WHAT ARE THE DUTIES AND RESPONSIBILITIES OF A BOARD MEMBER?
Once elected to the board, directors have two basic functions: decision making and oversight. As decision makers, they are responsible for working with the Cooperative’s management and key staff to set policies and develop strategies to keep the Cooperative on track. To do that they have to maintain a working knowledge of all phases of the electric cooperative program, from the broad national overview down to the day-to-day operations to serve members in each of the seven districts. The oversight function or fiduciary duty requires them to monitor the Cooperative’s business performance, risk assessment and compliance with legal obligations.
- Other responsibilities and functions of the board are to:
- Set the Cooperative’s mission, purpose(s), and engage, on a regular basis, in strategic planning;
- Review, monitor and report to the membership regarding the critical operating and financial performance of the Cooperative;
- Ensure effective planning and adequacy of resources; and
- Contract for and approve an annual independent financial audit.
It takes a lot of effort to prepare, stay involved and do the job well. Training and educational programs in the area of governance responsibilities, utility operations and management oversight are necessary for a director to function most effectively in his/her responsibilities.
Fayette Electric’s board of directors realizes the importance of education and strives to stay abreast of changes in the industry by completing continuing education courses offered through the statewide organization, Texas Electric Cooperatives, and the national organization, National Rural Electric Cooperative Association.
Cooperative directors represent the members who elect them and take seriously the duties and responsibilities of their position. They uphold the unique democratic business model that distinguishes your electric cooperative from utility companies whose sole purpose is to make a profit for investors. At Fayette Electric Cooperative, the guiding principle is service. Your Board of Directors is there to uphold that mandate with knowledge, integrity and vision.