Sec. 4-29. Use of appropriations in conjunction with federal funds.
Sec. 4-29b. Use of indirect cost recoveries.
Sec. 4-29. Use of appropriations in conjunction with federal funds. Any state appropriation or the proceeds of any bond issue authorized by the General Assembly for the purpose of erecting a building or buildings for the use of any state institution, any state university within the Connecticut State University System enumerated in section 10a-87, any technical education and career school or The University of Connecticut, for the development of aviation and for other purposes, may be used in whole or in part as the state's share of the cost of the work involved in conjunction with any funds made available by any branch of the federal government if the Governor so determines and directs.
(1949 Rev., S. 265; P.A. 83-587, S. 3, 96; P.A. 91-256, S. 38, 69; P.A. 12-116, S. 87; P.A. 17-237, S. 26; P.A. 25-22, S. 3.)
History: P.A. 83-587 replaced “state college” with “institution under the jurisdiction of the board of trustees of the Connecticut State University”; P.A. 91-256 made a technical change; pursuant to P.A. 12-116, “vocational school” was changed editorially by the Revisors to “technical high school”, effective July 1, 2012; P.A. 17-237 replaced “state technical high school” with “technical education and career school”, effective July 1, 2017; P.A. 25-22 replaced “institution under the jurisdiction of the Board of Trustees of” with “state university within”, effective June 9, 2025.
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Sec. 4-29b. Use of indirect cost recoveries. Any state agency which receives indirect cost recoveries from federal grant funds or other sources, when such recoveries apply to costs originally paid from the General Fund, shall deposit such cost recoveries with the Treasurer, to the credit of General Fund revenues, unless such deposit is waived by the Secretary of the Office of Policy and Management. This section does not apply to any applicable surcharges on assessments recovered by the state pursuant to sections 12-586f and 12-586g. For purposes of this section “state agency” does not include any constituent unit of the state system of higher education or any state institution of higher education.
(P.A. 00-192, S. 28, 102; June Sp. Sess. P.A. 01-6, S. 15, 85; June Sp. Sess. P.A. 01-9, S. 41, 131; P.A. 25-39, S. 1.)
History: P.A. 00-192 effective July 1, 2000; June Sp. Sess. P.A. 01-6 provided that section does not apply to certain recoveries under Secs. 12-586g and 12-586f, effective July 1, 2001; June Sp. Sess. P.A. 01-9 changed “overhead charges” to “surcharges” re Secs. 12-586g and 12-586f, effective July 1, 2001; P.A. 25-39 made a technical change.
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Sec. 4-30a. Transfer of surplus to Budget Reserve Fund, State Employees Retirement Fund and Teachers' Retirement Fund. Reduction of outstanding state indebtedness. Transfer of funds from Budget Reserve Fund. (a)(1) (A) For the fiscal years commencing on or after July 1, 2017, and ending on or before June 30, 2024, all revenue in excess of three billion one hundred fifty million dollars received by the state each fiscal year from estimated and final payments of the personal income tax imposed under chapter 229 and the affected business entity tax imposed under section 12-699 shall be transferred by the Treasurer to a special fund to be known as the Budget Reserve Fund. On and after July 1, 2018, the threshold amount shall be adjusted annually by the compound annual growth rate of personal income in the state over the preceding five calendar years, using data reported by the United States Bureau of Economic Analysis.
(B) For the fiscal year ending June 30, 2025, the threshold amount prescribed by subparagraph (A) of this subdivision shall be four billion seventy-nine million three hundred thousand dollars.
(C) For the fiscal year ending June 30, 2026, the threshold amount prescribed by subparagraph (A) of this subdivision shall be four billion seven hundred twenty-eight million six hundred thousand dollars. On and after July 1, 2026, the threshold amount shall be adjusted annually by the compound annual growth rate of personal income in the state over the preceding five calendar years, using data reported by the United States Bureau of Economic Analysis.
(2) The General Assembly may amend the threshold amount determined under subdivision (1) of this subsection, by vote of at least three-fifths of the members of each house of the General Assembly, due to changes in state or federal tax law or policy or significant adjustments to economic growth or tax collections.
(b) After the accounts for the General Fund have been closed for each fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, after any amounts required by provision of law to be transferred for other purposes have been deducted, the amount of such surplus shall be transferred by the Treasurer to the Budget Reserve Fund.
