Vic audit

[Amlin]

Not sure why this has not made it onto here yet but the promised audit into Victorian harness racing was released last Friday.

http://www.justice.vic.gov.au/home/justice+system/laws+and+regulation/report+on+the+audit+of+harness+racing+victoria

[Njcstables]

Not sure why this has not made it onto here yet but the promised audit into Victorian harness racing was released last Friday.

http://www.justice.vic.gov.au/home/justice+system/laws+and+regulation/report+on+the+audit+of+harness+racing+victoria
I'm a little surprised no one has bought it up too Kyle. Maybe it's because the recommendations in it are what everyone's been saying for some time and we're all sick of beating our heads against the wall waiting for it happen!

[Messenger]

Things only make it on here if some Tom, Dick or Harry post them. I missed it but have now found the very brief article in Harnesslink News
http://www.harnesslink.com/Australia/Media-Release---Audit-of-Harness-Racing-Victoria
Which does not mention what the 18 recommendations are or provide the link you have Kyle

Often if a lead story is not one of the 3 featured News Headlines on the Vic page of harness.org where I usually head for Fields and Results, I can forget to go to the News Room tab for Lead Stories
- strangely I have kept seeing the one about the Integrity Tour every day for about a month but not once did I see the audit report story
and once you go to Lead Stories it has slipped onto the 2nd page even though Cody's brief statement (link above) is dated before the last story on the first page

You can also find Cody's statement by going to the News Room at hrv.org but I never go there as I use harness.org

I reckon you have done dam well to know about it Kyle and to have provided that link to the actual report - where did you dig that out from?

[Amlin]

Other social media were onto it pretty quick as soon as it surfaced on Friday. I had forgotten about it until I found the link Friday.

[gutwagon]

The report confirmed what we were all thinking. Let hope something gets done quickly ! I am hoping that the current board is sacked and replaced with people that know something about the sport and how to run a business . They will need to be much more open and willing to listen that the current board.

[Messenger]

I plan to read it today Rick but I am wondering whether the board of HRV is not like our local shire council in that you think the Councillors are in charge but it is really the CEO calling all the shots - I should reserve judgement until I read it

[Messenger]

Wow. This is some Report
I know that most of our forum members are a lot busier than this lazy arse member so I am going to post highlights of the report on here each day for those of you that cannot find the time to read the document in its entirety.
I will get straight to the point by starting with the 18 Recommendations

RECOMMENDATIONS

Governance, Board expertise and skills

1. That the Racing Act 1958 (the Act) be amended to provide for the appointment of a skills-based board in line with modern governance practice. Following the amendment of the Act, it may be appropriate to reconstitute the Board with current members encouraged to apply.

2. That an Appointments Panel (AP) be established to assist the Minister to identify appropriate candidates for appointment to the Board.

3. Members of the Board and senior executives be required complete the Australian Institute of Company Directors (AICD) Company Directors course, or a similarly approved course, which focuses on high standards for directors and corporate governance.

4. The government give consideration to undertake a review of the remuneration levels for board members of racing statutory bodies.

5. That a Harness Racing Advisory Board (HRAB) be established (with membership approved by the Minister and including at least two HRV Board members) to facilitate consultation required under section 44B of the Act.

6. That the Board take action to ensure more effective leadership and communication, to reunite the industry and reinvigorate the racing product.

7. That the Board implement best practice risk management, including a requirement for the Audit Committee to meet with the Board at least once a year.

8. That the Board revise the its draft Harness Racing 2020 Strategic Plan to ensure that it includes, at a minimum
• a clear vision for harness racing
• clear accountabilities for the delivery of initiatives
• risk management and mitigation strategies
• timelines for implementation
• quarterly reports to the Board on implementation of deliverables, against identified performance measures
• the development of a communications strategy to effectively engage with stakeholders
• strategies for growing industry revenue
• strategies to attract new and young people to the industry.




Integrity services

9. That the government consider the removal of integrity as a function of HRV and the establishment of a separate integrity body for Victorian harness racing.

10. That the government consider providing funding from the Victorian Racing Industry Fund (VRIF) to significantly strengthen integrity capabilities.

Debts and liabilities

11. That the government work with HRV to identify strategies to speed up HRV’s debt retirement plans, including consideration of accessing unused HRV VRIF funding, the sale of surplus land at Melton and improvements to the HRV operating model.

12. HRV must, as a matter of priority, communicate to its key stakeholders its intentions regarding its debt management strategy, including timelines and consequential financial implications for the industry.

