities (i.e. more than two years) and that plan offerings have a prudent funding mechanism. All funding plans shall be within previously approved overall budget guidelines. Any plan which utilizes a funding source not approved as part of the annual personnel or benefits operating budget shall require approval by the Financial Affairs Committee of the Board of Trustees.

        3.1.1.2.3   Compensation and plan design parameters shall include a requirement that the design features meet and continue to meet tax and benefit legal constraints, and that all plans be offered on a one-time, non-continuing basis. The intent of this provision is that incentive plans not be offered as benefit entitlement programs, but rather as institutionally discretionary separation incentives.

        3.1.1.2.4   Each Chief Executive Officer is authorized to determine if a program will be offered at his or her institution, to whom it is offered, when it is offered, and which features of the plan it will offer.

3.2   The component institutions shall adopt such institutional policies as are necessary to meet the requirements of the University System policies referred to in BOT V.C.3.1. 

4.   Employment of Trustees

4.1   No member of the Board of Trustees, other than the Chief Executive Officers and student trustees, may receive compensation for services rendered to USNH or any of its components, related or affiliated entities except under the conditions set forth below.

4.2   Student members of the Board of Trustees may be compensated for services rendered to USNH or any of its component institutions, provided:

4.2.1   Any such compensation shall be disclosed by the student member in the annual process provided for in the Board policy on conflicts of interest, BOT III.I.3.1.

4.2.2   The fair market value of the services equals or exceeds the amount of compensation, and the quality of the service provided by the Trustee is equal to or in excess of that available by a bid or other open application process.

4.2.3   The proposed employment is in conformance with the Board of Trustees Bylaws Article VII regarding conflict of interest and does not involve the setting of reimbursement or compensation or the establishment of policy in any of those areas.

 4.2.4   Any work product that is the result of such employment shall remain the property of the entity providing the compensation.

5.   Performance Reviews for Chief Executive Officers

5.1   Purposes. The performance review is intended to (1) enable the Chief Executive Officers to collaborate with the Board in establishing shared goals and objectives, (2) provide for effective communication between each CEO and the Board about the discharge of their respective and collective governance responsibilities, including the Board’s confidence in the quality and effectiveness of the CEO’s leadership, (3) assist the Chief Executive Officers to strengthen their own performance, and (4) assess the Chief Executive Officer’s performance including the quality and effectiveness of their leadership for both their institution and USNH. The performance review process is not intended as a substitute for regular, ongoing communication about progress toward goals between the Board and each of the Chief Executive Officers.

5.2   Authority. The Executive Committee shall oversee the conduct of an annual performance review for each Chief Executive Officer, in accordance with the basic process set forth in this policy. The Executive Committee may from time to time add to the process as it deems necessary or useful to most effectively accomplish the purposes of this policy. The Board Officers, with approval of the Executive Committee, shall appoint annually one special committee of three to five members (including the Board Chair, Vice Chair, Secretary, and discretionary additional members) for the purposes set forth in this policy, giving due consideration to the dual purposes of renewal and continuity. The committee shall be known as the Executive Compensation and Performance Review Committee and shall report to the Executive Committee periodically.

5.3   Self-Assessment. Each Chief Executive Officer shall begin the review process by preparing a self-assessment statement, which shall include:

• Previously agreed-upon goals along with a description of efforts toward accomplishment and an assessment of progress made to date;
• Other personal or institutional accomplishments;
• Quality and effectiveness of the CEO’s leadership;
• Significant personal or institutional conditions, including relationships, that affected progress toward goals, whether positively or negatively, and identification of those likely to persist in the coming year;
• Quality and effectiveness of the CEO’s executive leadership team;
• Proposed goals, personal and institutional, for the coming year and for the next three to five years, which shall take into account the mission of USNH as well as that of the CEO’s institution;
• His or her professional development plans and related support required, if any;
• Assessment of his or her institution’s principal current opportunities and challenges; and
• Key areas and ways in which he or she would benefit from the Board's support in the coming year and beyond.

5.4   Executive Compensation and Performance Review Committee Process. The Executive Compensation and Performance Review Committee shall solicit, accept, review and consider such input from members of the Board of Trustees, USNH employees, and other individuals as the Committee believes may be helpful in the performance of its responsibilities under this policy.

5.4.1 Committee Meeting with the CEOs. The Committee shall meet with each CEO individually to review and discuss the CEO's self-assessment as well as insights gained through the process established under section 5.4, above. The Committee shall discuss with the CEO any additions, deletions, or other adjustments, which the Committee believes would make the CEO's self-assessment more complete or accurate.

