(Supporting principle to Principle 2 of The Code of Good Governance)
It is the responsibility of the management committee/board to ensure that the correct framework is in place to ensure that the organisation is well run and managed. It is important that once good systems are in place, they are regularly evaluated to make sure they are still working effectively for the organisation.
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. This section explains more about the financial responsibilities of management committees.
Policies provide guidance so that each time a question arises about how to implement a broad decision, there are some parameters to inform the response. Policy guidelines articulate how an organisation's overall mission and aspirations are to be pursued. This section explains the management committee's role in policy development.