Administration in Leisure and Sport Week 5

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Administration in Leisure and SportWeek 5

• Incorporation
• Constitutions
• Board Meetings

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Last Week

• Board Structures
• Board Governance
• What is it?
• Why is it important?
• What are the key principles?
• What are the influences for change?
• Ethics in Sport

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Not-for-profitClub or Association

• In the leisure and sport industry not-for-profit
  clubs and associations are most common.
• These clubs/associations have usually formed
  because
• The group has common interests
• The group would like to attract new members
• The group would like to expand its activities.

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Sporting Clubs in Australia

• Provide activity in a single sport/activity
• Focus on participation
• Gain funds from membership payments
• Building blocks for organised sport
• Single-sport focus with a variety of grades
• Club model is a unique model
• Provide the opportunity to participate
• Enter teams in local competitions
• Fund-raising
• Coaching development within schools

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Leisure Organisations

• Local clubs single activity recreational e.g.
  bushwalking (The Adelaide Bushwalkers Inc),
  canoeing (Unisa canoe club, cycling, etc.
• State and National bodies e.g. Bushwalking
  Australia, Canoe SA, Australian Canoeing, Bicycle
  SA

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Clubs in Australia

• Key arms Administrators, Coaches, Officials,
  Volunteers
• Administrators
• Conduct long term planning
• Develop policy and procedures
• Manage external relations of club
• Manage financial resources
• Carry out recommendations of Board/Committees
• Communicate to Members
• Evaluate performance of officials/ employees
• Ensure adequate records are kept.

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Club Structure

• Clubs are managed/governed by a committee
  (Executive)
• Clubs should be Incorporated
• - The club itself has a legal existence
• Clubs need a Constitution
• A document setting out members rights and
  liabilities, the purposes of the club, and the
  rules under which the club is to operate

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Types of Sport and Leisure Entities

• Sole proprietor/trader
• Partnership
• Unincorporated Entities
• Not-for-profitClub or Association
  (unincorporated)
• Incorporated entity
• Proprietary limited company

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Sole proprietor/trader

• Sole proprietor/trader may need
• - qualifications
• - licenses
• - registered name
• the owner is the manager
• The sole proprietor receives all profits and is
  responsible for all debts.

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Partnerships

• Partnerships may need
• - qualifications
• - licenses
• - business name
• - usually 2 or more partners
• the owners are the managers
• The partners receives all profits and are
  responsible for all debts

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Unincorporated Entities

• The Sole proprietor/trader and Partnership
  options are unincorporated entities.
• they are inexpensive and simple to form
• the owners have legal liability as individuals
• responsibility for all debts
• rights to share profits.

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Incorporation

• Members cannot be sued as individuals in the name
  of the association - they have limited liability.
• Members are protected to a certain extent - as
  long as they follow reasonable community
  standards
• It encourages organisations to take
  responsibility for their affairs i.e. good
  governance.

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Incorporation

• Incorporation should be considered if the
  organisation
• has five or more members
• is running programs/activities
• is entering into leases
• is borrowing funds
• owns substantial assets
• makes contracts or has employees
• has substantial fundraising
• is considering applying for government grants
• requires public liability insurance.

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Not-for-profitClub or Association

• Small clubs and associations may choose to remain
  unincorporated which means the management and
  members are liable.
• Common Law does not recognise an unincorporated
  not for profit association or club as a separate
  legal entity.
• Incorporation provides the association or club
  with its own legal personality (entity) separate
  from that of its individual members.

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Incorporation Process

• As the membership grows, more activities are
  offered and assets increase, the organisation
  will need to consider incorporation.
• A Constitution is required for incorporation to
  occur.
• A properly conducted meeting of interested
  parties will adopt a constitution and officially
  elect officers (Board of Management).