5.4.2   Eligibility. In order to be eligible for any merit increase a CEO must have at least six months of service in the position as of the effective date of the increase. A CEO who has more than six months of service, but less than 12 months, will be eligible for a pro-rated merit increase.

5.4.3   Report to the Executive Committee. The Committee shall establish a final set of goals for each Chief Executive Officer, review CEO performance against annual goals, assess the quality and effectiveness of the CEO’s leadership, and report the results of its work, including the performance assessments of each CEO and resulting performance award recommendations, to the Executive Committee.  The amount of an annual performance award is within the range of 0% to 150% of the performance award target. Each Chief Executive Officer shall receive a copy of the portion relating to his or her performance and goals.

5.4.4   Records. The records prepared during the performance review process, including but not limited to self-assessments, evaluations, and goals as well as all related correspondence, shall be a part of the Chief Executive Officer's personnel file and kept confidential to the fullest extent permitted under law and applicable USNH policy.

5.4.5   Timing. Each year the Executive Compensation and Performance Review Committee shall establish a calendar providing for the orderly accomplishment of the process outlined in this policy.

6. Reporting Allegations of Employee Sexual Harassment and Violence

6.1   Reporting to the Board of Trustees. The chief executive officer of a USNH institution shall report to the Chair of the Board of Trustees and the Chair of the Audit Committee any allegation of sexual harassment or violence by an employee of the institution as soon as the allegation is known to the chief executive officer. [See also Protocol for Reporting, Management, and Tracking of Allegations of Sexual Misconduct Committed by USNH Employees].

¹See, USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT V.D.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. Employee and Labor Relations¹

1. Authority
   1. State law (RSA 187-A:16 I, II, III, V, VI and XVI) authorizes the Board of Trustees to hire, employ and compensate such personnel as are needed to provide a well-coordinated system of public higher education.
   2. The Board of Trustees shall retain the authority to approve any proposed contract between the Board and duly authorized collective bargaining agents representing USNH faculty or staff.
2. Delegation of Authority
   1. The Board of Trustees delegates to the Executive Committee the direction and oversight of labor relations and the establishment of bargaining parameters.
   2. The Executive Committee shall report from time to time on an as-needed basis to the Board of Trustees on the status of any labor negotiations.
   3. The Board of Trustees delegates to each president for his or her institution the authority to determine labor negotiations strategy, adopt appropriate policy and communication methods, appoint representatives to the negotiating team, and establish a means for contract administration and grievance handling.
   4. The Administrative Board, shall establish an employee relations policy which shall include compliance with all state and federal laws. Components of such employee relations policy will include statements on drug-free workplace, safety, right-to-know, non-smoking, wellness, nepotism, conflict of interest, grievance and complaint resolution, personnel files, contagious diseases, political activities, and nondiscrimination, as well as other working condition issues.

¹See, USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT V.E.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Professional Development and Training¹

1. Authority
   1. State law (RSA 187-A:16) authorizes the Board of Trustees to hire, employ, and compensate such personnel as are needed to provide a well-coordinated system of public higher education.
   2. The Board of Trustees delegates to the Administrative Board, the authority to establish Professional Development and Training policies.
2. General Policy
   1. The University System and each of its component institutions shall establish policies and procedures to promote the training and development of faculty and staff in order to foster a productive work force and to provide opportunities for upward mobility. These policies shall be consistent with BOT V.B.2 and USY V.B.2 , relating to Affirmative Action.
   2. Policies and practices developed shall include staff and supervisory training, internal promotions, and sabbatical and development leaves.
   3. Development and training policies shall comply with all state and federal laws and where appropriate support Employment and Affirmative Action policies established by the Administrative Board.

¹See USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT V.F.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F.   Compensation¹

1.   Authority

1.1   State law (RSA 187-A:16 I, II, III, V, VI and XVI) delegates to the Board of Trustees authority to hire, employ and compensate such personnel as are needed to provide a well-coordinated system of public higher education.

1.2   Compensation Policy. The Board of Trustees retains the authority over all aspects of compensation for USNH's Chief Executive Officers.

1.3   The Board of Trustees retains the authority to approve compensation agreements contained in collective bargaining agreements.

2.   Executive Total Compensation

The Board of Trustees delegates to the Executive Committee of the Board of Trustees the review and approval of Total Compensation for the Chief Executive Officers, the Chief Academic Officers (CAOs), and the highest ranking financial or administrative officer at each of the institutions, using the following options and procedures. It is the goal of the following statements, that the Board of Trustees establish an overall Total Compensation philosophy and practice that will foster its ability to attract and retain highly qualified candidates for leadership positions within the University System. The University System aspires to establish accountability and recognition systems that will foster the accomplishment of those strategic goals which support the mission of its institutions. This includes both the vigorous processes for establishing and reviewing goals as well as policies and practices that recognize the importance of the contributions of the organization’s leadership to its overall success.

