Reference is to Printer's Date 4/6/16-S.
Amend the joint resolution, as and if amended, by striking Part 1 and inserting:
SECTION 1. (A)
Pursuant to Proviso 19.2, Part IB, of Act 286 of
2014, South Carolina State University was approved for a loan to
be disbursed through a series of scheduled installments. Any
funds not disbursed to the university pursuant to the schedule
shall be disbursed to the university.
(B)(1) The State
Auditor shall review and audit, if necessary, the financial
structure and activities of South Carolina State University to
ensure sufficient financial and internal controls are in place
to protect the financial integrity of the university. A report
of findings and recommendations shall be submitted to the
Chairman of the Senate Finance Committee, the Chairman of the
House Ways and Means Committee, and the Executive Budget Office,
by December 30, 2016.
(2)
In order to assist the State Auditor, provide for the
adequate training of university financial staff, and provide for
technical assistance to the university board and State Fiscal
Accountability Authority, the Executive Director of the State
Fiscal Accountability Authority shall engage a third-party
accounting consultant to assist the university and the authority
in evaluating and promoting the financial integrity of the
university. The university shall reimburse the authority for
the actual expenses of the consultant, not to exceed $150,000 in
Fiscal Year 2016-2017.
(C) No later than July
31, 2016, the Executive Director of the State Fiscal
Accountability Authority shall enter into a loan repayment
agreement with the university for the $12,000,000 loan
referenced in subsection (A). The terms of the agreement shall,
at a minimum, include a provision that the loan funds disbursed
to South Carolina State University pursuant to Proviso 19.2,
Part IB, of Act 286 of 2014, including any associated interest,
shall be forgiven at a rate of $4,000,000 per year beginning in
Fiscal Year 2016-17, provided that the university has met the
following benchmarks:
(1)
For Fiscal Year 2016-17 the university must have attained
accreditation status from the Southern Association of Colleges
and Schools (SACS); and
(2)
For each subsequent fiscal year the university must:
(a)
maintain such accreditation status;
(b)
attain an increase in net financial position as
demonstrated by the university's published audited financial
statements beginning with Fiscal Year 2016-17 after such
adjustments for pension and other liabilities as recommended by
the accounting consultant and SACS, until such time as the
university has achieved and can maintain a balanced budget and
positive net financial position; and
(c)
achieve a one percent growth in full-time student
enrollment above the prior fiscal year enrollment.
(D)(1) South Carolina
State University must provide a report on a quarterly basis to
the House Ways and Means Higher Education and Technical Schools
Subcommittee and the Senate Finance Higher Education
Subcommittee that includes, but is not limited to, the status of
their fiscal affairs and enrollment growth. The format and
contents of this report shall be developed in consultation with
and approved by the Commission on Higher Education, which shall
cooperatively develop with South Carolina State University
reasonable metrics, benchmarks, and the process for measuring
such metrics to be included in the quarterly report.
(2)
The Commission on Higher Education, by November first of
each year, shall certify to the Chairman of the Senate Finance
Committee, the Chairman of the House Ways and Means Committee,
and the Executive Budget Office that the university has met and
maintained the required benchmarks each fiscal year.
SECTION 2. No later than July 31, 2016, the Executive Director of the State Fiscal Accountability Authority shall enter into a repayment schedule with South Carolina State University to retire the debt incurred by the university pursuant to the April 30, 2014 loan from the Budget and Control Board, succeeded in interest by the State Fiscal Accountability Authority. The repayment terms shall establish installment payments at the rate of $355,036 annually. The provisions contained in this SECTION shall not be implemented if preempted by a permanent loan repayment schedule adopted by the General Assembly. /
Renumber sections to conform.
Amend title to conform.