1. NI Sports Forum GOVERNANCE & MODERNISATION SEMINAR Presentation by: John Beggs, Governance and Investment Manager, Sport NI 17 November 2010

2. Overview to Governance & Management 1.Why is it important? 2.What does it look like? 3.How will Sport NI take it forward? i.Strategic rationale? ii.Change in approach? iii.Who will be responsible? iv.When will it take effect? v. What will be the future implications?

3. 1. Why is it important - stakeholders? Members of the Governing Body interested in performance of the sport, results, business etc Public funders interested in return on their investment and accountability Private sponsors interested in commercial and marketing returns on investment Public at large interested in profile of sport against other sports and countries

4. 1. Why is it important – right now? The Sticks Dramatic cuts in public funding Incidences of poor governance, maladministration and fraud Future public funding dependent upon effective governance The Carrots Less bureaucracy and controls over release of public funding Stronger position to avail of funding and demonstrate return Improve performance and reduce reliance on public funding

5. 2. What does it look like – good governance? Board leadership Board’s responsibilities and obligations The effective Board Performing, reviewing and renewing Board Board delegation Board integrity Board openness

6. 3. How will Sport NI take it forward – strategic drivers? Sport Matters: By 2011 to ensure that all funded governing bodies are ‘fit for purpose’ Sport NI Corporate Outcome 1: Professional, accountable and autonomous organisations Sport NI Corporate KPI: 34 governing bodies attaining a reasonable level of assurance through a Sport NI or external Audit

7. 3. How will Sport NI take it forward – change in approach? Fresh start Proportionality in approach Professional judgement Broader remit with increased emphasis on governance (www.diycommitteeguide.org)www.diycommitteeguide.org Correlation with business/sporting performance Priority 1 recommendations only

8. 3. How will Sport NI take it forward – change in approach? ActionProposed Timeline Issue Pre-audit Questionnaire to Governing Bodies4 weeks Pre-audit Questionnaire returned for Sport NI review2 weeks Sport NI conduct audit visit and write audit report: - Initial Meeting with Board / Senior Staff - On-site verification work on HR, Finance, IT, etc - Meeting with operational staff as required Sport NI issue draft audit report recommendations and provisional level of assurance 1 week (c. 2 days on-site) Governing Body review audit report for factual accuracy and respond to findings and recommendations 4 weeks Sport NI to meet with Governing Body before finalising audit report and level of assurance 1 week Total12 weeks

9. 3. How will Sport NI take it forward – who will be responsible? Governing Body - ownership of audit and responsibility for implementation Governance & Investment Team - objective audit and funding recommendations to Sport NI Board Sport NI Performance Consultants - support and advice on implementing recommendations Sport NI Board - take funding decisions DCAL Governance Unit - monitor progress

10. 3. How will Sport NI take it forward - when will it take effect? Correspondence issued to Governing Bodies Audit work programme commenced November 12 week turnaround period for audit 33 audits to be completed by March 2011 Annual audits thereafter at same time of year

11. 3. How will Sport NI take it forward – future implications? Risk Management Policy revised to provide policy cover for implementing changes to the 2011/12 funding agreements Nil Assurance may pose too great a risk for public investment and funding may be suspended Conversely, Full Assurance to be recognised within future funding agreements

12. Recap Good governance & management is critical, particularly right now It serves to improve performance and manage risk for stakeholders Sport NI has adopted a revised independent approach Significant implications for future funding decisions