2.1   The Board Officers, with approval of the Executive Committee, shall establish and appoint annually one Board-designated committee of three to five Trustees (consisting of the Chair, Vice Chair, Secretary, and discretionary additional members) for the purposes set forth in this policy, giving due consideration to the dual purposes of renewal and continuity. The committee shall be known as the Executive Compensation and Performance Review Committee and shall report to the Executive Committee periodically. Any member of the Committee that has, or reasonably appears to have, a material financial interest in the outcome of any issue that comes before the Committee, including an actual, potential, or apparent financial interest which could be affected by the outcome, shall recuse themself from consideration of the issue and physically leave the committee meeting before deliberations are undertaken and decisions are made.

2.2   The policy of the University System is to provide direct total compensation programs which reflect the relative size, complexity, and type of education curriculum of the University System in the segment of higher education institutions of which it is a part and which accomplish the University System's mission and tax exempt purpose without causing any part of the University System's net earnings to inure to the private benefit of an individual or group of individuals.

2.3   Consistent with the USNH Board of Trustees’ policies on compensation of executives (BOT V.F.1 through 5) and the statement of Total Rewards Objectives, adopted on February 17, 2011, compensation packages for executives shall support the mission, vision, and values of USNH and its component institutions and be calculated to:

• Attract and retain talent
• Competitively position USNH and its component institutions
• Reward performance (see also BOT V.C.5)
• Maintain fiscal responsibility

2.4   The executive positions covered by this policy are the Chief Executive Officers (CEOs), the Chief Academic Officers (CAOs), and the highest ranking financial or administrative officer at each of the institutions.  For the CEOs the Executive Compensation and Performance Review Committee shall make recommendations to the Executive Committee, which shall remain responsible for the review and approval of all aspects of CEO compensation. For other Executive Officer positions covered by this policy, the Executive Compensation and Performance Review Committee shall review and approve the CEO’s compensation plans and recommendations prior to implementation. If the committee objects to any aspect of a compensation plan and/or recommendation, the CEO shall adjust the plan and/or recommendation accordingly.

2.5   Competitive Compensation. The Executive Compensation and Performance Review Committee shall use the following process when developing its recommendations.  CEOs also generally shall use this process when developing compensation plans for their Executive Officers.

• Engage independent and qualified consultants to advise and assist with the process
• Establish appropriate peer groups of comparator institutions
• Establish appropriate total cash compensation target (base salary plus performance award target) within the peer group; this peer group target for any particular executive might vary from the 45th percentile of the peer group’s total compensation to the 60th percentile
• For each Executive Officer, using the 50th percentile for target total cash compensation (base salary plus performance award target) as the starting point, determine and document reasons for varying either down to the 45th or up to the 60th percentile
• Incorporate the total cash compensation peer group target percentile into the executive’s employment agreement, and use this peer group target as a guide for setting the executive’s starting base salary
• Use the total cash compensation peer group target percentile as basis for annual adjustments to the Executive Officer’s base salary
• Report the recommended initial base salary and the performance award target, and annual base salary adjustments to the Executive Committee for final decision.

2.6   In determining the appropriate variance from the 50th percentile and developing compensation recommendations for each CEO, the Executive Compensation and Performance Review Committee shall consider all appropriate factors including but not limited to:

• Performance
• Relevant education, training, and experience
• Available resources
• Internal equity
• External equity
• Best interests of the institution and University System.

2.7   Eligibility. In order to be eligible for any general or merit increase, a CEO must have at least six months of service in the position as of the effective date of the increase. A CEO, who has more than six months of service, but less than 12 months, will be eligible for pro-rated general or merit increases.

2.8   One-Time Bonus Recognition. After review of recommendations, the Executive Committee may approve one-time bonus payments awarded to recognize significant contribution and/or extraordinary effort.

2.9   Deferred Compensation for CEOs. The Executive Committee may award one-time or multiple year payments to a deferred compensation plan for a CEO, consistent with market practices.

2.9.1   The Executive Committee may approve a one-year, non-reoccurring payment, or multi-year payments to USNH's IRC section 401(a) plan or 457(f) for the purpose of retention with a five-year vesting plan. The amount of the deferred compensation may vary by individual and by year but shall not exceed 15% of the CEO's annual salary rate, and shall be subject to federal tax and legal obligations and limitations.

2.10  Third-Party Compensation or Employment of USNH CEOs. No USNH CEO may accept or receive compensation or employment from a source outside of USNH without the prior approval of the Executive Committee.