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Incorporation Process

• the Board of the organisation must authorise the
  application.
• The application includes the proposed name and
  the constitution of the organisation.
• Two application forms must be completed and
  lodged with the Office for Consumer and Business
  Affairs with payment.
• (forms available at www.ocba.sa.gov.au/associatio
  ns/)

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Incorporation Process

• The organisation becomes registered under the
  states Associations Incorporation Act as an
  incorporated association.
• A Certificate of Incorporation is issued on
  approval.
• The organisations name has Incorporated or
  Inc. after its name.

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Incorporation

• The organisation must comply with this act as
  follows
• - comply with the constitution
• - keep adequate records of meetings
• - keep proper financial records.
• Larger organisations will need to
• - have accounting records audited
• - lodge financial reports (200,000)
• - provide reasonable care and diligence which may
  include appropriate insurance cover

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Other Options

• Other options are available to organisations
  including a Company Limited by Guarantee.
• The organisation registers with the Australian
  Securities Commission and receives a ACN
  (Australian Company Number).
• Greater responsibilities are placed on the
  organisation and the office bearers as the
  organisation grows.

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Constitutions

• An incorporated club or association will have
• Business Name registered
• Certificate of Incorporation
• Updated Constitution
• One of your first priorities should be to
  familiarise yourself with these documents, in
  particular the constitution (also referred to as
  Articles of Association).

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Constitutions

• A set of rules which bind the group together and
  provide a clear understanding of how it is to
  function.
• It should contain certain clauses as described by
  the Associations Incorporation Act 1985.
• A constitution is essential for the group to
  become incorporated.

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Constitutions

• While there are accepted standards there is no
  single right way.
• It is most likely modelled on
• a similar organisation
• a national or state body you may be affiliated
  with
• an organisation that has had some success.
• (See Concordia Old Collegiates Cricket Club
  Constitution)

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Constitutions

• A constitution should include
• name of organisation
• objects general (purpose of the organisation)
• powers general
• membership categories
• management structures
• office bearers
• source and control of funds
• requirements for meetings, elections and voting
• requirement for quorums
• provisions for amending the constitution
• provisions for winding up

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Annual General Meetings

• Changes can only occur at
• an Annual General Meeting held at the completion
  of a season or financial year, or
• a Special General Meeting called if the changes
  are deemed urgent.
• AGMs must be advertised in advance.
• AGMs must have a quorum.
• AGMs must follow set meeting procedures (ie
  agendas/minutes).

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Annual General Meetings

• At a normal AGM
• President/Chairperson is in control
• Secretary/CEO takes minutes
• Reports from key areas e.g. Treasurer,
  Membership, Juniors etc
• Major changes for the coming year
• Constitutional changes (if required)
• Election of Officers
• Close of Business.

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Annual General Meetings

• Constitutional changes voted on as per rules of
  debate
• Changes recorded
• Constitution updated and circulated to members
• New constitution submitted to Office for Consumer
  and Business Affairs
• Changes implemented from this date.
• An opportunity to update members, seek feedback
  and make changes to improve the organisation.

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Meetings Bloody Meetings

• The Board may meet monthly or bi-monthly
• The Executive will meet in-between Board meetings
  as required
• Sub committees will meet on a more regular basis
  and will provide reports to Board meetings.

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The CEO/Secretary

• Prepare agendas and board papers well in advance
  in conjunction with Chair
• Has supporting documentation at meetings
• Knowledge of current financial position
• Contributes where necessary
• Records minutes
• Distribute minutes and list of action
• Follow up issues before next meeting
• Are the link between committees and Board and to
  outside organisations
• Responsible for correspondence and records

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The Chairperson

• Assists in preparation of agenda and reading
  material in advance
• Opens the meeting and asks for any apologies and
  additional agenda items
• Conducts the meeting following the rules of
  debate
• Controls the meeting
• Ensures outcomes and decisions are recorded
• Ensures all agenda items are addressed
• Closes the meeting
• Sets the agenda for operation of committees,
  develops strategic direction, and coordinates
  activities of other members of the Board.

