Purpose
The StreetGames Annual Governance Update is provided in the interests of transparency, in order to help our 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
StreetGames 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. It is also registered as a charity with the Charity Commission.
StreetGames’ Articles of Association were reviewed in 2023 by Withers Solicitors following a tender exercise and revised in accordance with Withers’ model Articles which reflect best practice from the Charity Commission, the Charity Law Association and the latest Code of Good Governance for charities. As a result, they are more enabling and fit for purpose whilst retaining the key elements of the previous version. The most notable amendments in summary are as follows: and
- The Charitable Objects were streamlined;
- Provisions relating to payments and benefits to Trustees were brought in line with current Company Law to include the ability to pay trustees in return for goods and services as well as for their tenure as a trustee;
- Wording in respect of dissolution modernised;
- Continued alignment with the Code for Sports Governance;
- Vice Presidents will no longer be members of the Company,
Some of the amendments were Regulated Alterations which require Charity Commission consent prior to adoption, this was duly obtained.
StreetGames Memorandum and Articles of Association
The role of the board is to provide direction and stewardship for StreetGames for the benefit of current and future beneficiaries, 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.
Admission to the board is by election and through an open recruitment process. During 2022/23 the following Trustees served on the Board: John Cove (Chair), Jackie Bryson, Mark Cornelius, Andrew Cropper, Rosie Duckworth, Dominic Haddock, Victoria Hill, Mark Osikoya, Immacolata Pescatore, Peter Rowley, Annie Tarling, Mark Taylor. 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 officer, Mark Lawrie.
Board Terms of Reference and Scheme of Delegation
The board meets four times per year. It has three sub-committees, which serve to advise the board, and provide additional scrutiny in key areas:
- Finance Committee (Chaired by Peter Rowley OBE)
The objectives of the finance 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;
- The adequacy of risk management, internal control, governance and human resources pertaining to financial and related matters.
- Audit Committee (Chaired by Margaret Bowler)
The objectives of the audit 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;
- 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.
- Fundraising Committee (Chaired by Victoria Hill)
The objectives of the fundraising committee are to:
- Support the development and implementation of fundraising and communications plans;
- Identify strategic fundraising and marketing opportunities for the charity;
- Review fundraising opportunities against the charity’s ethical fundraising policy and make recommendations to the board based on this and other considerations.
Attendance at Board and Committee meetings during 2022/3 was as follows:
| 2022/23 | |
| Board meetings | 60% |
| Audit Committee | 75% |
| Finance Committee | 95% |
| Fundraising Committee | 73% |
Board Key Activities
During the year the Board regularly reviewed progress against major programmes and activities, monitored aspects of the internal health of the organisation and assessed new opportunities as they arose.
The new 10 Year StreetGames Strategy was developed and approved during 21/2. The Strategy directs the charity’s work over the next ten years, ensuring that every young person has the opportunity to gain the many benefits of sport and physical activity. It identifies four key objectives that StreetGames will strive towards over this next ten-year period:
- All young people from low-income, underserved communities can engage in life-enhancing Doorstep Sport;
- There is a year-round, multisport offer available in every low-income, underserved community;
- All young people from low-income underserved communities can access a pathway to become volunteers and future community leaders;
- All mainstream sports providers change their practice to meet the needs of young people from low-income, underserved communities.
Produced in collaboration with over 200 individuals and organisations, this is a strategy developed with cooperation and partnership at its heart.
With a view to ensuring we have robust structures in place to deliver the Strategy, the Board focussed on a number of other key areas of work during the year. These included amending the Articles of Association as noted above together with a Safeguarding Action Plan, monitoring delivery of a major projects, including the Youth Justice Fund in conjunction with the Ministry of Justice and Inspiration 2022; Fundraising Ethics Policy, and Environmental and People Strategies.
StreetGames remains committed to working with our external partners in order to ensure we are more reflective of the communities we serve. We recognise that in order to do this effectively, we need to first work on developing and better equipping our staff and contractors, leading to effective and meaningful engagement with diverse communities. During 21/2, we therefore published our 2021-5 Equality, Diversity and Inclusion Strategy. Five goals have been agreed and each year progress against these goals will be reviewed and an action plan for delivery of next steps agreed.
