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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.