(c) (1) (A) Prior to July 1, 2024, whenever the amount in the Budget Reserve Fund equals fifteen per cent of the net General Fund appropriations for the current fiscal year, no further transfers shall be made by the Treasurer to the Budget Reserve Fund and the amount of such funds in excess of that transferred to said fund shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (i) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (ii) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(B) On and after July 1, 2024, whenever the amount in the Budget Reserve Fund equals fifteen per cent or more but less than eighteen per cent of the net General Fund appropriations for the current fiscal year, (i) fifty per cent of the amount of such surplus in excess of that transferred to the Budget Reserve Fund shall be transferred to said fund, to a maximum amount in said fund of eighteen per cent of the net General Fund appropriations for the current fiscal year, and (ii) fifty per cent of the amount of such surplus shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (I) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (II) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(C) On and after July 1, 2024, whenever the amount in the Budget Reserve Fund equals eighteen per cent of the net General Fund appropriations for the current fiscal year, no further transfers shall be made by the Treasurer to the Budget Reserve Fund and the amount of such funds in excess of that transferred to said fund shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (i) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (ii) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(d) Any surplus in excess of the amounts transferred to the Budget Reserve Fund and the state employees retirement system or the teachers' retirement system, as applicable, shall be deemed to be appropriated for: (1) Redeeming prior to maturity any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state; (2) purchasing outstanding indebtedness of the state in the open market at such prices and on such terms and conditions as the Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; (3) providing for the defeasance of any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state by irrevocably placing with an escrow agent in trust an amount to be used solely for, and sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; (4) making additional payments towards unfunded past service liability of the state employees retirement system or of the teachers' retirement system, as selected by the Treasurer in the best interests of the state; or (5) any combination of these methods. Pending the use or application of such amount for the payment of interest and principal, such amount may be invested in (A) direct obligations of the United States government, including state and local government treasury securities that the United States Treasury issues specifically to provide state and local governments with required cash flows at yields that do not exceed Internal Revenue Service arbitrage limits, (B) obligations guaranteed by the United States government, and (C) securities backed by United States government obligations as collateral and for which interest and principal payments on the collateral generally flow immediately through to the security holder.
(e) Whenever the amount in the Budget Reserve Fund equals five per cent or more of the net General Fund appropriations for the current fiscal year, the General Assembly may transfer funds in excess of the five per cent threshold from the Budget Reserve Fund, for the purpose of paying unfunded past service liability of the state employees retirement system or of the teachers' retirement system as the General Assembly, in consultation with the Treasurer, determines to be in the best interests of the state. Such payments shall be in addition to any other contributions or payments required pursuant to section 5-156a or 10-183z or subsections (c) and (d) of this section.
(f) Moneys in the Budget Reserve Fund shall be expended only as provided in this subsection and subsection (e) of this section.
(1) Whenever in any fiscal year the Comptroller has determined the amount of a deficit applicable with respect to the immediately preceding fiscal year, to the extent necessary, the amount of funds credited to the Budget Reserve Fund shall be deemed to be appropriated for purposes of funding such deficit.
(2) The General Assembly may transfer funds from the Budget Reserve Fund to the General Fund if any consensus revenue estimate maintained or revised pursuant to section 2-36c for the current biennium projects a decline in General Fund revenues for the current biennium of one per cent or more from the total amount of General Fund estimated revenue on which the budget act or any adjusted appropriation and revenue plan, enacted by the General Assembly for the current biennium, was based. Any such transfer may be made at any time during the remainder of the current biennium.
(3) The General Assembly may transfer funds from the Budget Reserve Fund to the General Fund if the consensus revenue estimate maintained or revised not later than April thirtieth annually pursuant to section 2-36c projects a decline in General Fund revenues, in either year or both years of the biennium immediately following such consensus revenue estimate, of one per cent or more from the total of General Fund appropriations for the current year. Any such transfer shall be made in the fiscal year for which such deficit is projected.
(g) The Treasurer is authorized to invest all or any part of said fund in accordance with the provisions of section 3-31a. The interest derived from the investment of said fund shall be credited to the General Fund.
