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Good governance

When making decisions about whether to agree to an asset transfer or not, local authorities need confidence that the organisation to which they are transferring the asset has good governance practices and processes in place and they’re robust enough to manage the transfer process and the running of the asset. 

Good governance essentially means leading and managing your organisation effectively, legally, and fairly in line with your governing document and the regulatory rules appropriate to your type of organisation.

There are five common principles of good governance that will give local authorities confidence that you're fit and ready for a transfer. These include: 

Structure
You should have a clear and appropriate governance structure, which is led by a formally constituted decision-making body like a board or committee.
People
You have a diverse range of people with a different experiences, skills, and backgrounds to ensure effective and fair decision-making and that a wide range of tasks can be completed.
Communication
You’re clear and transparent about why your organisation exists, your aims or goals, how it is managed and how it's performing.
Standards and conduct
Your governance practices are supported by your organisation’s culture and values, which include the provision of an inclusive and welcoming environment and a commitment to continuous improvement.
Policies and procedures
Your organisation has appropriate plans, policies, and procedures in place to ensure you comply with laws and regulations, control and mitigate against risk, effectively manage finances, are sustainable and provide safe, positive experiences.

Sport England and UK Sport have developed ‘A Code for Sports Governance’, which aims to drive an improvement and development in governance practices across the sport and physical activity sector.

Tier 1 of the code is the most appropriate for many community organisations and sports clubs, and, by meeting these requirements, community organisations can demonstrate good governance practice and meet conditions of funding for many public bodies such as Sport England.

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