Just wondering what the general consensus might be on this one.
According to Charity Commission guidance, (which reflects the requirements of charity law) Charity Trustees are personally liable and are authorised in Law, to take action to recover any lost funds or assets. Trustees may pursue legal action where necessary, to protect their own interests and that of their beneficiaries.
It seems that the Civcoms manage individual independent charities and are then the Trustees of that Charity, which means that as Trustees, they assume all the legal responsibilities and are accountable to the Charity Commission.
Some confusion arises, in that latterly as Trustees, Civcoms have been projected as having certain accountabilities within the ACO, although these are not defined. Being Independent but having accountability to an organisation (other than the Charity Regulator ) are actually not quite what the Law is about.
Under ACP10 it appears that a Cash Handling Certificate can be issued (usually to the Sqn OC) and the impression is given is that this is a rule of the ACO. However under Charity Law, Trustees can agree a delegated authority, which means that whoever receives this authority, is then actually accountable to the Trustees under Charity Law. A Cash Handling Certificate is then a delegated authority under Charity Law, and cannot be an authority given by the ACO, because the ACO is not the Charity, and the ACO should have no involvement in the running of individual charities.
So the question is that by giving a delegated responsibility to the a member of the RAFAC, does this immediately place the MOD in a position of liability and should it then be in a position to replace any lost property or assets covered by a delegated authority, and thereby absolve Trustees from that liability.
Would it also suggest that Trustee Indemnity Insurance is a slightly pointless personal expense.
ACP10/11 are not at all clear on many aspects to the casual reader, but there are issues which appear to suggest that the supporting Charities are not fully independent of control by the ACO.