(P.A. 79-623, S. 6, 8; P.A. 82-443, S. 1, 3; June Sp. Sess. P.A. 83-37, S. 1, 3; P.A. 85-516, S. 1, 8; P.A. 86-403, S. 8, 132; June 23, Sp. Sess. II P.A. 86-1, S. 7, 10; P.A. 92-205, S. 6, 12; May Sp. Sess. P.A. 92-14, S. 1, 11; P.A. 02-118, S. 1; P.A. 03-2, S. 56; P.A. 15-244, S. 164; June Sp. Sess. P.A. 17-2, S. 704, 729; P.A. 18-49, S. 7; 18-81, S. 20; P.A. 23-1, S. 15; P.A. 25-168, S. 386.)
History: P.A. 82-443 amended Subsec. (a) to repeal provision that not less than 10% of any surplus, when determined, be transferred to the budget reserve fund, and to provide that the entire amount of any surplus, when determined, be transferred to said fund, added provision to Subsec. (a) that the amount of any surplus which may not be transferred to the budget reserve fund because of the maximum size of said fund, shall be deemed to be appropriated to retire state indebtedness and amended Subsec. (b) to provide that when a deficit has been determined for the immediately preceding fiscal year, funds credited to the budget reserve fund shall be deemed to be appropriated to fund such deficit; June Sp. Sess. P.A. 83-37 amended Subsec. (a) to provide that the portion of the state's total indebtedness to be retired by the amount of surplus in excess of that transferred to the budget reserve fund is the portion of indebtedness “in excess of the state's normal debt retirement schedule” and amended Subsec. (b) to repeal provision authorizing expenditure of moneys in budget reserve fund upon request of governor and approval of two-thirds of each house of the general assembly; P.A. 85-516 amended Subsec. (c) by adding provision that the interest derived from the investment of the fund shall be credited to the general fund; P.A. 86-403 made technical change in Subsec. (a); June 23 Sp. Sess. II P.A. 86-1 amended Subsec. (a) to clarify that “the amount in said fund” and “general fund appropriations” are “for the fiscal year in progress” and to replace purposes for which amount of surplus in excess of that transferred to budget reserve fund shall be deemed to be appropriated with purposes in Subdivs. (1) to (4), inclusive, and added provision re investment of amount pending application of such amount for payment of interest and principal; P.A. 92-205 amended Subsec. (a) to add provision re appropriation of surplus to state employees retirement fund, but not exceeding 5% of unfunded past service liability of the system; May Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205 but did not affect the date applicable to this section; P.A. 02-118 amended Subsec. (a) to increase amount of surplus transferred to fund from 5% to 7.5% of net General Fund appropriations for fiscal year in progress, effective July 1, 2002; P.A. 03-2 amended Subsec. (a) to increase amount of surplus transferred to fund from 7.5% to 10% of net General Fund appropriations for the fiscal year in progress, effective February 28, 2003; P.A. 15-244 substantially revised Subsec. (a) to designate existing provisions as Subdivs. (3), (6) and (7), define “combined revenue” in new Subdiv. (1), establish Restricted Grants Fund in new Subdiv. (2), establish transfer formulas commencing in fiscal year ending June 30, 2021, in new Subdiv. (4), require the Comptroller to certify threshold level for deposits to Budget Reserve Fund in new Subdiv. (5), and revise formula for transfer to State Employees Retirement Fund in Subdiv. (6), amended Subsec. (b) to describe purpose of Budget Reserve Fund and provide formula for transfer when 2 per cent decline in tax revenue is projected, added Subsec. (d) re approval by General Assembly of any bill to reduce or eliminate amount of deposit to Budget Reserve Fund and Subsec. (e) re reports to General Assembly, and made technical and conforming changes throughout, effective July 1, 2019; June Sp. Sess. P.A. 17-2 added new Subsec. (a) re transfer of revenue in excess of $3,150,000,000 of estimated and final payments of personal income tax to Budget Reserve Fund, redesignated existing Subsec. (a) as Subsecs. (b) and (c), substantially amended redesignated Subsec. (c) re use of funds in excess of Budget Reserve Fund threshold levels, redesignated existing Subsec. (b) as Subsec. (d) and amended same by designating existing provisions re amounts deemed appropriated as Subdiv. (1) and adding Subdivs. (2) and (3) re General Assembly transfer of funds from Budget Reserve Fund, redesignated existing Subsec. (c) as Subsec. (e), made technical and conforming changes, and repealed P.A. 15-244, S. 164, effective July 1, 2019, effective October 31, 2017; P.A. 18-49 amended Subsec. (a) to add reference to affected business entity tax imposed under Sec. 12-699, effective May 31, 2018; P.A. 18-81 amended Subsec. (a) to designate existing provision re transfer of estimated and final payments of personal income tax as Subdiv. (1), amend same to add annual adjustment of threshold amount, and add Subdiv. (2) re