Sports Council for Wales Lottery Distribution Account

Transcription

1 Sports Coucil for Wales Lottery Distributio Accout HC

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3 Sports Coucil for Wales Lottery Distributio Accout Preseted to Parliamet pursuat to Sectio 26(1) ad Sectio 26(3) of the Natioal Lottery etc. Act 1993 (as ameded by the Natioal Lottery Act 1998) Ordered by the House of Commos to be prited o 20 July July 2016 HC

4 The Natioal Audit Office scrutiises public spedig for Parliamet ad is idepedet of govermet. The Comptroller ad Auditor Geeral (C&AG), Sir Amyas Morse KCB, is a Officer of the House of Commos ad leads the NAO, which employs some 785 people. The C&AG certifies the accouts of all govermet departmets ad may other public sector bodies. He has statutory authority to examie ad report to Parliamet o whether departmets ad the bodies they fud have used their resources efficietly, effectively, ad with ecoomy. Our studies evaluate the value for moey of public spedig, atioally ad locally. Our recommedatios ad reports o good practice help govermet improve public services, ad our work led to audited savigs of 1.21 billio i Crow copyright 2016 This publicatio is licesed uder the terms of the Ope Govermet Licece v3.0 except where otherwise stated. To view this licece, visit atioalarchives.gov.uk/doc/ope-govermet-licece/versio/3 or write to the Iformatio Policy Team, The Natioal Archives, Kew, Lodo TW9 4DU, or psi@atioalarchives.gsi.gov.uk. Where we have idetified ay third party copyright iformatio you will eed to obtai permissio from the copyright holders cocered. ISBN: Prited o paper cotaiig 75% recycled fibre cotet miimum Prited i the UK o behalf of the Cotroller of Her Majesty s Statioery Office

5 Sports Coucil for Wales Lottery Distributio Accout Cotets Aual Report ad Accouts Foreword 2 Performace Report Chief Executive Performace Overview 3 Performace Aalysis 7 Accoutability Report 10 Corporate Goverace Report 10 Aual Goverace Statemet 13 Remueratio ad Staff Report 20 Parliametary Accoutability ad Audit Report 27 The Certificate ad Report of the Comptroller ad Auditor Geeral 28 Statemet of Comprehesive Net Icome 30 Statemet of Fiacial Positio 31 Statemet of Cash Flows 32 Statemet of Chages i Taxpayers Equity 33 Notes to the Accouts 34 1

6 Sports Coucil for Wales Lottery Distributio Accout Aual Report ad Accouts Foreword History ad statutory backgroud The Natioal Lottery etc Act 1993 (as ameded) omiated the Sports Coucil for Wales (kow by its trade ame, Sport Wales) as the body resposible for distributig fuds geerated by the lottery to sport i Wales. The duties of Sport Wales i performig its Lottery fuctios are carried out pursuat to the accout directios issued by the Secretary of State for Culture, Media ad Sport, i accordace with Sectio 26(1) of the Natioal Lottery etc Act 1993 ad the Statemet of Fiacial Requiremets issued uder Sectio 26(3) of the Act. Maagemet The maagemet ad admiistratio of the Lottery fuctio is carried out through the Sports Coucil for Wales ad the paels established by Sport Wales to assist i distributig Lottery fuds to good causes i Wales. Registered office Sophia Gardes Cardiff Wales CF11 9SW 2

7 Sports Coucil for Wales Lottery Distributio Accout Performace Report Chief Executive Performace Overview As a Welsh Govermet Sposored Public Body ad the recogised authority o sport i Wales, Sport Wales provides advice to the Welsh Govermet o all matters relatig to sport ad physical activity. As a orgaisatio we aim to ivest our fudig (from Welsh Govermet ad Natioal Lottery) to deliver o our visio: every child to be hooked o sport for life ad for Wales to be a atio of champios. At Sport Wales we believe ivestig i sport has a positive impact o commuities i Wales. We kow that beig ivolved i sport ca improve physical ad metal health, provide ew skills ad cofidece, raise educatioal attaimet ad brig commuities together. Over the last 10 years, we have see uprecedeted success. O the elite stage we ve see Grad Slams, Premier League Football for the first time i Wales, record Olympics, Paralympics ad Commowealth Games medal hauls, ad this summer the Wales atioal football team grace a major touramet for the first time i geeratios. This complimets the growig umbers of childre ad adults participatig regularly, those who are becomig active for the first time, those eterig a Race for Life or parkru for the first time. Through our surveys we kow more people are physically active, ad crucially, there is sigificat demad to be physically active ad to get ivolved i sport. I a cotiuig climate of fiacial challege, we have protected frotlie sport where possible i order to provide opportuities for everyoe to ejoy the beefits of sport ad physical activity. The specificities of our activities durig are documeted withi our Busiess Pla Sport Wales: A High Performig Orgaisatio I order to achieve our aspiratios, we have redefied Sport Wales role ad cotributio to achievig a healthier ad more prosperous Wales. Society s behaviours ad cosumer patters are chagig, ad we eed to respod to esure we cotiue to meet the eeds of our customers. Our five commitmets are as follows, we will: Tell the compellig story of sport; Lead the developmet of sport i all commuities; Eable success o the iteratioal stage; Set sport up for success; Ad we will build a brilliat orgaisatio The five areas form the basis for our busiess pla as well as formig the priciples for our five year plaig. The commitmets provide the focus to esure all childre, youg people ad adults are ot disadvataged by their backgroud, ethicity, sexuality or disability whe it comes to accessig sport. Sport Wales has developed a ew Equality Actio Pla i order to drive both our iteral approach to equality, ad our ivestmets that focus o reducig iequality of provisio ad participatio i Sport i Wales. I additio, we have aliged the priciples of the Well-Beig of Future Geeratios (Wales) Act ito our overall busiess plaig process. This is i recogitio of our duties uder the Act beig applied from April

