1. www.cvdfk.com Add client logo Elliot Harris FCA DChA Charities Partner eharris@cvdfk.com Trustees - The Roles, Responsibilities and Challenges a presentation for

2. Internal OverviewSteward A Balancing Act? Prescription Regulation RobustCurrent Act in best interests of the charity

3. Sound Governance “An effective charity is run by a clearly identifiable trustee body that has the right balance of skills and experience to run the charity effectively, acts in the best interests of the charity and its beneficiaries, understands its responsibilities and has systems in place to exercise them effectively”

4. Prudence Integrity Wise Effective Efficient Only in furtherance of charity’s objects Charity is, and will remain, solvent DUTY OF CARE Use of Resources

5. Brand I.P Use of funds Wise Use of Assets Investments Land & Property Borrowing Other Governing Document Laws & Regulations

6. Understand Definitions Trustees Charity Commission Regular review Identify types of funds State & justify Not defensive Target Level Trustees’ Responsibility Current vs future needs Reserves policy Funds / Reserves Balancing Act

7. Best practice Charities SORP Accounting standards Other legislation & regulations Charity / Company Law Reporting and Finance Governing document

8. Accounting systems & controls Availability Accountability Stewardship Timely submission CC / other regulators External scrutiny? Preparation of statutory accounts & reports Accounting records / funds Being Kept to Account Governing Document Legal Requirements

9. Funders Others Other regulators Reporting Companies House Summary Information Return Charity Commission Timely Transparent Accountable Charity’s website

10. Skills and Experience What skills does a group of trustees need? –Business –Financial –HR –Charity specific Rotation of trustees Constant re-assessment

11. Financial Review Funds held on behalf of others Achievements & Performance Trustees’ Annual Report – In Theory Objectives & Activities Structure & Governance Management Reference & Administrative Information Clarity Consistency Compliance Plans for Future Periods

12. Trustees’ Annual Report – In Practice Trustees’ responsibility – to own / prepare Trustees should ensure : Appropriate key messages, style and approach (particularly to members and volunteers) Basic information is in place Key SORP 2005 categories addressed Clear links between the “words” and the “numbers” Key policy statements are in place Risk statement reflects reality Future plans – sufficient, balanced and your needs explained Public benefit File on time! Consider use of other reporting mechanisms for specific audiences; how do these link to the Annual Report?

13. Recording Monitoring Identification Evaluation Action Work of charity Trustees’ Report Opportunities vs Threats Risk Management Reporting Major Risks

14. Professional Guidance Income or Capital Growth Ethical investmentSet Policies Investment Policy Reporting Investments

15. Conflict of interest Not just Charity laws Compliance with The Governing document Compliance with The Law Trustee Liabilities Common sense Liability or not?

16. Sub-committees Employees Agents Disputes Governing Document and legislation Record in writing Clarity of relationship Reporting structure Delegation and Decision-making Trustees always retain ultimate responsibility

17. Key decisions taken by Trustees collectively Role descriptions Other designated roles Hon Treasurer Chair & Vice-Chair Special Responsibilities “Officers”

18. Reminder of the Hallmarks Focus on impact and outcomes Fit for purpose Sound governance Maximises potential Accountable and transparent Flexible

19. Some Useful Reference Points Charity Commission www.charity-commission.gov.uk CC3 The Essential Trustee RS3 Trustee Recruitment RS7 Membership Charities www.cvdfk.com/charities

20. www.cvdfk.com Add client logo Above all remember…… A well run charity will be there long after you are! Trustees’ Roles and Responsibilities