amendment of threshold amount by General Assembly, effective May 15, 2018; P.A. 23-1 amended Subsec. (c) to specify application of Subpara. (A) to prior to July 1, 2024, add Subparas. (B) and (C) re amounts in Budget Reserve Fund and use of surplus in excess of transferred amounts on and after July 1, 2024, redesignate existing Subpara. (B) as Subsec. (d) and make conforming changes in Subdiv. (1), and redesignate existing Subdiv. (2) as Subsec. (e) and make conforming changes, redesignated existing Subsec. (d) as Subsec. (f) and made a conforming change, and redesignated existing Subsec. (e) as Subsec. (g), effective July 1, 2023; P.A. 25-168 amended Subsec. (a) to redesignate Subdiv. (1) as Subdiv. (1)(A) and amend same to specify its application to fiscal years commencing on or after July 1, 2017, and ending on or before June 30, 2024, add Subdiv. (1)(B) and (C) re threshold amounts for fiscal year ending June 30, 2025, and June 30, 2026, and annual adjustments thereafter, and make a conforming change in Subdiv. (2), effective June 30, 2025.
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Sec. 4-31a. Disposition of gifts, contributions, trust income or other aid from private source or federal government. (a) Any gift, contribution, income from trust funds, or other aid from any private source or from the federal government, except federal aid for highway and bridge purposes or federal funds in the possession of the Board of Control of the Connecticut Agricultural Experiment Station, the Board of Trustees of The University of Connecticut, the Board of Regents for Higher Education, or the Employment Security Division of the Labor Department, or any other gift, grant or trust fund in the possession of any of said boards, shall be entered upon the records of the General Fund in the manner prescribed by the Secretary of the Office of Policy and Management. When so recorded, such amounts shall be deemed to be appropriated to the purposes of such gift, contribution or other aid and shall be allotted in accordance with law. No gift, contribution, income from trust funds, or other aid from any private source or from the federal government that is subject to this subsection shall require allotment, except upon a notice by the Secretary of the Office of Policy and Management that the state agency receiving such funding has failed to consistently provide the notifications required in subsection (e) of section 4-66a.
(b) Notwithstanding the provisions of subsection (a) of this section, any funds that are donated or contributed by any private source with the intent that such gift or contribution be used to support coordinated emergency recovery, as defined in section 4-37e, shall not be entered upon the records of the General Fund and such amounts shall not be deemed to be appropriated to the purposes of such gift or contribution.
(c) No fund shall be created and set up on the books of the state except by act of the General Assembly or upon the approval of the Governor.
(1959, P.A. 337, S. 1; 1971, P.A. 502, S. 1; P.A. 77-614, S. 19, 610; P.A. 82-218, S. 39, 46; P.A. 86-205, S. 1; P.A. 89-260, S. 2, 41; P.A. 91-256, S. 39, 69; P.A. 97-131, S. 2, 5; P.A. 13-275, S. 3; P.A. 25-22, S. 4.)
History: 1971 act included federal funds of boards of trustees for state colleges, community colleges and technical colleges in funds exempt from inclusion in general fund; P.A. 77-614 substituted secretary of the office of policy and management for commissioner of finance and control; P.A. 82-218 replaced “state colleges” with “Connecticut State University” pursuant to reorganization of higher education system, effective March 1, 1983; P.A. 86-205 amended Subsec. (a) to include federal funds in the possession of the employment security division of the labor department within funds exempt from inclusion in general fund; P.A. 89-260 in Subsec. (a) substituted “board of trustees of the community-technical colleges” for the board of trustees for regional community colleges and the board of trustees of the state technical colleges; P.A. 91-256 made a technical change; P.A. 97-131 added provision that gifts, contributions, income from trust funds and other aid from private sources and the federal government do not require allotment except upon notice by the Secretary of the Office of Policy and Management that the state agency receiving the funding has consistently failed to provide the notification required by Sec. 4-66a(e), effective June 13, 1997; P.A. 13-275 added new Subsec. (b) re treatment of funds donated or contributed by private source to support coordinated emergency recovery and redesignated existing Subsec. (b) as Subsec. (c), effective July 11, 2013; P.A. 25-22 amended Subsec. (a) by replacing reference to the Boards of Trustees of the Connecticut State University System and Community-Technical Colleges with Board of Regents for Higher Education, effective June 9, 2025.