8 Sports Coucil for Wales Lottery Distributio Accout Midful of the challegig ecoomic climate we fid ourselves i, Sport Wales developed a commercialisatio strategy durig the year, which was edorsed by the Board. A period of cosultatio with the sector, Welsh Govermet ad the busiess commuity will begi i earest i This will iclude a fudametal review of our ivestmet priciples ad clarificatio of roles withi the sector to take forward this ageda i order to esure we set sport up for success ad secure a sustaiable sector. A Natio Hooked o Sport I the last twelve moths we have bee able to publish ew data from both our School Sport Survey ad our Active Adults Survey. Both of these have idicated that we are seeig growth i the umber of childre, youg people ad adults regularly takig part i sportig activity ad feelig the broad beefits. Our School Sport Survey showed a further 8 percetage poit icrease i the umber of childre ad youg people regularly takig part i sport, ow up to 48% from 40% i 2013 ad 27% i The Survey also highlighted that we are succeedig i reducig the umber of childre who are ot takig part i frequet activity. I 2013, 34% did ot frequetly take part i activity, i 2015 the correspodig figure was 29%. This 5 percetage poit drop demostrates that we are gettig the offer right ad ecouragig more childre to become regularly active for the first time. This I kow brigs sigificat health beefits to youg people. These positive developmets are due to our cosistet approach to fudig our commuity based activity; Play to Lear, Drago Sport ad Multi-skills ad 5x60 for schools ad club activity withi commuities. More recetly we have sought to itroduce a approach based aroud physical literacy, which focuses o esurig all childre ad youg people, regardless of their backgroud, are able to gai the basic skills ad cofidece to participate i ay sport. This has built o the work of the PE ad School Sport (PESS) programme ad has most recetly formed the basis of the Physical Literacy Programme for Schools (PLPS), which has bee workig with specific schools i order to place physical literacy at the heart of the school offer. We have also supplemeted this with ivestmet ito the developmet of Youg Ambassadors to act as peer metors ad drive activity withi their schools ad wider commuities. Our ivestmet via Natioal Goverig Bodies of Sport ad other third sector parters has created a rage of exit routes ito sport for those childre ad youg people to cotiue to develop ad practice the skills they have leart i both competitive ad recreatioal opportuities. Our Active Adult Survey (coverig the year 2014) was equally pleasig, as it revealed a icrease i the umber of adults regularly participatig i sport from 38% i 2012 to 41% i Whilst this icrease is smaller tha we have see for childre ad youg people, it is just as sigificat whe we cosider the overall tred i other UK atios which experieced a dip i participatio followig the 2012 Olympics ad Paralympics. As a sector we have sustaied the icrease post 2012 ad pushed o a little. For both adults ad childre, we have see a icrease i participatio for all groups, regardless of age, socioecoomic status, ethicity ad geder. Despite this, we are ot seeig a arrowig of the gap betwee males ad females; disability; those livig i poverty ad those from some BME commuities. Our ivestmet has made sport more accessible for these groups, as evideced by the icreased regularity of participatio, but has ot led to them icreasig at a faster rate tha the maistream. I am committed to esurig that every child has the opportuity to ejoy the beefits of participatig i sport, particularly those uderrepreseted i our participatio figures, icludig girls, those livig i poorer commuities, those from BME commuities or those with a disability. I the last year Sport Wales has cotiued to work closely with the Welsh Laguage Commissioer ad her office to promote the opportuities to ejoy ad deliver sport through the medium of Welsh. The two orgaisatios have a strog workig relatioship through which we have joitly held best practice semiars to raise awareess of how commuity sport programmes ca become iclusive of the Welsh laguage. We have ot oly sought to focus ivestmet based o the evidece available to us, but we have also looked to explore ivestig i a wider rage of parters to reach ew audieces, ivestig i ew parters such as the Natioal Trust ad housig associatios. We have also worked to esure that we are ivestig to support our traditioal parters iovatig ad providig their sports i ew ad differet ways, such as Welsh Cyclig s Breeze Network ad icreasig our ivestmet ito parkru. 4

9 Sports Coucil for Wales Lottery Distributio Accout We have specifically sought to target those who udertake sport i lower umbers through our Calls for Actio Natioal Lottery fudig programme, which has ivested i a rage of orgaisatios to attract ad retai more participats amog girls, those livig i poverty, BME commuities ad those with a disability. I am committed to cotiuig this work i Sustaiig a Natio of Champios O a performace level Wales has shoe o the world stage over the last few years. The latest cycle of our Elite Sport Strategy culmiated i a record breakig Commowealth Games i Glasgow i 2014, with Team Wales returig with 36 medals, surpassig the upper target we had set. Sice the Games, our Elite Sport Strategy has bee reviewed i order to cotiue to build o the systems ad support that we have shaped ad provided to our parters ad athletes i Wales. A refreshed Elite Sport Strategy was lauched i October 2015 with a commitmet to brig greater focus to the pathway that brigs talet through from commuity sport. The strategy cotiues to set ambitious goals for up-comig major evets, but recogises that a focus o talet developmet will esure that the future of Welsh success is bright ad sustaiable. The mai areas work ad ivestmet will be targeted o iclude: Competitio ad developmet that youg athletes eed to succeed. Aual milestoes to success for idividual athletes. Better quality performace coachig. Esurig access to world-class support services adfacilities. I kow that success o the biggest sportig stages brigs ot oly a great deal of pride ad excitemet to the atio but also helps to project Wales to the world as a iovative, resourceful ad successful atio. Uitig a Proud Sportig Natio I the comig year Sport Wales will cotiue to seek to build o the successes i both commuity ad elite sport. I believe the progress we have made i recet years provides us with cosiderable mometum ad the upcomig major sportig evets such as Euro 2016, i which Wales achieved a commedable performace, ad the Rio Olympics ad Paralympics provides a opportuity for Wales to be promiet o the world stage ad to ispire a atio to become active. We recogise that there will be a ew Programme for Govermet followig the electios to the Natioal Assembly ad we will cotiue to work positively with Miisters ad officials to esure that the positive impact of sport o the lives of every perso i Wales is recogised ad haressed to deliver wider beefits. We will be seekig Miisterial approval for our proposal o reshapig the delivery of commuity sport, with a view to pilotig that approach towards the ed of the fiacial year. This is a critical piece of work ad will esure that the mometum we have created i commuity sport is built o to achieve our aspiratio of every child beig hooked o sport. We will esure that we cotiue to develop our joit approach with stakeholders ad colleagues withi the educatio ad health sectors. The ext twelve moths will be a critical time for the developmet of the ew curriculum i Wales ad our work to esure that physical literacy forms a cetral strad withi the healthy ad cofidet area of learig. I kow that participatig i sport, i its widest defiitio, is oe of the most effective ways of gettig the atio physically active. The icreased visibility of people cyclig, ruig or swimmig demostrates that somethig is happeig i our commuities up ad dow the coutry. If we are to create a sustaiable NHS i Wales, the we eed to be chagig the culture of the atio towards physical activity beig a atural part of our lives ad I believe sport has a cetral role to play i achievig that. 5

