SPORT WALESWALES CAPABILITY FRAMEWORK GUIDANCE

SPORT.WALES Contents

Overview of the benefits of good governance 02 How the Capability Framework works 03 Important reading for every organisation 05 Structure - governance 08 Structure - board composition 10 Strategy 11 People - leadership 18 People - wellbeing 20 Standards systems and controls 24 Risk 27 Ethics and integrity 28 Finance 31 Compliance 32 Operational 33 Strategic 34 APPENDIX 1 Governance Improvement Plan 36 APPENDIX 2 Essential requirements - 37 NGBs receiving up to £46,000 and national partners (e.g. YST) APPENDIX 3 Essential requirements - 38 NGBs receiving £46,000 upwards and WSA, CGCW, The Urdd and StreetGames. APPENDIX 4 Essential requirements for local authorities 39 /SportWales APPENDIX 5 Sign-posting to additional websites 40 @sport_wales 01 Capability Framework Guidance

Overview of the benefits of INTRODUCTION good governance

The benefits of good governance should be Ever increasing legislation, a rapidly changing attractive to all organisations regardless of world, social networking and 24/7 news mean size or structure, size doesn’t matter when it that organisations must regularly embrace comes to great and emerging practice. Good change, constantly work to improve their governance has been regularly shown to increase governance, maximise their potential and sustainability and effectiveness, grow value and minimise the risk for the benefit of all members make an organisation better as it builds a positive and stakeholders. reputation and a healthy culture. It is not always about making the right decisions but about Good governance is not an optional extra for any ensuring there is a good decision-making process organisation; it’s about ensuring the structure, across the organisation - we’re talking about policies, systems and procedures that are clarity of process, of purpose and of behaviour needed are in place and followed. It’s also about and lastly and importantly good governance developing the organisational culture, ethics, saves time. behaviours, relationships and values – all key drivers of trust and confidence in an organisation. It’s the people within an organisation who turn the principles of good governance into In short, if your organisation is still approaching reality. The Board must be clear about what governance as purely a compliance exercise it the organisation is trying to achieve and to could be costing a lot more than you think. make changes that will be beneficial to the organisation long term, as good governance is vital if organisations are to be fit for the future. 03 Capability Framework Guidance

How the Capability Partner governance journey Framework works

MINIMUM REQUIREMENTS GOVERNANCE & LEADERSHIP ESSENTIAL REQUIREMENTS The Capability Framework (the Framework) The essential and minimum requirements (ONGOING) FRAMEWORK FOR WALES (2019) [previously called the Partner Assurance complement the newly refreshed Governance

Framework - PAF] is an approach that identifies and Leadership Framework for Wales (GLFW- Higher Funded NGBs; WSA; Tiered & Proportionate Supports continuous governance the essential and minimal requirements 2019). Significant progress has been made CGCW; Urdd; StreetGames; & • £500 - £20,000 improvement for all partners. Sport North Wales by March 2020. • £20,001 - £100,000 expected of an organisation. It aspires to towards well run, well governed organisations • £100,001 - £375,000 Essential & Minimum support a strong, sustainable and successful with balanced, skilled and inclusive Boards since Lower Funded NGBs & other • £375,001 + Requirements align to the GLFW. sports sector through continuous governance National Partners by March 2020 the GLFW came into effect. Tailored support to (Sport Wales Gender Parity Policy Higher Funded NGBs; WSA; CGCW; improvement. drive further improvement is available through and / or agreed Action Plan by Urdd; StreetGames; Sport North Vibrant Nation: March 2022). Wales; & National Partners / LFNGBs with on-going funding from £20,001 - The Capability Framework has two key aims: https://www.vibrantnation.co.uk/glfw Local Authorities by March 2020 £100,000 by March 2021. • to ensure that Sport Wales is investing public (Sport Wales Gender Parity Policy & Recognition do not apply). National Partners / LFNGBs with money appropriately and has confidence in Please open the link to view the GLFW (2019) on-going funding up to £20,000 by the organisations it is working with, and document: March 2022. • to support the continuous improvement http://sport.wales/community-sport/workforce/ Governance Improvement Plan. of partner organisations so they are best governance-and-leadership-framework-for-wales. prepared to achieve their potential. aspx COMPLIANCE SUPPORT DEVELOP The Capability Framework is built around headline The Capability Framework encourages principles that are then tailored to offer a bespoke organisations to build capacity and capability by and proportionate risk-based approach that is improving and sustaining leadership; delivering relevant to organisations of all sizes. The essential the right amount of training and support where and minimum requirements are proportionate it will be most beneficial; being receptive to The way we do things around here to the level of Sport Wales investment, they also change; using insight gathered through data support an organisation’s continuous governance to make better informed decisions; protecting The approach that the framework has taken (including organisational culture, values, ethics and improvement journey. The heart of the Framework against risk and therefore altogether embedding behaviours) is shown in the diagram below. focuses on the importance of culture, values, ethics good governance. and behaviours within an organisation. Please see the diagram ‘The way we do things around here’. Organisations in receipt of Sport Wales GOVERNANCE & LEADERSHIP investment must achieve the essential and FRAMEWORK FOR WALES The essential and minimum requirements align minimum requirements by specific dates. Please (GLFW) to recognised key governance areas and are set see the ‘Partner governance journey’ diagram. under the following headings: Further detailed information can be found in the relevant tables in the appendices 2, 3 and 4. Efficient & Effective • Structure – Governance HOW WE HOW WE Assurance RUN OUR Framework • Structure – Board, Committee Composition LEAD OUR THE WAY WE DO THINGS (AROUND HERE) (Risk-Based • Strategy ORGANISATION Culture – Values – Ethics - Behaviours ORGANISATION Standards, Approach • People – Leadership Leadership Systems & Controls / Tiered / Proportionate • People – Wellbeing / Bespoke • Standards, Systems and Controls • Risk • Ethics and Integrity HOW WE MANAGE OUR MONEY & RISK • Finance Finance & Risk Management (Managing Welsh Public Money / WG Framework Document) 05 Capability Framework Guidance

Important reading for every organisation

General Guidelines & Review Process 11. Throughout this Guidance document Website The following pages of this the Capability Information details are included for helpful information or Framework Guidance Document contain potential further reading, they may or may detailed information and explanations for 1. The Capability Framework for many 6. Sport Wales will advise the format for the not be of use; it is not a requirement that they each section of the Framework including organisations will be new, for others it organisation’s individualised review process. are opened unless stated. Inclusion of details website links to suggested further reading replaces and builds on the Self-Assurance The review may take different forms, be at does not guarantee the content of the third- and explanation/assistance. process that had been used previously. Over different times, may consider all or only parts party website. Additional potential useful the last two years the assurance system has of the Framework – this will be confirmed at website information has also been provided As determined by each organisation’s needs, evolved and will continue to evolve. the time of notification. at Appendix 5. the sections can be read one at a time prior to, or at the same time as completing work on the 2. The ‘essential requirements to be eligible for 7. Where an onsite review is appropriate, 12. Coloured text boxes have been used in this organisations self-assessment. investment’ of the Framework have been contact will be made with suggested date document to highlight either a meaning of a identified as Essential within the excel options; the venue for the meeting will also particular word or a particular requirement, Appendices follow on after this detailed information document; Essential evidence has also be discussed. e.g. Board and Sport Wales Diversity policy. been indicated. 8. For ‘on-site reviews’ evidence may be 13. Detailed guidelines with links to websites that 3. A self-assessment document that enables requested beforehand – how such evidence will offer more information for each section each question in the Framework to be is provided would be the decision of the has been provided. These pages may be used commented upon will be provided. organisation, e.g. web link, smart sheet etc. as determined by each organisation. They are designed to offer help and assistance especially 4. The Board (plus senior employees if in 9. The evidence can be collated in any way when creating or updating documents. post) is responsible for ensuring that the determined by the organisation, or left organisation meets the requirements of where it is usually computer stored, either 14. A ‘key to cells’ has been included in the the Framework and that suitable evidence way it must be available if requested. An excel Framework document and here for exists as outlined in the various sections; this organisation should also be able to show additional clarity. should be available on request. In particular, how the evidence is usually stored if it has the Chair, on behalf of the whole Board, has been moved to a general file purely for the responsibility to supply written confirmation Framework and how items evidenced are of the compliance with these requirements. applied in practice. NOT A ESSENTIAL MINIMUM REQUIREMENT Sport Wales will provide a ‘Sign-off Form’ to REQUIREMENT REQUIREMENT enable this to take place more easily. 10. A live Governance Improvement Plan should be in place; the format of it can be 5. Targeted Capability Reviews, for governance determined by the organisation. (A template and finance, will take place from November for a simple improvement plan has been 2019 – March 2020 and going forward from included as Appendix 1 as a starting point April 2020 will take place throughout the for smaller organisations but need not be year. Each organisation will have a review at used.) [It is important to remember that the least once in a four-year cycle. These reviews governance improvement plan is a working will complement local intelligence and self- document. It will need to be updated as assessments and support the two key aims of actions are completed or when further review the Capability Framework. is undertaken or if circumstances change and new areas for improvement are identified.] 07 Capability Framework Guidance

