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2021-12-31-accounts

Retraining of Racehorses

Annual report Registered charity number 1084787 Registered number 4089376 OSCR Registered number SC043339 Year ended 31 December 2021

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Contents
Legal and administrative details 1
Trustees’ report 3
Report of the independent auditor to the members of Retraining of Racehorses Limited 10
Statement of financial activities (including the Income and Expenditure Account) 13
Balance sheet 14
Cash flow statement
 15
Notes to the Financial Statements 16

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Legal and administrative details

Name of charity

Retraining of Racehorses Ltd, also known as “RoR”.

Registered charity numbers

England and Wales: 1084787 Scotland: SC043339

Registered company number

4089376

Registered company address

75 High Holborn London WC1V 6LS

Trustees and Directors

The Board of Trustees for RoR are as follows:

Philip Freedman
Lady Emma Balding
Charles Barnett
Celia Djivanovic
Andrew Merriam
Anita Wigan		 Appointed by
BHA
NTF
RCA
ROA
BHA
TBA		 Initial Appointment
January 2021
October 2000
January 2019
November 2020
September 2016
August 2020		 Term expiry
December 2023
October 2022
January 2023
November 2022
August 2022
Resigned March 2022

The Hon Lucinda Cavendish was appointed as an Independent Trustee on 1 August 2019 for a period of two years.

Patrons: Clare Balding CBE, Sir Anthony McCoy OBE Chief Executive: Di Arbuthnot Company secretary: Catherine Beloff

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Legal and administrative details

Professional advisers

Bankers

Weatherbys Bank Sanders Road Wellingborough Northampton NN8 4BX

Solicitors

Royds Withy King Cross Keys House 27 The Parade Marlborough SN8 1NE

Auditors

James Cowper Kreston 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB

Restrictions on operations and investment powers

There are no material restrictions on the operations and investment powers of the charity in pursuance of its charitable obligations.

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Trustees’ report

The Trustees (who are also directors of the charitable company for the purposes of the Companies Act) present their annual report together with the audited financial statements of Retraining of Racehorses (the company) for the year ended 31 December 2021. The Trustees confirm that the annual report and financial statements of the company comply with current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure governance and management

Governing instrument

Retraining of Racehorses (“RoR”) is a charitable company limited by guarantee and governed by its Memorandum and Articles of Association dated 9 October 2000, as amended by special resolutions dated 10 January 2001, 29 April 2003 and 11 November 2004.

Appointment of Trustees

Under the Articles of Association, the Trustees are appointed to serve a 2 year period, which is renewable. The Trustees of the charitable company are also the directors of the company for the purposes of the Companies Act 2006. RoR is governed by a Board of six Trustees, one each nominated by the National Trainers Federation (“NTF”), the Racecourse Association Limited (“RCA”), the Racehorse Owners Association Limited (“ROA”), the Thoroughbred Breeders Association (“TBA”) and two by the British Horseracing Authority Limited (“BHA”). The charity is also able to appoint up to two non-voting independent trustees. The BHA has responsibility for appointing the Chairman.

The Trustees at 31 December 2021, who are also members of the company, have undertaken to contribute a sum not exceeding £1 each to meet the liabilities of the company in the event that it is wound up.

New Trustees are fully briefed by the Chairman on their responsibilities as a Trustee under charity law and as a director under company law. They receive an induction pack including copies of the following: the Memorandum and Articles of Association; the latest Trustees’ meeting minutes; the most recent statutory accounts and management accounts, including the current budget; the current Trustees’ Handbook; and the Charity Commission publication CC3 The Essential Trustee: What You Need to Know. During their first year, all new Trustees visit at least one of the RoR-supported racehorse rehabilitation centres subject to Covid restrictions.

Organisational structure

The Board of Trustees delegate the day to day management of the charity to its administrative team.

