Financial Management

Financial Management

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 organisations’ resources and they will be held accountable for any mismanagement of resources.

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;
• provide financial information on an accurate, relevant and timely basis.

There are three helpful parts to this section:

1) The Financial Health Check to make it easy for you to assess the procedures/systems your management committee needs to have in place in order to adhere to good practice and safeguard your organisation;

2) Financial Terms – what do they mean?

3) Where can I go for detailed information.

Complete a Financial Health Check on the four sections below to see how your organisation complies with good practice.

Management Committee Finance
Transparency & Accountability
Segregation Of Duties
Financial Procedures