Structure - governance

This section looks at legal form, organisational It is essential that all regulatory and statutory STRUCTURE type and sub-committee structure. requirements are being met. The types of regulatory and statutory requirements will vary All formal organisations must have a written set depending on the legal format, size and types/ of rules laying down their objectives, the rights of levels of trading undertaken. Typical evidence members, how their assets may be applied. This requirements can be drawn from these websites if is an Essential requirement of the Framework. charitable or incorporated: [Many different types of organisation can be “not-for-profit”, but this is not a legal structure.] Companies House returns – evidence can be shown Companies have additional legal requirements using: https://beta.companieshouse.gov.uk/ for their Articles. The generic term for this set of Charity Commission returns – evidence can be rules is the “Governing Document” shown using: https://www.gov.uk/find-charity- information

The Governing Document is usually: N.B. Financial returns are covered in Finance • Articles - for a Limited Company and some charities The term Board is used throughout the • Constitution – for an unincorporated Framework documents to describe the group association/organisation, Chartered of people who govern the organisation and Incorporated Organisation, Local have ultimate legal responsibility for it. The Authorities or similar group may also be known as the executive • Articles or Constitution linked to a committee, management committee, council, Community Interest Statement – trustees, ‘the committee’ or similar. when an organisation is set up for Community Benefit Understanding the Board’s collective and individual legal and fiduciary duties evidence may be contained in a set of notes, a Board Sitting under the Governing Document are the Governance Handbook or similar. The detail rules and regulations of the organisation; these may vary depending on the size and the way can include Byelaws, Statutes, Membership the organisation is constituted but the basic Regulations, Codes of Conduct and any information will be the same. A Board Handbook other significant documents that set out the may also be used to set the decision-making organisation’s requirements. framework and primarily focus areas of Board work. Acceptable review period for Governing Document: at least every 4 years For companies more information can be found here: https://www.gov.uk/guidance/being-a- The review can be shown in various ways e.g. company-director AGM minutes where changes were made; Board minutes where discussions took place and no changes were deemed necessary following the review process. 09

Structure - board composition

Board Agendas – recent Board agendas This section looks at Board members within the Board Diversity – showing date of each meeting and the items organisational structure (excluding employees). Sport Wales policy wording confirmation: to be discussed. [NB. Any sensitive/personal information should be blocked out or removed.] The individuals that sit on the Board are key to In July 2018 the Sport Wales Board agreed a An agenda gives an insight into the discussions the success of every organisation. policy objective to achieve gender parity (the and potential decisions of the Board as well as EU Commission’s definition of gender parity the format of meetings. Therefore, understanding the Individual Board is at least 40% women or men on a Board) member’s role is vital to the success of the Board for funded organisations. The decision was A Committee or similar structure should be as a whole. The Board member role descriptor made in accordance with the legal and policy shown using Board/Sub-Committee/Staff is a minimum requirement of the Framework. frameworks that guide Sport Wales strategic Organogram showing the whole structure of Setting the expectations within an appointment direction and reflected the contents of an the organisation. (If the Board has not set letter can also help with understanding. independent report developed in consultation up a sub-committee structure this should be with NGBs. advised, option to consider one to share/ Board member election and/or appointment improve the workload of volunteers could be procedures for lower funded or smaller Though all protected characteristics are considered.) Separate diagrams may exist organisations may be contained within a set of important for richness and diversity of thinking, depending on size, staffing level and any minutes or as part of a governing document or an this policy position prioritises gender diversity as subsidiaries. An example of a committee advertisement; for higher funded or medium to an integral component in balanced, inclusive and Terms of Reference should show the large organisations a policy and full process that skilled Boards in Wales and an area in which as a reporting mechanism to the Board. is regularly reviewed (at least every 2 to 3 years or sector, needs to be accelerated. While the initial sooner if required) is a minimum requirement. priorities are gender focussed, it is recognised Board delegation can be shown using that gender is just one characteristic of how a delegated authority statement and/ A clear recruitment process for Board members people identify themselves. or a table of delegations. helps get the right people with the right skills, knowledge, leadership, diversity and integrity An Equality Policy is in place and supported by a Does your company have a for your organisation. public commitment; and Meets the Sport Wales subsidiary or is your organisation Gender Parity Policy and / or has an agreed a subsidiary of another? There are numerous different sites that an action plan leading to a Board achieving Please advise Yes or No organisation might find useful to explore when gender parity. developing or reviewing Board member roles and If YES, please provide the recruitment processes – these are just a few, many The Sport Wales aspiration is for all funded constitutional relationship and more can be found using internet search engines: organisations to achieve Board Diversity in line show how this is defined. In with Principle 4 of the GLFW by March 2020. addition, please note subsidiary https://managementhelp.org/boards/recruiting- More information can be found here: accounts form part of the members.htm essential evidence for http://sport.wales/community-sport/workforce/ Question 1 of the https://www.wildapricot.com/articles/developing- governance-and-leadership-framework-for-wales. Finance section. a-board-recruitment-process#why-develop- aspx recruitment-process A range of businesses that can provide support in https://knowhow.ncvo.org.uk/your-team/ this area, as well as more information, practical volunteers/recruiting/writing# recruitment guidance, tools, templates and links to resources can be found in Appendix 5. 11 Capability Framework Guidance

