Demonstrating Accountability

Demonstrating Accountability

Who are you accountable to?

The actions and decisions of the Management Committee affect a range of people, including the organisation’s membership, staff and many people outside the organisation. These people are called stakeholders.

Stakeholders include, for example:

• donors;
• insurers;
• funders;
• members;
• service users;
• staff;
• statutory agencies;
• volunteers; and
• other individuals, groups or organisations affected by your work/activities.

Why do you need to demonstrate accountability?

The Management Committee are in place to manage the resources and activities of the organisation on behalf of its members, supporters and other stakeholders. Their management therefore needs to be both effective and transparent.

This can only be done when appropriate systems and procedures are in place to enable the committee to be adequately informed and have effective controls over the organisation’s operations. The Management Committee can then be confident that they are planning and managing resources effectively on behalf of the organisation.

Where resources are not properly planned or managed, there can be a range of negative impacts, for example:

• Where staff are not properly managed, their work will not be monitored for quality or output. This can lead to the whole organisation under-performing, which can have consequences for future funding. It can also lead to poor staff/volunteer morale.
• Where financial resources are not properly managed, it increases the potential for fraud and this places the organisation at increased risk, which can have consequences for future funding or the withdrawal of funding.
• Where other resources are not managed effectively, the organisation may find that it does not have adequate resources to implement its agreed activities and areas of work.

How can you demonstrate accountability?

To be able to account for the organisation, the Management Committee must ensure that appropriate systems and structures are in place to:

• safeguard the organisation;
• ensure its practices are legal;
• ensure regular monitoring and reporting of activities and finances;
• evaluate activities and performance against targets.

It simply isn’t enough to say that these things are done. There must be evidence through your systems and procedures that demonstrate accountability across the organisation.

An accountable Management Committee ensures that….

• the organisation has adequate systems and structures to comply with relevant legislation (e.g. health & safety, fair employment, child protection, fundraising etc), accessing support and advice where required;
• the organisation complies with its governing document and any contractual agreements;
• they have assessed the major risks faced by the organisation, have taken appropriate action to reduce these risks and are satisfied that the level of risk faced is acceptable;
• they engage with, and consider the needs of, the organisation’s members and stakeholders (e.g. donors, staff, service users);
• public money and donations are properly applied and managed. If a charity, they ensure that money/assets are applied towards their charitable purposes;
• they plan effectively for the organisation and its resources;
• reporting structures are in place so that all relevant information, advice and resources can be accessed to carry out their role effectively;
• there are adequate records to demonstrate accountability;
• financial management systems and fundraising activities are appropriate for the organisation and comply with the law

More on Policy and Procedures
More on Keeping it Legal
More on Financial Oversight
More on Risk Management