3.   Appointment Conditions for CEOs and Other Executive Officers (CAOs and the highest ranking financial or administrative officers)

3.1   Approval of Appointment for CEOs. Employment Agreements shall be used for CEO appointments.  The Executive Committee shall review and approve employment conditions, including separation or retirement, in the Employment Agreements.  Each agreement shall be reviewed and authorized for clarity and content by the USNH General Counsel and approved by the Board Chair.

3.2   Approval of Appointment for Other Executive Officers. The Executive Committee shall review and approve the Chief Executive Officer's recommendations of all terms and conditions for appointments to Chief Academic Officers and the highest ranking financial or administrative officer. Confirmation of employment shall be in a written "letter of appointment." Written confirmation of employment is considered notice of appointment rather than a contract. These letters will contain the annual salary rate and effective date of appointment as well as confirmation that the appointment is subject to Trustee, USNH and institutional policy. These letters shall be reviewed and authorized for clarity and content by the USNH General Counsel and approved by the Board Chair.

3.2.1   Conditions of Appointment. Letters of appointment shall include any additional information about conditions of employment as approved by the Executive Committee. Only those options described below may be recommended as part of an initial appointment and require individualized approval at the time of appointment by the Executive Committee.

3.2.1.1   Options to be included in an initial appointment include the following choices. It is anticipated that the options will be tailored to the compensation and market demands at the time of hire.

3.2.1.1.1   One time Transition Payment. This is an option to provide a lump sum, non-recurring supplemental payment intended to aid transition to a new position, including, but not limited to the costs of moving and/or relocation. It is subject to applicable taxation.

3.2.1.1.2   "Home office" options. This is an option to provide phone lines, computers, or other appropriate technology or telecommunication equipment or services.

3.2.1.1.3   Tenure or Concurrent Faculty Appointment. An appointment with tenure is an option available only to Chief Academic Officers. This option does not assume that the salary associated with the CAO will continue into the Faculty position. If a Chief Academic Officer with tenure decides to return to teaching, the salary for the instructional position shall be consistent with that of the rank and service for faculty in the specific discipline. If tenure is not appropriate, the CAO may be offered a one year transition to a teaching or research assignment.

3.2.1.1.4   Professional Development. This is an option to provide funds for attendance at a specific professional development program of a significant nature in terms of time and cost.

3.2.1.1.5   Salary Incentives. Executive Officers will be eligible for annual salary increases. These are expected to be decided annually and at the discretion of the Executive Committee. In addition, one-time bonus or performance incentive award payments may be included in the annual compensation awards tied to successful completion of identified annual strategic goals.

4.   Separation and Retirement of Executive Officers (CAOs and the highest ranking financial or administrative officer)

The Executive Committee of the Board of Trustees is responsible for the approval of the separation or retirement of an Executive Officer.

4.1   Voluntary Retirement or Separation. It is anticipated that Executive Officers shall give at least 90 days' notice of resignation or retirement, or a notice period mutually agreed upon by the CEO and the Executive Officer. Unused vacation days, up to the policy maximum of 30 days will be paid to terminating Executive Officers.

4.1.1   Voluntary separation for a Chief Academic Officer shall include a paid transition leave of one month per year of service up to a maximum of 6 months if s/he is returning to teaching.

4.2   Involuntary Separation. Reasons for involuntary termination of Executive Officers may include, but are not limited to issues around performance, reorganization, cost containment, supervisor's loss of confidence and changes in strategic direction.

4.2.1   If an Executive Officer is recommended for termination he/she shall be given six months' notice of termination unless the separation is due to guilt in a crime, or other institutionally determined destructive or detrimental action such as, but not limited to, violations of conflict of interest or fraud.

4.2.2   The Executive Officer has grievance rights as defined in USY V.D.12.

5.   Delegation of Authority to the Administrative Board

5.1   The Administrative Board shall establish a job evaluation system and compensation policies. These shall comply with state and federal legislation, promote the goals of internal equity, reward for meritorious performance, effective recruitment, and retention of faculty and staff, and further the purposes set forth in the USNH Total Rewards Objectives, adopted by the Board of Trustees on February 17, 2011.

5.2   Pay Ranges. The Administrative Board shall establish a set of pay ranges and classification assignments for PATs, Academic Administrators, Extension Educators, and Operating Staff. Pay levels and ranges if applicable for faculty salaries shall be set by individual institutional authority, unless covered by collective bargaining obligations.

5.3   Additional Pay Policies. The Administrative Board shall establish compensation policies relating to hours of work, work in excess of a regularly classified and compensated work day, holiday pay, shift differentials, and policy for payment of hourly and other adjunct employment.

