Finance and Governance Since its creation in 2007, StreetGames has been an active champion, leading innovator and respected partner in the community sport sector. The organisation was founded by Jane Ashworth, who received an OBE from the Queen in 2011 for her services to the industry, and is run on a day-to-day basis by acting CEO, Mark Lawrie. StreetGames is overseen by a Board of Trustees, led by Chair John Cove, which possesses considerable expertise and experience in the sector. In addition, StreetGames is fortunate to have an Advisory Board made up of leading figures from across the business world. Both of these leadership groups are passionate about the work that StreetGames does, and have played an important role in helping the organisation to change sport, change lives and change communities. Annual Reports and Accounts Board Agendas and Minutes StreetGames Governance Statement Purpose The StreetGames Governance Statement has been developed in the interests of transparency, in order to help our varied Stakeholders understand: The structures through which the charity is governed. The key frameworks within which it operates and the major controls to ensure compliance The continuous improvement processes it has in place to ensure good governance Legal and Organisational The charity is a company limited by guarantee, governed by its Memorandum and Articles of Association and all members of the Board are also members of the Company. The charity’s wholly owned subsidiary, Doorstep Sport Trading Ltd (DST Ltd) was established during 2015 to explore commercial opportunities. DST Ltd has a licence from the charity to utilise its intellectual property rights and branding for these purposes and donates all of its profits to the charity via gift aid. StreetGames Memorandum and Articles of Association Admission to the Board is by election and through an open recruitment process. The board seeks to add to its capacity by recruiting individuals with particular strengths in the fields of sport and regeneration, or with specific skills that will strengthen the governance function of the board and promote new and diverse perspectives. It therefore carries out regular skills audits and a recruitment panel, consisting of Trustees and convened for the purpose, plans recruitment with identified gaps in mind. The role of the Board is to provide direction and stewardship for StreetGames for the benefit of current and future users, by: Setting the vision, mission and values for the charity Developing strategy to achieve the charity’s objects, and monitoring and communicating performance. Ensuring that the charity seeks the views of stakeholders and that these views are considered in developing strategy and delivering services. Acting as the guardians of the charity’s assets, both tangible and intangible, taking all due care over their security, deployment and proper application. Ensuring that StreetGames complies with all constitutional, legal and regulatory requirements. Ensuring that the charity’s governance is of the highest possible standard. All trustees receive a full induction, including the provision of a detailed Trustee Handbook and associated training, the opportunity to attend meetings in advance of joining the Board, and the opportunity to meet with Senior Management and other Board Members. Whilst the Board reserves key strategic decisions to itself, day to day management of the charity is delegated by the Charity trustees to its Chief Executive. Board Terms of Reference and Scheme of Delegation The Board meets four times per year. It has three sub-committees which serve to both advise the full Board, and provide additional scrutiny in key areas: 1. Finance Committee (Chaired by Peter Rowley OBE) The objectives of the Committee are to advise the Board on: Maintaining an overview of the Group’s financial health and strategy; Reviewing the financial strategy and systems on a regular basis and making recommendations to the Board to ensure that the overall financial health is maintained; Day-to-day financial operations and controls including recommending the annual budget, monitoring actual performance against that budget and monitoring the production of timely and accurate management accounts; The approval of operational financial systems, investment management controls and policy; and The adequacy of risk management, internal control, governance and human resources pertaining to financial and related matters. 2. Audit Committee (Chaired by Margaret Bowler) The objectives of the Committee are to: Provide the Board with assurance that an adequate process of corporate governance, risk management and internal controls are in place and working effectively, To monitor the integrity of the financial statements of the charity, reviewing significant financial reporting judgments contained within them, and to advise the Board on the contents of the audit report and any management letter drafted by the external auditors. 