Culture secretary Andy Burnham has warned sport governing bodies that they could "damage the long-term health" of sport if they fail to ensure that the funding they receive is used to improve all level of sports – including disability and grass roots sports.

In a speech at the Sport England conference at the Queen Elizabeth II conference centre in London yesterday (10 March), Burnham challenged all sports to reassess their priorities and said that there is room for improvement in the way sport bodies invest public money.

He also warned that new Sport England chair, Richard Lewis, would "put on the spot" all sports bodies that were failing to regulate their funding internally and ones that disproportionately enrich individuals rather than the good of the game.

Addressing delegates at the conference, titled Building Partnerships that Deliver, Burnham said: "All sports, with no exceptions, need to be more accountable to the public for what they do.

"We want you to squeeze every last drop of value for your sports out of the public money by reaching all parts of the country and all sections of the community.

"There are many examples of good practice but more needs to be done. Public money must demonstrably benefit all sections of the population."

Burnham also said raising commercial income should never become an end in itself, as it could endanger the integrity of sport and sporting events.

"Yes, money can bolster and strengthen sport, it can build new infrastructure, reward athletes and help provide the very best in coaching. But we should never allow it to threaten the integrity of our competitions.

"The 'dash for cash', as some might call it, can have negative ripples throughout sport, from top to bottom. It can lead to real imbalances in professional structures – and, in extremis, can potentially alienate the viewing public."

Jennie Price, Sport England's chief executive, added that governing bodies should not see government funding as a handout but something they need to earn.

"The funding we put into sport is an investment on which we expect a return," she said. "It is not a donation."

"Sport England has to be an organisation that genuinely rewards success and knows how to deal with failure."

The one-day conference also included speeches by Ian Drake, chief executive of British Cycling, Karen Rothery, CEO of British Universities and Colleges SPort, and Mike Diaper, director of Sport England.