Financial Statements HORSE RACING IRELAND NOTES to the FINANCIAL STATEMENTS for the FINANCIAL YEAR ENDED 31 DECEMBER 2018
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AUDITED GROUP FINANCIAL STATEMENTS HORSE RACING IRELAND FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 201$ HORSE RACING IRELAND REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 CowVlay Page Board Members and Other Information 2 Governance Statement and Board Members Report 3 Report of the Comptroller and Auditor General 6 . Statement on Internal Control 8 -9 Group Statement of Income and Expenditure 10- 11 Group Statement of Comprehensive Income 12 Group Statement of Changes in Reserves and Capital Account 1.3 Horse Racing Ireland Statement of Changes in Reserves and Capital Account 14 Group Statement of Financial Position. is Home Racing Ireland Statement offinancial Position Group Statement of Cash Flows I Notes to the Financial Statements 18 -52 HORSE RACING IRELAND BOARD MEMBERS AND OTHER INFORMATION Board Members Mr. Nicholas Hartery (Chairperson) (Appointed 24 May 2018) Mr. Joe Keeling (Chairperson) (Retired 24 May 2018) Mr. Bernard Caldwell Mr. Darugh Fitzpatrick (Appointed 26 January 2018) Mr. James Cough Mr. Christy Crasick (Appointed 26 January 2018) Mr. Michael Hallord Ms. Elizabeth Hendon Mr. Harry McCalrnoiil Mr. Robert Nixon Ms. Carol Nolan (Appointed 28 March 2018) Mr. Peter Nolan Mr. Coner O'Neill (Appointed I 0 December 2018) Ms. Meta Osborne Mr. John Powell Mr. Noel Clonke (Retired 28 March 2018) Mr. Francis Hyland (Retired 26 January 2018) Mr. John Moloney (Retired 10 December 2019) Ms. £irneir Mulhern (Retired 26 January 2018) Secretary Mr. Raymond Horan Registered Office Bullymany The Currogh Co Kildare Auditors Comptroller and Auditor General 3A Mayor Street Upper Dublin I Solicitors William Fry 2 Grand Canal Square Dublin 2 Kilroys Solicitors 69 Lower Lesson Street Dublin 2 Bankers Bank of Ireland Allied Irish Banks p.l.c. KEJC Bank Ireland p.l.c. Permanent tsb Group Holdings p Lc HORSE RACING IRELAND GOVERNANCE STATEMENT AND BOARD MEMBERS' REPORT Governance The Board of Horse Racing Ireland was established under the Irish Uorseraciirg Industry Act. 1994 (as amended) ('the Act"). The functions of the Board are set out in section 10 of the Act. Ilia Board is accountable to the Minister for Agriculture, Food and the Marine and is responsible for ensuring good governance and performs this task by setting strategic objectives and targets and raking strategic decisions on all key business issues. The regular day-to-day management, control and direction of Horse Racing Ireland are the responsibility of the Chief Executive Officer (CEO) and the senior management team The CEO and the senior management team must follow the broad strategic direction set by tire Board, and must ensure that all Board members have a clear understanding of the key activities and deviainrl5 related to the entity, and crony significant risks likely to arise. Tire CEO acts us a direct liaison between the Board and senior management of Horse Racing Ireland, Horse Racing Ireland is also responsible for the administration of its nine subsidiaries and tire authorisation of transactions in cach of the subsidiaries. The governance arrangements and control procedures within Horse Racing Ireland also apply to each of the subsidiaries, flnnrt-d Member ResponsibilitIes The work and responsibilities of the members are set our in Schedule of Reserved Board Functions, which also contains the matters specifically reserved for Board decision Standing items considered by the Board include - Strategic arid busiest planning - Financial management - Resource allocation - Corporate governance - Reports from committees - Financial reports management accounts - Risk management Tire Board also considers declaration of interests and performance reporting as well as the above matters reserved for Board decision. Section 29 of the 1994 Act requires the Board of Horse Racing Ireland to keep, in such fcrrrn as may be approved by tire Minister for Agriculture, Food and the Marine with consent of tire Minister for Public Expenditure and Reform, all proper and usual accounts of money received and expended by it. In preparing these financial statements, the Board of Horse Racing Ireland is required to: - select suitable accounting policies and then apply them consistently; - makejudgernenis and estimates that are reasonable and prudent; - prepare tire financial statements on the going concern basis unless it is inappropriate to presume that Horse Racing Ireland and lire Group will continue in business; and - state whether applicable accounting standards have been followed, subject to any material departures being disclosed and explained in tire financial statements. The Board is responsible for keeping adequate accounting