The Chief Executive is supported by a small team of one full time member of staff and a number of part time staff who all have clearly defined responsibilities as detailed in the 2021 organisation chart below. In addition, Fiona Carlin and Lorna Ewens provide Executive Assistance and accounting services respectively to the Trustee Board. RoR is grateful to the BHA for the donation of their services. The charity’s Trustees also give considerable time to RoR and its activities at no cost to the charity.

----- Start of picture text -----
Chairman and
Trustees
Di Arbuthnot
Chief Executive
Jenny Hall F/T
Head of Welfare and
Veterinary Advisor
P/T
Anne Walker
National Development Officer
P/T
Philippa Gilmore Laura O’Neill Margaret O’Sullivan Toni Vaughan
Head of Welfare Operations Operations Executive Operations Executive Media &
F/T P/T P/T Communications
Co-ordination Team Regional Executive P/T
(volunteer)
----- End of picture text -----

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Remuneration policy

The Trustees are responsible for the charity’s pay policy as well as deciding on the salary of the Chief Executive. In setting the overall pay levels for staff, RoR considers the prevailing pay practice in the wider economy and takes external counsel from the BHA.

Relationship between the charity and related parties

The relationship between RoR and other racing industry organisations is outlined under the appointment of Trustees above.

Risk management

In order to achieve and maintain best practice in corporate governance and acknowledging responsibility for safeguarding the assets in the charity’s ownership, the Trustees have appointed senior staff members to be responsible for the areas in which the charity may be exposed to risk. The charity maintains a risk register of the operational, business and environmental risks that might impact on RoR’s income and its expenditure plans. This is regularly monitored and reviewed by the Trustees. Key risks for the charity include an economic downturn which would put pressure on RoR’s income streams at the same time as potentially leading to an increase in ex-racehorses requiring assistance from RoR. Also, any outbreak of equine disease could result in a cessation of racing with a major impact on the sport and associated equine activities. Cognisant of these risks, the charity keeps a prudent level of reserves which are held in a wide spread of leading Bond and Equity Funds, although they may be subject to market fluctuation and downturns.

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The controls over the key financial systems have operated effectively throughout the year. Details of the financial procedures are reproduced in the Trustees’ Handbook.

Charity Governance

In 2017, RoR undertook a review of its governance in order to comply with the principles of the Charity Governance Code (July 2017). Following this, the Trustees agreed a new Board Code of Conduct and have approved policies for Conflicts of Interest, Safeguarding, Whistleblowing, and Complaints which are reviewed on a regular basis.

Objectives and Activities for the public benefit

The charity’s Objects as stated in its Memorandum of Association are “to promote the welfare and rehabilitation of racehorses and former racehorses which are unwanted or vulnerable to abandonment, abuse, misuse or neglect, or otherwise in need of care and attention, in particular (but without prejudice to the generality of the foregoing) by means of retraining and rehousing”. The details of the Education and Training programme for 2021 are covered in this report. The full programme of events for 2022 is available on the charity’s website (www.ror.org) under regional activities.

The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the trust’s aims and objectives and in planning future activities and setting the grant-making policy for the year.

Aims and objectives

RoR’s long term vision is that horses leaving British Racing progress to a secure future in new homes offering the appropriate skills, resources and facilities, taking as a first priority the welfare of the horses which underpins the key message that racing cares about a life after racing for racehorses on retirement.

To effect its Objects and this vision, the RoR aims are:

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

The key objectives for 2021 were to continue the support of the activities of the accredited centres; to expand the targeted promotional and educational programmes; and to continue to encourage the use of ex-racehorses in new occupations. All were achieved.

Grant-making policy

In 2021 RoR maintained its support of the various accredited charitable centres. The charity’s Head of Welfare is responsible for the assessment of all horses in relation to requests for vulnerability grants with grants awarded for horses assessed as meeting RoR’s vulnerability criteria.

Payments under the grants are subject to the Trustees being satisfied that the organisations’ activities continue to further the charitable objectives of RoR.