5.4   Total Compensation Policy for Executive Officers. The Administrative Board shall adopt a comprehensive Total Compensation policy for Executive Officers for the same purposes as set forth in subsection 5.1, above. In addition, the policy shall authorize the CEOs to set the Total Compensation for their respective Executive Officers, following a process that includes, but is not necessarily limited to, the following steps:

5.4.1   Obtain from the USNH HR office and consider:

• current and relevant external market data on each of the positions;
• compensation data on all USNH Executive Officers; and
• current EEO/AA plan and related data.

5.4.2   Review the Board policy on Executive Compensation for CEOs (BOT V.F.2), in particular the principles, objectives, and spirit, but not the approval process or delegations of authority. CEOs should use the process outlined in F.2 when making salary total cash comp for executives.

5.4.3   Review the Total Rewards Objectives approved by the Board on February 17, 2011.

5.4.4   For each proposed increase each CEO will carefully consider:

• meritorious performance;
• external equity;
• internal equity, including the minimization of the potential for a "ratchet effect" among the institutions;
• EEO/AA plans, goals, objectives, and compliance;
• the principles, objectives, and spirit embodied in the Board policy on Executive Compensation for CEOs (BOT V.F.2); and
• the USNH Total Rewards Objectives, adopted by the Board on February 17, 2011.

5.4.5   Each CEO will obtain approval from the Executive Committee for hiring salaries and Total Compensation of Chief Academic Officers and the highest ranking financial or administrative officer.  To support the goals of creating and preserving internal equity and minimizing the potential for creating a "ratchet effect" among the institutions, the CEO will discuss plans for other Executive Officers’ Total Compensation increases and hirings with the other USNH CEOs.

5.4.6   For each proposed Total Compensation increase or hiring and subsequential changes, the CEO must document the careful consideration of the relevant criteria as applied to the facts of each case, and be prepared to report her/his decision and essential reasons to the Executive Committee.

¹See USNH Total Rewards Objectives, approved by Board of Trustees on Feb. 17, 2011

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.A.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. Capital Planning and Budgeting