This policy objective has been introduced in • evidence of active engagement with Important reading for Company Director by the maximum term of office set within the phases – a minimum expectation by March 2020 supporting resources, making use of learning Induction: https://www.gov.uk/running-a-limited- Governing Document, the current needs of for many organisations, please see full date and development opportunities – appropriate company the organisation and information provided by requirement details in the Appendices. staff and Board members attending events the individual Board members regarding their and accessing opportunities for support A signed Board Code of Conduct, used in willingness to serve. There are many good Whilst there has been significant progress in addition to the induction information evidence, examples online of ‘Board member succession developing balanced, skilled and inclusive • A visible, public commitment to Board is often a good indication that Board members planning’ and the various reasons for it and ways Boards since the policy came into effect, it diversity. This should include a visibly understand their role, responsibilities and what is to approach it. Having effective succession has been important to set out requirements diverse and inclusive approach to public expected of them during their term in office. planning in place will help to maintain the that demonstrate an organisations intent facing materials, such as websites and/or optimum balance of the Board over a to developing a diverse Board. The detailed social media as well as Board members and Annual evaluation of the Board and its individual longer period. requirements that support the Sport Wales employees being public advocates for Board members is an expectation of the Framework for policy are: diversity. (See link to UK Athletics example in higher funded and larger organisations. Board For many organisations other key volunteer roles Appendix 5) evaluation should be part of an organisation’s (e.g. coach, team manager) are also important • An agreed action plan leading to a Board commitment to continuous governance to succession plan for the future. Smaller and lower achieving gender parity. This must be • Evidence of diversity and inclusion in the improvement. It is not expected that the detailed funded organisations can use evidence of their reported and discussed at Board, signed off Board recruitment approach and processes. evaluation of each individual is used as evidence. succession planning for these key roles within by the Board and communicated publicly (see Effective succession planning in place to build However, the process used, the date completed, the Framework. case studies in Appendix 5). diverse Board and maintain the optimum the next planned evaluation date(s) as well as the balance over a longer period. overall outcome of the whole Board evaluation The plan should include; should be evidenced. This can be either by sight The longer Board members work together on the of a report or Board minutes. • an audit and an understanding of the same Board, the more likely they are to engage Evidence of how the findings of membership and make up of local and in groupthink. This means they will be less likely recent evaluations prompted regional governance structures (e.g. sub- to generate questions that could risk breaking any changes to the way the committees, Councils) the cohesiveness of the group. Groupthink Board works would provide is described as “a psychological behaviour of clear evidence of commitment • a short and long-term strategy including minimising conflicts and reaching a consensus to continuous governance approach to elected and ‘open’ appointments decision without critically evaluating alternative improvement. (include independent and direct appointments ideas in a cohesive in-group environment.” from other bodies as relevant in the evidence) An effective Board Board member induction must be provided by member succession plan • clear intent with milestones and responsibility every organisation, as an absolute minimum is expected to be in place for achieving gender parity identified it should outline the Board member’s role and for larger and higher responsibilities. Ideally a signed confirmation funded organisations • a clear strategy for revision of the governing by each Board member should be held as but is good practice document where needed to support positive confirmation of their understanding of the role. for all organisations change It must be noted that company directors and regardless of size. trustees share collective and individual legal and Succession planning is • evidence of progress, learning and actions ethical responsibilities. All Board members are an ongoing process of taken as a result of change equally liable for actions and decisions taken by identifying, assessing the Board whether or not they were present and developing people • progress aligned and continuous at a meeting. to ensure the continuity improvement evidenced through equality of the Board. The standards progression as appropriate Important reading for Charity Trustee Induction: plan will be influenced https://www.gov.uk/guidance/charity-trustee- whats-involved

13 Capability Framework Guidance

STRATEGY

This section looks at how the organisation sets For small or Sport Wales lower funded and manages its strategy. organisations this might already be included in the strategy - it is always good practice to have a A strategic plan outlining the vision, mission, detailed plan. values and long-term goals of the organisation can look very different depending on the size More general information can be found here: and structure of an organisation. It establishes https://www.gov.uk/write-business-plan the direction of an organisation and considers https://www.bplans.com/sample_business_plans. where the various resources (time, money, people php etc.) are best used to achieve the agreed goals or objectives; a broad sequence of steps to achieve Creating an Annual Report for members is an these goals can be included in the more detailed excellent way to keep people informed about the versions. Further reading and assistance on progress of the organisation. Again, the format, developing a strategic plan can be found here: size and distribution will vary and for small https://www.sportandrecreation.org.uk/pages/ organisations may be included within the Annual governance-library-strategic-planning General Meeting but for Sport Wales higher funded or larger organisations the Annual Report Regular monitoring of the strategic plan to ensure would be an expected evidence document. that it is relevant is a fundamental part of a larger The report usually includes financial information. organisation’s annual planning cycle. Monitoring [Links to Finance]. Typical annual reports can be can be evidenced using extracts from Board or seen on many National Governing Body (NGB) sub-committee minutes, or reports to members, the websites including e.g. Welsh Athletics and latter being particularly relevant if changes to the Welsh Gymnastics. plan are envisaged. Responsibility for the achievement of strategic An operational / business plan just like the strategic objectives needs to be clear; this can be plan will look different depending on the size and evidenced in job descriptions of employees complexity of the organisation. Put simply the and/or role descriptors of positions e.g. business plan needs to show ‘how the organisation volunteer national coach – both of these link is going to deliver the outcomes from the strategic with other sections of the Framework and to plan and achieve the goals’. limit duplication reference to these sections are optional. If an executive (minimum CEO/ As the Sport Wales investment level increases GM) job description shows how responsibility is business plans should link to finance and determined it should be used as evidence here. demonstrate identification of any potential risks In addition, tailoring individual appraisals to the from the strategic plan that require scenario person’s responsibility of achievement of strategic options. [See Finance page 33] outcomes is a valuable tool for monitoring and 15 Capability Framework Guidance

review of the relevant objectives. [Links to People- Wellbeing] Sub-committee Terms of Reference (ToR) are an evidence suggestion in Governance – Structure, including responsibility and reporting on the strategy/business plan outcomes within the ToR enables that same evidence to be used again for this question, linked to the actual report outcomes.

Structured engagement with key stakeholders within and outside the organisation makes good business sense on many levels

The term stakeholders is used throughout the Framework documents, it includes internal stakeholders and external stakeholders. Internal stakeholders in this instance include members, employees, Board and sub-committee members and anyone directly involved with the operations of the organisation. Whereas external stakeholders include government bodies e.g. Sport Wales, the general public, potential sponsors etc. Every organisation determines its own key stakeholders.

When stakeholders are invited to a strategy development day for example, it engages and motivates participants to think more broadly. The more engagement with stakeholders in the thinking and consideration stages, the more they are invested in the actual strategy. It has been shown stakeholder involvement in development and monitoring improves the likelihood of success, so for the highest funded organisations the evidence and mechanism of engagement is a minimum requirement. 17 Capability Framework Guidance

People - leadership

This section looks at leadership of the of integrity, leadership and Board culture. For organisation and its impact. smaller and lower funded organisations, the Board reports, minutes and the Annual Report(s) to the PEOPLE Leadership is the ability of an individual or a AGM can be used to highlight the way the group of individuals to influence and guide others; Board works. although the terms leadership and management are sometimes used interchangeably, they are not The Chair demonstrates objective judgement the same concept. and promotes a culture of openness and debate is probably best evidenced by attendance at More information including video clips on a Board meeting. However, failing that the leadership can be found here: questions used for Board evaluation can also https://www.acas.org.uk/index. show the level of openness and individual aspx?articleid=6605 engagement if worded appropriately. As meeting time is regularly limited, the Chair may Declaration of Interest forms and conflict suggest debate continues post meeting or refers management is a legal requirement for discussions to a sub-committee for more detailed incorporated and charitable organisations and debate prior to returning to a future meeting. an essential requirement of the Framework. It This type of openness of debate by gathering a is good practice for all organisations, including wider spread of views/ideas can help the Board unincorporated ones, to consider conflict within on many levels. every decision-making process (include employees and volunteers in the procedure and Board members support the Chair in instilling the athlete selection processes). The management appropriate values, behaviours and culture in the process should be detailed including maintaining boardroom and beyond. of a conflict of interest register. N.B.[ GDPR compliance for personal information stored.] The Board can assess and monitor the culture Examples of conflict management processes of the organisation as a whole by having a can be found on various websites including in the clear understanding of the views of internal Members Section of the Welsh Sports stakeholders, particularly employees and Association site. members. This would be different from stakeholder engagement in the Strategy section The Board should act with integrity, lead by as it would be less strategically defined. example and promote the desired culture of itself and the organisation as a whole. Details about The Board, senior employees and key acting with integrity and all the other behavioural volunteers ensure that the values are embedded characteristics linked with the culture of a Board throughout the organisation is a particularly can be found in the GLFW here: important function for large and higher funded http://sport.wales/community-sport/workforce/ organisations. This group of people should governance-and-leadership-framework-for- assess the basis on which the organisation wales.aspx creates, preserves, communicates and embeds These important characteristics improve the its values over the short and long term. (Values success of any organisation. Board evaluation are often unseen drivers of behaviour, hence outcomes [linked with Structure – Board their importance.) Smaller and lower funded Composition] can provide evidence examples organisations should be interested that their 19

