ANNUAL REPORT 2011 - Horse Racing Ireland

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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2011 (CONTINUED)25. Establishment reserveThe establishment reserve arose on the transfer of net assets from the Racing Board to the Irish Horseracing Authorityon 1 December 1994 and on the transfer of net assets of the Irish Horseracing Authority to Horse Racing Ireland on18 December 2001.26. ReservesGroup Revenue Establishment Revaluation Capital TotalReserves Reserve and Non Reserves EstablishmentDistributableand OtherReservesReserves€’000 €’000 €’000 €’000 €’000At 1 January 2011 54,111 17,193 6,875 3,430 81,609Transfer to/(from) reserves (570) - - 570 -Retained deficit for year (7,580) - - - (7,580)Reclassification of717 - 2,846 - 3,563investment propertiesMinority interest (6) - - - (6)Actuarial loss (2,523) - - - (2,523)At 31 December 2011 44,149 17,193 9,721 4,000 75,063Revenue reserves at 31 December 2011 include €11.236m being the pension reserve cumulative amount charged through theStatement of Total Recognised Gains and Losses (2010: €8.713m). Capital reserves represent surpluses set aside to fund futurecapital development. This reserve will be released to revenue reserves on completion of such developments. Revaluation andnon-distributable reserves represent revaluation surpluses arising on investment properties in 2011 and non-distributablereserves. Transfers to/(from) reserves during the year represent movement on capital reserves, the reclassification of pensionobligations to revenue reserves and the release of funds by HRI in relation to the disposal of land in Leopardstown in previous years.Horse Racing Ireland Revenue Establishment Non Capital TotalReserves Reserve Distributable Reserves EstablishmentReservesand OtherReserves€’000 €’000 €’000 €’000 €’000At 1 January 2011 30,947 9,592 6,875 3,430 50,844Transfer to/(from) reserves (570) - - 570 -Retained deficit for the year (10,799) - - - (10,799)Actuarial loss (2,523) - - - (2,523)At 31 December 2011 17,055 9,592 6,875 4,000 37,52248 Horse Racing Ireland Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2011 (CONTINUED)27. Pension commitmentsHorse Racing Ireland established with effect from 1 May 2007 the Horse Racing Ireland and Racing Regulatory BodySuperannuation Scheme 2007. Horse Racing Ireland has established a trust fund for holding contributions made towardsbenefits to be paid under the Scheme and for the payment of superannuation benefits under the Scheme.Defined Benefit Scheme (Horse Racing Ireland and Racing Regulatory Body Superannuation Scheme 2007)a)On 1 December 1994, the Irish Horseracing Authority took over the operation of the Racing Board’s Defined BenefitPension Scheme for permanent staff. Since 18 December 2001, this scheme continued to operate under HRI until 30 April2007. On 1 May 2002, at the point of transfer of employees from the Turf Club to Horse Racing Ireland, a Deed of Adherencebetween Horse Racing Ireland, Stewards of the Turf Club and Coyle Hamilton Trustees Limited was put in place allowingHorse Racing Ireland to be an adhering body to participate in the Turf Club of Ireland Pension Scheme(the PrincipalEmployer) from that point until 30 April 2007.b) Until 1 May 2007, two schemes operated under the Racing Board’s Defined Benefit Pension Scheme and the Turf Clubof Ireland Pension Scheme. Both of these schemes are now closed. The former Racing Board scheme had 9 activeparticipants and 48 inactive participants at 31 December 2011. There were 30 employees of Horse Racing Ireland in theformer Turf Club Scheme. The Turf Club Scheme also covers 53 employees involved in Integrity Services.c)At 1 May 2007, the two schemes merged into one scheme, encompassing all the above employees and the rest of the TurfClub employees. Total members at 31 December 2011 amounted to 159 (2010: 160). All pension obligations from both theformer Racing Board Scheme and the former Turf Club Scheme are now covered in the new merged scheme. This schemealso covers the employees involved in Integrity Services who are directly funded by HRI under the Irish HorseracingAuthority Act 1994, Section 42 and employed by the Turf Club. Liabilities relating to other employees of the Turf Club andthe Curragh Racecourse are excluded in calculating the net pension liability disclosed underneath.d) Total employer contributions in this scheme made for the year ended 31 December 2011 were €739,000. Future expectedemployer contributions in this scheme are €730,000 for the year ended 31 December 2012.e)The pension cost of the defined benefit scheme is assessed on an annual basis in accordance with the advice of qualifiedactuaries using the projected unit method.The principal financial assumptions for the full scheme used to calculate the retirement liabilities under FRS 17 as at 31December 2011 were as follows:Valuation Method Projected Unit Projected Unit2011 2010Discount Rate 5.00% 5.50%Future pensionable salary increases 1.75% 1.75%Future pension increases 2.50% / 1.25% (where applicable) 2.50%Future inflation 2.00% 2.00%Horse Racing Ireland Annual Report 2011 49
Page 1 and 2: Horse Racing IrelandANNUALREPORT201
Page 3 and 4: MISSION STATEMENTTo develop and pro
Page 5 and 6: FINANCE COMMITTEEDenis Brosnan Chai
Page 7 and 8: The Minister for Agriculture, Food
Page 9 and 10: major contributor to the national e
Page 11 and 12: Payments made to Racecourses for va
Page 13 and 14: acecourse turnstiles. Similarly, HR
Page 15 and 16: HRI RACECOURSE DIVISION2011 was the
Page 17 and 18: NavanNavan raced 19 times in 2011,
Page 19 and 20: also continued its association with
Page 21 and 22: Mullins. Ian Ferguson sent out Zems
Page 23 and 24: causing a 25/1 shock in the Group 1
Page 25 and 26: Members AND OTHER INFORMATIONMember
Page 27 and 28: Comptroller and Auditor GeneralRepo
Page 29 and 30: STATEMENT ON INTERNAL FINANCIAL CON
Page 31 and 32: STATEMENT OF ACCOUNTING POLICIES (C
Page 33 and 34: GROUP INCOME AND EXPENDITURE ACCOUN
Page 35 and 36: GROUP BALANCE SHEETAS AT 31 DECEMBE
Page 37 and 38: GROUP CASH FLOW STATEMENTFOR THE YE
Page 39 and 40: NOTES TO THE FINANCIAL STATEMENTSFO
Page 49: NOTES TO THE FINANCIAL STATEMENTSFO

ANNUAL REPORT 2011 - Horse Racing Ireland

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