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Responsible Office:

Procedure Title:
Chief Administrative Officer Fund Requirements

Document Number:

Effective Date:
March 01, 2016

This procedure item applies to:
State-Operated Campuses

Table of Contents

Related Procedures
Other Related Information


Article XVI of the Policies of the Board of Trustees requires each school of medicine and dentistry and the College of Optometry whose employees engage in clinical practice and receive clinical practice income from fees for professional services rendered in connection with such clinical practice to have a plan for the management of clinical practice income that is consistent with the requirements set forth in this Article.  Nothing contained in such plan shall allow actions to be taken by the individual plan members or any governing board which are inconsistent with the educational mission of the College (Article XVI, §2).  The President (Chief Administrative Officer or CAO), or designee, shall assure that no actions are taken under the clinical practice plan that are inconsistent with the educational mission of the College (Article XVI, §4(a)).

Article XVI, §4(g)(1) provides for a disbursement of clinical practice income in the amount of five percent of the gross income from each plan that shall be deposited into a fund at the school of medicine or dentistry or College of Optometry to be administered by the Chief Administrative Officer (President), or designee, specifically for the benefit of the school of medicine, dentistry or College of Optometry.

The College of Optometry terminated non-State billing some years ago with all care providers (other than by contract with private entities) now serving as employees of the College.  Since there is no clinical practice income, and hence no “Plan for the Management of Clinical Practice Income” currently in place at the College of Optometry, the reference to that institution will not appear in the text which follows.  In the event the College of Optometry does reinstitute such a plan, it is intended that this procedure will be equally applicable to that institution.

The CAO (President), or designee, of each SUNY College having a school of medicine or dentistry and a Plan for the Management of Clinical Practice Income must therefore establish a “CAO Fund” with appropriate recordkeeping and oversight to ensure that it receives the full 5% of the gross clinical practice income, that sound business practices are used in managing the Fund, and that expenditures from such Fund specifically benefit the school of medicine or dentistry.  The CAO (President), or designee, should consult with appropriate administrators in the school of medicine or dentistry in the preparation of the annual budget and the development of any multi-year spending plan.

Any proposed exceptions to these guidelines must be approved in writing by the Chancellor, or designee, or by the Board of Trustees in matters where the Chancellor has a conflict.

  1. Structure and Governance

Each CAO Fund must be held in a corresponding campus agency account or campus foundation agency account.  Funds other than the five percent of gross clinical income and investment income generated thereon must not be co-mingled with funds in a CAO Fund account.

The CAO (President), or designee, must prepare annual budgets for the use of the CAO Fund and should prepare a multi-year spending plan for the CAO Fund where practical.

  1. CAO Fund Activities

Types of expenditures related to the benefit of the school of medicine or dentistry include, but are not limited to, the following:

The appropriateness of any proposed expenditures that do not fit clearly within the examples cited above should be evaluated upon consultation with the Office of Academic Health and Hospital Affairs.

  1. Accountability, Compliance and Reporting

The CAO Fund must be managed in accordance with sound business practices, and the CAO (President) or designee, at a minimum, must:

Annual financial statements or schedules and all audit reports, management letters, together with the associated corrective action plan, and other audit related communications must be provided to the Office of the University Controller, as well as the applicable campus president, dean, and other appropriate stakeholders for each medical or dental school.  The corrective action plan will include the planned timeframe for addressing the independent auditor comments.

The books and records, financial condition, operating results, and program activities of the CAO Fund are also subject to periodic audit by the Office of the University Auditor, and, to the extent allowed by law outside regulatory bodies.


There are no forms relevant to this procedure.

Related Procedures

There are no related procedures relevant to this procedure.

Other Related Information

Foundation Guidelines, Campus Related - Foundations Guidelines, Campus-Related

Agency Account Guidelines - Agency Account Guidelines

Related Policies

SUNY Policy, Clinical Practice Management Plans Expenditure Guidelines, Document No. 4400.

Article XVI of the Board of Trustees Policies.


Definitions relevant to this procedure come from Article XVI of the Board of Trustees Policies.


Article XVI of the Board of Trustees Policies. (Pg. 76-77 of the State University of New York Policies of the Board of Trustees, updated June 2014).

SUNY Regulation, Board of Trustees Policies - Plan for Mgmt. of Clinical Practice Income (8 NYCRR Part 340), SUNY Procedure Document No. 4490.


There is no history relevant to this procedure.


There are no appendicies relevant to this procedure.