People - wellbeing organisational values matter particularly those This section looks at legally compliant Induction evidence for new employees and organisations that are charities of any kind. employment practices, key volunteer individuals who may have recently returned Equality, fair play, commitment to sustainability management and consideration of wellbeing. following a long absence, or have changed jobs and acting in an environmentally friendly way is also a minimum requirement. The format this are some examples of values. Should the For organisations (regardless of size or Sport induction takes will vary depending on the size Board and/or others find the organisation’s Wales funding level) that have employees a and complexity of the organisation. Examples values are not embedded then corrective Human Resource (HR) structure based around and further explanation about the importance of action should be taken, for example through current legislation is an essential requirement of induction can be found here: https://www.acas. training, better induction, enhanced the Framework. The decision whether to keep org.uk/index.aspx?articleid=5714 communication, being part of performance policies separate or together in a staff handbook review etc. or similar is discretionary. HR policies and/or procedures that are legal requirements on employers have been identified {Organisations without employees should as essential requirements. These include: skip forward to the ‘Bullying’ note, as it applies outside the workplace as well as inside, then Pension Auto-enrolment, all employers have been ‘Mental Health awareness’ and ‘annual volunteer required to offer an appropriate pension scheme appraisal’. Induction for key volunteers is also since 2018, although the staging date was much important to get the best out of them as well as earlier for large companies. Evidence showing providing a clear volunteer environment.} the pension scheme offered to employees can be provided in the form of a letter from the insurance The HR framework will start with the all company or as any other suitable document. employees being provided with signed written More information about Automatic enrolment particulars of employment this is an essential - workplace pension duties can be found here: requirement for any organisation that has https://www.thepensionsregulator.gov.uk/en/ employees, the particulars must contain all the employers required information. Most employers are legally required to insure An up to date job description for every employee against liability for injury or disease to their is a minimum requirement but ideally this goes employees due to their employment. Accordingly, hand in hand with the written particulars. The Employers Liability Insurance is an essential job description should be regularly reviewed, requirement to cover H&S in the workplace more at least annually, to ensure it accurately covers information can be found here: the work undertaken by the individual. The best http://www.hse.gov.uk/pubns/hse40.pdf time to review a job description is alongside the https://www.hse.gov.uk/ annual performance appraisal. Clear evidence of the last review date should be shown on all job As well as the requirement for employer’s descriptions. Appraisal information should be liability insurance, organisations with five or evidenced by the written process and forms used more employees, must have a written H&S (email confirmations or similar could also be used policy. Therefore, for such organisations the in addition to the process evidence if applicable). written policy is essential evidence. If fewer than Actual appraisals should not be used as evidence five employees a written policy is not a legal as they may include sensitive personal information requirement, so not essential but it is still useful to or may allow the person to be identified from have one. Assistance to develop one can be found the text even if the name and job title has here: http://www.hse.gov.uk/simple-health-safety/ been removed. policy/index.htm 21 Capability Framework Guidance

Also, five or more employees requires an or similar but they should be in writing to avoid if access to HR expertise is relied upon from a be viewed to find out ways to improve the systems organisation to have documented risk misunderstanding. The breaching of regulations Board member, their involvement might need that currently exist within an organisation. More assessments for significant hazards posed by may lead to disciplinary action. In many cases to be replaced with outsourced assistance in information can be found here: any work activities. Organisations with less minor infringements can be dealt with informally; potential conflict scenarios. https://www.mind.org.uk/ than 5 employees still have a duty to undertake it is a good idea to have this option written into https://www.mind.org.uk/workplace/training- risk assessments, however there is no legal the procedures. The links provided explain the Absence and sick leave policy should be clear, consultancy/ requirement to record the findings, but it is potential pitfalls if disciplinary measures lead to with the mechanism of reporting absence strongly recommended that you do. http://www. tribunals. More information can be found here: updated as necessary. More information can be Those that rely heavily on a few key volunteers hse.gov.uk/pubns/books/lawposter.htm https://www.gov.uk/taking-disciplinary-action found here: https://www.gov.uk/taking-sick-leave ideally should have a volunteer annual https://www.acas.org.uk/index. performance appraisal system in place. The minimum wage is payable regardless of aspx?articleid=2174 Working time regulations implement the Volunteer appraisal is especially useful how small an employer might be, even if only European Working Time Directive into law in GB. when volunteers hold crucial positions within one employee is involved. Hence it is an Essential Appeals processes should exist within any form of The regulations cover how many hours a person an organisation. Their ability to fulfil the requirement within the Framework. Important disciplinary procedure whether for employees or may work, they are very detailed and state that requirements of their role can be a vital part of payment information regarding the legal for members/volunteers. Evidence of a suitable on average in a seventeen-week period a person achieving the overall goals of the organisation. requirements for employers can be found here appeal process needs to be clearly documented may work no more than 48 hours/week. Opting Key volunteers (other than Board members https://www.gov.uk/national-minimum-wage-rates with timeframes and have a clarification of the out of the regulations is the decision of the considered in Structure – Board Composition) https://www.gov.uk/cyfraddau-isafswm-cyflog- limit of the appeal – the end of the process. [This employee. For the Framework, employers may be such as volunteer national coaches/team cenedlaethol could link into a vexatious complaint or similar asked to confirm if any employees have opted out managers, chairs of sub-committees, etc. By law, therefore an essential requirement, process for people other than employees.] or what flexible working procedures are in place. regularly play a significant role in both small employers must set out a grievance procedure and large organisations. This has been set as and share it in writing with all employees, e.g. Bullying and harassment is behaviour that More information can be found here: a minimum requirement for the top two levels in individual particulars of employment, or as a makes a person feel intimidated or offended. https://www.acas.org.uk/index. only but is something that ideally everyone separate policy or within a staff handbook. More Harassment is unlawful under the Equality aspx?articleid=1373 could consider. information can be found here: Act 2010. Having an anti-bullying policy and http://www.hse.gov.uk/contact/faqs/ https://www.gov.uk/handling-employee- embedding positive behaviours is an important workingtimedirective.htm With regard to volunteers care must be taken grievance/grievance-procedure part of an organisation’s employee and volunteer around their status, required reading linked management. This policy is a minimum Maternity, Paternity and Parental leave is an area to the Framework here: https://www.gov.uk/ Other HR employment policies being in place is a requirement for the Framework it may have been that every employer should be up to date about guidance/check-employment-status-for-tax sign of good practice on behalf of the employer. linked to the Equality Standard work already as regulations change quite often. ACAS https://www.gov.uk/volunteering/pay-and- A suggested list has been included in the undertaken. More information can be found here: has detailed information sheets and template expenses Framework, the list is not an exhaustive one and https://www.gov.uk/workplace-bullying-and- forms that can be used. More information can other policies may exist outside of those listed. harassment be found here: These ‘other’ policies are minimum requirements https://www.acas.org.uk/index. although if they impact on statutory or legal Redundancy legislation is complex, and employers aspx?articleid=4911 areas their inclusion may move to essential if need to understand their obligations, including legal requirements are updated. employees’ rights and the correct procedures to Mental Health awareness has been included follow. This is one of the areas that expert HR as a minimum requirement of the Framework The Disciplinary process for employees is knowledge is paramount, the requirements for the for those organisations that receive the higher different from the process for members and Framework is about how the organisation has or levels of funding. However, any organisation volunteers. Employee requirements e.g. would obtain access to HR expertise. This might looking at this assurance approach can benefit hours of work, dress code, use of social media be via a HR professional employee, an outsourced from reviewing how it considers mental health. etc. may be included in the employment contract or a Board member with HR legal There has been a growing awareness within the particulars or contract or in a code of conduct experience. Depending on the circumstances, sporting sector and many websites exist that can 23 Capability Framework Guidance