10 Sports Coucil for Wales Lottery Distributio Accout There will udoubtedly be challeges to our delivery i the comig year, but I am cofidet we are well positioed to adapt ad overcome these. The key issues ad risks that could affect the etity i deliverig its objectives are detailed withi the Risk Maagemet sectio of the Aual Goverace Statemet o page 13. 6

11 Sports Coucil for Wales Lottery Distributio Accout Performace Aalysis As a producer of Official Statistics we provide vital outcome data that is robust ad precise to iform sports policy ad practice, ad shape decisios at both a atioal ad local level. We curretly collect this data through two large scale bieial populatio surveys 1. The mai performace measures for us are: The percetage of people i Wales hooked o sport participatig i sport o three or more occasios a week. This is our mai outcome measure. The percetage of people who are a member of a sports club. Give the ivestmet that we make ito Natioal Goverig Bodies of Sport, it is importat for us to measure membership of formal, structured clubbased opportuities. The percetage of people who voluteer i sport (adults oly). The workforce are key to ispirig, motivatig ad supportig people to participate i sport. It is importat that we esure that we moitor the levels of voluteerig to esure that sports participatio is sustaiable. We have see positive treds i terms of people s participatio i sport i recet years. I terms of youg people, we have see sigificat icreases i the umbers hooked o sport ; up from just 27% i 2011 to 40% i 2013 ad ow 48%. This growth is as a result of 10 years of plaed ad systematic ivestmet ito youth sport. The icreases we ve see i the umbers who are hooked o sport are complemeted by the icreases i sports club membership. We have also see positive icreases ad sustaiability i participatio amog adults at a time whe other parts of the UK have bee uable to sustai participatio. Although we have see a very slight (statistically isigificat) decrease i the umbers of voluteers, the average umber of hours that people have voluteered has icreased. So the overall cotributio of voluteers has icreased. Whilst these key performace measures are crucial for us to assess our overall progress, cetral to our work is upickig these to ascertai whether there are differetiatios across ad betwee differet groups of people ad commuities. We have also developed, o the back of robust aalysis, a framework for uderstadig the foudatios for participatio. It is a aalytical tool with very practical applicatios. Over the ext year, we will be lookig to embed this tool ito our work. The combiatio of both of these thigs allows us to make more iformed ad targeted decisios, which should have a positive impact o our outcomes. We report to ad are scrutiised by both the Sport Wales Board ad Welsh Govermet o these key performace measures (Data is club membership take from surveys). Youg People (7-16yrs) Hooked o Sport 2 Sports Club Membership Adults (15+yrs) Hooked o Sport Sports Club Membership Voluteerig i Sport % 46% % 16% 5% % 53% % 27% 10% % 57% % 27% 9% 1 We are uable to provide outcome data for The data collectors breached the cotract meaig that the data was uusable 2 Hooked o Sport is defied as participatig i sport o 3 or more occasios a week 7

12 Sports Coucil for Wales Lottery Distributio Accout Lottery Fudig ad Additioality All Lottery distributors are required to report o their policy ad practice. Lottery fudig is distict from Govermet fudig ad should ot replace Exchequer spedig. Where appropriate, it ca complemet Govermet ad other programmes, policies ad fudig. Whe we assess applicatios for fudig, we esure additioality is cosidered. We work closely with leadig orgaisatios to esure that our fudig programmes add value to Govermet ad other fudig but do ot replace it. Review of Natioal Lottery Distributio Activities Durig Sport Wales distributed awards uder a umber of Lottery Fuded grat programmes. Capital Grats The fud s pricipal activities are aimed at icreasig participatio ad improvig performace i sport ad physical recreatio. Sport Wales itroduced its plas for the distributio of lottery fuds to capital projects i September A two stage process is used for all capital applicatios. The first stage of the applicatio eables the iitial focus to be more o the added beefits to sport ad the aims, objectives ad proposed maagemet of the project. Applicats seek provisioal approval of a scheme prior to udertakig the ivestmet ecessary to preset the full applicatio which is the secod stage of the process. Capital grats met totallig 3,993,000 ( ,756,000) were made durig the year. The amout provided i the accouts for siged cotracts relatig to capital grats icreased by 1,609,000 i ( decrease of 914,000). Reveue Grats Reveue grats met totallig 9,710,000 ( ,658,000) were made durig the year. The amout provided i the accouts siged cotracts relatig to reveue grats icreased by 18,000 i ( decrease of 701,000). Movemet o lottery balace to 2016 The followig table shows the movemets of the balaces held with the Natioal Lottery Distributio Fud i the year: Balace at 1 April 2015 Urealised Loss Icome Received (Net) Moey Draw Dow From Natioal Lottery Distributio Fud Balace at 2016 () () () () () 19,385 17,381 (15,100) 21,666 The table shows a icrease i the balace held of millio, compared to a icrease of millio i the previous fiacial year. 8