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Sec. 4-37e. Definitions. As used in this section and sections 4-37f to 4-37j, inclusive:
(1) “State agency” means each state board, authority, commission, department, office, institution, council or other agency of the state including, but not limited to, each constituent unit and each public institution of higher education.
(2) “Foundation” means an organization, fund or any other legal entity which is (A) exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and (B) established for the principal purpose of receiving or using private funds for charitable, scientific, cultural, educational or related purposes that support or improve a state agency or for coordinated emergency recovery purposes. Such an organization, fund or other legal entity shall not be deemed to be a state agency or a public agency, as defined in section 1-200.
(3) “Executive authority” means (A) a department head, as defined in section 4-5, (B) the executive secretary or president of a constituent unit, (C) the chief executive officer of a public institution of higher education and, if such public institution of higher education is the Connecticut State Community College, the chief executive officer of a campus of such college, and (D) the chief executive officer of any other state agency.
(4) “Constituent unit” means a constituent unit as defined in section 10a-1.
(5) “Public institution of higher education” means a public college or university in the state system of higher education, any campus of the Connecticut State Community College, or The University of Connecticut School of Law.
(6) “Coordinated emergency recovery” means the support and improvement of state services affected by a natural disaster, act of domestic terrorism, catastrophic event or other unforeseen emergency, including, but not limited to, services provided by the Department of Emergency Services and Public Protection and the Office of Victim Services.
(P.A. 89-267, S. 1; P.A. 98-68, S. 1, 3; P.A. 01-141, S. 14; P.A. 13-275, S. 1; P.A. 23-3, S. 1; P.A. 25-22, S. 5.)
History: P.A. 98-68 applied section to Sec. 4-37j, effective July 1, 1998; P.A. 01-141 redefined “foundation” to provide that such organization, fund or other legal entity not be deemed a public agency as defined in Sec. 1-200; P.A. 13-275 amended Subdiv. (2) by redefining “foundation” to clarify reference to Internal Revenue Code of 1986 and include an entity established “for coordinated emergency recovery purposes” and added Subdiv. (6) defining “coordinated emergency recovery”, effective July 11, 2013; P.A. 23-3 redefined “executive authority” in Subdiv. (3) and “public institution of higher education” in Subdiv. (5), effective July 1, 2023; P.A. 25-22 replaced reference to a state community-technical college with Connecticut State Community College in Subdivs. (3) and (5), effective June 9, 2025.
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Sec. 4-37f. Requirements for foundations established for principal purpose of supporting or improving state agencies or for coordinated emergency recovery purposes. The executive authority of each state agency for which a foundation is established shall, in accordance with a policy adopted by the board of trustees of the constituent unit for each state agency which is a constituent unit or which is a public institution of higher education under the jurisdiction of the constituent unit, ensure that, or the executive authority of each state agency for which a foundation is established for the principal purpose of coordinated emergency recovery shall ensure that:
(1) The foundation shall have a governing board to oversee its operation;
(2) If the state agency is a constituent unit, the following persons shall serve as nonvoting members of the governing board of the foundation unless the bylaws of the foundation provide that they be voting members: The executive authority of the constituent unit, or his designee, a student enrolled at an institution under the jurisdiction of the constituent unit, who shall be elected by the students enrolled at the institutions under the jurisdiction of the constituent unit, and a member of the faculty of any such institution, who shall be elected by the faculty of the institutions under the jurisdiction of the constituent unit. Elections pursuant to this subdivision shall be conducted in accordance with procedures for such elections established by the board of trustees of the constituent unit;
(3) If the constituent unit is the Connecticut State Community College or the Connecticut State University System, the purposes of the foundation shall be limited to providing funding for (A) scholarships or other direct student financial aid, and (B) programs, services or activities at one or more of the institutions within its jurisdiction;
(4) If the state agency is a public institution of higher education, the following persons shall serve as nonvoting members of the governing board of the foundation unless the bylaws of the foundation provide that they be voting members: The executive authority of the institution, or his designee, a student enrolled at the institution, who shall be elected by the students enrolled in the institution and a member of the faculty of the institution, who shall be elected by the faculty of the institution. Elections pursuant to this subdivision shall be conducted in accordance with procedures for such elections established by the governing board of the constituent unit which has jurisdiction over the institution;
(5) The governing board of the foundation shall annually file with the state agency an updated list of the members and officers of such board;
(6) The salaries, benefits and expenses of officers and employees of the foundation shall be paid solely by the foundation;