1. State Delegation of Authority
   1. State law (RSA 187-A:16) delegates to the Board of Trustees "management and control of all the property and affairs of the University System of New Hampshire" and its institutions. State law prescribes procedures by which the Board of Trustees requests and secures State funding and borrowing authorization for the acquisition of real property and the construction, renovation, and repair of all facilities.
2. Trustee and Board Committees Authority
   1. The Board of Trustees, upon recommendation from the Investment and Capital Planning Committee, retains sole responsibility for (a) approval of the biennial capital budget request submitted to the State of New Hampshire, (b) approval of 20-year campus master facilities plans, (c) approval of any external debt, including capital leases, associated with real property, and (d) all individual capital acquisitions, dispositions or projects valued at $10 million or greater.
   2. The Board of Trustees delegates to the Investment and Capital Planning Committee responsibility for all other capital planning and budget matters, including overseeing the development, coordination, implementation and monitoring of all long-range capital planning for USNH and its component institutions.
   3. The Board of Trustees delegates to the Investment and Capital Planning Committee the responsibility for overseeing the development and maintenance of capital planning and budgeting processes, approvals and monitoring mechanisms to (a) ensure that limited USNH financial resources are allocated to appropriate priority purposes, (b) ensure adequacy of proper funding sources prior to making capital commitments or recommendations for project approval, (c) provide for proper upkeep of existing physical assets to address deferred maintenance and protect USNH's investment in the physical plant, (d) optimize benefits to all USNH institutions from common investments in information technology, and (e) final approval of projects above the Presidents' authority threshold but less than $10 million dollars, (f) identify promptly projects that are behind schedule or over budget, and (g) promote efficiency, effectiveness, value and fairness with respect to the construction process.
   4. The Investment and Capital Planning Committee will review a multiyear USNH comprehensive capital projects plan, updated at least annually on a 'rolling' basis. The multiyear capital plan will identify all projects expected to cost $2 million or more planned within the minimum of the five year period or as determined regardless of funding source and will articulate with the campuses' multiyear financial plans. To the extent that fundraising is listed as the funding source for projects on the capital projects plan, a multiyear fundraising forecast/plan will be provided by the campus at the same time. The purpose of the multi-year capital projects plan is to engage the Board of Trustees early in planning for major projects by campus, year and funding source to develop common USNH trustee and management understanding and support of priority capital needs and resources needed to fulfill those needs in advance of actual project submittal for approval.
   5. An annual capital budget, representing the first year of the multiyear capital projects plan, will be approved by the Financial Affairs Committee upon recommendation of the Investment and Capital Planning Committee by the start of each fiscal year. The implications of the annual capital budget on the annual operating budget (such as use of cash and debt financing, expected restricted gifts, construction expenditures, depreciation, additional utilities and other operating costs, and additional revenues) will be reflected in the annual budget approved by the Board of Trustees.
   6. Educational and general and auxiliary plant renewal and adaption ("R&A") budgets are expected to be used for physical assets when there is an expected useful life of five years or more and will be for (a) major repairs or replacements of systems and components to extend the life and/or restore systems to their intended function, (b) projects required to incorporate or comply with externally imposed codes and requirements including life safety, building codes, ADA and environmental requirements, including abatement of hazardous materials and environmental cleanup, or (c) major projects that adapt buildings and campus infrastructure to meet the institution's evolving needs and standards, including those that incorporate new technology or support new faculty/staff, classroom changes, or changes in disciplines or curricula. Use of R&A budgeted amounts is allowable for campus master plans and similar studies. Use of R&A budgeted amounts for repayment of internal borrowing is allowable only if the purpose of the original borrowing was for a project that meets the definition of R&A. The use of R&A funds for construction to support new or expanded programmatic needs requires Financial Affairs Committee approval. Costs associated with operations and maintenance, acquisition of real property, or new movable equipment are ineligible to be charged to R&A budgets.
3. Investment and Capital Planning Committee Delegation of Authority to Chancellor
   1. The Investment and Capital Planning Committee delegates to the Chancellor responsibility for developing, in consultation with the institutions, the format, timing, and content of the multiyear, comprehensive USNH capital projects plan. The capital projects plan will take into consideration the existing and future resources of each institution and USNH as a whole, and will prioritize and schedule major capital projects to ensure effective and efficient use of resources.
   2. The Chancellor, in consultation with the institutions, is responsible for developing the format, timing and content of regular periodic reporting of the extent of estimated deferred maintenance on each campus. At a minimum, the Financial Affairs Committee and/or Investment and Capital Planning Committee requires annual reporting of institutional amounts spent on physical plant renewal and adaption ("R&A") and estimated deferred maintenance metrics and trends of each campus using common measurements and format.
   3. The Chancellor, in consultation with the institutions, is responsible for developing detailed, USNH-wide plant spending definitions and budgeting mechanisms to ensure that minimum amounts intended by the Board Committees to be devoted to addressing deferred maintenance are segregated and used for this purpose.
   4. The Chancellor is responsible for preparing periodic reports of existing construction projects in process for purposes of the Investment and Capital Planning Committee oversight.
      3.5  The Chancellor will coordinate the biennial capital appropriation request to the State based on direction provided by the Presidents' Council and the Board of Trustees. If capital appropriations are not received in the amounts or time periods as anticipated in the request, the Presidents' Council will recommend reprioritization of capital projects for consideration and approval of the Financial Affairs Committee. 
4. Investment and Capital Planning Committee Delegation to the Presidents' Council
   1. The Investment and Capital Planning Committee delegates to the Presidents' Council responsibility for developing and applying criteria to be used to guide the prioritization of major capital projects at each institution and across the University System.
   2. The Investment and Capital Planning Committee charges the Presidents' Council with developing and recommending for approval a periodic plan that maximizes shared information technology benefits and efficiencies across USNH, covering all major opportunities in shared services for IT infrastructure, information systems and services, and hardware/software acquisition. This plan will take into account the level of investment required and the ways in which the shared approaches could accommodate different institutional strategies.
5. Investment and Capital Planning Committee Delegation to Presidents
   1. Presidents shall have authority to approve capital construction and renovation projects up to $2 million at Plymouth State University and Keene State College and $5 million at the University of New Hampshire. In cases where a construction delivery method does not set a guaranteed price, approval of the Investment and Capital Planning Committee (and the Board of Trustees if greater possibly greater than $10 million) will be requested if there is a reasonable chance that the project could exceed the President’s or Committee’s authority. The initiation and implementation of all capital projects regardless of amount will follow sound internal controls, good business practices, and periodic reporting requirements developed by the Chancellor in consultation with the Presidents' Council.
   2. Each institution will develop and maintain a comprehensive Campus Master Plan which will guide the institution's physical development for 20 or more years. The plan will address all aspects of the institution, including physical plant, real estate, changes in academic programs requiring additional space, and administrative structure and be presented and approved by the Investment and Capital Planning Committee and the Board of Trustees. The Campus Master Plans will align with systemwide strategic plans, space utilization studies and other related planning documents and set forth the institution's real property holdings (including all leased real property) and the locations of streets, sidewalks, utility and service lines, buildings, athletic and recreational fields, etc. Real property owned by an institution but which is neither in the general vicinity of a campus nor directly used in an educational program shall be listed and described in the supplemental inventory section of the plan. Campus Master Plans will, as a minimum, indicate the approved or proposed development of any facilities or major renovation of existing facilities for which the campus foresees need during the succeeding 20 or more years.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.B.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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B. Property Acquisition