13 Sports Coucil for Wales Lottery Distributio Accout Fiacial Results Sport Wales s Lottery Distributio results are set out i the Statemet of Comprehesive Net Icome. Total comprehesive icome for the fiacial year amouted to 524,000 ( total comprehesive icome of 4,415,000). This has bee trasferred to reserves. The statemet of fiacial positio for shows a total et asset figure of 16,194,000 ( ,670,000). The Directors cotiue to adopt the goig cocer basis i preparig the fiacial statemets which assumes that Sport Wales will cotiue i operatio for the foreseeable future. Sustaiability Sport Wales actively pursues polices ad iitiatives that seek to reduce the impact its operatios have o the eviromet. The Corporate Evirometal Strategy is fully i place sice previously beig approved by the Board. Over ad above the sigificat steps already udertake, Sport Wales set itself the goal to exceed Welsh Govermet targets, the primary oe beig a 3% aual reductio i carbo emissios usig as a baselie, to be measured o a rollig three year basis. The cost of rail travel i icreased sigificatly, meaig that eve though rail mileage reduced i , the actual cost of travel icreased. Sport Wales oly allows travel via Ecoomy class ad will book i advace to obtai the best prices. Where possible, employees will travel at off-peak times to reduce cost. The overall carbo footprit of Sport Wales travel has also icreased slightly, due to flight usage durig Eergy usage (electricity, gas adgas oil) has reduced i compariso to , due to a mild witer ad the full year effect of the efficiet lightig implemeted last year. Sport Wales has itroduced a Cycle Scheme to reduce car usage. Employees may claim a mileage allowace for all busiess joureys made by bicycle. Sport Wales remais committed to implemetig techological solutios to help reduce emissios ad waste where possible, such as dual screes to review documets rather tha pritig them hece reducig paper ad pritig costs, ad the use of video coferecig to reduce the eed to travel. Sport Wales Natioal Cetre improved its Eergy Performace Operatioal Ratig durig the year ad remais well below the typical ratig for the type of buildig. Throughout the year a umber of facility areas were coverted to LED s to reduce electrical cosumptio ad costs. Also, food recyclig commeced this year usig a o-site food compostig system. The cetre has achieved the L2 Gree Drago Evirometal Maagemet Stadard Award. Plas Meai is cotiuig to use the evirometal system ad over the comig year we will be usig the data it provides to make targeted chages to reduce eergy usage. Over the ext 3 years the cetre plas to refurbish its residet accommodatio both i the cetre ad the osite houses. Part of this refurbishmet will be replacig old light fixtures with low wattage, eergy efficiet uits ad istallig ew eergy efficiet boilers. The cetre has achieved the L3 Gree Drago Evirometal Maagemet Stadard Award i 2015 ad will be reassessed i Full details icludig tables detailig Sport Wales offices data ad associated cost ca be foud i the cosolidated fiacial statemets for the Sports Coucil for Wales ad Sports Coucil for Wales Trust. S Powell 11 July 2016 Accoutig Officer 9

14 Sports Coucil for Wales Lottery Distributio Accout Corporate Goverace Report Directors Report Durig , Sport Wales comprised the followig board members; Prof L McAllister** (Chair Reappoited , retired ) Mrs Adele Baumgardt** (Vice Chair Appoited ) Prof. Joh Baylis * (Reappoited ) Mr Simo Pirotte (Reappoited ) Ms Julia Logville (Reappoited ) Ms Johaa Sheppard (Lloyd)* (Reappoited ) Mr Peter Kig (Reappoited ) Amada Beett* (Appoited ) Adrew Lycett*/** (Appoited ) Richard Parks (Appoited ) Samar Wafa (Appoited ) Sophie Howe (Appoited , retired ) Ms S Powell (Chief Executive) * Member of the Audit committee ** Member of the Remueratio committee Dr Paul Thomas has bee appoited Chair commecig 1 April Declaratios of iterest All Members ad seior staff of Sports Wales have completed a retur detailig ay iterests i orgaisatios which provide, or may seek to provide, commercial services to Sport Wales for Iformatio provided that requires disclosure i accordace with Iteratioal Accoutig Stadard 24 is disclosed i Note 15 of these accouts. Persoal data related icidets Sport Wales has cotrols ad policies i place to esure data itegrity. Iformatio Techology systems esure that the physical security of data is tightly cotrolled. As far as we are aware, o loss of data occurred durig the period uder review. Risk idetificatio ad maagemet Detail o Risk Maagemet is cotaied i the Risk Maagemet sectio of the Aual Goverace Statemet page 13. Supplier paymet policy ad performace achieved Uder the Late Paymet of Commercial Debts (Iterest Act 1998) ad i lie with the Better Paymet Practice Code (which ca be located o Sport Wales is required to pay suppliers ivoices ot i dispute withi 30 days of receipt of goods or services or valid ivoice, whichever is the latter. Sport Wales aims to pay 100% of ivoices, icludig disputed ivoices oce the dispute has bee settled, i lie with these terms. Durig the year eded 2016 Sport Wales paid 98% ( %) of all ivoices withi the terms of its paymet policy. No iterest was icurred durig the year as a result of late paymets. Fiacial istrumets Details of fiacial istrumets ca be foud i ote 1.10 ad ote 14 to the fiacial statemets. 10

15 Sports Coucil for Wales Lottery Distributio Accout Remueratio of Auditors Durig , o o audit work was udertake by our exteral auditor, the Comptroller ad Auditor Geeral. The audit fee is disclosed i ote 8 to the fiacial statemets. Statemet o Disclosure of Relevat Audit Iformatio. 1 As far as the Accoutig Officer is aware, there is o relevat audit iformatio of which the auditors are uaware, ad 2 The Accoutig Officer has take all the steps that she ought to have take to make herself aware of ay audit iformatio ad to establish that the auditors are aware of that iformatio. 11