The charity will also consider programme related investments on a case by case basis when these are in accordance with the charity’s objectives.

Strategic Report

Review of charitable activities

The charity’s focus and responsibilities are the welfare of thoroughbreds by providing a safety net to ensure any racehorse identified as in need of charitable intervention is suitably and properly cared for. Alongside this is the objective to provide opportunities for former racehorses to enjoy a fulfilling second career, thereby reducing the likelihood of horses bred for racing needing third party care or support.

The challenges of the pandemic were still with us all at the beginning of the year and as we had done in 2020, we moved operations online with a series of education webinars with over 1,100 attendees across the 4 webinars.. Education forms such an integral part of the charity’s work and these sessions proved to be very popular with the help of well-known equestrian ‘names’ giving their time to help RoR members and those interested in taking on a former racehorse. The ‘Education Wednesday’ webinars in February’ focused on dressage, flatwork, showing, jumping, confidence and connection. In the depths of winter, there were two further webinars on horse management and help with the early stages of retraining where our ‘trainers’ included Olympic gold medallist, Laura Collett. These sessions were filmed and are on the website to enable members to view at their leisure and help with retraining their own thoroughbred.

The regional volunteer group under the leadership of the head of national development held regular group meetings online with local retraining coaches to support the members and answer questions on looking after and retraining their horses. These evenings helped keep the regional groups together and share their journey with their former racehorse.

2021 continued to see a reduced number of horses through the Vulnerable Horse Scheme and the Emergency Relief Fund – a total of 27 horses continued to receive support through the scheme which included those admitted in 2019/2020. The RoR welfare team has implemented measures to provide enhanced financial support for those horses admitted to the Vulnerable Horse Scheme (VHS). The total grant funding available has increased from £5,000 per horse to £8,000. This enhanced funding is paid to the accredited center or operation looking after the horse. Part of this increased funding includes a contingency fund to support diagnostic evaluation if required to determine a horse’s suitability or otherwise for rehoming, or to carry out treatment that is anticipated to result in successful resolution of a problem.

Focus was on the industry following the Panorama programme broadcast in July which investigated what happens to racehorses that have finished racing. In June, with the programme still in development and after discussions with BHA, RoR spoke with the producers and provided them with data and messaging in terms of aftercare standards in Britain. The eventual broadcast of Panorama, while damaging to the sport’s reputation, was not able to criticise British racing’s aftercare.

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Afterwards, RoR released a statement highlighting the positives within the aftercare landscape in British racing, this post reached 75,721 people on Facebook.

The demand for former racehorses remains buoyant through RoR’s Source a Horse website and continues to be a valuable resource for trainers and owners retiring horses from racing and for prospective owners to find a thoroughbred. A total of 210 horses were listed for sale since the beginning of 2021. At the end of 2021, the membership total of 10,142 horses were actively registered on the RoR website. A useful addition to the website was the ‘find your horse’ helping previous owners engage in the horses second career.

Raising awareness of the charity through the periods of lockdown continued to be challenging, but there were a number of parades later in the year at festival meetings as well as smaller fixtures where locally raced and homes ex-racehorses had an opportunity to parade to appreciative crowds.

The activities got going later than usual this year – in May the showing at Royal Windsor received publicity as HM The Queen watched her former racehorse win the RoR In Hand class. She also actively followed the her former racehorse Quadrille’s success as he rose through the ranks in dressage. RoR Dressage, with support from The Jockey Club, was one of the main events at Blenheim Horse Trials, generating much positive publicity for the charity. Barbury Horse Trials hosted the RoR/NTF Event championships but the highlight of the year was the National RoR/Jockey Club Championships at Aintree over four days where the Supreme showing and dressage winners were crowned. A number of Tattersalls sponsored show classes took place during the season with a championship at Hickstead and one in Scotland on the Royal Highland showground.

A new event to the competition series was added this year - the hunting championship judged over a day’s action in Ledbury country, this was a change of format from previous years and proved to be popular.