3. Fundraising Committee (Chair currently vacant) The objectives of the Committee are to: To support the development and implementation of the StreetGames fundraising and communications plans To identify strategic fundraising and marketing opportunities for StreetGames To review fundraising opportunities against StreetGames’ ethical policy and other ethical considerations, making recommendations to the board of trustees Committee Terms of Reference: Audit, Finance, 4 Chairs Meet the Trustees Board and Committee Agendas and Minutes Governance and Ethical Frameworks The Charity seeks to align itself with the principles of the Charity Governance Code. In addition, as a recipient of significant amounts of Sport England funding, it also operates to the UK Code for Sports Governance, through which the government seeks to maximise the effectiveness it receives from its investment in sport. There are no significant deviations in the Charity’s practice from either Code. StreetGames is founded on the basis of improving equality of opportunity, specifically equality of access to sport for people living in disadvantaged areas. The charity is committed to the principles of equality and preventing discrimination and will treat people with dignity and respect. It will promote equality in recruitment, employment and management of staff, and in the delivery of its services. The Board is committed to achieving gender parity in terms of numbers of trustees and intends that there will at all times be at least 30% female membership on the Board. The board reviews its membership at least annually and is satisfied with the gender balance. However, it recognises there is further work to do in broadening the ethnicity and age range of its members and has therefore recently reviewed and revised its recruitment procedures as it seeks to reach a wider audience. Equality & Diversity 2019-20 Report Board and Committee Evaluation Board and Committees have a comprehensive and multi-faceted programme of annual self-evaluation. Individual Board members participate in an annual assessment process, considering individual performance, an assessment of Board performance and future training needs. The outcomes of these are discussed with the Chair, who has evaluated and provided feedback to each Trustee. The Chair’s annual review has been performed by the Senior Independent Director. The Finance and Audit Committees undertake a three year review cycle of governance effectiveness. During 2016/7 the Audit Committee carried out its first self-assessment review of its performance. This covered the composition of the Committee; its Terms of Reference and duties; administrative arrangements surrounding Committee activity; reporting processes; risk management; and interaction with, and outcomes of, the external audit process. Recommendations from this review were implemented during 2017/8 as follows: Review of the Committee’s Terms of Reference, which had not been considered for 24 months. Production of an Annual Report which sets out annual activity and demonstrates performance to the Board. Instigation of private meetings between Trustees and External Auditors, at least on an annual basis. Given this detailed assessment, the most recent review was limited to a self-assessment survey of members’ satisfaction with Committee performance. This sought members’ opinions on the appropriateness of the level resources and training available, the quality of papers and the conduct of meetings. Responses received were all positive. The most recent self-evaluation of the Finance Committee, carried out in June 2019, revealed results which were generally positive with respect the performance of the Committee. Specific areas of development were identified as follows: Review of Committee membership, with a view to increasing numbers and including more qualified accountants. Improvements to Committee papers to provide greater emphasis to specific associated risks. Improved understanding of accounting policies in use, the organisation’s financial regulations and articles of government. Review of training and induction procedures for committee members. Review of procedures to keep members informed of topical legal and regulatory issues and organisational developments. These issues have been incorporated into a Committee Improvement Action Plan. In addition, during 2018 Trustees commissioned an external evaluation of Board effectiveness, providing an independent perspective on Board performance. This was undertaken by Campbell Tickell. Overall, there was a largely positive view from participants about the governance of StreetGames, with those involved in the organisation commenting on the collegiate and constructive approach to governance. The review also found that StreetGames is on a good track in terms of compliance with the Code for Sports Governance and good practice more generally. There were a number of areas identified through the evaluation where StreetGames could take its governance to the next level and ready itself better for future challenges. The following key areas for development were identified: Improving Board documentation and reviewing Board and Committee Terms of Reference Continuing to ensure Board business provides room for strategic debate and focus on key risk areas Building in a more formal Trustee induction plan and training process to drive Board performance and development Continuing to develop a shared understanding among trustees of the Charity’s strategic vision and objectives An improvement action plan was developed and has now been implemented. Risk and Internal Controls Trustees carry out an annual evaluation of StreetGames’ internal financial controls against legal requirements and good practice as set out in the Charity Commission’s guidance CC8. Results of the latest review can be found here. The trustees have a Risk Management Strategy which puts in place procedures to: integrate risk management into the culture of StreetGames manage risk in accordance with best practice fully document major threats and opportunities clearly identify risk exposures implement cost effective actions to reduce risks ensure conscious and properly evaluated risk decisions StreetGames Risk Management Strategy (reviewed December 2019) The Board undertakes a detailed review on a quarterly basis of the principal risks and uncertainties facing the charity and its subsidiary DST Ltd. As at March 2019 this