Community college board members have fiduciary duties that involve oversight, accountability, and stewardship of the college's resources. These responsibilities extend beyond legal and financial aspects to include serving the public's interests, the government, students, and donors. The fiduciary duties consist of three principal obligations: Duty of Care, Duty of Loyalty, and Duty of Obedience.
Under the Duty of Care, board members act in the best interests of the college by making informed decisions and exercising prudent judgment. They should establish effective information and reporting systems, attend meetings regularly, support board decisions, promote transparency, and ensure appropriate evaluation and compensation processes for college presidents.
The Duty of Loyalty requires board members to act in the best interests of the college and avoid personal or professional gains. They should enforce conflict of interest policies, preserve confidentiality, promote transparency through sunshine laws, establish policies for whistleblowing protection, and carry out their duties with integrity and honesty.
The Duty of Obedience entails compliance with federal, state, and local laws, as well as college policies and regulations. Board members should familiarize themselves with core college documents, hold themselves accountable to these documents, participate in organizational planning and strategic implementation, review audit materials, ensure adequate resources for the college, gather internal feedback through assessments, and promote the college's mission and accomplishments.
Additional insight: Maintaining a diverse and inclusive board composition can enhance decision-making and represent the community's interests more effectively. Regular professional development and training opportunities for board members can help strengthen their understanding of fiduciary responsibilities and improve overall board effectiveness.
More in-depth resources, including educational videos, articles, worksheets and more are available to members in our governance resource library at ACCT Connect.