This annual report describes the goals and activities of the Association of Governing Boards of Universities and Colleges (AGB). The AGB is dedicated to strengthening the performance of boards of public and independent colleges and universities and to advancing the practice of citizen trusteeship that distinguishes U.S. higher education. This report shows a year of solid achievement for the AGB. Major new initiatives included continued work on efforts to restore academic integrity to the world of college athletics and an online strategic benchmarking service that will soon become available to AGB members. A Governance Institute for Public Sector Presidents and Chancellors will be launched in 2004. Planned as an annual event, this institute will provide fresh ideas, strategies, and tools to help chief executives enable good governing boards to become more effective. The programs and research of the AGB are outlined, with a focus on the efforts of the Center for Public Trusteeship and Governance, the National Conference on Trusteeship, and the Zwingle Research Center. AGB publications in 2003 are outlined, and member services are described. AGB member institutions are listed. (SLD)