Current Light Flashes

In the last few months, I've shared the responsibilities of a general manager and employees. This month, I'll discuss the responsibilities of a member of the board of directors.

Board of Directors: WFEC is comprised of nine board members representing nine districts in Calhoun, Holmes, Jackson and Washington Counties. The board holds a regular monthly board meeting and periodically holds special meetings or committee meetings throughout the year.

The board's responsibilities include:
Hiring a competent manager: This includes determining the salary, outlining the duties and authority of the position, and formally reviewing his/her performance at least annually. 

Adopting broad, general policies: These policies are intended to guide the manager and are made a part of the official minutes of the cooperative. They include items such as credit to patrons (also known as capital credits), sources and limits of supply inventories, general personnel regulations, etc.

Developing and adopting long-range strategies: Require written monthly financial reports and operating statements for board meetings in order to be informed of adverse as well as favorable operations.

Directing the manager to prepare an operating budget for the next fiscal year before the close of each year.

Employing a qualified auditor: The auditor conducts an independent audit at least once each year to determine the accuracy of the financial records. 

Planning and coordinating the annual meeting with the aid of the manager: This is to keep the membership informed about the status of their business, including operations, finances and policies.

Determining the patronage refund allocation (also known as capital credits): This includes weighing legal requirements against the need for reinvesting refunds to provide money to retire old equities and still meet current capital needs.

Obtaining competent legal counsel.

Keeping a complete record of the board's actions.
A cooperative director should not expect to be granted special favors from the manager or employees and does not have the following responsibilities:
1) To act independently on matters that should be decided by the entire board.
2) Be a representative of special interests or political entities. He/she was elected to direct business activities of the cooperative, not serve as a representative of these groups.

Next month I will cover the responsibilities of member-owners. I pray everyone has a blessed month.