Standards, systems and controls

This section looks at systems and controls and policies and practices have maximised best use specific data protection requirements. of ICT, while at the same time ensuring suitable checks and balances are in place to protect STANDARDS, As with many other parts of the Framework but the organisation. with particular relevance to standards, systems and controls an organisation should be able Complaints of any kind can be draining on an to demonstrate that it is compliant with legal, organisations resources, having a well-defined regulatory and statutory obligations through general complaints process in place gives SYSTEMS ANDAND its policies and processes. All policies should be organisations a structure to follow. Within the documented, Board approved and disseminated Framework this is a minimum requirement for through the organisation, in that way everyone all funded organisations. Having a complaint should understand their requirements and not dealt with by the right person is paramount as overstep or make mistakes. is the time taken to resolve any complaint. More CONTROLS information can be found here: Fraud prevention and Detection (financial & https://wsa.wales/our-services/creating- non-financial) policies are essential. This is an good-governance/policy-resource-templates/ ongoing cycle involving policy development, accountability-transparency/ Board approval and decisions, monitoring, detection of any instances, case management General complaints are usually related to and learning from issues, amend the policy etc. dissatisfaction about something, do not include Identity theft and associated fraud is a growing bullying, harassment etc. or disciplinary area of concern, it can have huge reputational complaints within this group but more and/or financial issues. Information control is administrative complaints or those of a less paramount in the battle against fraud. More specific nature. The process should be tiered so information can be found here: that there is the ability to lift the issue higher up in https://www.fraudadvisorypanel.org/resource/ the organisation. There needs to be an end point to a complaint process, it should not go on and on It is also essential to consider Health & (vexatious complaints). Safety outside the workplace. This is just as important as within the workplace. For many Use of Social Media is now the norm. sports organisations, running events, training Organisations will want to maximise the camps, taster days are just a few examples of opportunities afforded by social media and activities that will need careful health and safety websites but there are also downsides to the assessments. The two-website links below give current ‘instant social media age’. Use of all straightforward information and assistance with media platforms should be driven by common regard to developing a safe environment: sense, the law and defined policies that http://www.hse.gov.uk/entertainment/leisure/ have been widely distributed and clearly amateur-sports-club.htm visible to everyone. http://www.hse.gov.uk/entertainment/leisure/

ICT is an acronym that stands for Information Communications Technology, it has drastically changed how people work, communicate, learn and live. It is an essential area for funded organisations to show how development of 25 Capability Framework Guidance

Simple points to remember when creating a Adhering to International Federation rules and The Information Commissioner’s Office (ICO) social media policy regulations if the organisation is a National has produced guidance on the documentation Governing Body is paramount for many reasons, required for data protection which can be 1. Clarify who can speak for your organisation not least for the ability to take part/or host found here: www.ico.org.uk/for-organisations/ on social media events. The easiest way to evidence this is by guide-to-data-protection/guide-to-the-general- confirming Membership of GB and/or European data-protection-regulation-gdpr/accountability- 2. Provide a plan for dealing with conflict arising and/or International Federation as the and-governance/documentation/ from social media posts sport requires. It’s vital that staff and key volunteers receive 3. Include personal account guidelines in your It is an essential requirement regardless of training on the requirements of GDPR and the social media policy an organisation’s size that an appropriate data practical steps required to adhere to it along protection policy is in place that has been approved with ensuring the organisation has access to 4. Consider potential legal risks by the Board. This policy should reference the technical support to keep IT systems compliant. General Data Protection Regulations (GDPR). 5. Keep your employees (and organisation/ Significant financial penalties can be applied for GDPR requires agreements to be in place brand) secure online breaches of the regulations; the Board should with any organisations that shares sensitive be fully aware of the requirements and how personal information. Data Sharing Numerous NGBs place their social media on their they impact on all types of day to day activities, Agreements should set out the following: website – check them out for ideas. therefore following the links below for full understanding is a requirement. • What personal data will be shared Some organisations may wish to mention between organisations, how people complaints within a Customer Charter, many The Board-agreed and annually reviewed data whose data is being shared are NGBs publish their customer charter on their protection policy should include these advised and what lawful reason exists website. Sport Wales National Centre customer minimum points: to share the information charter can be found here: http://sport.wales/about-us/sport-wales- • The purpose of the policy, setting out the • Why and how it will be shared national-centre/about-us.aspx organisation’s commitment to General Data it includes ways to complain and give feedback Protection Regulation (GDPR) and the Data • For how long the data sharing will about the centre. Protection Act 2018 continue and what happens to the data once it is no longer needed Business Continuity is a planning process that • The practical steps to be taken to ensure sets out the capability of an organisation to that personal data is kept safe and how Data sharing agreements are continue delivering activities or services following compliance with the six principles for data required under the new GDPR law - a disruptive incident outside of their control (e.g. processing is maintained. More about these the process of creating them helps flood, loss of premises, cyber-attack, loss of life) principles can be found here: www.ico.org.uk/ an organisation understand where where the incident prevents the usual processes for-organisations/guide-to-data-protection/ collected personal information continuing. The resulting document/plan is guide-to-the-general-data-protection- originates from, is used and stored important and deserves serious consideration regulation-gdpr/principles/ and chiefly who gets to see it. to limit the impact of any disruption to normal services, developing the plan should not be • The rights people have over their personal The ICO guide to data sharing rushed. This website provides more useful data and how they will be allowed to exercise and data sharing agreements information: https://www.thebci.org/knowledge/ them can be found here: www.ico.org. introduction-to-business-continuity.html uk/media/fororganisations/ • A named post holder who is accountable for documents/1068/data_sharing_ data protection within the organisation code_of_practice.pdf

27 Capability Framework Guidance

Risk

This section looks at risk identification, personnel, reduced finances, increased internal understanding and management processes. or external threats etc.

