Minutes of the Sport Wales Board meeting on Friday 7 July 2023 at the Sport Wales National Centre

PRESENT: Baroness Tanni Grey-Thompson (Chair), Ian Bancroft (4.2-6.2), Rajma Begum, Pippa Britton, Dafydd Davies, Delyth Evans, Nicola Mead-Batten (1-6.2), Hannah Bruce, Judi Rhys, Professor Leigh Robinson, Phil Tilley, Alison Thorne, Martin Veale

Staff: Brian Davies (CEO), Graham Williams, Emma Wilkins, Owen Lewis, Liam Hull, Jane Foulkes, Jessica Williams, Susie Osborne, Sarah Walters & Dan Farmer (4.2), Ellen Todd (3), Amanda Thompson (minutes).  External: Dame Katherine Grainger (Chair of UK Sport), Neil Welch (Welsh Government), Eloise Stingemore (Step to Non Exec)

1. Welcome/apologies for absence

Dame Katherine Grainger was welcomed to the meeting. Apologies for absence were received from Ashok Ahir and Jac Chapman.

2. Declaration of interests

Alison Thorne for her appointment to the Board of Welsh Rugby Union.

Rajma Begum, as an employee of WCVA she would not be present for Item 6.1.

3. Minutes of the previous meeting dated 12 May 2023

The minutes of the previous meeting (revised version) were accepted as a true and accurate record.

Matters arising:

Item 5.2 British Jui Jitsu: Further work has been done to assess the impact on Wales and this would be made available to the Board.

Item 5.3 Touch Rugby: Sport Scotland’s Board noted the decision made in England saying the recommendation applied to England only. Sport Scotland would look at a request for recognition if approached by the sport in Scotland.  Sport Wales Board Members agreed to do likewise, noting the decision made in England and to await an approach from the sport in Wales.

Item 5.5 Facilities Management Agreements (FMAs): GW updated members on the request for further clarification on the paper considered at the May 2023 meeting.  The paper flagged the issue of enforceability on one clause that states Sport Wales (as a corporate body) would have first call on assets from any changes/sale of assets by the SCW Trust.

Since May further legal advice had confirmed that the issue on enforceability was related to the "two party rule" i.e., a person cannot contract with himself. Whist other options had been explored, it was concluded that having the clause in the FMAs was the most effective way of recording Sport Wales financial contribution and the desire to have the first call on proceeds for any sale of assets.

The selling of assets was an unlikely scenario in itself; however, the clause was in there to recognise the ongoing and longstanding financial support of Sport Wales - without funding from Sport Wales the SCW Trust could not operate. The conclusion was therefore to retain the clause in the FMA.

4. Sport System

4.1 UK Sport update – Dame Katherine Grainger

Dame Katherine spoke about UK Sport’s focus on Olympic and Paralympic preparation and qualification. Team GB’s performance at Tokyo had been better than expected, despite the pandemic. Feedback from the Paris cycle expressed concern at the process being over-engineered and a lot of work. For the Los Angeles cycle, investment is expected at the same level as for Paris, but hopefully with a simpler process.  Sports could argue for change if they so wished.

At the recent System Master Planning meeting the main concerns expressed by sports organisations were the rising cost of living impact and the added stress on leadership (especially bearing in mind the major issues facing sports in the current climate). The Sports Councils were looking at what might be done to alleviate the pressure, such as shared services. This would be discussed next in Manchester on 12 July.  Sports organisations themselves were ahead on this by having clear ideas on a different format.

Regarding pathway development versus metal potential for Paris, Dame Katherine agreed UK Sport took a longer-term approach now, though it had to be tailored for some sports that worked more on a short-term basis. The value to society whilst also achieving high performance was the priority. It was a matter of attracting political support and also public impact balanced against the longer-term approach.

Streamlining the investment process, the timing of funding to sports and the ways in which they had to apply for it was discussed. There had been some improvement and Sport Wales aligned with the high-performance investment cycle.

Funding decisions had to be made based on the knowledge held now. It was easier when there was the same guaranteed sports for each cycle, however taking a longer-term approach was more helpful when new sports gained entry to the games.

Decisions have to be made on the knowledge we have now, traditionally when it was guaranteed sports for each cycle. Longer term view and how that helps when new sports get into Olympics. (??)

The pathway to team sports was the same as that for the individual sports in the way that athletes trained and developed. The athlete performance award was being reviewed to take into consideration the cost of living, geographical location and other factors.

The CEO added that the British Olympic Association’s performance hub for Paris would hopefully be based at the Sport Wales National Centre again.

4.2 Inclusive Sport System (Athlete Development) – presentation

Performance Advisors DF and SW presented a detailed update on the cross-organisational Inclusive Athlete Development pathways and performance.

Discussion points:

  • In the long term success is evidenced by the national survey data, the data within the user profiles of everyone entering the athlete pathway and the insight from the athlete voice and lived experiences. This would create case studies and inform new initiatives.
  • Intensive monitoring was carried out with sports, working through the findings and pinpointing the actions expected of them. There was wider dissemination both internally and externally through sessions and bulletins. Sports would be held to account.
  • The data and insight generated, inclusive of evidence of the social return on investment, would be used to lever Welsh Government funding.
  • To create the best opportunities, value and impact multi-partner collaborations would be encouraged and supported.