16 Sports Coucil for Wales Lottery Distributio Accout Statemet of Sports Coucil for Wales ad Chief Executive s resposibilities Uder Sectio 35 (2) - (3) of the Natioal Lottery etc Act 1993, the Sports Coucil for Wales (Sport Wales) is required to prepare a statemet of accouts for the fiacial period i the form ad o the basis determied by the Secretary of State for Culture, Media ad Sport with the coset of the Treasury. The accouts are prepared o a accruals basis ad must show a true ad fair view of Sport Wales Lottery Distributio activities at the year ed ad of its icome ad expediture, chages i equity ad cash flows for the fiacial year. I preparig the accouts the Accoutig Officer ad Coucil are required to comply with the requiremets of HM Treasury s Fiacial Reportig Maual ad i particular to: Observe the accouts directio issued by the Secretary of State for Culture, Media ad Sport, icludig the relevat accoutig ad disclosure requiremets, ad apply suitable accoutig policies o a cosistet basis; Make judgmets ad estimates o a reasoable basis; State whether appropriate accoutig stadards, as set out i HM Treasury s Fiacial Reportig Maual, have bee followed, ad disclose ad explai ay material departures i the fiacial statemets; ad Prepare the fiacial statemets o the goig cocer basis, uless it is iappropriate to presume that the fud will cotiue i operatio. The Pricipal Accoutig Officer for the Welsh Govermet has desigated the Chief Executive as Accoutig Officer for Sport Wales. Her relevat resposibilities as Accoutig Officer for Lottery distributio activities, icludig her resposibility for the propriety ad regularity of the public fiaces for which the Accoutig Officer is aswerable, for keepig proper records ad for safeguardig Sport Wales assets, are set out i the Welsh Govermet s Accoutig Officers Memoradum issued by HM Treasury. I cofirm that the aual report ad accouts as a whole is fair, balaced ad uderstadable ad that I take persoal resposibility for the aual report ad accouts ad the judgemets for determiig that it is fair, balaced ad uderstadable. S Powell 11 July 2016 Accoutig Officer 12

17 Sports Coucil for Wales Lottery Distributio Accout Aual Goverace Statemet Itroductio The Goverace Statemet brigs together i oe place all disclosures about matters relatig to a orgaisatio s goverace, risk ad cotrol. As Accoutig Officer I am persoally resposible for the Goverace Statemet which outlies how I have discharged my resposibility to maage ad cotrol the resources of Sport Wales durig the course of the year. As Accoutig Officer I have reviewed the 2014 UK Corporate Goverace Code ad believe that Sport Wales has fully complied with the relevat elemets of the code i respect of both its Exchequer ad Lottery fuctios. Corporate goverace The Board Corporate Goverace is the system by which orgaisatios are directed ad cotrolled. The Board of Sport Wales is resposible for the goverace of Sport Wales ad the Sports Coucil for Wales Trust. The Board s role is to satisfy itself that a appropriate goverace structure is i place ad to scrutiise the performace of the executive ad the orgaisatio s delivery of the Sport Wales Visio. The Sport Wales Board is made up of a Chair, a Vice Chair ad up to twelve other members all of whom are appoited by the Welsh Govermet. The Board s compositio icludes represetatio from a wide cross sectio of differet professios ad members with expertise ad experiece relevat to both commuity ad elite sport. Sport Wales is committed to equality ad the diversity of its Board, which ow comprises 54.5% female represetatio ad 18.2% BME. 13

18 Sports Coucil for Wales Lottery Distributio Accout Attedaces for both the Board ad the Audit ad Risk Committee are show i the table below. Board Member Board Meetig (Number of meetigs atteded of 5) Audit ad Risk Committee (Number of meetigs atteded of 4) Prof. L McAllister (Chair) 5 / 5 Not Applicable Adele Baumgardt (Vice Chair) 5 / 5 Not Applicable Amada Beett 5 / 5 4 / 4 Joh Baylis 5 / 5 1 / 4 Peter Kig 5 / 5 Not Applicable Simo Pirotte 5 / 5 Not Applicable Julia Logville 5 / 5 Not Applicable Adrew Lycett 3 / 5 4 / 4 Johaa Sheppard (Lloyd) 5 / 5 3 / 4 Sophie Howe* 1 / 2 Not Applicable Richard Parks 4 / 5 Not Applicable Samar Wafa 4 / 5 Not Applicable (Exteral members Audit Committee oly) Sady Blair Not Applicable 4/4 Gareth Joes** Not Applicable 3/3 Louise Casella Not Applicable 3/4 Overall Percetage Attedace rate 90 per cet 81 per cet * Retired 1 Jauary oly i post to atted two Board meetigs ** Oly i post to atted three Audit ad Risk Committee meetigs To discharge its resposibilities ad to obtai the assurace required that demostrate good goverace practices are i place, the Board has agreed the followig goverace structure: Two permaet committees; The Audit ad Risk Committee ad the Remueratio Committee; Three Sub Groups ad two advisory group approved by the Board (listed below); The Executive Maagemet Team ad staff structure. Whistleblowig Policy Sport Wales has a established ad Board approved Whistle-Blowig Policy which is detailed i the Staff Hadbook. Durig Sport Wales was ot aware of ay reported icidets. We believe that the policy is effective ad staff have full access to it, if required. The policy is reviewed periodically with the Staff Hadbook. 14

