The Code of Good Governance states that an effective board will consider organisational responsibility to the wider community, society and the environment.

The Management Committee must be able to account for everything the organisation does. Even though your group or organisation may have paid staff and/or volunteers, the Management Committee is ultimately responsible and may be held liable for the consequences of actions taken or not taken.

However the Management Committee is not only required to be accountable, but to be able to demonstrate and communicate this to stakeholders by ensuring that appropriate systems and procedures are in place. By doing so, they reduce their risks of personal liability should things go wrong.

This site has information about demonstrating accountability,  You may also find it useful to explore the whole area of liability, to understand when and why the Management Committee may be held liable and what can be done to limit this liability.  In addition you may want to consider Financial Transparency and Accountability.