1. Board Member Education Session 5 Tuesday, October 29 So, now you’re on the Board The One-Hour Board Meeting Fiduciary responsibilities of the Board Your Pit Boss for this session is Eileen Castberg

2. Fiduciary Obligations Presented by: Jeffrey T Weinland, CHA, CHE, CHAE University of Central Florida Rosen College of Hospitality Management

3. Keys to a Successful ResortStack the Deck! Session 4 Tuesday, October 29 8:45 AM – 9:45 AM Paul Goodrich SPM Resorts Scott Riddle 1800MyCondo.com & Resort Synergy Gregg McMurtrie Collections Unlimited Your Pit Boss for this session is Kimberly Stibbs-Menster

4. Fiduciary A Relationship of Trust, Confidence, and Duty

5. Fiduciary • from the Latin fiducia, meaning "trust” • a legal relationship where one person is obligated to act in the best interests of others • obligations are willingly accepted • dependence and influence are created • elements – care, loyalty, obedience

6. Parties Dependent - Influencer Principal - Agent Client - Attorney Client - Broker Beneficiary - Trustee Heirs - Executors Timeshare Owners - Board Members

7. BoardMembers • represent the interests of all timeshare owners as a collective • represent the interests of the organization • as members of the organization, they represent their own interests, but only to the extent that those interests are shared by all owners

8. Liability • Personal – individuals are personally liable to preform their duties in representing the organization and the owners • Corporate – the association is liable as a whole to ensure that policies and procedures are in place to protect the dependent parties

9. BoardMemberDuties • Legal Compliance • Financial Oversight • Governance • Management

10. LegalCompliance • Federal – US Code • State – Statutes • Local – Ordinances • Governing Documents • Articles of Incorporation • Prospectus • Deed Restrictions • Rules & Regulations • Policies & Procedures

11. FinancialOversight • Budget & Planning • Financial Management • Reconcile Operational Activities to Financial Reports • Internal Controls

12. Governance • Vision • Mission • Organizational Objectives • Moral & Ethical Decision Making Processes

13. Management • Day to day operating activities • Service delivery • Administrative activities • Operational & regulatory requirements • Delegation of activities to a professional management company or employees • Note: activities can be delegated, but the board members remain responsible and accountable for all fiduciary duties

14. FiduciaryDecisionTesting • Is it truth? • Is it fair to all concerned? • Does it benefit all concerned? • Does it build positive relationships or add good will?

15. IdealBoardMembers • Honest, Trustworthy, Courageous, Moral & Ethical • Able to interpret financial statements and operational reports • Has an interest in the long-term success of the organization • Willing & able to meet the requirements of service

16. EmployeesandManagementCompanies • Employees have fiduciary responsibilities owed to their employers • Management companies have fiduciary responsibilities owed to the organization which they contract with • Neither replace the board members fiduciary responsibilities owned to owners or their organizations

17. Fiduciary Obligations Questions? & Answers

18. Fiduciary Obligations • Contact Jeffrey T Weinland CHA, CHE, CHAE Jeff@Weinland.us