19 Sports Coucil for Wales Lottery Distributio Accout Audit ad Risk Committee The Board has established a Audit ad Risk Committee to support it i dischargig its resposibilities specifically i the areas of risk, iteral cotrol ad goverace through: Reviewig the comprehesiveess ad operatio of curret processes, cotrols ad other measures to meet the assurace eeds of the Board ad the Accoutig Officer; Reviewig the reliability ad itegrity of the assuraces provided by the executive ad the iteral ad exteral auditors; Providig a opiio as to how well the Coucil ad Accoutig Officer are supported i decisio makig ad i dischargig their accoutability obligatios (particularly i respect of Fiacial Reportig). The Audit ad Risk Committee cosists of up to seve members, three of which could be exteral, with a miimum of oe exteral member required. The Committee met four times durig the year ad there was a overall members attedace rate of 81%. Over the year the Committee s areas of focus icluded (but was ot limited to): the operatio ad effectiveess of the risk maagemet review framework; iteral audit reports coverig specific busiess areas ad the aual iteral audit report; the Aual Report ad Accouts ad their format; observatios made by exteral audit, particularly the aual maagemet letter; compliace with the Framework Documet issued by the Welsh Govermet as well as compliace with the Lottery Statemet of Fiacial Requiremet; the Goverace Framework documet; the risks ad cotrols aroud grat awards; review of Board member expeses review of the progress of the ew olie grats system the Gifts ad Hospitality Register High Performig Orgaisatio Task ad Fiish Group Elite Task ad Fiish Group Commuity Task ad Fiish Group Establishig the year s iteral audit pla followig the appoitmet of ew iteral auditors A joit traiig sessio with the Audit Committee of the Arts Coucil of Wales The Board received the miutes of the Audit ad Risk Committee at each meetig ad are advised by the Audit Chair of ay sigificat matters. The Audit Chair also presets a formal aual report o the Committee s work to the Board. IT systems esure that the physical security of data is tightly cotrolled. I o iformatio risk issues or sigificat cotrol weakesses were idetified ad the Audit Committee was satisfied that the level of risk was acceptable ad maaged i a appropriate maer. Remueratio Committee The Remueratio Committee meet to review ad agree the aual pay award for all staff via the Welsh Govermet s pay remit process. Further details ca be foud withi the Remueratio ad Staff Report o page

20 Sports Coucil for Wales Lottery Distributio Accout Sub ad Task ad fiish groups Task ad fiish groups are set up by the Board as ad whe required. The groups are made up of Board members appoited by the Chair sometimes with idepedet members. They are supported by officers of Sport Wales. Their purpose is to provide additioal help ad advice to the Board withi specific themes ad they meet o a ad-hoc basis. A member of the Board who is also a member of each task ad fiish group is idetified to report back verbally at each Board meetig. The Executive Seior Maagemet Team The Executive, uder the leadership of the Chief Executive, is resposible to the Board for the developmet ad implemetatio of strategy ad policies ad the reportig thereof. The Executive meets at regular itervals ad typically fortightly to discuss ad agree corporate matters. Formal mothly meetigs are held which follow a ageda ad miutes are take to esure we record decisios at a corporate level. Progress agaist the Busiess Pla is reported ad moitored o a quarterly basis. Board ad Committee Effectiveess I lie with best practice ad followig the recommedatios of Maagig Welsh Public Moey, a effectiveess review was completed, where idividual ad group performaces were reviewed. The outcome of this skills audit was used i the decisio-makig of the re-appoitmets ad of a ew appoitmet to Board. The Board is cotet with the quality ad amout of iformatio received i order for it to make cosidered decisios. 16

21 Sports Coucil for Wales Lottery Distributio Accout Risk Maagemet The purpose of the system of iteral cotrol The system of iteral cotrol is desiged to maage ad limit risk but ca ever elimiate it. It therefore oly provides reasoable ad ot absolute assurace. The system of iteral cotrol is based upo a o-goig process desiged to idetify ad prioritise the risks of achievig Sport Wales policies, aims ad objectives, to evaluate the likelihood of those risks beig realised ad the impact should this happe, ad to maage them efficietly, effectively ad ecoomically. The system of iteral cotrol has bee i place at Sport Wales throughout the year eded 2016 ad up to the date of approval of the aual report ad accouts, ad accords with Treasury guidace. Fially, the system of iteral cotrol provides reasoable assurace that Sport Wales has complied with the Lottery fiacial directios ad that adequate processes are i place for the detectio of coflicts of iterest ad to miimise losses of Lottery grats. Capacity to hadle risk As Accoutig Officer I am persoally resposible for esurig that Sport Wales has a effective risk maagemet process. This is oversee by the Board, through the Audit ad Risk Committee. As a orgaisatio, the key risks are moitored through appropriate use of the Risk Register. There is a documeted Risk Strategy admaagemet Policy that cotais defiitios relatig to risk maagemet ad the policy also sets out how risks should be idetified, recorded, aalysed ad maaged. Corporate risks, ad the cotrol measures implemeted to mitigate them, are assiged to ad maaged by the appropriate maager, corporate director or i some cases by the Accoutig Officer. Operatig risks are the resposibility of the relevat heads of departmet while day to day risk maagemet may be delegated to the staff they maage. New risks are idetified by officers of Sport Wales, Audit ad Risk Committee scrutiy or the Board itself. Whe a ew risk has bee idetified, it is iserted ito the appropriate Risk Register, assessed ad scored ad assiged to a corporate director ad/or maager. The risk ad cotrol framework Risk maagemet is embedded withi the maagemet structure of Sport Wales. The majority of idetified risks are derived from the orgaisatioal objectives ad the busiess plaig process of Sport Wales. The Risk Register is a electroic solutio that is accessible to relevat maagers via a olie portal. The workigs of the Register has bee subject to a iteral audit ad preseted to the Audit ad Risk committee. The Risk Register records sigificat corporate risks icludig risks to iformatio, a overall assessmet of likely impact ad probability, cotrol measures ad where required, a list of future actio measures. The Risk Register is reviewed at regular itervals by the Risk Maagemet Group ad the Audit ad Risk Committee. I additio maagers preset by rotatio to the Risk Maagemet Group o their specific areas of risk ad how they cotrol or mitigate those risks. Grats moitorig The majority of Sport Wales fudig is expeded i the award of grats. Grat awards are made o clear ivestmet criteria ito key sportig outputs ad outcomes. Sport Wales takes appropriate steps to moitor the applicatio of such awards by requirig formal reportig from recipiets, as well as maitaiig a o-goig dialogue with key parters to gather iformal itelligece. I additio, there are specific recociliatio criteria ad where expediture may vary from the level of grat award, Sport Wales exercises its right to claw back such amouts. 17

