WEB_SportEngland_AR_2016-17

Fraud risks
There is a risk to grant-giving bodies of fraud occurring
while undertaking their day-to-day grant giving
process through which funds are made available to
third parties. No matter how effective the controls and
checks, which are in place and followed by the grant
giving body, there remains a possibility that fraud
may occur.
During the 2016-2017 financial year there have
been only four cases raised where fraud has been
suspected concerning grant recipient organisations
or concerning individuals in management positions
at recipient organisations. Two of these cases are
joint investigations between our Accredited Counter
Fraud Specialists and the police. A fraud register is
maintained within Sport England that monitors past
and present cases, their status and final outcomes
and quarterly updates are presented to the Audit Risk
and Governance Committee.
During the financial year the Counter Fraud Strategy
and the Fraud Loss and Bribery Prevention Policy were
reviewed and updated. We have also undertaken a
fraud and error risk assessment as part of the Cabinet
Office’s counter fraud work. Sport England is also
a member of the Lottery Forum Fraud Operational
Group which continues to meet four times a year to
share best practice and intelligence.
Independent assurance
Internal Audit provides me with an objective
evaluation of, and opinion on, the overall adequacy
and effectiveness of the organisation’s framework of
governance, risk management and control processes.
An annual programme of internal audit work is carried
out to professional standards by an external firm of
accountants informed by the Risk Register, and an
assessment of my assurance requirements. Internal
Auditors attend each Audit, Risk & Governance
Committee meeting and provide periodic progress
reports which include the findings of follow-up reviews,
culminating in an annual report to the Committee on
internal audit activity. The Audit, Risk and Governance
Committee also considers the External Audit Plan and
reports from the National Audit Office.
The internal auditors are Mazars LLP, who were
appointed jointly by Sport England and UK Sport
to provide internal audit services, which includes
fulfilling the role of Head of Internal Audit, to both
sports councils for the period from 1 April 2015
to 31 March 2018.
Mazars LLP have concluded in their opinion that,
during 2016–2017, overall there has been an
adequate and effective framework of governance, risk
management and control that provides reasonable
assurance over the achievement of objectives.
In addition to the assurance from internal audit,
Moore Stephens LLP carry out a number of on-site
management audits to provide assurance over our
grant funding to national governing bodies, national
partners, county sports partnerships and other
significant grants in terms of size or complexity. The
timing and scope of the on-site audits reflect their
assessment of the organisations’ governance, risk
and control frameworks. National governing bodies
also perform an annual self-assessment of their
compliance with our standards and provide detailed
descriptions and explanations of how they comply.
We also obtain assurance for our capital programmes
from surveyors’ reports, independent project monitors
and comparisons of leisure facilities services under
a benchmarking service. Many of our capital grants
extend for significant periods, often up to 25 years
and therefore it is important to obtain assurance that
the facility is being utilised for the purpose originally
intended.
The Government commissioned an independent
appraisal of County Sports Partnerships which was
published in August 2016. The appraisal is helping
inform us about the capacity of key partners to deliver
on our Towards an Active Nation strategy.
In our Active Lives young people programmes we have
worked with statistics and policy experts from DCMS,
DfE and DH as well as carrying out user testing with
young people, parents and teachers to ensure the
design developed is feasible.
The behavioural insight that underpins the
infrastructure of our Towards an Active Nation strategy
is taken from an independent review of behaviour
change theory and evidence (by The Behavioural
Architects), and included interviews with prominent
behavioural academics. The report has been
independently sense-checked with other groups
of behaviour change experts at the University
College London.
As we outlined earlier in the report, our services
have been assessed and fully comply with
the UK Government-endorsed security standard,
Cyber Essentials.
Active Lives Survey
We have now completed the first year of data
collection for the new Active Lives Survey, publishing
the results in January 2017 (results are referred to
in more detail earlier in the report). The successful
implementation of the new survey is a major milestone.
The year 1 results published in January had a clear
focus on the priorities, objectives and performance
measures set out in Sporting Future and Towards
an Active Nation.
Complaints
Through our formal complaints procedure we have
recorded 31 complaints in 2016-2017, none of which
has been referred to the Parliamentary and Health
Services Ombudsman.
Accountability Report