The internal audit of Horse Sport Ireland, carried out by audit firm Deloitte, found no evidence of abuse or misuse of public funds by the body.

No issues over expenditure were flagged in the report, which also uncovered no significant HSI financial policy matters.

Chairman of Horse Sport Ireland Professor Pat Wall welcomed the report, which was published on the HSI’s website in the interests of transparency.

Several of the eight key areas that formed the basis of the Millstreet complaint which led to the Public Accounts Committee hearings in 2014 related to the international hosting event grants and breeding supports.

Deloitte found that there was room for “significant improvement” in relation to such grants and breeding supports.

The Deloitte report stated: “No matters or evidence came to our attention during the course of this review which would corraborate Millstreet’s opinion that there had been an abuse or a misuse of public funds by HSI. The internal audit concludes that there is scope for significant improvement in relation to the demonstrated fairness, openness, clarity, transparency and accountability of international hosting grants and breeders’ financial support funds administered by HSI.”

The report urged that the HSI launch a financial strategy in order to support the sport horse industry and noted the underfunding of HSI, with its annual €5.7m falling short of the €7.5m envisaged in the 2006 Dowling Report.

Significant risk

Deloitte also recommended a Government-sponsored review of the HSI and pointed out that there was “significant risk that the HSI does not have the administrative or financial capacity or wherewithal to lead and deliver” on the Reaching New Heights 10-year strategy launched last year by then Minister for Agriculture Simon Coveney.

The report recommended that the 19-member board be reduced to 10 to 12 members in line with best corporate practice, as well as a periodic review of board and chair performance. The report also pointed out that clear criteria and public advertising should operate for all financial supports.

International hosting grants represented 1.6% of the HSI’s overall income for the last number of years and 10% approximately of the monies made available by Sport Ireland. The average grants paid by the HSI between 2012 and 2015 was €81,000 per year.

The Deloitte report detailed that in 2014, 11 events received hosting grants (totaling €75,000), subject to six criteria.

However, the criteria was not formally notified to grant recipients, published on the HSI website or advertised.

When this came to light at Public Accounts Committee in 2014, the six criteria were reduced to three, the most important being the FEI star rating of the event.

Over a three-year period, it was found that the majority of the recipients of the international hosting grants received significantly over €25,000. However, any amounts over €25,000 should have been publicly advertised as per Government guidelines.

The report found that there was no practice of clear feedback operated in relation to these grants up to December 31st 2014, as is common practice where public monies are involved.