1. (1) The legally constituted board of directors or other governing board of an agency shall manage the affairs of such agency in accordance with applicable provisions of law, rules of the State Department of Social Services, the agency's certificate of incorporation and duly adopted bylaws. In the event an agency operates more than one institution, the governing board shall appoint a separate advisory body for each institution operated by such agency, except group residences.
2. (2) No member of the governing board of an agency or any of its advisory bodies may be an employee of the agency, except that the chief executive officer may serve on such board or any of its advisory bodies as a nonvoting member.
3. (3) No member of the governing board of an agency or any of its advisory bodies may engage, directly or indirectly, in any business or activity which is in substantial conflict with the proper discharge of his duties as a member of such governing board or advisory body.

4. (4) The governing board shall:

   1. (i) appoint a chief executive officer, by whatever title designated, who shall be responsible to the governing board for the proper administration of the agency;
   2. (ii) make or cause to be made, receive and preserve such records and reports as may be required;
   3. (iii) meet as often as may be necessary, at least four times a year, to assure the proper operation of the agency and to assure the proper care of children for whom such agency is responsible;
   4. (iv) maintain and keep, at the main office of the agency, minutes of each of its meetings;
   5. (v) make periodic reviews at least once a year of the agency's written policies on intake for all of its programs and review its services and programs to determine whether they meet the needs of the children in its care or would meet the needs of children awaiting such care and record such reviews in the minutes;
   6. (vi) review the agency's certificate of incorporation or other organic charter and bylaws at least once every five years to determine whether they properly reflect the current or proposed functioning of the agency, and to make amendments accordingly and record such review in the minutes;
   7. (vii) develop and maintain a program of orientation and training for all new members of such board.
5. (5) The bylaws of an agency shall provide for the appointment of such standing committees as may be appropriate and prescribe their functions and responsibilities.

6. (6) The governing board or committee thereof shall visit each institution operated by such agency, at least annually.

   (b) Finances.

7. (1) The governing board of an agency shall make provision for:

   1. (i) adequate financial resources for the operation of such agency's programs;
   2. (ii) assuring adequate supervision of such agency's property, both real and personal;
   3. (iii) a separate annual budget for each program operated by such agency with an appropriate allocation for administrative and centralized costs.

8. (2) Each agency shall file an annual financial report with the State Department of Social Services within 90 days after the close of its fiscal year. Such report shall be prepared in accordance with generally accepted accounting principles and shall be filed upon forms prescribed by the department.

   (c) Chief executive officer.

9. (1) The chief executive officer shall direct, evaluate and coordinate all aspects of an agency's programs. This officer shall be responsible for the daily administration of the agency in accordance with the rules of the State Department of Social Services and all other applicable requirements of law and of the policies of the governing board; for the supervision and care of children; for admissions and discharges; for continuing analysis and improvement of programs in light of the needs of the group of children being served; for the preparation of a plan of service for each child in care and for the implementation thereof; for staff development and training; for selection and dismissal of all employees; for preparing the annual budget; for preparation of all required reports; for exploring and initiating new programs and services when appropriate; and for coordination with other child care programs in the community.
10. (2) This officer shall be a college graduate, with appropriate training and experience in the care or education of children.

(a) Governing board.