22 Sports Coucil for Wales Lottery Distributio Accout Key Risks Risks to key strategic ad operatioal activities are idetified, evaluated ad cosidered by the Directors Group, ad actio take to mitigate them. Risks ad the actios to maage risks are reviewed at regular itervals. The iteral audit programme is iflueced by risks recorded i the Risk Register ad, where appropriate, the auditors make recommedatios to address ay risk or idetify ew oes. The Audit ad Risk Committee will review these recommedatios ad actio appropriately. Sport Wales works with other public sector bodies to share good practices ad to discuss similar risks that we face across the orgaisatios. Lookig ahead, there are a umber of key risks which have bee idetified at Sport Wales ad icluded i the corporate risk register. The most sigificat strategic risk will be the impact of o-goig cuts to public expediture, combied with the icreased fiacial cost of meetig pesio deficit paymets, which preset the greatest threat to the delivery of Sport Wales objectives. Other key risks idetified o the corporate Risk Register iclude those relatig to the delivery of our commuity, elite ad corporate services strategies ad objectives. Also, the itroductio of Welsh Govermet s Well-Beig of Future Geeratios Act will mea a ew area of compliace for Sport Wales, which Sport Wales has already begu to cosider i terms of aligig busiess pla objectives to key areas of the Act. Sport Wales has a overall iformed ad measured appetite for takig risk to achieve its priorities. Risk appetite is owed by the Board. Where sigificat risk arises Sport Wales will take effective cotrol actio to reduce ad maage these risks to a safe level. The Executive ad Board are aware of the eed to iovate further ad faster i the future ad to this ed are actively explorig differet delivery mechaisms ad parters. This will create ew ad differet risks ad potetially icrease the level of risk take by Sport Wales. The Sport Wales risk appetite may therefore rise but oly withi a iformed ad maaged risk eviromet. The ew Iteral Auditors have give Sport Wales a overall substatial assurace ratig for the year. Durig the year, iteral audit reports idetified opportuities to ehace the cotrol systems. It is ecouragig to ote that arisig out of the iteral audit work, there were o fidigs classified as beig of high risk. I total, 25 recommedatios were made, of which oe were classified as high priority. Five (20%) were classed as medium priority ad 20 (80%) were low priority. I terms of follow-up actio, 29 out of 35 previous recommedatios made (83%) had either bee fully or partially-implemeted. The remaiig 6 previous recommedatios are i progress. Iteral Cotrol As Accoutig Officer, I have resposibility for maitaiig a soud system of iteral cotrol that supports the achievemet of Sport Wales policies, aims, ad objectives. I also have persoal resposibility for safeguardig the proceeds from the Natioal Lottery distributed to Sport Wales ad Sport Wales s assets, i accordace with the resposibilities assiged to me i Maagig Public Moey. I am resposible for reviewig the effectiveess of the system of iteral cotrol. This is oversee by the Board, through the Audit ad Risk Committee. It is iformed by the work of both the iteral ad exteral auditors ad the staff presetatios to the Risk Maagemet Group of Sport Wales who have resposibility for the developmet ad maiteace of the iteral cotrol framework. I pla to address idetified weakesses ad esure cotiuous improvemet of the systems. Over the last year, the Maagemet Team at Plas Meai have implemeted a busiess plaig tool that icludes icome forecastig. A weekly icome forecast report is utilised to focus o programme areas to ehace icome. The Maagemet Team review expediture o a mothly basis ad followig o from a Iteral Audit recommedatio, budget holders ow produce a mothly budget report which aalyses actual budget variaces. The iteral audit service for Sport Wales durig was provided by Deloitte LLP, who operated to stadards defied i the Public Sector Iteral Audit Stadards. Iteral audit submit regular reports which provide a idepedet aual opiio o the adequacy ad effectiveess of Sport Wales systems of iteral cotrol ad risk maagemet, together with recommedatios for improvemet. Every year the Audit ad Risk Committee produces a Aual Report of their work to the Board of Sport Wales. 18

23 Sports Coucil for Wales Lottery Distributio Accout Ogoig developmets Whilst the curret system of iteral cotrol is strog, there are always areas which require or will beefit from improvemet. Sport Wales has reviewed the cotrol system i operatio over the Natioal Goverig Bodies geerally ad durig additioal steps have bee implemeted to further stregthe the cotrols i place to maage the risk iheret i ivestig public fudig ito third party orgaisatios. We will keep this uder costat review i Durig , Sport Wales stregtheed its plaig ad budgetig process by better aligig the two, ad esurig resources are better allocated to strategic priorities. This process has ivolved the Leadership Team of Sport Wales, comprisig Directors ad Heads of Departmet. Thus greater owership of budgets ad resources has resulted. The Leadership Team has also icreased collaboratio betwee departmets ad with peer reviews ad a focused approach has esured greater accoutability by all. Sport Wales is committed to a egaged workforce. Our achievemet of gold stadard i Ivestors i People is testamet to this. We will cotiue to evolve as a orgaisatio, ad esure we have a fit-for-purpose workforce as we face the ievitable challeges that operatig i a time of reduced resources brig. We welcome the itroductio of Welsh Govermets Well-Beig of Future Geeratios Act, which is due to take effect from 1 April This will itroduce ew challeges to Sport Wales, ad we uderstad the Auditor Geeral for Wales will have specific additioal resposibilities arisig from the itroductio of the Act. Our challege is to embed the cotets of the Act ito our everyday operatios. This has already commeced, by our likig our key busiess pla objectives to the mai strads of the Act. S Powell 11 July 2016 Accoutig Officer 19