The charity continued to support former racehorses at the National Horseracing Museum in Newmarket as well as continuing to be involved with the International Forum for the Aftercare of Racehorses (IFAR) – the International movement helping other countries plan an aftercare programme.

The sun shone for the fundraising cricket day at Wormsley, known to be one of the most picturesque cricket grounds in the world. This proved to be a great success with some competitive cricket from racehorse trainers and their chosen players and their owners and friends generously supported the day.

RoR continued to demonstrate the adaptability of ex-racehorses to across the many disciplines and events as highlighted by the participation levels below.

Financial review

During 2021, RoR received total income from all sources amounting to £1,042,809 ( 2020: £760,323 ). This excludes the drawdown of £173,523 ( 2020: £166,943 ) from the Endowment Fund reserves to the General Fund as permitted under the terms of the gift from the estate of Paul Mellon (see below).

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

In 2021, RoR received £256,046 ( 2020: £206,084 ) from racehorse owners, trainers and jockeys under the Orders of Racing, including £240,316 from owners ( 2020: £189,874 ). This was increased from 2020 levels which had reductions due to the Covid-19 pandemic and the cessation of racing from mid-March to the end of May 2020. In addition varying donations were received from other parts of the Racing Industry: HBLB, racecourses, Point-to-Points, breeders, transporters, bloodstock agents and auctioneers plus some individual gifts. The 2021 sum received from these additional sectors was £264,419 ( 2020: £203,360 ). The charity also received £155,973 ( 2020: £36,112 ) in sponsorship and fundraising income which included donations from Lycetts of £4,000 for polo sponsorship (2020: £4,000), £10,000 from the Jockey Club for the ROR awards (2020: £5,000) and £7,000 from the Peter O’Sullevan Charitable Trust (2020: £30,000) , £25,000 from Tattersalls for show series sponsorship (2020: £nil) . ROR held one very successful fundraising event in September 2021, Racing to Cricket, generating fundraising income of £106,225 (2020: £nil due to Covid-19) . Income from Regional clinics and camps, the Aintree Show, online shows and registrations amount to £81,938 ( 2020: £42,587 ). Income from legacies generously bequeathed totalled £13,367 ( 2020: £28,413 ).

Total income from investments was £225,730 (2020: £211,884) which was used to support activities either directly through the general and restricted funds or as part of the drawdown from the endowment fund.

During the year, £81,448 ( 2020: £41,248 ) was spent on generating donations and grant income and £972,003 ( 2020: £1,029,532 ) was spent on the charitable activities of second career educational events for ex-racehorses and charitable grants as outlined in the review of charitable activities. Grants awarded totalled £182,835 (2020: £347,610) , for horses meeting RoR’s vulnerability criteria and emergency relief. Of this £8,367 (2020: £104,085) was for ERT support. The Charity purchased a bale shredding machine for loan to the New Beginnings Horses charity in 2020 and charged the £3,000 depreciation for the year to the capital fund (2020: £500) .

Investment policy, objectives and performance

The Trustees of the Charity are responsible for setting the broad objectives and constraints for the investment portfolio and appointing appropriate investment managers to look after the portfolio on a day to day basis create an enduring legacy that provides for the charity’s future whilst at the same time generating income to support on-going activity.

Under the terms of the Endowment Fund, the charity can transfer up to 5% of the fair market value of the fund each year. This provides for a lasting legacy, preserving capital whilst at the same time generating income to support the work of ROR. To provide a consistent approach across both the General and Endowment funds, the Trustees’ have adopted a similar policy of using up to 5% of the income and capital value of the unrestricted General Fund investments to cover any deficit that may arise on general activities. This policy is reviewed by the Trustees on a regular basis in light of the Charity’s operating requirements and changes in the economic and market background.