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The Treasurer

• Responsible for preparing the Annual Budget
• Monitors expenditure and revenue
• Plans for future financial need
• Manages daily financial operations payments,
  banking etc.
• Presents current financial position to AGM

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Rules of Debate

• Decisions are reached by discussion, debate and
  the acceptance of motions.
• 1. A topic is raised and discussed.
• 2. A motion is moved.
• 3. The motion is seconded
• (or it lapses)
• 4. The mover speaks in support of the motion.

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Rules of Debate

• 5. The seconder speaks
• (or reserves the right to)
• 6. Alternate speakers (against and for)
• 7. Mover speaks in reply
• 8. Motion is restated and put to a vote
• 9. If the required majority is reached, motion is
  carried - becomes a resolution
• If required majority is not reached, motion
  lost, status quo remains.

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Other Tips

• Motions
• Specific wording to be voted on by Board- will
  commence with That e.g.
• that the motion now be put.
• that the meeting proceed to the next item
• Amendments
• Can add to or subtract from Motion but must not
  nullify it.
• Points of order
• Can be used to interrupt a speaker by saying
  point of order and then raising a relevant
  issue.
• Voting
• - informal vote
• - verbal vote
• - show of hands
• - secret ballot
• - postal vote
• - proxy vote

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Performance Management

• What criteria to use?
• Financial stability
• On Field performance
• Membership nos.
• Player nos.
• Spectator nos.
• Sponsorship , corporate support
• Media exposure
• Competitive balance
• Game development

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Performance Control Tools
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Stakeholder perspective

• Performance linked to organisations key
  stakeholders
• Members
• On field performance
• Member services - satisfaction
• Governing body interests of players
• Sponsors maximum media/reputation
• Govt National and international success
• Players better local facilities, pay, success
• Fans on field success
• Community opportunities for local kids, pride

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Input-Output approach

• Looks at quality, quantity, efficiency,
  cost-benefit ratios, productivity
• Output quantity premierships, attendance,
  membership, participation
• Quality standard of play, venue facilities,
  service, customer experience
• Cost-benefit - operating profit, costs of
  operation, net economic benefit, social benefit
• Input efficiency, costs of providing service,
  admin costs
• Staff performance satisfaction ratings, staff
  skills, staff achievements

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Balanced Scorecard Approach 4 dimensions
Internal Processes what must we excel at?
Financial how do we look to shareholders?
Learning and Growth improve and add value?
Customer how do customers see us?
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9 Point Best Practice Model

• Wins, awards and successes
• Financial sustainability profit, liquidity,
  ROI, net asset growth etc.
• Market distribution either participation or
  spectator (facilities, experience)
• Market size or share consistent large no. of
  participants, spectators, viewers
• Customer satisfaction how strongly
  fans/participants/members approve of the
  performance

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9 Point Best Practice

• Internal procedures and processes player
  recruitment, member recruitment/retention,
  support systems (coaches), risk management etc.
• 7. Product improvement innovation, modified
  game, venue design/quality, equipment
  improvement.
• 8. Staff development and learning skills and
  knowledge
• 9. Economic, social and environmental impact on
  surrounding community.

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Performance Measures

• Design performance measures according to the
  model used
• Precisely identify and quantify specific
  indicators of success or failure
• Need to collect data financial figures,
  satisfaction, etc.
• Analyse interpret data
• Set Benchmarks or standards to judge success e.g.
  compare to other clubs, leagues, sports.

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Costs and Benefits of Performance Management

• Balance control versus innovation
• Core activities are linked to goals
• Motivate employees for targets
• Greater accountability
• Completes the management cycle
• Quantifies measurable outputs

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So What?

• Measuring will give rise to specific areas to
  improve across all aspects of the business -
  strategy!
• Goals, tasks, timelines, budgets, critical
  measurements, critical success factors, structure
  all driven in a balanced way
• Information is made available to all employees so
  the effect of their individual actions is clear