RISK Risk management is key to the overall health A risk register that has been produced which of an organisation. Generally, an organisation is regularly reviewed by the Board is a key puts in the most protection, or mitigation against management tool and should be seen as a ‘living an outcome occurring, where there’s the most document’ not one that is annually updated. The risk. That means the risk of hurting people, risk development of a risk register begins with risk of falling foul of regulation, severe reputational assessments, these are not difficult but take time damage, or losing money. to do properly. Individual risk assessments should be undertaken relating to the activities of the The organisation has appropriate insurance organisation such as premises and equipment arrangements to protect its resources and maintenance, catering, manual handling, event people is an Essential requirement, insurance management, finance etc. [see details in Finance] will vary depending on size and structure as well Risk assessments are best carried out by people as the activities undertaken. One to consider with detailed knowledge of the areas concerned. with your insurer if not already in place is People are also more likely to buy into the risk ‘Error and Omissions’ insurance for employees, management process if they have been involved Board members and key volunteers; get the in writing the assessment rather than having it right wording, check all the services/activities imposed upon them from above. There are many delivered are covered by the policy as well websites that offer information about developing as legal costs. a risk register (including the Welsh Sports Association) one example can be seen here: Risk is the likelihood of harm from a particular https://www.smartsheet.com/risk-register- hazard occurring and the likely severity of the templates harm (e.g. loss of funding, fraud, doping issue, reputational damage). A hazard is something Organisations should have the ability to access with the potential to cause harm and this can advice on legal, financial or compliance matters, include substances or machines as well as it is better to know how to get such advice in methods of working or activities undertaken. advance of the need to have it. Smaller organisations should be aware of their risks and should set things in place to reduce Should a situation arise where an organisation them, it may not need to be as detailed as a is taken to court or similar it is expected that a strategy and a register – but the risks to an funded organisation would have commissioned organisation should never be ‘unknown suitable Professional/Legal advice. It is not or ignored’. necessary to provide the advice as evidence, however, any cases commenced against the A risk management strategy which has been organisation should be notified to Sport Wales. approved by the Board is a minimum requirement The Board should be kept fully informed of the for some organisations. A clear strategy ensures progress of legal cases and any associated risks; the principal risks are identified, assessed, the risk register should be suitably amended categorised and managed at the appropriate as the case progresses. Once resolved – level. The strategy should be reviewed at least confirmation should be shown to Sport Wales in every two years or sooner if there are significant a suitable way without providing any information changes that impact on the organisation, e.g. that could be considered ‘sensitive’. Change of Chair or lead employee, loss of key 29 Capability Framework Guidance

Ethics and integrity

This section looks at the ethics policies 3 levels and an organisation may be required, and procedures that ensure compliance to be working towards or have achieved a with regulatory requirements, promote particular level. ETHICS ANDAND ethical conduct and guide relationships with stakeholders. Equality policies and procedures are also essential, and should include references to the The term ‘ethics’ is derived from the Greek word Equality Act 2010 and other legal requirements. ethos which can mean custom, habit, character or INTEGRITY disposition. So, in simple terms, an organisation’s Sport Wales would normally direct partners to ethics are the moral standards relied on when the Equality in Sport Safeguarding Standards making decisions and managing daily business. http://equalityinsport.org/equality-standard-for- Having a code of ethics should become the norm, sport/ as outlined below. However, Sport Wales it defines what is right and outlines the kind of recognise that these may not be appropriate behaviour that is expected. The ethical values of for all partners, so further discussion on what an organisation should permeate through all its evidence is appropriate may be needed. The policies and processes. Equality Standard is based around two broad themes, developing the organisation and A pre-requisite for Sport Wales funding developing the services and has four is that both a Safeguarding Policy and an levels of achievement: Equality Policy are in place supported by public commitments. Foundation The organisation is committed to equality and It is essential to have Safeguarding Children that commitment is communicated to all staff and Adults at Risk policies and procedures that and volunteers. are documented, approved and disseminated through the organisation is a Framework Preliminary requirement. Sport Wales normally directs The organisation is clear about what it needs to organisations to the NSPCC Safeguarding do to achieve equality, it understands the issues Children in Sport Standards or Ann Craft Trust for and barriers faced by under-represented groups advice about Adults at Risk in sport – links below. in sport and has a robust equality action However, this may not be appropriate for all plan which all staff, volunteers and key organisations, further discussion about suitable stakeholders understand. evidence may be more appropriate. Intermediate NSPCC Safeguarding Children Standards The organisation is increasing opportunities https://learning.nspcc.org.uk/safeguarding-child- for participation and involvement by a diverse protection/ to view. range of people including representation on its own leadership, staff, Board and senior Ann Craft Trust: Adults at Risk volunteers.All internal policies pay due regard https://www.anncrafttrust.org/resources/ to diversity.

Based on the specifics of an organisation and the Advanced level of Sport Wales investment, an organisation Leadership and staff, including coaches and will be asked to produce appropriate evidence. officials as well as participants, are offered a fair For example, the NSPCC Standards have and equal opportunity and are reflective of the 31 Capability Framework Guidance

community the organisation serves. Equality is Rights, Relationships, Personal Standards and Whistleblowing options for volunteers Games may have slightly different rules. More central to the way an organisation carries out all Professional Standards (particularly relating to [Employees within People – Wellbeing] information has been provided in Appendix 5. of its work. All affiliated organisations and clubs coaches and officials). The Public Interest Disclosure Act 1998 governs are able to engage and develop participants, ‘Whistleblowing’ but does not protect volunteers, Engaging with your staff, members, athletes, coaches, officials and administrators from under- An example of a Coaches and a Parents Codes of only employees but there is no reason why any general public and capturing their feedback on represented groups. Conduct can be found here: https://thecpsu.org. organisation should not develop its own policy/ the culture of the organisation/programmes is uk/resource-library/policies/dsw-coaches-code- procedure to include, or ideally be specifically an important part of performance monitoring at The funding level received from Sport Wales of-conduct/ for, volunteers. Promoting whistleblowing every level. The key to every type of engagement will dictate the expected standard level that the https://thecpsu.org.uk/resource-library/policies/ can improve accountability and individual is communication. Active engagement makes organisation should have achieved or be working dsw-parents-code-of-conduct/ responsibility within an organisation as well as sure everyone connected with the organisation towards. Detailed information on this is included [Some organisations group policies together on public confidence in the organisation’s work. feels as though they have a voice. Suggested in the Framework excel document their website together for example http://www. Key to any good policy/process is making it evidence can be specific surveys or similar but to hockeywales.org.uk/safeguarding/] easy for people to understand and follow. get the most from engagement it should be seen Suggested further reading for this part of the [The whistleblowing policy should not be used by everyone as part of the day to day activities Framework can be found here: An Anti-Bribery Policy Statement should be in for a general complaint or a concern about of the organisation. Further information on http://sportwales.org.uk/about-us/how-we-work/ place for organisations, the detail in the policy safeguarding, other policies should be in place methods of engagement can be found here: sport-for-all/useful-resources.aspx?lang=en& should be appropriate to the level of risk to the for those particular areas.] https://www.publicengagement.ac.uk/do- http://sportwales.org.uk/amdanom-ni/ organisation. With sports bodies the potential engagement sut-rydym-yn-gweithio/chwaraeon-i-bawb/ risk might be highest with coaches and athletes, An example of a whistleblowing policy for adnoddau-defynddiol.aspx?lang=cy& so inclusion in their codes of conduct (or similar) volunteers and members can be http://sportwales.org.uk/about-us/how-we-work/ as well as the Board Code of Conduct found here: sport-for-all.aspx is important. https://www.girlguiding.org. http://sportwales.org.uk/amdanom-ni/ uk/making-guiding-happen/ sut-rydym-yn-gweithio/chwaraeon-i-bawb. The UK Bribery Act is comprehensive and policies/girlguiding-policies/ aspx?lang=cy& stringent anti-bribery legislation and has been in whistleblowing-policy/ effect since 2010. Follow the links in the Girl Guiding Where relevant (for NGBs) the organisation website – it covers everything should be able to show acceptance of, and Two general offences covering the offering, about the agreed policy and the suitable compliance with, the UK National Anti- promising or giving of an advantage, and the process in detail. Doping Policy. Adequate training for athletes, requesting, agreeing to receive or accepting of coaches and support personnel should be an advantage; Illegal Gambling and Betting evidenced alongside the policy and procedures. 1. A discrete offence of bribery of a foreign impact can be huge. Many public official to obtain or retain business or National and International The best place to find out further details is from an advantage in the conduct of business; Sports Bodies have very strict the UK Anti-doping website that can be found rules and regulations that here: https://www.ukad.org.uk/ 2. An offence of failure by a commercial restrict both, particularly organisation to prevent a bribe being paid around betting and NGBs can adopt the UKAD regulations as your for or on its behalf. It will be a defence if the participation in the same own if appropriate and agreed by their Board, organisation has “adequate procedures” in sport. NGBs should that way the regulations will always be up to place to prevent bribery. check their International date. https://www.ukad.org.uk/sites/default/ Federation rules and files/2019-06/uk_anti-doping_rules.pdf The Bribery Act also includes a form of corporate either accept them or criminal liability where there is a failure to prevent amend them to suit Agreeing a Members Code of Conduct as well bribery perpetrated on behalf of a ‘relevant Welsh circumstances. as codes for other individuals can be one way commercial organisation’. Note: events run by of establishing and maintaining standards https://www.gov.uk/anti-bribery-policy International Bodies of behaviour and setting out expectations. e.g. Commonwealth Often a code of conduct will cover these points 33 Capability Framework Guidance