- Diversity of Voice – ensuring our internal and external programmes and interventions have diversity of voice at the heart of the design process
- Recruitment – increasing the diversity of those applying, being offered and accepting roles at StreetGames – staff, contractors and Trustees
- Grow our own – planning for the long term increase of movement from grassroots community sport into the StreetGames workforce and the wider sector
- Inclusive Environment – providing a working environment where everyone feels able to be their whole selves
- Learning and development – creating a learning culture which enables all trustees, staff and contractors to develop their knowledge and understanding in a way that they choose
During 20221, Sport England and UK Sport issued a revised Code for Sports Governance. During 2022/3 The Board undertook a full self assessment of StreetGames’ governance arrangements in relation to the Code. It concluded that the charity is broadly in compliance with the new, more demanding requirements, although further work was identified in a limited number of areas, including:
- A review of Board roles including the introduction of a Welfare and Safety lead and Equality, Diversity and Inclusion lead
- Development of a revised Stakeholder Engagement Strategy
An action plan is now in place and performance against this will be monitored regularly.
Board and Committee Evaluation
The board and committees have a comprehensive and multi-faceted programme of self-evaluation to review their performance and help the charity to identify areas of improvement. A Code for Sport Governance requires that the board conduct a self-assessment on an annual basis, and facilitate an external evaluation every four years. The committees also undertake a self-evaluation on a biennial basis.
Board External Evaluation
During 2021, trustees commissioned an external evaluation of board effectiveness to provide an independent perspective on board performance. This was undertaken by Linda Freeman Sports Development Consultancy.
Having implemented the findings from a largely procedural review of Board activities undertaken in 2018, the Board determined that this evaluation should focus primarily on the way in which Board members work together and with the senior team to transact Board business and manage risk effectively. Overall, there was a positive view from participants about the governance of StreetGames, with those involved in the organisation commenting on the challenging and ambitious approach to both strategic delivery and internal governance. The Board established an Action Plan to take forward key areas for improvement; to ensure it continues manage the growth of the organisation and its people, advise and advocate for StreetGames within the sector, and manage change on diversity and inclusion.
To comply with the requirement of A Code for Sport Governance, the charity will be externally evaluated again in 2025.
Audit Committee Self-Evaluation
The audit committee self-evaluation covers the composition of the committee, its terms of reference and duties, administrative arrangements surrounding committee activity, reporting processes, and risk management.
The most recent review, conducted in October 2022, was broadly positive and members expressed a confidence in the committee’s performance and capabilities. Specific areas for improvement included training in respect of risk and the Charities Act; development of a committee specific induction programme and a policy on non-audit services to be added to the Financial Regulations.
Finance Committee Self-Evaluation
The most recent self-evaluation of the finance committee, carried out in June 2023, the findings were broadly positive reflecting a collective view that the performance and resources allocated to the committee were adequate. Specific areas for development included: robust succession planning, opportunity for members to raise queries outside of meetings to aid understanding and take up of continual development opportunities.
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 ‘Internal financial control for charities’ (CC8). Results of the latest review can be found here: CC8 Review
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
The Risk Management Strategy was last reviewed in December 2022 and can be found here.
On a quarterly basis, both the audit and finance committees undertake a detailed review of the principal risks and uncertainties facing the charity and its subsidiary DST Ltd. Seven key strategic risk themes have been identified which are outlined together with our response below:
- Network Capability – that the StreetGames Network is not in a position to successfully deliver local programmes and key stakeholders no longer engage with StreetGames.
Our new ten-year Strategy is focussed on ensuring that our LTOs are sustainable and have access to funding streams that will provide opportunities for all young people from underserved communities to engage in Doorstep Sport. Our Fundraising, Workforce and Stakeholder Engagement Strategies set the framework within which we work to maintain strong relationships with existing funders and ensure both StreetGames and LTOs are in a strong position to take advantage of new opportunities as they arise. We continue to advocate for LTOs at a national and local level and directly support capacity building via our Training Academy and through targeted fundraising provision.
- Resources – that StreetGames has inadequate staffing resources to deliver StreetGames’ contractual commitments.
The organisation has undergone significant growth over recent years, and we have reviewed recruitment, induction, line management and communication processes as we seek to successfully integrate an expanded workforce. We undertake an annual Staff Survey to understand how staff feel about working for StreetGames and develop an annual Action Plan as a result. Regular performance reviews, mentoring, in-house training and development opportunities are in place, alongside employee led Wellbeing and CPD groups, which form a key element of innovative practice development.