Income streams

13. That HRV:
• work collaboratively with all wagering service providers, in addition to Tabcorp, to grow wagering income from all sources
• adopt the recommendations of the Ford Sponsorship report to grow sponsorship income
• initiate discussions with the free to air networks for coverage of the Summer of Glory feature races
• develop strategies to improve returns from HRV racing product, both nationally and internationally.

Infrastructure

14. That HRV develop a ten-year strategic infrastructure and racing plan that:
• identifies the number of tracks required to sustain the annual racing program and capitalise on emerging wagering markets
• considers increasing the number of metropolitan meeting venues (e.g. Cranbourne)
• identifies patron facility upgrades that need to be undertaken at Melton (e.g. a roof over the grandstand seating, tiered dining facilities and a parade ring closer to the stand) and at other major racing venues
• ensures that owners are appropriately recognised and catered for
• examines the establishment of training and stabling facilities at racetracks such as Melton, Shepparton, Ballarat and Bendigo to reduce the barriers to entry by new participants.


Administrative duplication

15. That HRV reconsider its continued ownership of Racing Information Services Enterprise (RISE).

16. That HRV, as a matter of priority, continue its roll out of its financial shared service model and extend the shared service model to include:
• occupational health and safety
• compliance
• risk management
• marketing of racing.

Other issues arising from the audit

17. That HRV consider, in the development of plans to establish horse training facilities on harness tracks, making provision for the establishment of an education Centre for Excellence for industry participants and employees.

18. That government consider providing funding support for this important industry initiative.

[Messenger]

This is how Dale Monteith summarized his recommendations

In summary, they address the need for:
• the appointment of a skills-based board and the establishment of an Appointments Panel to ensure that the best possible candidates are identified
• the establishment of a Harness Racing Advisory Body (HRAB), that includes representatives from the Board, to improve consultation and industry engagement
• stronger leadership from the HRV Chair, Board and Chief Executive Officer that includes a commitment to inclusion, transparency and engendering trust within the industry
• improved governance processes and practices, particularly in the areas of risk management, strategic planning and stakeholder engagement
• an increased focus on integrity
• the development of an infrastructure plan to ensure the industry is well positioned to respond to future wagering growth opportunities
• the development of diverse revenue streams that will be crucial to the medium to long term viability of the industry.

and this is a quote from the first page

Flat or reduced income from wagering over the past five years has been a major issue for HRV and I am not sure that this will change substantially in the future unless the industry, not only in Victoria but nationally, reinvents its core racing product to make it more attractive to the wagering customer. This must necessarily involve seriously questioning many of the traditions and practices that currently prevail, which may be limiting wagering outcomes.

[Messenger]

More from the opening summary:

However, it is clear that participants believe that the industry is ‘fractured and polarised’ and that this is the result of an absence of leadership.
A strong HRV Chair, Board and executive is essential to reunite the industry, rebuild trust and establish a collaborative approach with consistent and inclusive processes to ensure buy-in to planned strategies from key stakeholders and participant groups.


The current Board does not have the expertise or specialist skills it needs in a broad range of areas such as legal, marketing, media (including new media) and technology to enable HRV to robustly test the advice it receives from within the organisation.

[Amlin]

Out of curiosity - there has been a distinct lack of reporting on the release of the audit by the dailies. The one I read was all over it like a cheap suit when they announced previously that there would be an audit - yet a week later and they have not run a line on it or offered the board an opportunity to respond.

[Njcstables]

Kyle, on RSN's Gait Speed segment on Tuesday Cody Winnell indicated that the board was meeting later that day and would be making an official response to the audit later in the day. 3 days later, nothing! Obviously the recommendations of 'open communication with stakeholders' has fallen on deaf ears at HRV management.

[Messenger]

and more from the opening summary

Other key messages for HRV from the consultation phase include the need for:
• more effective communication and consultation with the industry
• an increased focus on attracting new and young people to the industry to address the ageing demographic and heavy reliance of the industry upon volunteerism and hobbyists
• a strategy to grow ownership as a key industry driver
• improved returns for industry participants
• increased marketing and promotion of harness racing.

It is most interesting that these messages have been confirmed by the findings from the 2014 IER Culture Change and Engagement Report, currently in draft form, which was commissioned by HRV. Whilst it has not been finalised the HRV Board should act as a matter of priority on the findings of the report.

