HRI operates a finance department which supports the activities of the group, Margaret Davin (Chief Financial Officer) outlines the broad range of responsibilities that fall under her umbrella. Finance Strategy
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Compliance Function
HRI are subject to Statutory Audit under the provisions of the Horse and Greyhound Racing Act 2001 by the Comptroller and Auditor General. To this end, the Finance Function prepares for audit at year end a set of Financial Statements for HRI and its Subsidiaries (which include TOTE Ireland, Leopardstown Club Ltd, Navan Races Ltd, Fairyhouse Club Ltd, Tipperary Race Company and Irish Thoroughbred Marketing). The C&AG audits these Accounts, which once approved by the HRI Board are presented to the Minister who lays them before each house of the Oireachtas. A copy of the latest Annual Report can be found in the Publications section .
Management Accounts Function
The Finance Department is responsible for producing monthly management accounts which detail how HRI is funded, (e.g. Government Grant, Registrations, etc.) and how this Income is utilized (e.g. Prize Money, Racing Integrity, Marketing and Administration, etc.). All comparisons are carried out against budgets which are set at a detailed level each year. These accounts ‘put into figures’ the numerous activities of HRI, aiding departmental management in assessing the performance of their respective divisions and helping to direct appropriate policy for the utilisation of Government funding.
Treasury Function
The Treasury Function is responsible for ensuring receipt of the Government Grant as well as the management and control of all funding in relation to Loans and Client Accounts. All internal and external loan agreements are managed under this area. All submissions for loan approvals to Government is worked also through the treasury section who will liase strongly with the relevant departments.
Client Accounts Department
The Client Accounts Department is responsible for the administration and accounting of the collection and distribution of some €55 million in prize money each year. The Department can be contacted directly between 8.30am and 5:30pm during weekdays on 045-455444.
Entry Fees & Prizemoney
The Racing System has nightly automated routines which carry out application of entry fees and prize money to the accounts of Owners, Trainers, Jockeys, Agents and Valets. The standard prize money deductions for a typical race of €10,000 are shown in the HRI Directives document.
To review the Guide to HRI Prize Money Calculations please see "Appendix F" in the HRI Directives document (click here).
When a horse is balloted out of a race, no charges appear on the account. When a race meeting is abandoned, no charges are applied to the account. Owners’ prize money is held for 15 days after the date of a race meeting, to allow time for the drug sample analysis to be carried out on the winning horses. This is a requirement under the Rules of Racing.
Payments from Accounts
Prize money is paid out as requested by account holders. HRI now has an Electronic Funds Transfer system in place. This is a safe and easy way of getting funds transferred directly to your bank account. Please contact the Client Accounts Department for further information. Owners can, if they so wish, pay their trainers through their HRI account. This can be done by faxing a written request, together with a copy of the invoice/statement from the trainer, to the department’s designated fax-line on 045-455406. The client account balance must be in sufficient funds to cover the payment request.
Payments Into Accounts
Clients are required to keep their racing accounts in credit at all times. HRI will accept payments by cheque and credit/laser card. All cheques should be made payable to Horse Racing Ireland. If an account goes overdrawn and is not brought back into credit immediately, the account may be suspended, in which case no race entries will be accepted. Serious default in payments may result in publication in the Forfeit List which is published at least twice yearly in the Racing Calendar.
Other Non Racing Creditors Accounts
The Finance Function also includes non racing Creditor payments activity. These payments cover general suppliers, capital development grants, racecourse payments, marketing suppliers, utilities, etc. As a commercial semi-state body, HRI is obliged to request Tax Clearance Certificates from certain suppliers and to withhold Professional Services Withholding Tax (PSWT) from Professional Services.
Industry Services Department
The Industry Services Department has responsibilities for the following areas:
Sponsorship Collection
Commercial race sponsorships deals are agreed directly between racecourses and sponsors. The agreed sponsorship amount is notified to HRI and is then added to the HRI base value of the particular race. The increased race value is then published and this is the amount subsequently distributed to the winning owners (net of deductions). Each of the 26 racecourses has an account with HRI through which their sponsorship is charged and collected. Owners’ fees are collected through the prize money client accounts system and HRI funding is accounted for through that system also. Major Industry Sponsors, such as the Irish European Breeders’ Fund, pay their sponsorship to HRI directly.
Industry Services Fund
The Industry Services Fund was introduced in order to encourage best practice in the provision of medical and horse care facilities at racecourses. The following payments are made out of the fund in respect of all Irish race meetings:
• Payments to providers of Jockeys’ ambulances (e.g. Order of Malta)
• Payments to suppliers of Horse ambulances (e.g. Blue Cross)
Foal Levy Scheme
The Thoroughbred Foal Levy was introduced in March 2000. It is a statutory levy on all Thoroughbred foals registered in Ireland and its purpose is to provide a secure financial footing for the breeding industry and its essential support structures.