work identified six key strategic risk themes for the charity: Fundraising and Finance. The risk of a loss of, or major reduction in, funding from key partners impacts delivery capability and/ or overspend on programme. £7.15m has been secured for 2018-21 from Sport England. Nevertheless we continue to explore other potential avenues of commercial and grant-funding to deliver core programmes as well as pursuing alternative income generation opportunities through trading, particularly sales of training. Our new Fundraising Strategy, implemented in 2017/18, has been the catalyst for investment in our fundraising capacity as we seek to identify and pursue new areas of fundraising, including corporates and major donors, as well as campaigns focussed on major programmes such as Fit & Fed. We closely manage senior officer relationships with major funders (including Sport England and Sport Wales), engaging in their ‘conversations’ in order to play a role in shaping strategy where possible, as well as focussing on delivering and exceeding targets agreed. We continue to explore opportunities for growing funding through other areas of activity, including community safety initiatives, youth social prescribing and training delivery. Delivery of mission through LTOs. The risk that StreetGames’ Network struggles to deliver or does not engage in the new expectations being funded within the Sport England submission. StreetGames cannot control or directly affect spending reductions elsewhere, but we can proactively scan government spending controls on community sport and the impact on activity at a local level. We ensure that advocacy support is in place for local projects through Area Teams and the national team and monitor the position with all StreetMark projects through regular Doorstep Sport Advisor (DSA) contact. Fundraising campaigns for Fit & Fed have had growing success, e.g. through the Tesco Bags for Help scheme. We continue to provide support to projects through DSAs/Area Leads and other SG staff with new ways of working and we have programme of intervention with projects where specific targets are not being met. Mainstreaming the lessons of Doorstep Sport. The risk that we are unable to sufficiently resource the 'mainstreaming' or ‘changing sport’ element of the StreetGames strategy in England. We have developed a new strategy for disseminating our impact and learning with a view to establishing a clear role in the sector. We continue to explore new and different ways of working with NGBs and other mainstreaming partners (leisure trusts, colleges) through our cluster approach and we explore opportunities for commissioned work/selling services when NGBs require support and insight. StreetGames is a well-governed charity. The risk that StreetGames’ governance procedures are inadequate. Corporate governance structures and systems are in place to meet all legal requirements, together with governance requirements of funders. An Assuring Good Governance group is in place to ensure governance and compliance issues are actively managed and the Board Audit Committee scrutinises the overall approach to internal control. Compliance with the Code of Governance for Sport Tier 3 has been achieved and our recent application for the Quest for Sport for Development received an excellent rating. Safeguarding remains a key area of focus, both in terms of our own internal delivery and our relationship with our partner LTOs and their provision. Trustees undertook a detailed review of all safeguarding systems and procedures during 2018/19 and the resultant Action Plan is currently being implemented. StreetGames is operationally efficient and effective. The risk that StreetGames has inadequate staff retention policies and programme delivery systems. The organisation has a keen focus on retention and staff development, seeking to ensure effective supervision and support for key staff, with regular performance reviews, mentoring, in-house training and development in place. We make pro-active use of skilled contractors or secondments when key staff move on and have a succession structure in place, with competency frameworks being developed for all senior roles. The risk that StreetGames does not manage incidents in its external environment effectively A New Communications Plan and approach has been designed to provide increased focus on public affairs and StreetGames’ reputation. The organisation has an internal protocol for dealing with incidents of negative media. Audit Services External audit services are provided by Crowe UK who were appointed for the first time in December 2016, as a result of a competitive tender process carried out by the Audit Committee. There are currently no plans to re-tender for the service in the immediate future. During the audit of the 2018/9 accounts no significant issues were raised by Crowe UK. The Audit Committee scrutinises StreetGames’ and Doorstep Sport Trading Ltd’s Annual Report and Accounts, before recommending approval to the Board. The Committee has the opportunity to question the external auditor during this process, including without the presence of the StreetGames finance team. In addition to audit services, Crowe UK also supply StreetGames with advice in relation to taxation. This is provided by a separate team to that which supplies audit services. In view of its size and the level of resources available, StreetGames has chosen not to maintain a separate internal audit function. However, the Audit Committee receives a number of in depth reviews of operational activity each year and, in addition, undertook a ‘Deep Dive’ review of safeguarding provision within the Charity, including its relationship with partners.