I have recently been elected as chair for a charity run pre school, having had some concerns brought to me I have looked into the group more closely and have found that we currently pay some one as an administrator who seems to do everything and runs the show!!! We have a secretary and a tresurer (who has no knowledge of the finances as the administrator does all that) I know that the committee is responsible for the running of the charity and I am wanting advice on whether this situation is ok and would it meet the needs of a charity.
Sorry this sounds a little confusing but this is whats happening.
Please any help advice would be great as I don't want to stir things up if I don't have to.
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Dear Leanne
First of all congratulations on being elected Chair.
You are absolutely right to take a look at how the group is being run as the trustees of every charity must ensure that its finances are used appropriately, prudently, lawfully and in accorandance with its objects. Trustees can generally delegate certain powers to agents or employees, but will and must always retain the ultimate responsibility for running the charity, so while your administrator may be handling the day to day running of the charity the trustees must be aware of the charity's financial situation.
The Treasurer and Chair of the charity have wider responsibilities than the other trustees. For instance the Treasurer should ensure that proper accounts are kept, and help set financial and investment policies. The Chair, as well as helping to plan and chair trustee meetings, may also be the link between the trustees and the employees.
As a newly elected Chair you have an ideal opportunity to spend some time with the administrator, to get to know them better and learn what they have been doing and with the help of the Treasurer set up some reporting structures which will ensure that all of the trustees are routinely made aware of the financial situation and can plan accordingly.
As a new Chair take the opportunity to ask as many questions of everyone so that you are confident you are fully aware of how the charity operates and if there are then areas of concern which have come to light don't be afraid to tackle them .
I was quite concerned to read the above, especially the suggestion that the Treasurer has wider responsibilities than other Trustees. I realise that the other Trustees will expect the Treasurer to take the lead role on accounts, finances and investments but this should not be taken to mean that they are not all responsible for such matters. I expect I sound pedantic but I have just had experience of so many charities where the Treasurer is a lone voice on all things financial.
Hi Barbara
You are right that the whole Board has the responsibility for the financial health of their charity and in my opening paragraph I did note that the trustees of every charity must ensure that its finances are used appropriately, prudently, lawfully and in accorandance with its objects.
It is just, as you say, usual that as Treasurer that individual takes on a special responsibility of ensuring that this information is readily available to the rest of the Board and of answering any questions which may arise.