Delegations Of Authority

The management committee ("committee") of a club has the general control and management of the administration of the affairs, property and funds of the club, and is responsible for setting its operating structure and strategic direction.

The committee will typically meet several times a year to discuss club matter and make operational decisions.

In many cases, it is not practical for the committee to direct the day-to-day operations of the club, or to perform all the tasks necessary for the club to achieve its goals. For this to happen, the committee may have to delegate some of its authority to individual committee members, subcommittees, paid staff or volunteers.

Effective delegations can be used to increase the committee’s efficiency in managing the business of the club, while putting in place adequate safeguards to ensure club officers of are accountable for the decisions they make.

The committee may wish to consider putting a 'delegations policy' in place to provide a framework for it to delegate its powers and functions within conditions and limitations that are considered appropriate.

Delegations of authority should aim to achieve the following 4 main objectives:

• to ensure the efficiency and effectiveness of the club’s administrative processes;
• to ensure that appropriate officers are provided with sufficient authority to discharge their duties;
• to ensure that delegated authority is exercised by the most appropriate individuals within the club; and
• to ensure effective internal controls.

DELEGATION TO COMMITTEE MEMBERS

Delegating functions to an individual committee member can be an effective way of completing the work involved in running a club.

Consideration should be given to delegating specific tasks to committee members with the specialist skills or experience required to perform that task most effectively (e.g. marketing and sponsorship, legal, event management, etc).

Also, where a committee member is required to represent the club at a meeting with external suppliers, it may be appropriate for that committee member to be given the authority to make decisions (within a specified limit) to negate the need for them to refer the decision back to the committee.

Delegations to individual committee members should be made by resolution of the entire committee and recorded in the minutes of a relevant committee meeting, including specifying any conditions and limitations that apply to the delegated authority.

DELEGATION TO SUBCOMMITTEES

There may be times when the committee wishes to establish subcommittees (made up of committee members, members and/or volunteers) to perform particular functions of the committee. Establishing subcommittees can be an efficient way of allocating the workload of the committee and make the most of the expertise of the club's membership base or volunteers.

Subcommittees may be established to operate for a defined period of time (e.g. a planning subcommittee for a specific event), while others may be established to operate on an ongoing basis (e.g. finance subcommittee). Subcommittees may be delegated specific authority to make decisions on behalf of the club (to be ratified by the committee) or may simply be advisory in nature.

Delegations to subcommittee should be made by resolution of the entire committee and recorded in the minutes of a relevant committee meeting, including specifying any conditions and limitations that apply to the delegated authority.

A clear and understandable 'terms of reference' is also a critical element in forming an effective subcommittee.

A terms of reference should include the following (at a minimum):

• the members of the subcommittee;
• the scope and purpose of the subcommittee;
• the delegated authority of the subcommittee; and
• any conditions and limitations that apply to that delegated authority.

DELEGATION TO STAFF/VOLUNTEERS

Similar to delegating authority to individual committee members, there may be times when it is appropriate for the committee to delegate some of its functions to staff (either paid or unpaid) to ensure the smooth execution of the strategy set by the committee.

For example, committees will generally delegate authority for the CEO to utilise the club’s financial resources within budgetary limits and in alignment with the club's strategy (set by the committee). It is important that any delegation of the committee’s authority to staff (such as the CEO) is properly recorded in the minutes of a relevant committee meeting and regularly reviewed.

For clubs with a large number of staff members, it may be appropriate for the CEO to be allowed to sub-delegate some of its delegated authority to qualified persons with skills or experience in a particular area (such as hospitality and race day functions).

POWERS RESERVED BY THE COMMITTEE

Of course, there are certain aspects of a committee’s powers and functions that are not considered appropriate for delegation. These may include:

• evaluating the performance of staff;
• approving the club’s strategic and business plans;
• approving the club’s budget; and
• reviewing and approving financial reports.

Ultimately, committees should take an active role in considering the needs of the club and determining when delegating authority may be the most appropriate course of action.

It is also important to note that although the committee may delegate some of its responsibilities or authority, they remain accountable for the use of any authority delegated by it.

Committees that have delegated authority will therefore need to constantly monitor the adequacy of any safeguards in place to ensure delegates always act within the limits of their delegated authority, in the best interests of the club and remain accountable for the decisions they make.