[Richard prior]

Wow. This is some Report
I know that most of our forum members are a lot busier than this lazy arse member so I am going to post highlights of the report on here each day for those of you that cannot find the time to read the document in its entirety.
I will get straight to the point by starting with the 18 Recommendations

RECOMMENDATIONS

Governance, Board expertise and skills

1. That the Racing Act 1958 (the Act) be amended to provide for the appointment of a skills-based board in line with modern governance practice. Following the amendment of the Act, it may be appropriate to reconstitute the Board with current members encouraged to apply.

2. That an Appointments Panel (AP) be established to assist the Minister to identify appropriate candidates for appointment to the Board.

3. Members of the Board and senior executives be required complete the Australian Institute of Company Directors (AICD) Company Directors course, or a similarly approved course, which focuses on high standards for directors and corporate governance.

4. The government give consideration to undertake a review of the remuneration levels for board members of racing statutory bodies.

5. That a Harness Racing Advisory Board (HRAB) be established (with membership approved by the Minister and including at least two HRV Board members) to facilitate consultation required under section 44B of the Act.

6. That the Board take action to ensure more effective leadership and communication, to reunite the industry and reinvigorate the racing product.

7. That the Board implement best practice risk management, including a requirement for the Audit Committee to meet with the Board at least once a year.

8. That the Board revise the its draft Harness Racing 2020 Strategic Plan to ensure that it includes, at a minimum
• a clear vision for harness racing
• clear accountabilities for the delivery of initiatives
• risk management and mitigation strategies
• timelines for implementation
• quarterly reports to the Board on implementation of deliverables, against identified performance measures
• the development of a communications strategy to effectively engage with stakeholders
• strategies for growing industry revenue
• strategies to attract new and young people to the industry.




Integrity services

9. That the government consider the removal of integrity as a function of HRV and the establishment of a separate integrity body for Victorian harness racing.

10. That the government consider providing funding from the Victorian Racing Industry Fund (VRIF) to significantly strengthen integrity capabilities.

Debts and liabilities

11. That the government work with HRV to identify strategies to speed up HRV’s debt retirement plans, including consideration of accessing unused HRV VRIF funding, the sale of surplus land at Melton and improvements to the HRV operating model.

12. HRV must, as a matter of priority, communicate to its key stakeholders its intentions regarding its debt management strategy, including timelines and consequential financial implications for the industry.

Income streams

13. That HRV:
• work collaboratively with all wagering service providers, in addition to Tabcorp, to grow wagering income from all sources
• adopt the recommendations of the Ford Sponsorship report to grow sponsorship income
• initiate discussions with the free to air networks for coverage of the Summer of Glory feature races
• develop strategies to improve returns from HRV racing product, both nationally and internationally.

Infrastructure

14. That HRV develop a ten-year strategic infrastructure and racing plan that:
• identifies the number of tracks required to sustain the annual racing program and capitalise on emerging wagering markets
• considers increasing the number of metropolitan meeting venues (e.g. Cranbourne)
• identifies patron facility upgrades that need to be undertaken at Melton (e.g. a roof over the grandstand seating, tiered dining facilities and a parade ring closer to the stand) and at other major racing venues
• ensures that owners are appropriately recognised and catered for
• examines the establishment of training and stabling facilities at racetracks such as Melton, Shepparton, Ballarat and Bendigo to reduce the barriers to entry by new participants.


Administrative duplication

15. That HRV reconsider its continued ownership of Racing Information Services Enterprise (RISE).

16. That HRV, as a matter of priority, continue its roll out of its financial shared service model and extend the shared service model to include:
• occupational health and safety
• compliance
• risk management
• marketing of racing.

Other issues arising from the audit

17. That HRV consider, in the development of plans to establish horse training facilities on harness tracks, making provision for the establishment of an education Centre for Excellence for industry participants and employees.

18. That government consider providing funding support for this important industry initiative.
19. Hurry up with the naming papers.

[jackthepunter]

Just confirms everything I already knew, in the last ten years the damage the CEO has done will take a lifetime to fix.you couldn't get a more damaging report, the fact the board and CEO won't
sacked on the spot is beyond laughable. Theirs not another business /sport in the world that would have to putup with this crap.

[Messenger]

From the pages summarizing The Victorian Harness Racing Industry

The advent of corporate bookmakers licensed in the Northern Territory (NT) has caused all codes, throughout Australia, financial and other concerns (through amongst other things, legal challenges to the industry’s right to charge product fees). These operators have captured significant market share, grown total wagering on racing and now pay valuable product fees to the industry.

HRV is now capitalising on growing this wagering revenue stream rather than solely relying on returns from the JV with Tabcorp. However, there is a fine balance in maximizing such product fee levels to optimize that revenue stream given the ability of wagering operators to influence their customers to gravitate to lower product fee racing and sport.