The Statutory scheme requires the owner of each Thoroughbred Foal born in Ireland, requiring registration, to register in the General Stud Book through the offices of Weatherbys Ireland GSB Limited and pay at the time of registration a levy to HRI. The actual levy payable is related to the generally applicable nomination fee of the foal’s sire, which is determined by the Industry Services Department in consultation with the stallion owners.
With approximately 8,000 (2010) Irish born foals registered per annum, the annual income from the scheme is currently running at approximately €2.1 million. The Foal Levy income is re-distributed to the breeding sector each year by way of grant aid. All grants must be approved by the HRI Board who are advised in this matter by the Foal Levy Committee, which comprises nine representatives from various sections of the breeding/racing industry.
The beneficiaries of Foal Levy funding to date have been:
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Irish Equine Centre |
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Irish Thoroughbred Breeders’ Association |
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Irish Thoroughbred Marketing |
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Foal Levy Breeders’ Prizes Scheme |
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Irish Farriery Authority |
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Irish Horse Welfare Trust |
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Foal Levy Contingency Fund (disease outbreaks etc.) |
Requests in relation to the Foal Levy Scheme may be found under the foal levy section.
Other Central Finance Functions
Procurement
Under the Code of Governance of state bodies, HRI is obliged to carry out Tendering for the purchase of various services and supplies. This is a group function and complies with European and Irish Tendering procedures. This would cover areas such as marketing supplies and services, capital development/equipment, security, various professional services, etc. This is highly technical area and it is critical that utilisation of State funding is transparent and follows this process and this is closely monitored by the C&AG.
Internal Audit
Internal Audit is carried out in HR as required under the Goverance for State Bodies. The function is carried out through an externally appointed firm of Internal Auditors. The basis of the audits are determined through assessment of the Risk Register and then determining the number of activities which need audit. Each year the organisation holds 4 Audit Committee meetings and the Auditor presents the various reports to the Committee. The reports can run from normal Financial control to procedures/ HR/ IT etc. The executives of HRI and subsidiaries take this functional area seriously and target to get Substantial Assurance from the audits. The function is managed and controlled through Central Finance for the group.
Payroll
HRI operates a central Payroll department and pays all employees in the group through this scheme. The central payroll department is responsible for a significant amount of pension administration as required under the Pensions Act for the various pension schemes. Innovations in this area have included the introduction of e-mail payslips and integration of the payroll system with the HR system, called VIP.
Marketing
The Finance function works closely with both marketing divisions of HRI, i.e. Irish Thoroughbred Marketing and the internal marketing department. In ITM marketing is geared towards the international market whereas in HRI the focus is mainly on the domestic market.
The ITM marketing campaigns are designed to encourage more overseas buyers to purchase Thouroughbred horses in Ireland. The number of horses exported is a measure which is monitored on a regular basis.
In both marketing sectors an extensive database of clients exists from which numerous reports are generated providing data/information for ongoing direct marketing campaigns. The Finance function is involved in the preparation of all marketing budgets and provides monthly variance analysis and various reports which assist in monitoring the success of different campaigns throughout the year.
Insurance
The Finance Function is responsible for the insurance coverage for HRI, Irish Thoroughbred Marketing and Tote and works closely with the Racecourse Division who are separately responsible for the 4 Racecourse insurances. All policies are reviewed regularly to ensure adequate cover exists and additional risks if any associated with changing business practices are identified and managed.
Subsidiaries’ Finance Function
Separate financial control departments operate for the HRI Racecourse division (4 Racecourses). A significant amount of the process in relation to Management Accounts, Budgetary Control, Statutory Accounts, are carried out for the entities in the Racecourse Division within this structure.
Tote Ireland a 100% subsidiary of HRI also has a small financial control department. It is responsible for all the daily cash control and reporting of Tote Ireland to ensure Budgetary Control and Management Accounts are carried out in compliance with the Group standards.
Irish Thoroughbred Marketing, which is funded partially by HRI, other sectors of the industry and the Foal Levy, is controlled through the central finance function of HRI. The management information, which is reported on a regular basis, focuses on measurement criteria in relation to the markets supported and the ongoing requirement to keep Ireland to the fore internationally as a base for sourcing Thoroughbred Horses.
Our subsidiary activities are monitored closely by committee/boards who oversee activities.
Racecourses Schemes
Capital Development
HRI embarked on a programme of capital development with a grant scheme in place to the value of €140 million, total spend of nearly €300m. This scheme was available to all racecourses and operated under stringent guidelines, part of which required the applicant to submit a detailed business plan. The business plan covers all aspects of the project from design, costings, tendering, to the financial side i.e. detailed financial projections, project funding, marketing plans etc.
Following the reduction in Funding to Horse Racing Ireland in the last 2 years (2009/2010) the Board decided to defer this programme until Funding is resolved and put onto a more secure footing as is written into the Horse & Greyhound Racing Fund. It is envisaged that this Capital Programme will be reinstated in the future and significant development will be needed in two of the major Racecourses i.e. the Curragh and Leopardstown.