Finance

This section looks at the importance and impact of sound financial governance and how robust financial systems can FINANCE help your organisation achieve its strategic aims.

Sound financial governance is crucial to the overall health of an organisation. It ensures accountability and compliance and enables strategic plans to be put into action. Strong financial health is dependent on having appropriate controls and regulations in place. Financial governance can be separated into 3 separate areas - compliance, operational finance and strategic finance.

35 Capability Framework Guidance

Compliance

It is essential that all organisations comply with their statutory filing requirements. This includes, but is not limited to, filing accounts with Companies House as required and meeting HMRC and pension obligations. It is also now a requirement for organisations to put procedures in place to minimise the risk of tax evasion. https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/ attachment_data/file/672231/Tackling-tax- evasion-corporate-offences.pdf

Not all organisations require an audit. However, for those that do, it is an essential requirement that an action plan is put in place to address any audit recommendations.

Sport Wales is a publicly funded body. As such, it is an essential requirement that its investment is clearly shown as both income and expenditure within the organisation’s accounts. This is to enable Sport Wales to effectively reconcile all money provided.

Internal compliance within an organisation is also important to ensure appropriate and effective policies, controls and procedures are in place.

The Board should ensure there is a rolling timetable of update and approval of all policy documents so that documents do not go out of date.

The Financial Procedures manual usually consists of: • Financial responsibilities • Budgetary control and monitoring • Policies and procedures (petty cash, expenses etc.) 37 Capability Framework Guidance

Operational Strategic

It is imperative that the Board members are Strategic finance is vital to ensure that fully aware of the financial health of the the organisation’s strategy is effectively organisation in order to understand risks and implemented. approve financial plans. In order to ensure the organisation’s The Board also need to receive appropriate strategic objectives are given the best information during the year. The main way possible opportunity of success, the Board of achieving this is to have high quality needs to ensure that financial resources management accounts, which are circulated in are appropriately allocated. This would advance of the meeting. Board meetings should involve some level of challenge and then enable Board members to robustly scrutinise discussion at Board level on the annual and challenge the management accounts. budget and longer-term financial plans. The Board have an important role to play in approving key financial documents such as the Being able to monitor the outcomes annual budget to: and impact of the financial investment • ensure it follows the agreed strategic against strategic objectives will direction of the organisation; ensure a better return on investment • understand the level of risk involved; is achieved. This could be monitored • ensure there are contingency plans in place if by including financial information things don’t go according to plan alongside non-financial measures and Key It is vitally important that the budget is appropriately delegated to appropriate personnel / budget holder (s) and that regular monitoring reports are produced. 39 Capability Framework Guidance

Appendix 1

APPENDIX 1 - Governance Improvement Plan APPENDIX A simple Governance Improvement Plan might look like this:

Area to be Improvement Steps needed Additional Review Completed/ Improved Objective to undertake Support/ Schedule/ Success Improvement Reference Success Required Criteria e.g. Review Governing 1. Set up sub- 2 initial hours • Board after 2 Changes governing document fit group (SG) support from months agreed by document for purpose with Terms consultant/ members and Agree WHO of Reference legal • Board when new governing and HOW and appoint 3 final document document people circulated • Consultation 2. SG to mark- Check GLFW outcome up required review & changes with changes made reasons (if any) Board agenda 3. Board to review suggested changes Website consultation 4. Final document prepared and circulated to members for AGM papers consultation

5. AGM notice – special resolution e.g. Review HR New HR 1. Confirm Access to HR • 6 weeks New HR Manual Manual person(s) expertise/ Manual staff compliant & undertaking company for • 8 weeks training current review some sections complete and final check • 4 months final 2. X-ref to new of whole document legislation 3. Consult staff re new holiday process etc

e.g. Develop risk strategy 41 Capability Framework Guidance

Appendix 2 Appendix 3

Appendix 2 - Essential requirements – NGBs receiving up to £46,000 and National Partners Appendix 3 - Essential requirements – NGBs receiving £46,001 upwards, and WSA, CGCW, (e.g. YST) The Urdd and StreetGames) (SW may agree variance of requirements under exceptional circumstances) (SW may agree variance of requirements under exceptional circumstances)

Partners required to meet the Essential Requirements Partners required to meet the Essential Requirements below & have a live below by March 2020 include: governance improvement plan by March 2020 include: NGBs receiving up to £46,000 & National Partners (e.g. YST) NGBs receiving £46,001 upwards and WSA; CGCW; The Urdd and StreetGames.

The organisation is appropriately constituted with a Governing Document, The organisation is appropriately constituted with a Governing Document, rules & rules & regulations. All regulatory & statutory requirements are being met. regulations. All regulatory & statutory requirements are being met.

A self-declaration that the organisation complies with all relevant legal & A self-declaration that the organisation complies with all relevant legal and statutory obligations, including HR if there are employees. statutory obligations, including HR if there are employees.

The organisation has appropriate insurance arrangements The organisation has appropriate insurance arrangements to protect its resources & people. to protect its resources and people.

An Equality Policy is in place & supported by a public commitment; & An Equality Policy is in place & supported by a public commitment; & By March 2022, meets the Sport Wales Gender Parity Policy & / or has an Meets the Sport Wales Gender Parity Policy & / or has an agreed action plan leading agreed action plan leading to a board achieving gender parity. to a board achieving gender parity.

A Safeguarding Policy is in place & supported by a public commitment. A Safeguarding Policy is in place & supported by a public commitment.

Annual Accounts & financial compliance with statutory and regulatory Annual Accounts & financial compliance with statutory and regulatory recommendations and obligations. recommendations and obligations.