There is no specific income target for the investment portfolio. Income is nevertheless considered an important component of total return, as it is normally more stable than capital and will reduce the need to use capital to cover the annual distribution. The current yield on the portfolio is around 3%, which the Trustees consider an appropriate level in the current market environment.

In order to limit capital risk and volatility, the portfolio is well diversified across asset classes and geographies with a bias toward real assets such as equities to reflect the Charity’s long-term real return objective.

Currently, the portfolio is invested in a multi-asset portfolio managed by Brompton Asset Management on a balanced basis targeting a reasonably high level of income.

The asset allocation of the portfolio is regularly reviewed by the Trustees to ensure that the overall asset mix in the investment portfolio reflects the Charity’s return objectives and risk tolerance appropriately.

The performance of the managers is monitored on a regular quarterly basis and their appointment will be formally reviewed in the event of significant corporate developments, major administrative issues or sustained poor performance; it will also be reviewed in the event of a change in the Charity’s requirements.

In 2019 the Trustees commissioned a review of the both the investment strategy and the investment management which included recommendations on strategic benchmark asset allocations, with performance

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

being measured against a charity peer group benchmark and the management of the total portfolio by a single manager being Brompton Asset Management. These changes were made in 2020. Performance during 2021 saw the portfolio increase in value which reflected confidence in global markets. These are long-term investments and although the charity supplements its operational income with drawdowns from these, investments are of a sufficient level to maintain this.

Fund policy and risk management

RoR’s reserve funds comprise (i) unrestricted General Funds arising from accumulated unspent donations that the charity is free to use to fund on-going activities, and (ii) Restricted and Endowment Funds that can only be spent in accordance with the terms set out by the donors.

General Fund

In 2021 RoR made a loss before transfers on the unrestricted General Fund of £56,786 ( 2020: £267,571 loss ). After transfers from the Endowment Fund of £173,523 (2020: £166,943), a realised gain on the sale of investments of £66,204 (realised loss 2020: £126,663) and an unrealised investment gain of £273,162 (2020: unrealised gain £196,980) the General Fund increased from £4,598,966 to £5,055,069.

Restricted and Endowment Funds

RoR’s Restricted and Endowment funds are comprised of the following:

Paul Mellon Capital Projects Fund

This fund was part of a gift from the estate of Paul Mellon in 2001 and is kept in reserve to provide capital grants in accordance with the terms of that gift. In 2020, the charity purchased a Bale Master bale shredding machine which it loaned to New Beginnings Horses in order to assess the benefits to both horse welfare and staff of using this equipment to provide stable and yard bedding. Depreciation of £3,000 on the capital cost was charged to the restricted fund (2020: £500) . At 31 December 2021 a total of £110,033 (2020: £104,118) remained in the fund .

Paul Mellon Welfare Database Development Fund

At the end of 2019 the Paul Mellon Foundation awarded the charity a grant towards the development of a welfare database. Incoming resources of £1,185 were received in 2021 (2020: £174). A total of £63,300 was spent on the development of the Welfare App. Depreciation of £15,000 has been charged to the fund in 2021 (2020: £8,200) . At 31 December 2021 £27,091 remained in the fund.

The ERT fund was established in 2008 with funds from the ROA. During the year grants totalling £8,367 were awarded (2020: £104,085).

The Endowment Fund, which was established with a bequest from the estate of Paul Mellon, is professionally managed in accordance with accepted practice for investments on behalf of charities. As at 31 December 2021, the Fund was valued at £3,297,245, compared with £3,173,709 at the end of 2020. This decrease is after the transfer of £173,523 ( 2020: £166,943 ) to the General Fund in accordance with the terms of the gift which allow a drawdown of up to 5% of the valuation on an annual basis, thereby providing both income to supplement the annual activity and providing a lasting legacy to secure enduring support for the valuable work of RoR.

Further details of the conditions attached to each fund can be found in Note 16.

