Financial oversight

Internal controls: The management committee/board should maintain and regularily review the organisation's system of internal controls, performance reporting, policies and procedures.

(Supporting principle to Principle 2 of The Code of Good Governance)

Management committees sometimes express confusion over who should be responsible for financial management. Although staff may be employed, it is the duty of the management committee to ensure that the organisation complies with accepted good practice.

The Management Committee's role is that of ‘guardian' of the organisation's resources. They will be held accountable for any mismanagement.

This obligation requires the management committee to be actively involved in the financial management of the organisation. This includes setting financial plans, monitoring and evaluating the implementation of these plans and ensuring that any necessary adjustments are put in place as soon as possible.

Whatever size of organisation is involved, it is reasonable to expect that the management committee will:

  • ensure that assets (property, money, etc) are applied towards the organisation's charitable purpose and aims;
  • operate in an accountable and transparent manner;
  • make effective and efficient use of available resources; and
  • provide financial information on an accurate, relevant and timely basis.

Need to know more?

Community Change

These sections are drawn from Community Change's booklet, Accounting for Change: financial guidelines for community groups. They are included here with their kind permission.

Contact Community Change on 028 9023 2587 to order or visit www.communitychange-ni.org

For further information about financial management, look at the following four sections:

  1. Management Committee Finance;
  2. Transparency & Accountability;
  3. Segregation Of Duties; and
  4. Financial Procedures.

Each section contains information and a short Financial Health Check to make it easy for you to either:

  • identify procedures and systems your management committee needs to have in place in order to safeguard your organisation; or
  • see how well your organisation complies with good practice.

Or check out the following easy reference resources:

Financial Terms - what do they mean?

Where can I go for detailed information?