The institution has a system of governance that facilitates the accomplishment of its mission and purposes and supports institutional effectiveness and integrity. Through its organizational design and governance structure, the institution creates and sustains an environment that encourages teaching, learning, service, scholarship, and where appropriate research and creative activity. It assures provision of support adequate for the appropriate functioning of each organizational component.

3.1 The authority, responsibilities, and relationships among the governing board, administration, faculty, and staff are clearly described in the institution’s by-laws, or an equivalent document, and in a table of organization that displays the working order of the institution. The board, administration, staff, and faculty understand and fulfill their respective roles as set forth in the institution's official documents and are provided with the appropriate information to undertake their respective roles. The institution’s organizational structure, decision-making processes, and policies are clear and consistent with its mission and support institutional effectiveness. The institution's system of governance involves the participation of all appropriate constituencies and includes regular communication among them.

3.2 The governing board is the legally constituted body ultimately responsible for the institution's quality and integrity. The board demonstrates sufficient independence to ensure it can act in the institution’s best interest. The composition of the board includes representation of the public interest and reflects the areas of competence needed to fulfill its responsibilities. Fewer than one-half of the board members have any financial interest in the institution, including as employee, stock-holder, or corporate director. Members of the governing board understand, accept, and fulfill their responsibilities as fiduciaries to act honestly and in good faith in the best interest of the institution toward the achievement of its purposes in a manner free from conflicts of interest.

3.3 The board has a clear understanding of the institution’s distinctive mission and purposes. It exercises the authority to ensure the realization of institutional mission and purposes. The board sets and reviews institutional policies; monitors the institution's fiscal solvency; and approves major new initiatives, assuring that they are compatible with institutional mission and capacity. These policies are developed in consultation with appropriate constituencies. The board assures that the institution periodically reviews its success in fulfilling its mission and achieving its purposes.

3.4 The board systematically develops and ensures its own effectiveness. The board enhances its effectiveness through periodic evaluation.

3.5 Utilizing the institutional governance structure, the board establishes and maintains appropriate and productive channels of communication among its members and with the institutional community. Its role and functions are effectively carried out through appropriate committees and meetings.

3.6 The board appoints and periodically reviews the performance of the chief executive officer whose full-time or major responsibility is to the institution. The board delegates to the chief executive officer and, as appropriate, to other constituencies the requisite authority and autonomy to manage the institution compatible with the board's intentions and the institutional mission.

3.7 The chief executive officer through an appropriate administrative structure effectively manages the institution so as to fulfill its purposes and objectives and establishes the means to assess the effectiveness of the institution. The chief executive officer manages and allocates resources in keeping with institutional purpose and objectives and assesses the effectiveness of the institution. In accordance with established institutional mechanisms and procedures, the chief executive officer and the administration consult with faculty, students, other administrators and staff, and are appropriately responsive to their concerns, needs, and initiatives.

3.8 The institution’s academic leadership is directly responsible to the chief executive officer, and in concert with the faculty is responsible for the quality of the academic program. The institution’s organization and governance structure assure the integrity and quality of academic programming however and wherever offered. Off-campus, continuing education, distance education, international, evening, and week-end programs are clearly integrated and incorporated into the policy formation, and academic oversight, and evaluation system of the institution.

3.9 In multi-campus systems organized under a single governing board, the division of responsibility and authority between the system office and the institution is clear. Where system and campus boards share governance responsibilities or dimensions of authority, system policies and procedures are clearly defined and equitably administered.

3.10 Faculty exercise an important role in assuring the academic integrity of the institution's educational programs. Faculty have a substantive voice in matters of educational programs, faculty personnel, and other aspects of institutional policy that relate to their areas of responsibility and expertise.

3.11 The system of governance makes provisions for consideration of student views and judgments in those matters in which students have a direct and reasonable interest.

Institutional Effectiveness

3.12 The effectiveness of the institution’s organizational structure and system of governance is improved through periodic and systematic review.