HRV probably took a commercial decision in setting its current fees, which I understand are at the upper end of the scale compared with its interstate counterparts.

[Amlin]

The audit etc will be discussed on RSN at 9:30am Tuesday (21st)

[Messenger]

Among the many points listed under Governance

Concerns were raised during the audit about the length of service of the CEO and his ability to lead the industry. A common theme emerged that a new leader with stronger communication skills and a demonstrated history of innovation and change management is needed to lead the industry and HRV.

Without having formed a view on the matter, the current CEO has been in the role for more than eleven years, with the Board reappointing the CEO for a further three year term in July 2014.

[Messenger]

The audit etc will be discussed on RSN at 9:30am Tuesday (21st)

Anybody catch it?

[arlington]

Anybody catch it?


Kev, you can catch a replay at http://www.rsn.net.au/
Scroll through RSN Listen Again to No.35. Also No.17 is interesting listening.

[Amlin]

Or here is a direct link to the interview only - you may have to register with this site, not sure


https://audioboom.com/boos/3104932-hrv-ceo-john-anderson

[Messenger]

Anybody want to summarize? One seriously deaf bloke here I am afraid

[jackthepunter]

Can anyone answer how the CEO and board still have a job?

[Messenger]

From 'Income Streams':

Over the past five years, HRV gross revenue has increased by 11 per cent. This compares unfavourably with inflation, which has increased by around 13 per cent over the same period. HRV has worked hard to hold total costs (including prizemoney) over the same period.

Without adequate growth in its income streams, it is difficult to see how HRV will be able to invest in expanding its integrity needs, increase prizemoney and effectively promote the industry as much as it needs to in such a competitive environment.

[doncht]

That makes a lot of sense. I still got the feeling that it would just be a matter of time though. https://imagicon.info/cat/10-3/smile4.png

[Messenger]

I wonder when we are going to see some action as a result of this audit - I have not seen anything from the Minister or from HRV
OR is the Chairman of Stewards resigning the beginning?

[jackthepunter]

Is anything ever going to come of this audit? Or is it all hot air? When if any changes going to start?

[Messenger]

I heard John Anderson was going to be on a program with Len Baker I think? (audio not my strong point - but hopefully someone will tune in)

[Amlin]

Podcast available online tomorrow so will drop the link on here when available

[Messenger]

https://soundcloud.com/hrv-2/harness-review-monday-may-11

I just listened to Harness Review for the first time ever (a cochlear and hearing loop are wonderful inventions)
John Anderson was Len Baker and Brian Dobson's guest last Monday. A lot of questions/matters were raised but it was not what you would call a tough investigative interview. Not one single answer by the CEO was questioned/refuted.
Somebody may be able to tell me if the program is funded by HRV and whether the men are all colleagues. I am not saying there is anything wrong with that, if that is the case but there were no hard question a la the type Gerard Whateley fired at James Hird on AFL 360 the other night.

Here is a summary (some were in response to Q's by listeners):

Great Southern Star needs tweaking - not knowing the make up of the final that morning for people to do form is an obvious drawback

Stand Starts are supported by tote figures - admittedly the Adore Me situation in Hunter Cup was not a good look

Feature race prizemoney will not be reduced but increases/new money will be directed to the bottom end of the market

Plan for Melton was not always about it being Vic's exclusive Metro home but Moonee Valley was too expensive. The 48 weeks of the year which are not feature nights, Melton attendance better than MV but for the 4 or so really big nights we do not get the crowd MV did.
Aware of the shortcomings of Melton egs Parade ring placement, upstairs seating without cover, ...
"Took point" that maybe a Hall of Fame could be housed there
Aware of feeling Eastern Vic alienated - sees Cranbourne as the answer
The excess land at Melton is under discussion - whether it should be used for an industry development facility or as a commercial revenue source

A report has just been handed to the Minister about the Ballarat Cup fiasco

HRV have just handed to the Minister their response to the Audit - disappointed about the mistakes the audit contained

The Minister has already said that he is taking on the recommendations regarding the formation of the Board to revitalize it

Sky shafting races to Sky2 - did not sound perturbed but said we let them know when unhappy but sounded happy about all Sky's positives
(snuck in that NSW gallops getting a golden run right now after recently signing a new agreement)

Agrees that NZers have an advantage in longer distance races but the possibility of having more longer races in Vic not likely to happen

Suggested Neil Conders resignation as Chairman of Stewards was due to the pressure of the job and that he wanted a break

Said Melton on Friday a better revenue raiser but understands that Saturday is better for attendance for many

The Sunday twilight spot we used to have has somewhat been overrun by dogs and O/S racing

He is told Melton is an excellent track - the leader bias all due to tempo

Harness return % from TAB fixed odds betting is lower than the other codes (If there was ever a time to ask SO .....!)

