Utilisation of funds by national sports associations

Response to parliamentary question on the use of monies by national sports associations

Question

Mr Pritam Singh: To ask the Minister for Culture, Community and Youth (a) how does the Ministry exercise oversight on the use of monies by official sporting bodies; (b) what criteria does the Ministry use to determine fair use of such monies; and (c) how does the Ministry prevent and rectify misallocation of such funds by official sporting bodies.

Response

Minister Grace Fu: Among the many sports organisations in Singapore, Sport Singapore (SportSG) currently recognises 63 established sports bodies as National Sports Associations (NSAs). To be recognised as an NSA of a particular sport, the organisation has to demonstrate that it enjoys the support and mandate of the sport’s local fraternity, and is in good financial health with varied sources of revenue, among other criteria.

1. SportSG currently provides funding to 45 out of the 63 NSAs. To qualify for SportSG funding, an NSA has to be registered as a society and a charity, as well as meet SportSG’s requirements. Accordingly, it has to maintain high standards of governance and comply with the Societies Act, the Charities Act and its regulations, the Code of Governance for Charities and Institutions of a Public Character, as well as SportSG’s financial regulations and other guidelines. In addition, NSAs have to develop multi-year plans with key deliverables aligned with SportSG’s objectives.
2. SportSG’s annual grants to NSAs help to support their organisation functions, outreach programs, training facilities, and High Performance Sports (HPS) plans. The level of funding is assessed from year to year, taking into account its alignment with SportSG’s Vision 2030 plans for sport, whether it has achieved the agreed KPIs, its capabilities in governance and execution, as well as the existence of a sound plan for the development of the sport that is supported by members, among other factors.
3. SportSG does not administer funding to an NSA’s member clubs and affiliates. While SportSG’s funding helps the NSAs to defray part of their costs, NSAs are also funded by other sources such as revenue from subscriptions and competitions, as well as donations from their fraternity and stakeholders.
4. Besides the mandatory annual submission of audited Statement of Accounts to SportSG, NSAs are also required to allow SportSG to audit their Accounting Records. If an NSA is found uncompliant with the terms of its funding agreement, SportSG will take appropriate action, such as suspending, terminating or recovering the grant. For more serious cases such as misappropriation of funds, SportSG would refer these to the Police.
5. SportSG emphasises the importance of robust governance measures through its regular engagements with NSAs. It is the responsibility of the NSA leadership to ensure that the administration and operations of the organisation are managed effectively, in compliance with existing laws and regulations.