6.1 Corporate Governance

Sport Ireland's strategic objectives include the development of NGBs. Developing good governance practices in NGBs is a key part of that process. The basic principles of Governance in a voluntary or public service context include Accountability, Openness and Integrity and these values should underpin all activities of the NGB. Other key elements in the governance process involve an appropriate set of communications between a NGB's management, its Board, its members and other stakeholders.

The `Internal Control System' includes all the policies and procedures (internal controls) adopted by the NGB to assist in achieving their objective of ensuring, as far as practicable, the orderly and efficient conduct of the Governing Body's activities. This includes adherence to internal policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information. The CEO, Chairperson and all Board members have a responsibility for ensuring that an adequate and appropriate internal control system operates within the NGB.

The `Control Environment' means the overall attitude, awareness and actions of the Board, management and staff regarding internal controls and their importance in the company. The control environment encompasses the management style and organisational culture and values shared by all. It provides the background against which the various other controls are operated. Factors reflected in the control environment include the philosophy and operating style of the Chairperson, Board and any other staff and the structure and methods of assigning authority and responsibility.

Separation of powers and conflict of interest are important concepts in this regard. In order to minimise the risk of errors, misuse of funds or fraudulent activities, all financial transactions (e.g. receipting cash or making payments) should pass through at least two parties within an organisation. Importantly, the two parties should not be involved in a close interpersonal relationship which might increase the risk of collusion with respect to the misuse of funds.