(7) The foundation shall use generally accepted accounting principles in its financial record-keeping and reporting and shall not engage in any prohibited act, as described under section 21a-190h of the Solicitation of Charitable Funds Act;
(8) A foundation which has in any of its fiscal years receipts and earnings from investments totaling two hundred fifty thousand dollars per fiscal year or more, or a foundation established for the principal purpose of coordinated emergency recovery that operated in response to an eligible incident, as defined in section 4-37r, during the fiscal year or with funds that exceeded two hundred fifty thousand dollars in the aggregate, shall have completed on its behalf for such fiscal year a full audit of the books and accounts of the foundation. A foundation which has receipts and earnings from investments totaling less than two hundred fifty thousand dollars in each fiscal year during any three of its consecutive fiscal years beginning October 1, 2018, shall have completed on its behalf for the third fiscal year in any such three-year period a full audit of the books and accounts of the foundation, unless such foundation was established for the principal purpose of coordinated emergency recovery and had completed on its behalf such an audit for any year in any such three-year period. For each fiscal year in which an audit is not required pursuant to this subdivision financial statements shall be provided by the foundation to the executive authority of the state agency. Each audit under this subdivision shall be (A) conducted by an independent certified public accountant or, if requested by the state agency with the consent of the foundation, the Auditors of Public Accounts, (B) conducted in accordance with generally accepted auditing standards, and (C) completed, and a copy of such audit submitted, in accordance with this section, not later than six months after the end of the applicable fiscal year. The auditor shall submit (i) a report that includes an opinion regarding the financial statements and a management letter, and (ii) a report that includes an opinion on conformance of the operating procedures of the foundation with the provisions of sections 4-37e to 4-37i, inclusive, and recommendations for any corrective actions needed to ensure such conformance. Each audit report shall disclose the receipt or use by the foundation of any public funds in violation of said sections or any other provision of the general statutes. The foundation shall provide a copy of each audit report completed pursuant to this subdivision to the executive authority of the state agency and the Attorney General. Each financial statement required under this subdivision shall include, for the fiscal year to which the statement applies, the total receipts and earnings from investments of the foundation and the amount and purpose of each receipt of funds by the state agency from the foundation. As used in this subdivision, “fiscal year” means any twelve-month period adopted by a foundation as its accounting year;
(9) If the state agency is The University of Connecticut and the foundation has an endowment fund with a market value that is greater than one million five hundred thousand dollars, the foundation shall annually provide the following, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to higher education, the speaker of the House of Representatives, the president pro tempore of the Senate, the majority leader of the House of Representatives, the majority leader of the Senate, the minority leader of the House of Representatives and the minority leader of the Senate: (A) A list of the current members and officers of the governing board of the foundation; (B) a copy of the most recent annual report of the foundation; (C) a copy of the most recent audited financial statements, management letter and audit reports of the foundation that are required under subdivision (8) of this section; (D) a copy of the written agreement between the state agency and the foundation that is required under subdivision (10) of this section; (E) a copy of the written policy required under section 4-37j; (F) a copy of any conflicts of interest policy of the foundation; (G) a copy of the foundation's most recently filed Internal Revenue Service form 990, including all parts and schedules that are required to be made available for public inspection under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time; (H) a copy of the bylaws of the foundation; (I) a report of the total number and average size of disbursements made to each public institution of higher education for (i) undergraduate and graduate scholarships, fellowships and awards, (ii) program and research support, (iii) equipment, and (iv) facilities construction, improvements and related expenses; (J) as to any employee of the public institution of higher education for whom the foundation contributes some or all of the salary, wages or fringe benefit expenses, a report listing the position of each such employee and, for each position, the amount of the financial reimbursement by the foundation to the public institutions of higher education for such employee's salary, wages or fringe benefit expenses; (K) the identity of any person, firm, corporation or other entity donating funds or other things of value to the foundation, unless the donor has requested that such donor's identity not be publicly disclosed; and (L) a list of all deanships, professorships, chairs, schools, institutes, centers or facilities of the state agency that were named in recognition of foundation donors upon the approval of the board of trustees of the state agency during the preceding fiscal year. The information delivered under this subdivision shall constitute a public record and shall be disclosed in accordance with the Freedom of Information Act, as defined in section 1-200. Nothing in this subdivision shall require the disclosure of the identity of any person, firm, corporation or other entity that donated or made a commitment to donate funds or other things of value to the foundation prior to July 1, 2017;
