The
UNC Policy Manual
The
Code
100.1
Technical Corrections 01/04/21
Amended 05/25/23
SECTION
700. BUDGETS AND
APPROPRIATIONS.
700 A. Budget Recommendations.
The Board of Governors shall develop, prepare, and present
to the governor and the General Assembly a single, unified recommended budget
for all of the constituent institutions of the
University of North Carolina. The
recommendations shall consist of requests in three general categories: (i) funds for the
continuing operation of each constituent institution, (ii) funds for salary
increases for employees exempt from the State Human Resources Act, and (iii)
funds requested without reference to constituent institutions, itemized as to
priority and covering such areas as new programs and activities, expansions of
programs and activities, increases in enrollments, increases to accommodate
internal shifts and categories of persons served, capital improvements,
improvements in levels of operation, and increases to remedy deficiencies, as
well as other areas. [See G.S.
116-11(9)a]
700 B. Appropriations and Allocations.
Funds for the continuing operation of each constituent
institution shall be appropriated directly to the institution. Funds for salary increases for employees
exempt from the State Human Resources Act shall be appropriated to the Board of
Governors in a lump sum for allocation to the institutions. Funds for the third category in Section 700 A,
above, shall be appropriated to the Board of Governors in a lump sum. The Board of Governors shall allocate to the
institutions any funds appropriated, said allocation to be made in accordance
with the Board's schedule of priorities; provided, however, that when both the Board
and the director of the budget deem it to be in the best interest of the state,
funds in the third category may be allocated, in whole or in part, for other
items within the list of priorities or for items not included in the list. [See G.S. 116-11(9)b]
700 C. Transfers of Appropriated Funds.
The director of the budget may, on recommendation of the
Board of Governors, authorize transfer of appropriated funds from one
institution to another to provide adjustments for over- or under-enrollment or
may make any other adjustment among institutions that would provide for the
orderly and efficient operation of the institutions. [See G.S. 116-11(9)c]
SECTION
701. TUITION AND FEES.
The Board of Governors shall set tuition and required fees
at the constituent institutions, not inconsistent with actions of the General
Assembly, in such amount or amounts as it may deem best, taking into
consideration the nature of each institution and program of study and the cost
of equipment and maintenance; and each institution shall charge and collect
from each student, at the beginning of each semester or quarter, tuition, fees,
and an amount sufficient to pay other expenses for the term. [See G.S.
116-11(7) and 116-143] Consistent with the North Carolina constitutional
mandate, the benefits of the University of North Carolina shall be extended to
the people of
the state free of expense, as far as practicable. [See N. C. Constitution, Art. IX, Sec. 9]
SECTION
702. GENERAL POWERS
CONCERNING PROPERTY.
702 A. Corporate
Powers.
The Board of Governors
shall have the powers relating to the acquisition, use and disposition of
property, set forth in Chapter I, Section 101 of The Code.
702 B. Statutory
Powers.
Subject to applicable state law and to the terms and
conditions of the instruments under which property is acquired, the Board of
Governors may acquire, hold, convey or otherwise dispose of, invest and
reinvest any and all real and personal property, with the exception of any
property that may be held by trustees of institutional endowment funds under
the provisions of G.S. 116-36 or that may be held, under authority delegated by
the Board of Governors, either by a board of trustees or by trustees of any
other endowment or trust fund. [See G.S.
116-11(2)]
702 C. Transfer of
Property and Obligations.
All property of whatsoever kind and all rights and
privileges held by the former Board of Higher Education and by the former
boards of trustees of Appalachian State University, East Carolina University,
Elizabeth City State University, Fayetteville State University, North Carolina
Agricultural and Technical State University, North Carolina Central University,
University of North Carolina at Pembroke,[1]
University of North Carolina School of the Arts,[2]
Western Carolina University, and Winston-Salem State University, as said
property, rights and privileges may have existed immediately prior to July 1,
1972, are, effective July 1, 1972, transferred to and vested in the Board of
Governors. All obligations of whatsoever
kind of the former Board of Higher Education and of the former boards of
trustees of Appalachian State University, East Carolina University, Elizabeth
City State University, Fayetteville State University, North Carolina Agricultural
and Technical State University, North Carolina Central, University of North
Carolina at Pembroke, University of North Carolina School of the Arts, Western
Carolina University, and Winston-Salem State University, as said obligations
may have existed immediately prior to July 1, 1972, are, effective July 1,
1972, transferred to and assumed by the Board of Governors. Any property, real or personal, held
immediately prior to July 1, 1972, by a board of trustees of a constituent
institution for the benefit of that institution or by the University of North
Carolina for the benefit of any one or more of its six institutions, shall,
from and after July 1, 1972, be kept separate and distinct from other property
held by the Board of Governors, shall continue to be held for the benefit of
the institution or institutions that were previously the beneficiaries, and
shall continue to be held subject to the provisions of the respective
instruments, grants, or other means of process by which any property right was
acquired. All property of whatsoever kind and all rights and privileges held by
the board of trustees of the North Carolina School of Science and Mathematics,
as said property, rights and privileges may have existed immediately prior to
July 1, 2007, are, effective July 1, 2007, transferred to and vested in the
Board of Governors of the University of North Carolina. All obligations of whatsoever kind of the
Board of Trustees of the North Carolina School of Science and Mathematics as
said obligations may have existed immediately prior to July 1, 2007, are,
effective July 1, 2007, transferred to and assumed by the Board of Governors of
the University of North Carolina. In
case a conflict arises as to which property, rights, or privileges were held
for the beneficial interest of a particular institution, or as to the extent to
which such property, rights, or privileges were so held, the Board of Governors
shall determine the issue, and the determination of the Board of Governors
shall constitute final administrative action.
