Sec. 07.05.01.07. Agency Governing Board

A. Legal Status of Agency. The agency shall be incorporated under applicable law and maintain documents which identify its incorporation and administrative structure and staffing, including lines of authority.

B. Governance. The agency shall have a governing board which has final responsibility for and authority over the policies, finances, and all related activities for implementing the agency's program. The governing board shall:

(1) Screen and select the agency's chief administrator in accordance with agency policy and Regulations .09, .14, and .15 of this chapter;

(2) Define in writing the role of the chief administrator;

(3) Require the chief administrator, or the chief administrator's designee authorized to act in the chief administrator's absence, to be accessible at all times to the agency staff and representatives of the Administration;

(4) Conduct an annual written evaluation of the chief administrator;

(5) Ensure that the agency is housed, maintained, staffed, equipped, and funded to operate the programs effectively and solvently;

(6) Consult with the Administration and receive its approval before changing the service program plan described in the current license application;

(7) Notify the Administration of any change of:

(a) The chief administrator at least 48 hours in advance; and

(b) Address or phone number of the agency office at least 14 days before the change;

(8) At least every 2 years, in consultation with the chief administrator, formulate or review the agency's written materials concerning:

(a) Current program and service policy, including short-term and long-term goals;

(b) Personnel practices and job descriptions;

(c) Fiscal management policy; and

(d) The program evaluation report;

(9) Be responsible for:

(a) The fiscal soundness of the agency operation and undertake the review and approval of the:

(i) Agency's annual budget,

(ii) Periodic accounting reports, and

(iii) Annual audit or audit review completed by an independent certified public accountant; and

(b) Maintaining the agency's continual compliance with the:

(i) Provisions of the agency's charter,

(ii) Terms of all leases, contracts, or legal agreements to which the agency is a party, and

(iii) Relevant federal, State, and local laws and regulations governing the operation of the agency.

C. Composition and Organization of the Governing Board.

(1) The responsibilities of the governing board of the agency shall be clearly defined in the agency bylaws.

(2) The governing board shall:

(a) Be structured with a president elected from the governing board membership who presides at meetings to enable the governing board to discharge the responsibilities described in this regulation and Regulations .06, .08-.16, and any other applicable regulations of this chapter;

(b) Adopt bylaws for its operation;

(c) Maintain written minutes of and records of attendance at all its meetings;

(d) Ensure that a quorum of its members meet at least quarterly;

(e) Include members, at least three of whom are Maryland residents:

(i) Who represent diverse community leadership,

(ii) Have knowledge of and belief in the program, and

(iii) Are able to contribute to the agency from their experience;

(f) Maintain a list of its membership with each member's:

(i) Phone number,

(ii) Address, and

(iii) Term of membership; and

(g) Have a plan for periodic change of the board's composition.

(3) Agency employees, including the chief administrator, may not be voting members of the governing board.

(4) An employee of any government organization which regulates or purchases services from the agency may not be a member of the governing board.

(5) Members of the governing board may not contract with the agency to provide goods or services in return for money, goods, or services or in any other way benefit financially from the agency's operation.

(6) The governing board of an agency applying for licensure or licensure renewal shall furnish references on its members in accordance with the requirements in Regulation .09 of this chapter.