(10) There shall be a written agreement between the state agency and the foundation that (A) addresses any use by the foundation of the agency's facilities and resources including, but not limited to, office space, storage space, office furniture and equipment, utilities, photocopying services, computer systems and the maintenance by the state agency of the books and records of the foundation, provided any such books and records maintained by the state agency shall not be deemed to be public records and shall not be subject to disclosure pursuant to the provisions of section 1-210, (B) provides that the state agency shall have no liability for the obligations, acts or omissions of the foundation, (C) requires the foundation to reimburse the state agency for expenses the agency incurs as a result of foundation operations, if the agency would not have otherwise incurred such expenses, (D) in the case of foundations established for a constituent unit of the state system of higher education or for a public institution of higher education, requires the foundation to establish and adhere to an investment policy and a spending policy that are consistent with sections 45a-535 to 45a-535i, inclusive, (E) on and after July 1, 2017, if the state agency is The University of Connecticut, provides that (i) the total cash compensation to be paid in a fiscal year by the state agency to the foundation shall decrease from the amount paid in the preceding fiscal year or the amount paid in the fiscal year ending June 30, 2016, whichever is greater, by (I) one million dollars when the market value of the foundation's endowment fund as of January first of the preceding fiscal year is equal to or greater than five hundred million dollars but less than seven hundred million dollars, (II) one million five hundred thousand dollars when the market value of such fund as of January first of the preceding fiscal year is equal to or greater than seven hundred million dollars but less than nine hundred million dollars, or (III) three million dollars when the market value of such fund as of January first of the preceding fiscal year is equal to or greater than nine hundred million dollars but less than one billion two hundred fifty million dollars, (ii) no cash compensation shall be paid by the state agency to the foundation when the amount in such foundation's endowment fund as of January first of the preceding fiscal year is equal to or greater than one billion two hundred fifty million dollars, (iii) if the market value of the foundation's endowment fund as of January first of the preceding fiscal year decreases below any of the thresholds stated in subclause (I), (II) or (III) of clause (i) of this subparagraph, then the amount of the cash payment to the foundation shall be increased to equal the same amount that was paid to the foundation prior to exceeding the threshold in subclause (I), (II) or (III) of clause (i) of this subparagraph, until the July first following a January first on which the market value of the foundation's endowment fund again exceeds such threshold, and (iv) in any fiscal year, if the two-year average of total gifts and commitments reported by the foundation, pursuant to subparagraph (B) of subdivision (9) of this section, for the preceding two fiscal years is not less than five times the average total cash compensation paid by the state agency during the same period, the provisions of clauses (i) to (iii), inclusive, of this subparagraph shall not be applicable to the cash compensation paid by the state agency to the foundation in such fiscal year, (F) on and after July 1, 2017, requires the foundation to use reasonable efforts to raise gifts and commitments each fiscal year for student support, including, but not limited to, scholarships, assistantships, fellowships, awards and prizes, that equal not less than fifteen per cent of the total amount of all gifts and commitments raised by the foundation in the same fiscal year, and (G) provides that if the foundation ceases to exist or ceases to be a foundation, as defined in section 4-37e, (i) the foundation shall be prohibited from using the name of the state agency, (ii) the records of the foundation, or copies of such records, shall be made available to and may be retained by the state agency, provided any such records or copies which are retained by the state agency shall not be deemed to be public records and shall not be subject to disclosure pursuant to the provisions of section 1-210, and (iii) there are procedures for the disposition of the financial and other assets of the foundation. If the state agency is a constituent unit, the board of trustees of the constituent unit shall approve such agreement. If the state agency is a public institution of higher education, the board of trustees of the constituent unit which has jurisdiction over the institution shall approve such agreement; and
(11) If the foundation is established for the principal purpose of coordinated emergency recovery, the Department of Emergency Services and Public Protection shall be deemed the state agency for purposes of this section, and the deputy commissioner of said department with jurisdiction over the Division of Emergency Management and Homeland Security shall be deemed the executive authority for purposes of this section.
