Chapter  II  Organization

Article 5
A national university should establish a Management Committee of Endowment Fund (hereinafter referred to as the “Committee”) to operate the Fund. The Committee shall consist of seven to fifteen members. The principal of the national university shall be an ex-officio member and the convener of the Committee. The other members of the Committee shall be selected by the principal and appointed by the university affairs meeting.
Not less than one-third of the Committee members mentioned in the preceding paragraph shall be representatives of teachers who hold no administrative position in the university, and when it is necessary, outside professionals may be engaged as members. The term of the Committee members will be no longer than two years.

Article 6
The Mission of the Committee:
1. Drafting and deliberation of the Fund’s annual budget estimate.
2. Performance appraisal of the Fund’s income and expenditure, and the use of the Fund.
3. Deliberation of annual financial plans and annual investment plans.
4. Deliberation of regulations for revenue and expenditure control of the self-raised incomes, in accordance with the provisions specified in Article 13, paragraph 2, of the Act.
5. Other budgets and final accounts, income and expenses, custody and use of the Fund.

Article 7
To strengthen internal controls and to ensure the continuing effective operation of the internal control system, a national university shall act in accordance with the following provisions:
1. If the Fund received annual gross income more than two billion New Taiwan dollars, the Committee should engage one to several full-time auditors affiliated to the principal. When necessary, the Committee should establish an ad hoc audit unit with a supervisor.
2. If the Fund received annual gross income less than two billion New Taiwan dollars, the provisions of the preceding paragraph apply, mutatis mutandis, to this case, or the Committee should engage part-time auditors affiliated to the principal.
Both the full-time and part-time auditors shall have auditing experience and relevant professional background. The required manpower should gain from adjusting number of personnel within the limit of existing budget. The supervisor of the audit team may be hired with a contract.
When the auditors carry out the tasks specified in the provisions of Article 8, matters relating to conflicts of interest shall be prescribed by the Ministry of Education.

Article 8
Tasks of an auditor or auditing team in a national university:
1. Matters of personnel, finance, operations, and related party transactions, and ex post audit of the transaction cycle of the Fund.
2. Ex post audit of cash received and paid out, and bad debts treatments.
3. Auditing and Making an inventory of cash, bank deposits, securities, stocks, bonds, and fixed assets.
4. Regular assessment, auditing/collecting operation, and aggregated reports of the Fund’s performance goal attainments of various businesses.
5. Examination and assessment of the efficiency of the use of the Fund and benefits of the various expenses.
6. Other ad hoc audit matters.
The transaction cycle specified in the provisions of the preceding paragraph, subparagraph 1, of the Act includes revenue cycle, procurement and payment cycle, payroll cycle, property management cycle, investment cycle, financing cycle, research and development cycle.
A national university shall draw up an annual audit plan, based on the results of the risk assessment, prepare an annual audit report, and report to university affairs meeting.