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5.7 Accountability and Stewardship
Accountability is of key importance, not least because public bodies are funded by taxpayers' money. As a Board, and an individual Board member, you are accountable for your decisions and actions to the public. You have a duty to consider issues on their merits, taking account of the views of others and must ensure that the public body uses its resources prudently and in accordance with the law.
There are three key components to this duty of accountability and stewardship. The Board needs to ensure that:
- the conduct of business is in accordance with the law and proper standards;
- public funds are safeguarded and properly accounted for; and
- resources are used economically, efficiently and effectively.
Public funds include, not only funds provided to the body by the Scottish Ministers, but also any other funds falling within the stewardship of the body, including gifts, bequests and donations. In order for the Board to discharge these important responsibilities, it must ensure that the organisation has sound internal fi nancial information systems in place including:
- a management accounting system to monitor and control expenditure against budget;
- a financial management information system to produce annual accounts; and
- a performance management system to measure progress towards agreed financial targets.
Together these systems will help to ensure that your organisation is making best use of its resources in line with the Government's efficiency agenda. It will also demonstrate whether your body is achieving Best Value and complying with the terms of the Management Statement and Financial Memorandum.
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