No matter how modest the resources of your charity are, you should always agree a budget/Financial Plan.
Your budget should set out the expenditure you plan to make and the income you expect to raise. You ..the trustees needs to monitor on a regular basis the actual performance against the budget, do not leave this job to one person. Agreeing and monitoring the budget together is a key way in which trustees can ensure that any income and any assets of the organisation are used to further the organisation's aims.
Charity trustees have a duty to ensure that the organisation's resources are only used to further the charity's objects.
This Inquiry found that the then trustees did not maintain proper financial controls over income and expenditure, keep proper records or produce annual financial accounts for the Charity. This lack of adequate governance and management of the Charity meant that the then trustees failed to safeguard the Charity’s funds which led to thousands of pounds of charitable funds being misused.
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