If a recognised NGB, confirmation that the NGB undertakes the necessary If a recognised NGB, confirmation that the NGB undertakes the necessary steps to steps to maintain its recognised status. maintain its recognised status. 43 Capability Framework Guidance

Appendix 4 Appendix 5

Appendix 4 - Essential requirements for Local Authorities Signposting to additional websites 4. For information on delegation to volunteers (SW may agree variance of requirements under exceptional circumstances) see here : https://knowhow.ncvo.org.uk/ Some of the following charity commission governance/governance-structure-and- documents may be useful for organisations that roles/delegation-tocommittees-and- are not charities, particularly point 1, which gives staff for delegation to Honorary Officers an overview of a clear, appropriate and coherent including the Chair and Treasurer, see here: Partners required to meet the Essential Requirements set of policies and procedures that help ensure https://knowhow.ncvo.org.uk/governance/ below by March 2020 include: an organisation is well run – an organisation may governance-structure-and-roles/roles-on- Local Authorities want to use this as a checklist. the-board

The organisation is appropriately constituted with a Governing Document, Information and guidance text has been 5. Charity Commission guidance on managing rules & regulations. All regulatory & statutory requirements are being met. taken from ‘IMPLEMENTING THE CHARITY charity assets and in particular charity GOVERNANCE CODE A TOOLKIT FOR MICRO finances (CC25) can be found here: https:// CHARITIES’ www.gov.uk/government/publications/ A self-declaration that the organisation complies with all relevant legal & managing-charity-assets-and-resources- statutory obligations, including HR if there are employees. 1. A large number of policies and procedures cc25/managing-charity-assets-and-resources can be found here, including health and The organisation has appropriate insurance arrangements safety, safeguarding, data protection and 6. Information on the legislation and regulation to protect its resources & people. GDPR, equality and diversity, expenses, that applies to charities can be found here: complaints, volunteer recruitment and https://knowhownonprofit.org/organisation/ selection: https://knowhow.ncvo.org.uk/ operations/legal/legal organisation/operations/policies-and- An Equality Policy is in place & supported by a public commitment procedures 7. Charity Commission guidance on how to insure your charity can be found here: https://www. 2. For Charity Commission guidance on gov.uk/guidance/how-to-insure-your-charity A Safeguarding Policy is in place & supported by a public commitment. charity trustees and decision-making More detailed guidance (CC49) can be (CC27), see here: https://www.gov.uk/ found here: https://www.gov.uk/government/ government/publications/its-yourdecision- publications/charities-and-insurance-cc49 Annual Accounts & financial compliance with statutory and regulatory charity-trustees-and-decision-making/ recommendations and obligations. its-your-decision-charity-trustees-and- 8. Charity Commission guidance on how to decision-making and for a quick summary, keep your charity’s money safe, including an see: https://www.gov.uk/guidance/charity- internal financial controls checklist, can be meetings-making-decisions-and-voting found here: https://www.gov.uk/guidance/ charity-money-how-to-keep-it-safe 3. For more information on the role of the More detailed guidance (CC8) can be found here: Board, see here: https://knowhow.ncvo.org. https://www.gov.uk/government/publications/ uk/governance/board-responsibilities internal-financial-controls-for-charities-cc8 45 Capability Framework Guidance

TOOLS AND SAMPLE DOCUMENTS which highlight how organisations have achieved Mental Health Template example can be Pension compliance: diverse Boards, and what impact this has had on found here: https://www.thepensionsregulator.gov.uk/en/ 9. Risk register template: https://knowhow.ncvo. the organisation. https://www.sportandrecreation.org.uk/policy/ employers/new-employers org.uk/tools-resources/risk-management/ the-mental-health-charter/template-action- template-risk-register For further guidance, tools and resources please plans General finance: see the below: http://www.clubsolutions.wales/club-finances/ 10. Legal compliance checklist: https://knowhow. http://sport.wales/media/2022193/11070_-_ Mental Health case studies can be found here: ncvo.org.uk/tools-resources/board-basics/ sw_-_business_case_for_board_diversity.pdf https://www.sportandrecreation.org.uk/policy/ Filing requirements for Limited Companies: tools-and-guidance/legal-checklist http://sport.wales/media/2022211/11070_-_ the-mental-health-charter/template-action- https://www.informdirect.co.uk/company- sw_-_diversity_guidance.pdf plans#casestudies records/filing-requirements-limited-company/ FURTHER READING OPTIONS FROM http://sport.wales/media/2022196/11070_-_sw_-_ OTHER SOURCES diversity_guidance_-_templates_and_toolkits.pdf Complaints The following financial policies and templates Further detailed reading about handling can be found on the Welsh Sports Association Codes of Conduct examples for Clubs and Diversity Case studies can be found here: complaints can be found here: website here: Members can be found here: Birmingham FA https://www.lawinsport.com/content/articles/ https://wsa.wales/our-services/creating- https://www.sportenglandclubmatters.com/club- http://sport.wales/media/2022199/11070_-_ item/best-practice-for-sports-governing-bodies- good-governance/policy-resource-templates/ planning/governance/policies-procedures/code- sw_-_case_study_-_birmingham_fa_2.pdf when-dealing-with-individual-complainants-part- standards-systems-controls/ of-conduct/ 2-guidelines-for-legal-teams • Financial Management Guidance The Great British Diversity Experiment • Financial Policies and Procedures Guidance Governance and Leadership Framework for http://sport.wales/media/2022202/11070_-_ ICT Policies – more information to keep IT • Financial Procedures Manual for Smaller Wales (2019) GLFW sw_-_case_study_-the_great_british_diversity_ under control: Organisations experiment_2.pdf https://www.techdonut.co.uk/staff-and-it- • Financial Risk Review with Reserves Policy Following a review in 2019, the Governance & training/your-it-policies/free-it-policy-templates (2015 template) Leadership Framework for Wales (GLFW) has Welsh Triathlon • Accounts Payable Procedure been refreshed. The refreshed GLFW 2019 can http://sport.wales/media/2022205/11070_-_ Equality Policy assistance can be found here: • Accounts Receivable Procedure be found in English and Welsh here: sw_-_case_study_-_welsh_triathlon_2.pdf https://www.human-resource-solutions.co.uk/HR- • Anti-fraud Bribery and Corruption Policy http://sport.wales/community-sport/workforce/ Policy-Pages/Equality/Document_Management_ • Cash and Banking Procedure governance-and-leadership-framework-for- Welsh Rowing Equality.html • Credit Card Policy and Procedure wales.aspx http://sport.wales/media/2022208/11070_-_ Link to the Equality Act detailed information: • Standard Terms and Conditions for the sw_-_case_study_-_welsh_rowing_2.pdf https://www.gov.uk/society-and-culture/equality Purchase of Goods Diversity Support • Standard Terms and Conditions for the Support ranging from Independent Consultants UK Athletics’ Commitment to Board Diversity Disability Sport Wales training link: Purchase of Services to organisations such as Acorn Recruitment, BME http://sport.wales/media/2027724/uk_athletics_ https://www.disabilitysportwales.com/learn/ • Tender Template Sport Cymru, Chwarae Teg, Inclusive Boards, board_diversity.pdf • Segregation of Financial Duties Women’s Equality Network Wales, and Vibrant Gambling Commission link: Nation among others. HR additional support reading/information can https://www.gamblingcommission.gov.uk/Footer/ be found here: Useful-links/Sports-governing-bodies.aspx In order to provide further support for the sport Redundancy from employee’s perspective: McKinsey on Risk paper can be found here: sector to continue to make progress in this area, https://www.gov.uk/redundant-your-rights https://www.mckinsey.com/~/media/McKinsey/ Sport Wales have developed a range of resources Business%20Functions/Risk/Our%20Insights/ following consultation and feedback. The Capability and Capacity of Employees McKinsey%20on%20Risk%20Issue%207%20 resources are designed to be used by all sporting This example guide from the Royal College of Summer%202019/McKinsey-on-Risk-7-full- organisations striving for a balanced, skilled Nursing covers informal and formal capability issue-v9.ashx and inclusive Board. They consist of detailed, meetings, appraisals and performance reviews and practical recruitment guidance with tools and employee dismissal on the grounds of capability. Information and links relating to Finance can be templates that enable this to be implemented; a https://www.rcn.org.uk/get-help/rcn-advice/ found at the various points below. detailed evidence base on why a diverse Board capability-and-performance-standards-and- is good for business; and a range of case studies reviews /SportWales @sport_wales