- Funding and Fundraising – that StreetGames generates insufficient financial resources to deliver its commitments
We recognise that we operate within a funding environment that is characterised by considerable ongoing uncertainty and where short-term contracts are the norm. To mitigate this risk, we have refreshed our Fundraising Strategy as we seek to demonstrate the wider benefits of the ‘StreetGames Effect’ and build long-term relationships with a wide range of government, corporate and charitable organisations to deliver sustainable growth.
We recognise the role played by long term partners in sustaining our activity. In particular, the System Partner status awarded by Sport England, accompanied by a funding settlement which runs to 2027, provides a welcome degree of security underpinning our core activity. Similarly, our long-term relationship with Sport Wales continues to underwrite delivery across Wales.
Nevertheless, we recognise that cost of living pressures are likely to impact on our cost base in the short to medium term, including on our staffing resource, and this will need to be carefully monitored as a result.
- Finance and Financial Control – that StreetGames has inadequate cashflow or reserves
Both the cashflow and reserves position continue to be resilient and, as noted below, StreetGames holds sufficient free reserves to meet the requirements of its Reserves Policy. Procedures are in place to ensure the Chair of the Finance Committee is informed should cash balances drop below £0.5m.
Income receipts can be variable, dependent on funding draw down and claim submission. However, our relationships with our major funders is good and we seek payment in advance of need where possible. Every effort is made to maintain flexibility around timing of expenditure should funds run low. Current cashflow forecasts predict balances in excess of £0.5m at least until March 2024.
Financial controls are kept under continual review, using a variety of internal and external audit frameworks.
- Governance – that governance arrangements do not meet best practice
Corporate governance structures and systems are in place to meet all legal requirements, together with any additional funder governance requirements. A variety of internal groups ensure governance and compliance issues are actively managed and the Board Audit Committee scrutinises the overall approach to internal control. Sport England/ UK Sport published a new Code of Governance for Sport during 2021/2 and an Action Plan is now in place to meet the Tier 3 requirements where gaps were identified internally. Sport England commissioned BDO to review our governance arrangements during the year and they were able to reach an overall opinion that these are ‘Good’. Upon the most recent assessment by Quest, in respect of their Sport for Development accreditation, StreetGames was rated ‘excellent’.
- Safeguarding – that a major incident takes place at a StreetGames event or LTO funded activity
Safeguarding remains a key area of focus, both in terms of our own internal delivery and our relationship with partner LTOs and their provision. Trustees undertook a detailed review of our partner ‘take on’ procedures during 2019/20 and this has been supplemented by an external review examining the legal environment within which we and our partners operate during 2021/2 As a result, revised procedures are in place which focus on provision of support to prospective partners to develop areas of practice, including safeguarding, which are focused on ensuring that investment is used in the right way and that the organisations we support are well-run and ready for the long term.
In April 2023 StreetGames attained the Intermediate Standard of the Child Protection in Sport Unit’s Safeguarding Standards. We are currently working towards the Advanced Standard.
- Data Protection – that StreetGames or its partners inadvertently disclose personal data
A Data Protection & Records Management Policy is in place, alongside associated protocols and regular training in IT security and Data Protection for all staff.
Data Protection is at the centre of our new IT Strategy as we seek to make use of the latest technology to embed secure systems and practices. We continue to move to cloud-based systems where possible and this has allowed us to both standardise use of many programmes and to exercise increased managerial oversight, thus helping to increase security around the data we hold.
Link Trustee Reviews
Whilst StreetGames does not have a separate internal audit function, it gains assurances that key risks are identified and effectively managed through a series of Link Trustee Reviews or ‘deep dives’.
The role of the Link Trustee is to support the Board to fulfil its responsibility to ensure StreetGames has in place an effective risk management framework. It does this by nominated Link Trustees taking specific responsibility for assessing the application of the framework to specific Key Risk Themes and by providing assurances that key controls to manage risks are in place and operating. Reviews are scheduled at regular intervals.
The Key Risk Themes reviewed throughout 2022/23 were as follows:
- Key Stakeholders and Network Capability
- Funding and Fundraising
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. As it has been a significant length of time since we last tendered audit services, in line with good practice a re-tendering process took place for the service in advance of the 2022/3 audit. Crowe UK were successful during this process and will continue to provide audit services to StreetGames.
The audit committee scrutinises the StreetGames and the Doorstep Sport Trading Ltd annual report and accounts, before recommending their approval to the board of trustees. The committee has the opportunity to question the external auditor during this process, including without the presence of the StreetGames finance team. During the audit of the 2022/23 accounts Crowe UK were satisfied that no significant control issues had been identified.
