UK Sport has published the Sports Governance Code (SGC), which sets transparency, accountability and financial integrity standards that sporting bodies who wish to continue receiving government and National Lottery Funding from April 2017 must meet. The idea to pin sport’s funding to governance standards was part of the Sporting Future strategy drawn up by the UK Parliament’s Department for Culture, Media and Sport (DCMS) in December 2015. The requirements that sporting bodies must meet depend on where they sit within three Tiers created within the SGC.

For organisations that receive more than £1 million per annum in funding from UK Sport and/or Sport England, the SGC requires annual accounts to be published, as well as a demonstrable commitment towards having 30% of each gender on its board. This will not be mandatory for sporting organisations which receive funding of up to £250,000, whilst sporting bodies that receive funding of between £250,000 and £1 million will be assessed based on the circumstances of their organisation – and may be required to meet some Tier Three requirements.

Tier One applies to sporting organisations which receive annual funding of £250,000 or less. There are seven requirements within Tier One:

1. The organisation is properly constituted, has a clear purpose and, if membership based, is inclusive and accessible.
2. The governing committee meets regularly and decision making is recorded.
3. Conflicts of interest are recognised, managed by the chair and recorded. At least three of the people on the committee are unrelated or non-cohabiting.
4. In deciding who sits on its governing committee the organisation considers the skills and diversity required of its committee members.
5. Committee members are subject to regular election and ideally should serve no more than nine years.
6. The organisation has a bank account and two independent signatories are required for payments.
7. Annual accounts are prepared, scrutinised independently of the person responsible for nance (e.g. treasurer) and are made available to members to describe how money has been spent.

Tier Two applies to sporting bodies which receive annual funding of between £250,000 and £1 million per annum. Bodies will be assessed as falling into Tier 2 where UK Sport and/or Sport England requires organisations to go further than the requirements in Tier 1, but not as far as Tier 3. ‘Organisations receiving an investment categorised as Tier 2 will be expected to meet all of the mandatory Requirements in Tier 1, and some additional mandatory Requirements from Tier 3’, reads the SGC. ‘The exact Tier 3 Requirements to be met, and the timeline for compliance, will depend on the nature of the investment and the circumstances of the organisation’.

Tier Three applies to sporting bodies that will be funded at over £1 million per annum for a number of years. There are a number of more onerous requirements set under Tier Three, not reproduced in full here, but including the following mandatory requirements:

• Board members may hold office for four terms of two years; two terms of four years; or three terms of three years (note: there are limited exceptions to this…);
• Council members may hold office for a maximum of either two, four-year terms or three, three-year terms;
• The size of a Board shall not exceed twelve persons unless agreed with UK Sport / Sport England;
• A target of 30% of each gender on its Board must be adopted and encouraged;
• Demonstrate ‘strong and public commitment to progressing towards achieving gender parity and greater diversity generally on its Board, including, but not limited to, Black, Asian, minority ethnic (BAME) diversity, and disability;
• Where staff are more than 50, the total remuneration paid to senior management shall be published;
• Adopt ‘financial control’ procedures that must be reviewed every two years;
• Publish audited annual accounts;
• A four-year financial forecast is planned.

“Organisations that receive public money do so with tremendous responsibility to ensure it’s invested wisely and transparently”, said Sport England Chairman Nick Bitel in a statement. “That is truer now than it has ever been. There have been significant improvements in standards of governance, which is to be welcomed, but there is still much to do. Diversity in sports sector boardrooms is still an issue and requires a mandatory code to achieve sustainable change. I welcome the Government’s drive to improve standards across the sport and physical activity sector and see the new Code as a significant step towards the UK becoming a world-leader in this field.”