Nothing in The Code
shall be deemed to increase or diminish the income, other revenue, or specific property which is pledged, or otherwise hypothecated, for
the security or liquidation of any obligations, it being the intent that the Board
of Governors shall assume said obligations without thereby either enlarging or
diminishing the rights of the holders thereof.
[See G.S. 116-12]
702
D. Limitation on Exercise of Powers.
The power and authority granted to the Board of Governors with regard to the acquisition, operation, maintenance, and
disposition of real and personal property shall be subject to, and exercised in
accordance with, the provisions of Chapters 143 and 146 of the General
Statutes. [See G.S. 116-13]
SECTION 703. IMMUNITIES.
703
A. Tax Exemption.
The
lands and other property belonging to the University of North Carolina shall be
exempt from all kinds of public taxation.
[See N. C. Constitution, Art. V, Sec. 2(3) and G.S. 116-16]
703
B. Tort Liability.
The
University of North Carolina is not liable for any tort claims except as
provided for by law. [See generally G.S.
143-291, et seq., and G.S. 116-40. 2]
SECTION 704. ENDOWMENT FUND.
Each
board of trustees is authorized to establish and maintain, pursuant to the
requirements of state law and such terms and conditions as the Board of
Governors may from time to time prescribe, permanent endowment funds for its
institutions. [See G.S. 116-36]
SECTION 705. ANNUITY OR RETIREMENT
INCOME CONTRACTS.
Notwithstanding
any provision of law relating to salaries and/or salary schedules for the pay
of faculty members, administrative officers, or any other employees of
universities, colleges, and institutions of higher learning as named and set
forth in The Code and other
state agencies qualified as educational institutions under 501 (c)(3) of the
United States Internal Revenue Code, the Board of Governors may authorize the
business officer or agent for each constituent institution of the University of
North Carolina to enter into annual contracts with any of the faculty members,
administrative officers, and employees of said institutions of higher learning
which provide for a reduction in salary below the total established
compensation or salary schedule for a term of one year. The financial officer or agent shall use the
funds derived from the reduction in the salary of the faculty member,
administrative officer, or employee to purchase a nonforfeitable annuity or
retirement income contract for the benefit of said faculty member, administrative
officer, or employee. A faculty member,
administrative officer, or employee who has agreed to a salary reduction for
this purpose shall not have the right to receive the amount of the salary
reduction in cash or in any other way except the annuity or retirement income
contract. Funds used for the purchase of
an annuity or retirement income contract shall not be in lieu of any amount
earned by the faculty member, administrative officer, or employee before the
individual’s election for a salary reduction has become effective. The agreement for salary reductions referred
to herein shall be effected under any necessary
regulations and procedures adopted by the Board of Governors. The amount by which the salary of any faculty
member, administrative officer, or employee is reduced pursuant to this section
shall not be excluded, but shall be included, in computing and making payroll
deductions for social security and retirement system purposes, and in computing
and providing matching funds for retirement system purposes. [See G.S. 116-17]
SECTION 706. REVENUE BONDS.
The
Board of Governors shall have authority, subject to such limitations and
restrictions as may be established by state law, to issue revenue bonds and
special obligation bonds. Revenue bonds
may be issued for service and auxiliary facilities, student housing, student
activities, physical education, and recreation facilities. [See G.S. 116-41.1 et
seq., 116-175 et seq., and
116-187 et seq.] Special
obligation bonds may be issued for the construction, renovation, improvement,
or expansion of any capital facilities located or to be located at a
constituent or any affiliated institution of the University for the purposes of
carrying out the mission of that institution.
[See G.S. 116D-21 et seq.]