Section 1- Part 1 : Responsibilities and liabilities of management committees
All committee members must:
- Understand the organisation’s governing document (e.g. constitution), its objectives and activities
- Understand external regulations and policies under which the organisation must comply e.g. company law, Ofsted regulations, Inland Revenue obligations etc.
- Establish a budget, monitor and control expenditure and maintain proper accounting records. Even if paid staff run the day-to-day affairs of the organisation, the committee are ultimately responsible for the financial condition of the organisation
- Exercise proper management of the organisations assets. If you are a charity you must abide by appropriate laws
- Exercise due diligence i.e. make good, careful and informed decisions for the organisation while avoiding conflicts of interest
- Establish effective communication between the committee, employees and members i.e. parents/carers
Remember all committee members hold the same responsibility with regards to the running of the business i.e. financial and working practice.