Yes Monte racing is a novelty - need bigger fields

1200m races (Hotshots) is not the future

Driver's colours would probably result in a trainers/owners strike - not something we need

Cannot afford to swab all runners. Spend $½m on swabbing

Got the message and plan to engage with the industry more

Did not disagree that we have too many tracks but made the point that we need to look at the Calendar and do what is in the best interests of the industry not just 'what we have always done'


That was most of it :)

Harness Review is a 979FM program

https://soundcloud.com/hrv-2/harness-review-monday-may-11

[Amlin]

There was movement at the station...

http://www.premier.vic.gov.au/new-laws-to-get-harness-racing-back-on-track

[Messenger]

That is big news

Big points include:

The Board will be re-shaped to ensure it has the necessary skills to grow the industry and assist harness racing to compete effectively in a challenging market. A spill and fill of the board will occur with current members being invited to re-apply.

The Government has accepted all of the recommendations made in the Monteith Report

http://www.premier.vic.gov.au/new-laws-to-get-harness-racing-back-on-track

How about that Jack

[Amlin]

What chance any of the current board member popping up in the papers this week saying -


"I am disappointed I will now have to reapply for my position, as I thought the record of what I have achieved while serving the industry so far should speak for itself."!!

[Messenger]

If you need a refresher on what the 18 recommendations were, see post 7 here

http://www.harnessracingforum.com/showthread.php?7609-Vic-audit

(maybe we could combing the 2 threads TeeCee?)

[Messenger]

With a new board and all the changes the recommendations involve, I feel pretty confident there will be a new CEO just around the corner

[Messenger]

I don't know that that is quite true Jack, the new board should be the head and everybody will be marching to the beat of a new drum with and all the changes the recommendations involve. I feel pretty confident the new board will be looking for a new CEO and that JA will finally figure that 10yrs is definitely long enough

[Richard prior]

Hey Kev, How does this sound, Replace J with A, I really think she would do a fine job and I'm deadly serious about that.

[Bonnie]

Thanks Richard. I have had a lifelong involvement with harness racing which began when my father had a couple of horses at Dales Stables in Maribyrnong . Like many of us , I just want to see the sport grow and prosper and I think these changes are long overdue. Improvements in Integrity, Transparency and Industry Communication are a good starting point.

[Amlin]

HRV Strategic Plan released today...have your say!

http://www.hrv.org.au/general/consultation/

[Messenger]

In Dale Monteith's audit of HRV he stated that 'key messages for HRV from the consultation phase'

'have been confirmed by the findings of the 2014 EIR Culture Change and Engagement Report, currently in draft form, which was commissioned by HRV. Whilst it has not been finalised the HRV Board should act as a matter of priority on the findings of the report.'

I have emailed HRV and asked where one can access this report to only receive the reply

The Report you refer to was not publicly released and is therefore not available to access.

Why would HRV not be making this report (which the industry funds) public?!

[Amlin]

Here's your chance Kev!


http://www.justice.vic.gov.au/utility/news+archive/expressions+of+interest+invited+for+appointment+to +the+harness+racing+victoria+board

[Messenger]

Kyle, it is young ideas people like yourself that should be in the mix to create a future for harness racing - you have an impressive resume and should seriously go for it.

[Richard prior]

+1

[Amlin]

Kyle, it is young ideas people like yourself that should be in the mix to create a future for harness racing - you have an impressive resume and should seriously go for it.



Thanks everyone - I remain unconvinced that this recruitment process, the eventual "winners" and their ultimate achievements will be any different than in previous years. I do hope however the sceptic in me is proved very wrong!!

[jackthepunter]

Thanks everyone - I remain unconvinced that this recruitment process, the eventual "winners" and their ultimate achievements will be any different than in previous years. I do hope however the sceptic in me is proved very wrong!!
You right about that, if u want the best for a job, they don't apply, because they all ready have jobs cause their good at what the do. U have to go get them hence the problem with everyone at hrv, their either a mate of someone, or knew someone high up that got them a job. The only good people at hrv get poached by the gallops, which is why the people at top have been their so long no other business would ever hire them in those same positions because their no where near good enough.