Basically, the board should receive three types of information. Specifically, the board needs information about what the issue entails, what the choices are, and the implications of the various choices. Monitoring reports should be so clear that they help board members determine if policies are being met. As much monitoring as possible should take place outside of board meetings, so meeting time is available to deliberate and determine the future, not to rehash the past. Monitoring reports should be discussed within board meetings only if a policy has been violated, if a report's integrity is in question, or if a board member feels the policy being monitored is inadequate or inappropriate.
Internal reports are relatively quick and inexpensive ways to monitor activity.
Their drawback is that they are open to internal manipulation. Prepared by external experts or other disinterested persons. These reports are more objective but also more expensive. In some rare cases, the only way to monitor a policy is by going to see for yourself. Such direct inspection is appropriate only when judging a task previously assigned by the board.