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.

SORP and Financial Reporting Requirements

Charities should prepare accounts at least annually.  The purpose of preparing accounts is to provide useful information for the decision making process of the board, funders and other external stakeholders.  In addition the Charities (Accounts and Reports) Regulations, which were developed by the Department for Social Development, commenced on 1 January 2016. These regulations require charities in Northern Ireland to prepare annual accounts depending on the size of 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.

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

Operational Plans and Budgets

An operational plan outlines the activities and targets which the organisation will carry out in order to work towards achieving the aims and objectives set out in the strategic plan. It provides the framework for an organisation's day-to-day operations. An operational plan covers a one year period. Your strategic plan should be supported by annual operational plans. These will often be developed by senior staff members (where there are paid staff) but must be approved by the management committee.