1. Acquisition of Real Property
   1. State law generally exempts the University System from the state competitive bidding requirements for both construction projects (RSA 228:1, et seq.) and the purchase of equipment, supplies, and materials (RSA 21-I:18,I).
   2. State law generally exempts the institutions of the University System from the jurisdiction of zoning regulations in the communities in which the institutions are located.
   3. The Financial Affairs Committee delegates authority to the Chancellor to proceed with the acquisition of property with a cost less than the greater of (a) $1,000,000 or (b) 1% of the most recent final audited institutional unrestricted financial resources ("UFR"; previously known as unrestricted net assets, or "UNA"). If the acquisition is more than the greater of (a) or (b), the Financial Affairs committee must approve the acquisition.
   4. The Chancellor shall be responsible for developing and carrying out prudent procedures for the acquisition of real property, which will protect the financial and legal interests of the University System. Those procedures will include the manner by which fair market value of the property is determined, the obtaining of assessment studies, the securing of expert opinion concerning land-use and environmental impacts and/or liabilities that may be associated with property acquisitions, and the conduct of negotiations leading to such acquisitions.
   5. All real property acquired by USNH must be independently appraised. Each acquisition shall be individually evaluated to determine the number of and nature of appraisals required. All appraisers must be approved by the Chancellor.
2. Acquisition of Equipment, Supplies and Materials
   1. Equipment, supplies, and materials shall be acquired under a competitive bidding process. The Chancellor shall develop and carry out prudent procedures establishing the form and application of the competitive bidding process which shall clearly describe accountability including the approval of exceptions to the bidding policy.
3. Gifts of Real Property, Equipment, Supplies and Materials
   1. The Chancellor shall develop and implement prudent procedures for the evaluation, receipt, and acceptance of gifts of real property. Those procedures shall provide for appropriate financial and legal review and approval of proposed gifts of real property, equipment, supplies and materials. A proposed gift may be accepted only if its value to the University System (whether financial, educational, or otherwise) is greater than its attendant costs, including exposure to financial, legal or other risks.
   2. Acceptance of any gift of real property, equipment, supplies and materials is subject to the terms of the USNH Gift Acceptance Policy BOT IV.J

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.C.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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C. Disposal of Property

1. Disposal of Real Property
   1. The Chancellor shall develop and implement prudent procedures for the disposal of real property. Those procedures shall protect the University System's legal and financial interests and provide that all disposal of real property shall be for fair value. Those procedures may provide exceptions to the disposal process for USNH property interests less than a fee simple absolute. The Chancellor's office shall review and approve all exceptions to the established process.
   2. The Financial Affairs Committee authorizes the disposal of real property for which an approved use or need has not been established. Authority is delegated to the Chancellor to proceed with the disposal of real property with an estimated current market valueless than the greater of (a) $1,000,000 or (b) 1% of the most recent final audited institutional unrestricted financial resources ("UFR"; previously known as unrestricted net assets, or "UNA"). If the disposal is more than the greater of (a) or (b), the Financial Affairs Committee must approve the disposal.
   3. All real property disposed of by USNH, except for certain easements as determined by the Chancellor's office, must be independently appraised. Each sale, transfer, or other disposal of real property shall be individually evaluated by the Chancellor's office to determine the number of, and nature of, appraisals required. All appraisers must be approved by the Chancellor's office.
   4. When the Financial Affairs Committee authorizes the disposal of real property valued in excess of $500,000, the Chancellor publicly advertises the intent to sell, and receives bids from prospective buyers. The USNH reserves the right to accept or reject any and all bids for any reason. The Financial Affairs Committee may authorize the disposal of such real property by any other means which, in the Committee's opinion, will maximize the return to the University System (e.g. negotiated sale or auction). Disposal of real property which a qualified professional appraiser values at $500,000 or less may be accomplished without competitive bidding in such manner as the Chancellor may approve.
   5. Prior to the disposition of any real property, the campus president or designee will provide notice to the chief municipal administrative officer (i.e., mayor, city manager, chairperson of a town board of selectmen) of the intended disposition of real property in order that the affected municipalities may have a reasonable opportunity to express an interest in, or pursue acquisition of, said property prior to disposition.
2. Disposal of Equipment, Supplies, and Materials
   1. The Financial Affairs Committee delegates to the Chancellor authority for developing and implementing prudent procedures for the disposal of equipment, supplies, and materials including procedures for determining when such shall be considered surplus. Those procedures shall protect the University System's legal and financial interests and provide that all disposal of equipment, supplies, and materials shall be for fair value (guidelines will set level and conditions under which campus has the authority).