records which disclose, with reasonable accuracy at arry time, the financial position of the Group and to enable theirs to ensure that the financial statements are prepared in accordance with Section 29 of tire Act and accounting standards generally accepted in Ireland. The maintenance and integrity of the corporate and financial information on the Horse Racing IreInmnds website is the responsibility, of tIne Board. The members are responsible for approving the strategic plan and the annual budget which are evaluated on an ongoing basis. The Board is also responsible for safeguarding its assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board considers that tIre financial Statements of Horse Racing Ireland gives true and fair view of the financial perfonnsnce and the financial position of Horse Racing Ireland at 31 December 20111. HORSE RACING IRELAND GOVERNANCE STATEMENT AND BOARD MEMBERS' REPORT (CONTINUED) Board Structure The Board consists are Chairperson and thirteen ordinary members, all of whom are appointed by the Minister for Agriculture, Fond and the Manna. Members of the Board are generally appointed for a period of four years. In some instances, a second term may be served or the period olappoinirnent may be longer. Members mcci between B - 10 times per calendar year. The date of appointment of current members has been included at Note 14 to the Financial Statements. Following a change in Chair and strategic planning work, the Board commenced an internal Board Effectiveness and Evaluation Review which is ongoing and will be completed in 2019. The Board has established five committees. Four of these committees are required by statute and one is required by the Code of Practice for the Governance of State Bodies. Their membership is defined by reference to the underlying statutory provisions, Code provisions or internal terms of reference and complies with same. No Committee members receive any fees in relation to these appointments S/ttlt:lory Coin muliteas Rx:inres Committee The fixtures committee is responsible for determining and recommending proposals for the annual list of race fixtures, new or additional Fixtures in the event of abandonment or cancellation of fixtures, monitoring the programme of race fixtures and proposing policies and strategies which form the basis for determining race fixtures. Media Rights connmn:ee The media rights committee holds responsibility for determining and recommending media rights policies and strategies which form the basis for media rights contracts and arrangements, monitoring the international media landscape market, overseeing the negotiation and financial arrangements associated with the sale or licensing relating to media rights. Betrjng Commit tee The betting committee dctcnnines and recommends strategies and policies for Horse Racing Ireland in relation to the betting sector in accordance with the terms of the Act. Industry Scriber Committee The industry services committee Is responsible for determining and recommending initiatives and proposals that could be implemented and/or supported by Horse Racing Ireland as industry initiatives in order to strengthen the skills, learning and development and represent the interests oItliosc eriiployed in the industry. Pictures Conwniuee (2 meetings) Media Rights C'onuniuce (I niaeaing) Harry McCahrnot &erdn,,ni5v Can trr O'Neill (Appi, 10/12/18) Bawd aien,ber (Chnirperson) (Chairperson) James Cough B,dvimjbcr James Gough Baard,,,rHb,, Michael Halford 8aardrnrmber Nicholas Hartery (.4ppr. lt)fiJa/!,) Conor O'Neill (Appr 10112/18) Board met,t, Derek McGrath £,1nl member Meta Osborne fiondatember Mew Osborne Bawd member John Moloney (Rrri'rd /0/12 IB) Board member ice Keeling tRedrrd l0/tJ5/1Bi Baardrnea,ber John Maloney (Retired 10/12/18) Banr'e!r' Bending Cranrnriitee (3 meetings) Industry Services Committee (5 meetings) Darngh Fitzpatrick £lo,utj Plunbc, Carol Nolan (App 21/152/18) 8ann1 ,ar,,jbe, (Chairperson) (Chairperson) Allan Byrne !,srr,,nt "' Bernard Caldwell Board mc,:Ibcr Sharon fiyrrie Entrust censOr' Andrew Coonan Lilerini mrrnbzs Elizabeth Ikadori Peardmembe, John Flannery £urrnm( rsen,ber Tim Higgins Rrrnrd 311(1! 10) Essrsirit oseniber Michael Oflonoghue Enema! uscnibrr HORSE RACING IRELAND GOVERNANCE STATEMENT AND BOARD MEMBERS' REPOR'r (CONTINUED) code of Pnzcelcefor:/:e Governance ofSitno Bodies Cornrni::Eej Audit c Risk Con:rn (tine The audit and risk committee is responsible for oversight and assistance to the HRJ Board in relation to compliance, internal control framework, internal and r.,ierntrl audit reviews, risk management and other regulatory or compliance matters. Audi: & Risk Committee '6 nieeiings,l Sasha Kerins (lppoinledt)4i01/I9) &r).,,,at nen,bgr (Chairperson) Bernard Caldwell Baird ,neriber James Cough Board n,e,,,br Peter