.13 Organization and Administration.

A. A prospective in-State institution shall design its organization to bring together the institution's total resources in an effectively coordinated effort that will accomplish the institution's stated objectives. The institution shall inform all individuals in the organization of their responsibilities and of those of the other principal administrative positions.

B. The members of the administration and the governing board of the prospective in-State institution shall have a demonstrated history of ethical practice.

C. A member of the administration or governing board may not have a history of fraudulent practices.

D. Governing Board.

(1) A private institution seeking initial approval shall have a governing board that conforms to the requirements of regulations in existence at the time of the application.

(2) Board members shall represent the founders, benefactors, and public, and are responsible for directing the accomplishment of the purposes for which an institution was founded.

(3) Board members of higher education institutions are responsible for:

(a) Establishing broad policy and long-range planning;

(b) Appointing and evaluating the chief executive officer;

(c) Developing financial resources and providing oversight of financial management;

(d) Playing a major role in the development of external relations; and

(e) Maintaining the administrative integrity of the institution.

(4) Board members may not use their positions on the board for personal material gain, with the exception of private institutions.

(5) Meetings shall be held at regularly stated times. The institution shall prepare an agenda of the meeting and keep accurate minutes of the meeting on file.

(6) The duties, responsibilities, and relationship of the board with the administration, faculty, and other staff members shall be clearly defined in an organizational chart. Decisions shall be made based on consultation with affected parties. The board shall concentrate on broad policy matters and avoid concerning itself with administrative detail.

E. Chief Executive Officer.

(1) Within the organizational structure, the chief executive officer shall delegate responsibilities and authority to the administrative staff and provide for a regular evaluation of the administrative staff. The results of an evaluation are solely for internal institutional purposes.

(2) The chief executive officer shall:

(a) Be responsible to the board for the entire operation of an institution or of all institutions in a multi-campus or multi-college system;

(b) Serve as a liaison between the board and the staff, and be directly responsible for the administration of the policies and procedures as set forth by the board;

(c) Provide leadership for the development and operation of all institutional functions;

(d) Be committed to the comprehensive purpose of the institution;

(e) Ensure the development and use of appropriate procedures of plant maintenance and fiscal management;

(f) Maintain a sound administrative structure for the orderly operation of the institution; and

(g) Be responsible for communications between the institution and the community served.

F. Chief Academic Officer.

(1) An in-State institution shall have a chief academic officer who is not the chief executive officer. When required by the size and complexity of the institution, the institution may have several academic officers sharing the responsibilities of a chief academic officer.

(2) The chief academic officer shall:

(a) Be responsible for implementing the educational goals of the institution; and

(b) Develop and enforce the academic standards and procedures of the institution.

(3) The chief academic officer shall be qualified by academic training and appropriate experience to fulfill the responsibilities of the position.

G. Chief Business Officer.

(1) An in-State institution shall have a chief business officer who is not the chief executive officer.

(2) The chief business officer shall:

(a) Manage the business and financial affairs of the institution;

(b) Keep the chief executive officer and the board apprised of the institution's financial condition; and

(c) Act as financial adviser to the chief executive officer and the board.

(3) The chief business officer shall be qualified by appropriate training and experience to fulfill the responsibilities of the position.

H. Administrative Staff.

(1) The administrative staff shall have an organizational structure that is appropriate to the size and purpose of the in-State institution.

(2) An in-State institution shall define and clearly communicate the duties and responsibilities of all employees.

(3) The administrative personnel shall furnish effective leadership for institutional development and viability.

(4) Administrators shall be qualified by appropriate training and experience to perform their responsibilities.

I. For private in-State institutions, the Commission shall give prior approval to substantial changes in majority ownership, direct or indirect.