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.D.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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D. Construction

1. General Policy Relative to Construction
   1. Construction project contracts shall be awarded following an open, competitive process which can include Design/Build, Construction Management and traditional Lump Sum bidding methods. The Chancellor shall develop and implement prudent procedures establishing the form and application of the competitive processes and will ensure the processes comply with generally accepted purchasing guidelines.
   2. Presidents and their staffs are responsible for the design and development of campus construction projects, including the selection of architects. Where volume of activity is insufficient to justify separate campus staffs to administer such projects, central services are provided by the Chancellor's Office to ensure proper control and management. The Chancellor reviews and coordinates initial estimates and funding sources of capital projects for presentation to the Financial Affairs Committee, maintains fiscal control, and reports to the State on all projects supported by capital appropriations.
   3. For each construction project which costs in excess of the delegated amounts in BOT VI.A.5.1, the Financial Affairs Committee approves a Program/Needs Assessment which outlines the proposed project scope, a detailed project budget, and Schematic Design Documents.
   4. Any change order on a Trustee approved project which individually, or when aggregated with other approved and proposed change orders on the same construction project, either materially alters the design of the project or increases the total project cost by more than $500,000 or five percent (5%), whichever is greater must be approved by the Financial Affairs Committee.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.E.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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E. Leasing of Property

1. General Policy on Leasing of Property
   1. The Chancellor, in collaboration with the Administrative Board, shall develop prudent procedures under which the University System may lease real or personal property for its use and may lease its own real or personal property to third parties. Those procedures shall contain sufficient safeguards to adequately protect the legal and financial interests of the University System.
   2. The Financial Affairs Committee must approve any proposal to lease real property (whether USNH is the lessor or lessee) under which the lease payments over the full term would total over the presidential limitations set forth in BOT VI.A.5.1. For lease proposals less than these limitations, the Chancellor must co-approve with the President any proposal to (a) lease real property (whether the University System is the lessor or the lessee) under which the lease payments over the full term would exceed $500,000 or (b) enter into a capital lease whereby there is a bargain purchase amount at the termination of the lease or the lease is merely a method to finance the acquisition of an asset over time. The Financial Affairs Committee must approve for recommendation to the full Board any proposal to lease where the payments would total over $20,000,000.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VI.F.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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F. Operation and Maintenance of Property

1. General Policy on Operations and Maintenance of Property
   1. The property of the University System (including land, buildings, structures, other facilities, equipment, supplies, and materials) shall be operated and maintained in a prudent manner, and with reasonable care, so that the property may be safely and efficiently applied to the pursuit of the University System's educational and other missions.
   2. The Presidents and Chancellor shall develop prudent procedures for the operations and maintenance of the property of the institution. Those procedures shall establish a program of operation and maintenance which will adequately protect the University System's financial and legal interests.
   3. The Presidents and Chancellor shall establish procedures to ensure the prudent management of environmental health and safety in compliance with applicable state and federal laws. Those procedures shall include coordination with the USNH Council on Environmental Health and Safety, with representation from each component institution. These procedures shall also include, where appropriate, a mechanism for measuring compliance through appropriate means including periodic environmental audits. The Chancellor shall coordinate presentation to the Audit Committee of an annual report describing the state of the University System's environmental health and safety efforts at each institution, including the findings of any environmental audit conducted during the reporting period.

(Note: OLPM sections on this page may be cited following the format of, for example, "BOT VII.A.1.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)

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A. System-wide Effect of Disciplinary Suspensions and Expulsions

1. Sanctions Apply Across All USNH Institutions
   1. A student ineligible to register for or attend classes at any one USNH institution because of suspension entered upon finding of responsibility for violation of the institution's code of student conduct shall be ineligible to register for or attend classes at any other USNH institution during the entire period of suspension.
   2. A student ineligible to register for or attend classes at any one USNH institution because of permanent expulsion entered upon finding of responsibility for violation of the institution's code of student conduct shall be ineligible to register for or attend classes at any other USNH institution for a period of two (2) years following the date on which the student was permanently expelled.
   3. A student ineligible to register for or attend classes at any one USNH institution because of a pending student disciplinary charge shall be ineligible to register for or attend classes at any other USNH institution for as long as the charge remains pending.