Purpose and Use of Corporate Reserves
The AUI Corporation has Corporate Reserves for the purpose of providing:
- A source of funds for activities that are consistent with the Corporate Charter, but are not supported by contracts through an indirect cost rate or a management fee
- For the orderly dissolution of the Corporation if necessary
The use of Corporate Reserves is subject to review and approval by the AUI Board of Trustees on an annual basis.
Investment and Management of Corporate Reserves
The Corporation is legally obligated to be prudent in its investment management while making every effort to achieve the maximum total return and minimizing risk as much as is possible and prudent.
On behalf of the Board, the Operations and Administration Committee provides continuous oversight of the reserve account and the investments. As part of its oversight, the Committee will develop a Statement of Investment Policy that will be reviewed and approved by the Board. The Committee is also responsible for approving the appointment of the managers of the reserve account. A report to the Board on the status of the reserve account shall be made by the Committee at each of its regularly scheduled meetings.
Disposition of Corporate Reserves in the Event of AUI’s Dissolution
In the event that the Corporation is dissolved, the disposition of the remaining Corporate Reserves by the Board shall be in the following order:
- The fulfillment of any outstanding legal obligations of the Corporate Office not otherwise covered by operating funds or provided for by contracts and grants; and,
- The closeout of the Corporate office including severance costs for corporate personnel.
- The funds remaining after having met all Corporate financial obligations shall be expended in a manner consistent with the Corporate Charter upon approval by the Board of Trustees.