5. Chair & Executive report – SW(23)21

The CEO added the following to the report:

  • The CEO met with the new Chair of Welsh Rugby Union and was very optimistic about its future.
  • The WRU Independent Review Panel would meet with Sport Wales (it had yet to be decided who would be most appropriate for this task).
  • The Urdd’s Urban Games were very successful. Demand for it to be held annually was likely though funding for this year’s event had been found from additional in-year funds.
  • The England and Wales Cricket Board (ECB) has apologised "unreservedly" to those who faced discrimination in the game after the Independent Commission for Equity in Cricket (ICEC) released a report finding evidence of racism across the sport. This would be discussed further with the sport.  
  • The TRARIIS event would be attended but priority would be given to the Welsh Government’s Anti-Racism Action Plan.
  • Complaints procedure: this was an area of work that would be covered within a deep-dive session for the Board. A wider UK national strategy fronted by DCMS and UK Sport was due to come to fruition later this year. The Welsh Government were also pushing for a UK Sports Council meeting.
  • Professional Development: to note that a representative of CIMSPA had been allocated to work with Sport Wales.
  • Staffing: LH had been promoted to the position of Assistant Director of Business Services in recognition of the growth of the directorate and areas of work covered.
  • Staff social event took place on 6 July, the first opportunity for staff to come together since the pandemic. The video to accompany this year’s Annual Report was shown.
  • Enhanced Games: Sport Wales had no formal view on this except to express concern for athlete health and welfare.
  • Capital investment: the Lottery Distributors were due to shortly discuss how Lottery resources might be utilised. Current £8m budget was supplied by the Welsh Government.

6. Policy & Strategy

6.1 Principles Driven Investment Approach – SW(23)22

This report provided Members with an update on the key activities and final iteration stages of the principles driven investment approach with details of the proposed implementation plan and Phase 1 partner investment amounts from April 2024. The final assessment and scoring exercise had been completed and would result in a redistribution of £2.3m into the current network of 11 National Partners with effect from April 2024.  Aligned to the data driven approach there would be an indicative commitment for 3 years for 2024-2027 totalling around £618k. The Board had previously approved an additional £250k from the Lottery budget to allow the exploration of new partnerships as part of the principles driven approach.

Discussion points:

  • There was concern around ensuring inclusive sport was actually delivered properly by the sports themselves rather than being the responsibility of other partners, for example, DSW.
  • Use of the Welsh language had been part of the impact assessment. Any new content following the recent feedback from the Welsh Language Commissioner would be added.
  • A small organisation qualifying for a much larger amount of investment would need to reach the required capability level before receiving it.
  • Whether indicative figures for 2 and 3 should be reviewed in line with any changing circumstances was discussed.
  • The impact assessment and mitigation of risks would stand up to challenge. Inform the Welsh Government’s Sports officials if any cross-departmental meetings were required should any challenge occur.

Members approved the Principles Driven Investment Approach.

6.2 Business Plan 2023/24 3 Month update – SW(23)23

An update was given for the priority areas for EDI, Inclusive Sport System, Sport Partnerships, Education, Health & Wellbeing and Sustainability. The resource requirement around strategic investment had grown significantly to the point of it also becoming a Business Plan priority, and the key workstreams under it that would be prioritised over the next 3-6 months were:

  • Evaluation of the Investment Model
  • Implement the principles-based investment approach
  • Confirm an approach for funding partners that do not fit within the current approach
  • Review the Capability Framework
  • Continue to deliver capital funding programme
  • Further develop accountability approach with partners
  • Implement a new Investments system

To avoid confusion, the EDI priority would be given an organisational focus, and the Inclusive Sport System a wider sector focus.

It was suggested that Board Members be sighted on events that they might be able to attend.

7. Finance & Risk

7.1 Finance Report 2023/24 Month 2 – SW(23)24

The paper gave an update on Welsh Government and Lottery funding for April and May this year. The new Advance Financials system was working well with no major issues. Audit Wales commenced this year’s audit on 26 June. Initial interim work had been carried out around processes which were reflective of the new audit standard ISA 315.

There were emerging pressures regarding pay awards with the Welsh Government progressing a non-consolidated pay review but without additional resources. The Executive would discuss this with the PCS Branch Executive and then with the Remuneration Committee.

7.2 Corporate Risk Register update – SW(23)25

The Risk Management and Assurance Group met on 15 June and the following was changed:

  • A new risk relating to the Principles Driven investment approach as although this helped address patterns of inequalities it would result in some partners receiving a reduced allocation. 
  • Two risks where the residual risk remained higher than the defined risk appetite: cyber security and the impact of the cost of living on delivery of the Vision.
  • Change to the narrative following the substantive appointment of the CEO to the role. 

8. Board Groups & Standing Committee Reports

8.1 Summary of Committee & Sub Group meetings – SW(23)26

The report summarised the key issues and decisions taken by these meetings since the previous Board meeting in May:

  • Audit & Risk Assurance Committee: refer to SW(23)37 below.
  • Strategic Capital Investment Group: update on Elite capital expenditure; Energy Savings grant oversubscribed with 300 applications totalling £5.3m; additional £300k awarded to North Wales Velodrome project.

8.2 Annual Report of the Audit & Risk Assurance Committee – SW(23)27

Sport Wales was awarded substantial assurance rating overall for 2022/23. LH summarised the areas of work including environmental and the grants system.  The Chair of the Audit & Risk Assurance Committee thanked the Board Members and Independent Member for their work over that period.

9. Any Other Business

No issues were raised.

10. Dates of the next meetings

22 September (Wrexham), 24 November 2023

16 February, 17 May, 12 July, 20 September, 22 November 2024

The minutes were approved as a true and accurate record at the Board’s meeting on 22 September 2023.