Evaluation and assurance of sporting organisations.
The Sport Governance Standards (SGS) are the measures by which sporting organisations at both the National and State level can evaluate the effectiveness and efficiency of their governance systems and processes.
The SGS have been co-designed with the Australian sport sector to achieve continuous governance improvement in all sporting organisations, with an increased focus on accountability and transparency.
Using the SGS as an organisational governance evaluation tool, government agencies are able to identify, advise, support, resource, as well as educate our sport partners. In doing so, government agencies at both the national (ASC) and State and Territory level will use SGS evaluations to work with sporting organisations to continually improve their governance systems and process.
There are 35 SGS, each comprising 4 measures, which organisations assess their own performance against annually. Each standard aligns to a Sport Governance Principles, effectively bringing it to life.
A key output from the SGS self-assessment is the SGS-2024-Final.pdf. The report aims to benchmark the current governance maturity of sporting organisations in Australia and identify major development needs so the ASC can prioritise support, education and resources for the sector.
Values-driven culture and behaviours
An organisation’s culture and behaviours should be underpinned by values which are demonstrated by the board and embedded in its decisions and actions.
1.1 - The board have a directors’ code of conduct which outlines the high standards of professional and ethical conduct expected by directors in the interests of the organisation
1.2 - The organisation actively engages with its stakeholders to establish, define and make publicly available, its core values and associated behaviours
1.3 - The board actively demonstrates the organisation’s core values and behaviours, and embeds these into decisions and actions
Aligned sport through cooperation and collaboration
Across a sport, boards should work together to govern collaboratively and create alignment to maximise efficient use of resources and implement whole-of-sport plans.
2.1 - The board develops, communicates and implements a stakeholder engagement plan aligned to its strategy.
2.2 - The board identifies and implements opportunities to meet with and collaborate regularly with the boards of their member bodies.
2.3 - The organisation proactively engages and communicates with its member bodies, ensuring accountability and transparency.
2.4 - The organisation proactively collaborates with its member bodies to create alignment and maximise efficient use of resources.
A clear vision that informs strategy
The board is responsible for overseeing the development of the organisation’s vision and strategy as well as determining what success looks like.
3.1 - The organisation has adopted, in collaboration with its members, a strategic plan for the sport, with clear and measurable targets and an implementation plan, which link to a detailed operating budget.
A diverse board to enable considered decision-making
A board should be a diverse group of people who collectively provide different perspectives and experience to facilitate more considered decision-making.
4.1 - The board should have a diverse mix of skills, expertise, and experience in order to meet the strategic goals of the organisation.
4.2 - The board demonstrates a strong and public commitment to progressing towards achieving its diversity, equity and inclusion goals within its board composition.
4.3 - The board, while ensuring the prevailing criterion for election is eligibility, skills, expertise, and experience, should be composed in a manner such that no one gender accounts for more than 50% of the total number of directors.
4.4 - The organisation’s directors should be independent, regardless of whether elected or appointed.
4.5 - The organisation has a documented and transparent process for the identification and appointment of directors.
4.6 - The board has a composition which incorporates both elected and appointed directors.
4.7 - Directors undertake recognised governance education.
Documents that outline duties, powers, roles and responsibilities
An organisation should clearly define and document its structure and the duties, responsibilities and powers of members, directors, committees and management.
5.1 - The organisation should be a legal entity incorporated under the legislation which best fits its size, need and jurisdiction.
5.2 - The organisation should have a staggered rotation system for directors, with term limits and a maximum tenure of no longer than 10 years.
5.3 - A director who has completed the maximum tenure on the board is not eligible to stand as a director for that organisation for a period of at least three years.
5.4 - The board has a process for inducting new directors.
5.5 - The board operates under a documented board charter.
Board processes which ensure accountability and transparency
Through effective processes and continual review of its performance, the board is able to demonstrate accountability and transparency to its members and stakeholders.
6.1 - The organisation has a Finance, Audit and Risk committee.
6.2 - The board shall appoint the chair and evaluate their performance.
6.3 - The CEO, upon leaving their role with the organisation, is not eligible for appointment or election to the board within 3 years.
6.4 - The board has rigorous processes for identifying and managing director conflicts of interest.
6.5 - The organisation reports on governance outcomes at both its Annual General Meeting (AGM) and in its Annual Report.
A system which protects the organisation
To proactively protect the organisation from harm, the board ensures the organisation has and maintains robust and systematic processes for managing risk.
7.1 - The sport has a documented process to ensure compliance with working with vulnerable persons and children legislation, (that reflects the varying legislative requirements of all States and Territories), including maintenance of relevant checks.
7.2 - The board has a documented process for ensuring that the policies and procedures implemented by management are consistent with the organisation’s risk management framework.
7.3 - The board has established a risk management system that is appropriate for the size and context of the organisation, aligns with strategy and enables organisation-wide decision making for the management of threats and opportunities.
A system for ensuring integrity
An organisation should have measures and protocols to ensure integrity of the sport and safeguard its participants.
Note: From July 2022, Sport Integrity Australia is responsible for standards relating to Principle 8, including the measurement of maturity levels and support for sporting organisations.
Embedded systems of internal review to foster continuous improvement
The board must have an appropriate system of internal controls to enable it to monitor performance, track progress against strategy and address issues of concern.
9.1 - The board should regularly evaluate its performance and performance of individual directors. The board should agree and implement a plan to take forward any actions resulting from the evaluations.
9.2 - The board will operate itself in an efficient manner and directors meet as appropriate to discharge their duties effectively.
9.3 - The board has documentation and processes to operate its meetings in an efficient and effective manner.
9.4 - The board maintains accurate records of meetings and board decisions.
9.5 - The board has documented financial delegations. This includes, but is not limited to: expenditure, funding, grants, other financial transactions as resolved by the board.
9.6 - The board has documented non-financial delegations. This includes, but is not limited to: human resources, correspondence/public relations, membership, strategic actions, business plans, board resolutions, grievances, and complaints.
9.7 - The board has a documented CEO (or equivalent) performance evaluation process.
9.8 - The board has a documented succession planning process for key personnel and the retention of corporate knowledge.