Okla. Stat. tit. 62, § 62-2310

A. The Board of Directors of the Tobacco Settlement Endowment

Trust Fund shall adopt a budget for each fiscal year after the Board

of Directors has been notified by the Board of Investors of the

amount of earnings available for distribution. The budget shall be

broken out into an operating budget and a programs budget. The

budget shall be presented to the Board of Investors of the Tobacco

Settlement Endowment Trust Fund and filed with the Office of

Management and Enterprise Services.

1. The operating budget shall consist of the administrative

expenses of the Board of Directors and the administrative expenses

of the State Treasurer approved by the Board of Directors of the

Tobacco Settlement Endowment Trust Fund.

Oklahoma Statutes - Title 62. Public Finance Page 647

a. Administrative expenses include the portion of

salaries, travel, and other administrative expenses of

the Board of Investors and Board of Directors of the

Tobacco Settlement Endowment Trust Fund that cannot be

identified with a specific program of the Board of

Directors. Administrative expenses allocable to the

operating budget may also include, but are not limited

to: regular board and committee meetings; staff

meetings; personnel or human resource management;

board legal services; board consultant services;

central purchasing and procurement; board budgeting,

accounting and auditing; and public information

activities.

b. Administrative expenses do not include program

expenses as defined below or the professional expenses

paid by the Board of Investors related to the

management of the Trust Fund. The fees paid to

investment managers and the custodian bank must be

properly disclosed and approved by the Board of

Investors or authorized staff in the Office of the

State Treasurer, but the fees may be paid from assets

under management.

c. Administrative expenses of the Board of Directors may

not exceed fifteen percent (15%) of the annual amount

of earnings certified by the Board of Investors.

2. The programs budget shall consist of the program expenses of

the Board of Directors.

a. Program expenses include direct funding awarded to

grantees or contractors under grants programs

developed by the Board. Program expenses allocable to

the programs budget may also include, but are not

limited to, staff time, represented by a proportional

amount of the employee's salary, and board and staff

travel expenses that can be identified to benefit a

specific program of the Board of Directors.

b. Other expenses allocable to the programs budget may

include, but are not limited to: special board and

committee meetings to conduct an activity identifiable

to a specific program; contracted consultants,

technical or program support personnel assigned

directly to specific programs; professional services

contracts to evaluate, audit or provide budgeting,

accounting, auditing or legal services for specific

programs or program grantees, contractors or

participants; and training or informational activities

to inform applicants, contractors, grantees or the

Oklahoma Statutes - Title 62. Public Finance Page 648

public about a specific program developed by the Board

of Directors.

3. The Board shall develop policies and procedures to define,

clarify, and implement the allocation of identified expenses to

either the programs or operating budget.

4. All operating expenses and program expenses shall be paid

out against the amount of earnings from the Tobacco Settlement

Endowment Trust Fund.

B. The Board of Investors shall ensure that sufficient cash is

transferred at appropriate times to honor these claims, but shall

keep as much as possible of the trust fund invested at all times.

The operating budget of the Board of Directors shall be allotted in

twelve substantially equal amounts throughout the fiscal year.

Amounts to be distributed to carry out the purposes of the Tobacco
.

B. The Board of Investors shall ensure that sufficient cash is

transferred at appropriate times to honor these claims, but shall

keep as much as possible of the trust fund invested at all times.

The operating budget of the Board of Directors shall be allotted in

twelve substantially equal amounts throughout the fiscal year.

Amounts to be distributed to carry out the purposes of the Tobacco

Settlement Endowment Trust Fund Act shall be made available as

needed and determined by the Board of Directors of the Tobacco

Settlement Endowment Trust Fund.

C. The Board of Directors shall direct the Board of Investors

of the Tobacco Settlement Endowment Trust Fund to set aside

sufficient cash reserves out of earnings from the Tobacco Settlement

Endowment Trust Fund to ensure that the expenses of the Board of

Directors and Board of Investors of the Tobacco Settlement Endowment

Trust Fund and the State Treasurer may be funded in the event that

there is insufficient earnings achieved in a future year to cover

those expenses. Earnings from a fiscal year may be carried over or

used as reserves for expenditure in future fiscal years.

D. The Board of Investors shall calculate earnings of the

Tobacco Settlement Endowment Trust Fund for the fiscal year ending

June 30, 2003, and future fiscal years pursuant to this act.