(P.A. 89-267, S. 2; P.A. 94-180, S. 13, 17; P.A. 95-259, S. 1, 32; P.A. 96-244, S. 40, 63; P.A. 99-285, S. 9, 12; P.A. 08-6, S. 1; P.A. 13-275, S. 2; P.A. 16-93, S. 1; P.A. 18-137, S. 4; P.A. 21-19, S. 1; P.A. 25-22, S. 6.)
History: P.A. 94-180 added Subdiv. (3) limiting the purposes of foundations established by the boards of trustees of the community-technical colleges and the Connecticut State University system and renumbered the remaining Subdivs., effective July 1, 1994; P.A. 95-259 amended Subdivs. (2) and (4) concerning the bylaws and voting members, effective July 6, 1995; P.A. 96-244 amended Subdiv. (8) to allow the audit to be conducted by the Auditors of Public Accounts, if requested by the state agency, effective June 6, 1996; P.A. 99-285 amended Subdiv. (9) to designate the existing Subpara. (D) as Subpara. (E) and to add a new Subpara. (D) re investment and spending policy for foundations established for constituent units of the state system of higher education or for public institutions of higher education, effective July 1, 1999; P.A. 08-6 amended Subdiv. (9)(D) to replace references to repealed sections with references to Secs. 45a-535 to 45a-535i, effective April 29, 2008; P.A. 13-275 added provision re obligations of executive authority of each state agency for which a foundation is established for principal purpose of coordinated emergency recovery, made a technical change in Subdiv. (3), amended Subdiv. (8) to make full audit requirement applicable to foundation established for principal purpose of coordinated emergency recovery that operated in response to an eligible incident during the fiscal year or with funds that exceeded $100,000 in the aggregate, to exempt such foundation from requirement of full audit for third fiscal year in three-year period for foundations having receipts and earnings of less than $100,000 in each fiscal year if such foundation had completed on its behalf such an audit for any year in any such three-year period, and to require foundation to provide copy of audit report to the Attorney General, and added Subdiv. (10) re which department is deemed the state agency and which official is deemed the executive authority for purposes of section when foundation is established for principal purpose of coordinated emergency recovery, effective July 11, 2013; P.A. 16-93 replaced reference to Board of Trustees of Community-Technical Colleges and Board of Trustees of Connecticut State University System with reference to regional community-technical colleges or Connecticut State University System in Subdiv. (3), added reference to prohibited act described in Solicitation of Charitable Funds Act in Subdiv. (7), rephrased provision re auditors' submission of reports and made a technical change in Subdiv. (8), added new Subdiv. (9) re information provided by foundation of The University of Connecticut, redesignated existing Subdiv. (9) re written agreement as Subdiv. (10) and amended same to make a technical change, add new Subparas. (E) and (F) re payment of compensation by The University of Connecticut to foundation and redesignate existing Subpara. (E) re if foundation ceases to exist or be a foundation as Subpara. (G), and redesignated existing Subdiv. (10) re foundation established for principal purpose of coordinated emergency recovery as Subdiv. (11), effective July 1, 2017; P.A. 18-137 amended Subdiv. (8) to change references of $100,000 to $250,000, replace “October 1, 1986” with “October 1, 2018”, make technical changes and add Subpara. (C) re deadline for submission of completed audit; P.A. 21-19 amended Subdiv. (10) by adding Subpara. (E)(iv) re exemption from Subpara. (E)(i) to (iii) when 2-year average of gifts reported by foundation is not less than 5 times the 2-year average cash compensation paid by The University of Connecticut to foundation, effective July 1, 2021; P.A. 25-22 replaced reference to regional community-technical colleges with Connecticut State Community College in Subdiv. (3) and replaced reference to board of trustees with governing board in Subdiv. (4), effective June 9, 2025.
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