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{ /' Oifig an Ard-Runai An Roinn Talmhaiochta, Bia agus Mara, Baile Atha Cliath, DO2 WK12 Office of the Secretary General Department of Agriculture, Food and the Marine, Dublin, DO2 WK12.
Telephone: (01) 607 2184/2134 Facsimile: (01) 662 1739 a2~ June 2023 Ref: S 1255 PAC 33 Ms Sarah Cremin Committee Secretariat Committee of Public Accounts Leinster House Dublin 2 D02 XR20 @oireachtas.ie The 2021 Financial Statements of the Irish Horseracing Regulatory Board Dear Ms Cremin, At the Committee of Public Accounts' meeting of March 2023, the Committee noted the 2021 Irish Horseracing Regulatory Board (IHRB) Financial Statements and in particular the former CEO's early retirement payment.
In relation to this matter, I refer to your correspondence dated 12`i April 2023 requesting an information note on the following points: 1. Who made the decision regarding the terms of the exit package for the former CEO of the Irish Horseracing Regulatory Board and who signed off on it.

While the role of the IHRB as the regulator of horse racing is provided for in legislation, the body itself is a private entity.
The terms of the early retirement package for IHRB employees were agreed by the Board of the IHRB.

The Department of Agriculture, Food and the Marine had no role in establishing the terms of the exit package.

R1949 (ii) PAC33 2.

What steps are being taken by your Department in relation to the termination payment which is not in compliance with the provisions of the Irish Horseracing Regulatory Board early retirement scheme.
Minister McConalogue has written to the Chairman of the IHRB stating his concern that the former CEO's early retirement payment exceeded the maximum payment set out under the IHRB's early retirement and voluntary redundancy scheme.

The Minister stated that in his opinion the CEO's early retirement payment should have been limited to the maximum amount set out by the IHRB.
Minister McConalogue also pointed out that the Department will be conducting a review of the gove► nance arrangements around the Horse and Greyhound Fund.

In this context, the Minister asked Horse Racing Ireland (HRI), the body with responsibility for governance oversight of the IHRB, to specifically look at the arrangements for the provision of funding to the IHRB.

In addition, I have written to the CEO of HRI, as the body responsible for among other things, guaranteeing the funding to the IHRB.
I reiterated the concerns raised in the Minister's letter to the Chairman of the IHRB and referred to the need for clarity and good governance in such matters.

I also indicated to HRI that this Department would be conducting a broader examination of the governance arrangements around the fund generally.

Finally, I asked that the Service Level Agreement (SLA) between HRI and IHRB dated 11 May 2023, be reviewed in the context of the matters raised in my letter.

3.
3.

What measures are being taken by your Department to ensure this will not happen again.

The Horse Racing Ireland Act 2016 provides that HRI is responsible for, among other things, guaranteeing the funding to the IHRB to carry out its functions through an Integrity Services Budget, agreed annually by its board, and a Service Level Agreement.
While recognising the statutory functions of the IHRB and its independence in the exercise of these functions, this Department exercises its governance oversight of the IHRB through its regular interactions with HRI.

Minister McConalogue, in his letter to the Chairman of the IHRB, requested absolute assurance that all future reporting issues will be delivered in line with Code requirements and that the Board ensures that the IHRB fully complies with best practice in financial management going forward.
Separately, I have asked HRI to consider governance arrangements around the provision of funding to the IHRB and as stated above have requested that the Service Level Agreement (SLA) between HRI and IHRB be reviewed in the context of the matters raised in the aforementioned correspondence.

If you have any further queries, please do not hesitate in contacting me.

Yours sincerely, Brend eeson Sy General/Accounting Officer