1. Process for Policy Development and Mechanism for Policy Concerns

2. Examples:  Principals and Procedures Related to Audits Undertaken by the School of Medicine, University Physicians, Inc. and Affiliated Institutions  “One-Sixth Rule” Application to Non- Clinical Consulting at the School of Medicine

3. Application of Laws and Policies  Federal Constitution  Federal Statutes and Associated Regulations (e.g. HIPAA)  State Constitution  State Statutes and Associated Regulations (e.g. State Procurement Code)  Laws of the Regents and Associated Policies

4. Laws of the Regents  Regent Policies: Adopted by the Regents (e.g. Additional Remuneration For Consultative Services; Fiscal Misconduct)  Administrative Policy Statements: Promulgated by the Administration (e.g. Misconduct in Research and Authorship)  Campus Policies: Promulgated by Chancellors (e.g. HSC Fiscal Policies)  School Policies: Promulgated by Deans (e.g. Rules of the School of Medicine)  Departmental Rules (e.g. Faculty Promotion Committee Composition)

5. Principles of Participation Shared Governance is Described in the Laws of the Regents at 5.E.5: “The Chair... of the Faculty Council shall be the spokesperson for the faculty when addressing the Board of Regents on matters of importance to shared governance.”

6. Principal Roles of Faculty and Administration are Described in the Laws of the Regents and Faculty Senate Constitution  Faculty: Educational Policy; Academic Matters  Administration: Internal Operations; External Relations

7. Principles and Procedures Related to Audits Undertaken by the School of Medicine, University Physicians, Inc. and Affiliated Institutions

8. Role of the Department of Internal Audit “The Department of Internal Audit is established by the Board of Regents. The Director of the Department of Internal Audit is appointed by the Board of Regents and reports administratively to the Secretary of the Board. The Director reports functionally to both the Secretary of the Board of Regents and the Chair of the Regent Audit and Financial Advisory Committee, who will timely inform the Board.”

9. Audit Standards, Scope, Reporting “The Department of Internal Audit will conduct its activities in accordance with applicable standards for the professional practice of internal auditing....”

10. Issues with Proposed Policy:  Because Internal Audit Reports to the Regents, Policy will need to be adopted by the Regents  UPI is a Separate Organization. UPI Audit Policy Needs to be Adopted by the UPI Board of Directors  The Department of Internal Audit is Intended to be Independent of Management Relative to its Conduct of Business

11. Considerations:  Dialogue with Director of Internal Audit Specific to Concerns in School or Campus Audits  Dialogue with UPI Board of Directors regarding UPI Audits  Dialogue with Faculty Council regarding interaction with Regents Audit and Financial Advisory Committee

12. “One-Sixth Rule” Laws of the Regents 5.B.3(D)  Full-Time Faculty Expected to Dedicate Professional Time and Effort to University  Consultation Authorized if it does not Interfere with University Responsibilities and not Involve More than One-Sixth Time  Compensation Governed by Alternative Compensation Plans Approved by Regents  School of Medicine; School of Dentistry; School of Pharmacy

13. Additional Remuneration for Consultative Services, Regent Policy 5.E  Policy Adopted in 1944, Amended in 1947 and 2000 (Regent Law 5.B.3(D) Revised in 2002)  20 Hours per Term (Modified to 1/6 th Time)  Approved by Chancellor or Designee  Separate Policies apply to School of Medicine (Broader under Laws – Any School with Regent Approved Alternative Compensation Plan)

14. Considerations:  Regent Laws and Policy can only be amended by the Regents  Changes to Alternative Compensation Plans Must be Approved by the Regents –Involve Dean’s Office –May Require Plan Bylaws Changes  Alternative Access to Regents Through the Chair of Faculty Council