Trustees - The Roles, Responsibilities and Challenges a presentation for

1. Trustees - The Roles, Responsibilities and Challengesa presentation for Elliot Harris FCA DChA Charities Partner eharris@cvdfk.com

2. Steward Current Overview Act in best interests of the charity Robust Prescription Internal Regulation A Balancing Act?

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

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

6. Current vs future needs TrusteesCharityCommission Identify types of funds UnderstandDefinitions Regular review Balancing Act Reserves policy Trustees’Responsibility State & justifyNot defensive Target Level Funds / Reserves

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

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

9. Charity Commission Funders Others Timely Transparent Accountable Summary Information Return Other regulators Companies House Reporting 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. Reference & Administrative Information Financial Review Funds held on behalf of others Clarity Consistency Compliance Structure & Governance Management Objectives & Activities Achievements & Performance Trustees’ Annual Report – In Theory 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. Opportunities vsThreats Trustees’Report Work of charity Reporting Major Risks IdentificationEvaluation Action RecordingMonitoring Risk Management

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

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

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

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

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. Trustees’ Roles and Responsibilities Above all remember…… A well run charity will be there long after you are!