1. (a) Tripartite boards have a fiduciary responsibility for the overall operation of the Eligible Entity. Members are expected to carry out their duties as any reasonably prudent person would do.

2. (b) At a minimum, board members are expected to:

   1. (1) Maintain regular attendance of board and committee meetings;
   2. (2) Develop thorough familiarity with core agency information as appropriate, such as the agency's bylaws, Certificate of Formation/Articles of Incorporation, sources of funding, agency goals and programs, federal and state CSBG statutes;
   3. (3) Exercise careful review of materials provided to the board;
   4. (4) Make decisions based on sufficient information;
   5. (5) Ensure that proper fiscal systems and controls, as well as a legal compliance system, are in place;
   6. (6) Maintain knowledge of all major actions taken by the agency; and

   7. (7) Receive regular reports that include:

      1. (A) Review and approval of all funding requests (including budgets);
      2. (B) Review of reports on the organization's financial situation;
      3. (C) Regular reports on the progress of goals specified in the performance statement or program proposal;
      4. (D) Regular reports addressing the rate of expenditures as compared to those projected in the budget;
      5. (E) Updated modifications to policies and procedures concerning employee's and fiscal operations; and
      6. (F) Updated information on community conditions that affect the programs and services of the organization.

3. (c) Individuals that agree to participate on a tripartite governing board, accept the responsibility to assure that the agency they represent continues to:

   1. (1) assess and respond to the causes and conditions of poverty in their community;
   2. (2) achieve anticipated family and community outcomes; and
   3. (3) remains administratively and fiscally sound.
   4. (4) Excessive absenteeism of board members compromises the mission and intent of the program.
4. (d) Residence Requirement. All board members shall reside within the Subrecipient's CSBG service area designated by the CSBG Contract. Board members must be selected so as to provide representation for all geographic areas within the designated service area; however, greater representation may be given on the board to areas with greater low-income population. Low-income representatives must reside in the area that they represent.

5. (e) Improperly Constituted Board. If the Department determines that a board of an Eligible Entity is improperly constituted, the Department shall prescribe the necessary remedial action, a timeline for implementation and possible sanctions which may include:

   1. (1) Cost Reimbursement;
   2. (2) withholding of funds;
   3. (3) Contract suspension; or
   4. (4) termination of funding.

Source Note:The provisions of this §6.213 adopted to be effective November 4, 2018, 43 TexReg 7122.