Governance

The Board of Trustees/Directors has legal responsibility for the proper administration of the company and the charity.

This includes preparing and submitting annual returns to the Charity Commission, reviewing and ratifying the accounts and all major spending plans, and other legal compliance.

The Board, which meets on average five times a year, is also responsible for the strategic management of Magdala and for determining policy and operational priorities.

Magdala’s financial policy has always been one of financial prudence in order to avoid exposing the charity or the trustees to unnecessary risks. This policy ensures that each event is self-financing, through ticket sales and other earned income, supported by sponsorship and/or local authority and arts board funding as appropriate. The Trust maintains a balance between earned income and grants or donations rather than relying unduly on any single source of income. High cost projects such as gala concerts are not committed until sponsorship or other financial support has been secured.

Financial reserves are maintained by periodic fund-raising events and the support of individual and Corporate Friends. Funds received for specific purposes, such as awards from lottery funds for education projects, are kept in separate dedicated reserves.

Overall budget review and ratification is the responsibility of the Board of Trustees, including the appointed Treasurer and Secretary, while Task & Finish Groups may be given delegated responsibility to oversee and coordinate particular events or projects. The planning for each event or project includes detailed costings and a rigorous risk assessment. This identifies financial and other risks, including variable factors such as likely size of audience and ticket sales, pricing, the potential impact of external factors such as weather, and control of production and performance costs.

Day-to-day accounts are maintained by a member of Magdala who is trained in book-keeping, and managed by the Director. Detailed cashflow projections are maintained and updated. All cheques require the signatures of two Trustees. Quarterly financial reports are presented to meetings of the Trustees.