24 Sports Coucil for Wales Lottery Distributio Accout Remueratio ad Staff Report Sport Wales has a extesive rage of policies which reflect curret legislatio ad aim to secure retetio ad motivatio. These policies are reviewed regularly with staff ivolvemet via a recogitio agreemet with the Public ad Commercial Services (PCS) Uio. All policies are equality checked before implemetatio. Sport Wales is committed to a policy of equality of opportuity i its employmet practices. I particular, Sport Wales aims to esure that o potetial or actual employee receives more or less favourable treatmet o the grouds of age, disability, ethic or atioal origi, geder, marital or paretal status, atioality, political belief, race, religio, or sexual orietatio. We also follow the Equality Stadard for Sport ad Positive about Disabled schemes. Ivestig i our people Sport Wales has Ivestors i People status ad its huma resources policies reflect best practice as part of its commitmets as a learig orgaisatio. Durig , Sport Wales achieved the Gold stadard i Ivestors i People. The stadard explores practices ad outcomes withi a orgaisatio uder three performace headigs: leadig, supportig ad improvig. These three areas explore culture, leadership skills, egagemet ad staff developmet which all cotribute towards us beig a high performig orgaisatio. Sport Wales measures the level of staff egagemet as this is a idicator of staff displayig discretioary effort towards the achievemet of Sport Wales goals. As a result it ca be a idicator of a High Performig Orgaisatio. At April 2015, Sport Wales egagemet idex was 78%, with a target for the year of 81%. High Performig Orgaisatios would have a egagemet idex of Over 73%. Performace at year ed was 80.5%, which reflects excellet performace. Sickess absece data The sickess data for employees of the whole orgaisatio for ( ) is as follows: Total Days Lost Total Number of Employees (FTE) Total Sick Days Lost Per Perso 1,524 (935.50) (150.32) (6.22) The icrease from previous years is due to a rise i log-term sickess. We have idetified idividuals who have had log-term abseces exceedig over 30 days i duratio, although the majority have already bee supported back to work. We have bee lookig at some iitiatives to reduce log-term sickess, icludig more effective use of occupatioal health, up-skillig maagers to support their staff back to work, ad a focus o physical ad metal health awareess across the orgaisatio. Sport Wales have had a similar focus o addressig short-term absece over the last year ad our short-term sickess stats have i fact decreased from last year. Pesio scheme Sport Wales operates two pesio schemes for its staff. Most staff are members of the Cardiff ad Vale of Glamorga Pesio Fud. The Fud is a defied scheme providig beefits based o Career Average Re-Valued Earigs (CARE). The Fud s assets are held separately from those of Sport Wales. Ay pesio built up before April 2008 is calculated at a rate of 1/80th with a lump sum of three times pesio. Pesio built up from 1 April 2008 is calculated at the rate of 1/60th ad there is a optio to take a extra lump sum i exchage for pesio. Pesio built up from 1 April 2014 is calculated at the rate of 1/49th with a optio to take a extra lump sum i exchage for pesio. The cotributios of employees are set at 5.5% to 10.5% based o salary rage. Further details ca be foud i ote 1.5 ad ote 16 to the fiacial statemets. I additio, Sport Wales operates a Defied Cotributio pesio scheme, with Scottish Widows, i which Sport Wales cotributes 6.5%, with employees cotributig 1.5%. 20

25 Sports Coucil for Wales Lottery Distributio Accout Remueratio policy (subject to audit) I accordace with Chapter 5 of the Fiacial Reportig Maual, Sport Wales is required to disclose the followig cocerig remueratio durig the year of Coucil Members ad seior staff with resposibility for ruig policy makig departmets. Treasury guidace requires the fiacial statemets to disclose the cash equivalet trasfer value of pesios for Sport Wales Members ad seior staff. The Chair, Vice Chair ad Members of Sport Wales are paid i accordace with the Welsh Govermet Remueratio ad expeses of Chairs ad Members of ASGBs ad NHS Bodies policy. The Remueratio Committee which cosists of Sport Wales Chair, Vice Chair ad Chair of the Audit ad Risk Committee supported by Sport Wales Head of Orgaisatioal Developmet meets to agree the pay award for all staff via the Welsh Govermet s pay remit process. Also, the CEO post ow has a salary rage associated with it, which is determied by Welsh Govermet. All chages of pay for the CEO are approved by the Remueratio Committee. Service Cotracts The seior staff of Sport Wales are employed o terms ad coditios broadly aalogous to the Welsh Govermet terms ad coditios. Sport Wales Members are appoited by Welsh Miisters for a three year cotracted period ad may be reappoited ormally for a further three year period. The Chair is remuerated at a daily rate of 337 ad is cotracted to work two days per week. The Vice Chair is remuerated at a daily rate of 311 ad is cotracted to work oe day per week. Notice Period The Chief Executive is etitled to four moth s otice of termiatio of cotract by Sport Wales ad the remaiig seior staff are etitled to three moth s otice of termiatio of cotract. Chief Executive Officer Salary Remueratio Salary icludes gross salary, allowaces ad performace bouses where applicable. Durig the year the Chief Executive received a gross salary of 92,500, ( ,483). No bous paymets were made to the Chief Executive or ay other member of staff durig the year ( Nil). A proportio of the Seior Maagemet salary costs are allocated to lottery. Beefits i Kid There are o beefits i kid Salary ad Pesio Etitlemets The followig sectios provide details of the remueratio ad pesio iterest of the seior maagers of Sport Wales. Details o start/leave dates ca be foud i the Pesio Beefits table o page 25. This iformatio is audited. The CETV is calculated based o the 2011 budget rates, which is the best available iformatio. As yet the ew calculatio rules aouced i the March 2016 budget are ot yet available, ad therefore Sport Wales are uable to provide a estimate of the effect ad likely sigificace of the impact of the chage. 21