How to Divide Responsibilities Between the FPO Board, CEO and Staff

When every issue needs a director's phone call, daily work slows down. When a manager can make any commitment without a limit, the organisation loses oversight. A practical division of responsibilities makes routine work possible while keeping important decisions with the people authorised to take them.

Begin with the legal structure

FPOs can have different legal forms. A Producer Company's chief executive and relationship with its board are addressed in Section 378W; some matters require member-level approval under Section 378S. Review the current law and articles before adopting a delegation policy. A job description cannot transfer a power that the governing rules reserve elsewhere.

Map decisions before job titles

List the decisions the organisation makes repeatedly: accepting a purchase order, selecting a transporter, paying a supplier, hiring temporary labour, correcting stock, issuing a refund and approving a member application. For each, specify who prepares information, who approves, who carries out the action and who checks evidence.

Set limits in clear terms. An authorisation may depend on the budget, transaction value, customer credit exposure or type of activity. Avoid vague instructions such as “CEO can approve normal expenses.” Define what normal means and what must be escalated.

Give the board a usable oversight routine

The governing body needs reliable information on cash, stock, sales, overdue payments, compliance and serious complaints. Agree a short reporting format and frequency. Board discussion should test assumptions and decisions, not require directors to re-enter every invoice. At the same time, delegated authority should remain visible and periodically reviewed.

Members should receive the information and participation opportunities required by their governing framework. Sensitive personal information does not need to be circulated simply to demonstrate transparency.

Make daily roles concrete

A procurement coordinator might confirm quantity and delivery, but should not alone create a new supplier, approve the invoice and release payment. An accounts person can prepare a payment list; an authorised approver checks it against evidence. In a small team, complete separation may be difficult. Record a compensating review by another authorised person rather than pretending separate controls exist.

For illustration, a sales coordinator receives a larger order that exceeds the buyer's approved credit limit. The correct next step is escalation, not splitting the order into smaller entries to avoid the limit. Write this example into staff orientation so the boundary is understood.

Plan for absence and handover

Name a backup person for essential tasks and specify how temporary authority is granted. Keep handover records for cash, keys, stock, documents and account access. Remove unnecessary access when someone changes roles. Password sharing is not a substitute for an authorised handover.

Review the arrangement after a trial transaction or staff change. If two people both assume the other is responsible, revise the task description and communication route.

Role-clarity checklist

• Reserved legal and member decisions are identified.
• Routine authority has written limits.
• Preparation, approval and checking are distinguishable.
• Exceptions have an escalation route.
• Reports show evidence rather than only activity counts.
• Absence and departure have a handover process.

Common questions

Can one person hold several operational roles? Sometimes a small team requires it. Identify the resulting control gaps and arrange an independent review where possible.

Should the board approve every small payment? Use a lawful, documented delegation and budget. The objective is accountable work, with the appropriate level of approval for each decision.

Prepared with AI assistance for the CAFIC knowledge series. Examples are illustrative. Check current official requirements and local conditions before acting on regulatory or technical guidance.