The Trustees’ policy with regard to reserves is to ensure that there are sufficient General Fund reserves to cover basic annual grant commitments and undertakings, and the charity’s core administrative and promotional costs in the event of adverse conditions such as the suspension of racing in Great Britain, or as a result of fluctuations in income caused by continuing economic uncertainty. In addition the charity budgets annually on a breakeven basis, funded in part by a drawdown from the Endowment Fund and unrestricted General Fund reserves.

Plans for future periods

In addition to continuing the vital work of the vulnerable horse scheme, the regional and national education programmes, as the events and activities for former racehorses, 2021 will see the publication of the Horse

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Welfare Board’s Aftercare Funding Review which will set out its recommendations for the aftercare of racehorses. RoR will work in conjunction with the Horse Welfare Board to determine how it is best placed to assist in this important work.

Statement of Trustees’ responsibilities

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of its financial activities for that period. In preparing those financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

So far as the Trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware, and each Trustee has taken all the steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Auditors

In accordance with Section 485 of the Companies Act 2006, a resolution for the re-appointment of James Cowper Kreston as auditors of the company is to be proposed at the forthcoming Annual General Meeting. By order of the Trustees

Philip Freedman Chairman

Date: 19 July 2022

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Independent Auditor’s Report to the Trustees and Members of Retraining of Racehorses Charity Limited

Opinion

We have audited the financial statements of Retraining of Racehorses Limited (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibility for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Hawkins BSc (Hons) MSc FCA Senior Statutory Auditor

For and on behalf of

James Cowper Kreston

Statutory Auditor and Chartered Accountant 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB

Date: 08/08/2022

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Statement of financial activities (including the Income and Expenditure Account) for the year ended 31 December 2021

Notes
General
Funds
Endowment
Funds
Restricted
Funds
2021
Total
£
£
£
£
Income from:
Donations and legacies
2
578,918
-
-
578,918
Income from charitable activities:
Fundraising, grants, sponsorship,
registrations, clinic income and fines
3
238,161
-
-
238,161
Investment Income
4
132,043
87,831
5,856
225,730
Total income
949,122
87,831
5,856
1,042,809

Expenditure on:
Expenditure on charitable activities:
Grants and educational activities
7
(924,460)
(17,405)
(30,138)
(972,003)
Cost of generating voluntary income
7
(81,448)
-
-
(81,448)
Total expenditure
(1,005,908)
(17,405)
(30,138)
(1,053,451)
Net income / (expenditure)
(56,786)
70,426
(24,282)
(10,642)
Transfers between funds
16
173,523
(173,523)
-
-
Realised (loss)/gain on investments
66,204
44,212
2,948
113,364
Unrealised (loss)/gain on investments
273,162
182,421
12,163
467,746
Net
income/(expenditure)
and
net
movement in funds for the year
456,103
123,536
(9,171)
570,468
Reconciliation of funds
Total funds brought forward
4,598,966
3,173,709
216,272
7,988,947

Total funds carried forward
5,055,069
3,297,245
207,101
8,559,415		 2020
Total
£
469,691
78,748
211,884
760,323
(1,029,512)
(41,268)
(1,070,780)
(310,457)
-
(215,185)
334,644
(190,998)
8,179,945
7,988,947

All of the above results are derived from continuing operations.

RoR has no recognised gains and losses other than those included in the results above and therefore no separate statement of the total recognised gains and losses has been presented. There is no difference between the net income and expenditure stated above and the historical cost equivalent.

Registered number 4089376

13

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Balance sheet

at 31 December 2021

Note
Fixed Assets
Tangible Assets
10
Investments
11/12
Total Fixed Assets
Current assets
Debtors
14
Cash at bank and in hand
Loans Receivable within 1 year
13
Total Current Assets
Liabilities
Creditors falling due within one year
15
Net current assets (liabilities)
Total assets less current liabilities
Loans Receivable after more than 1 year
13
Net assets
The funds of the charity
Unrestricted income funds
Endowment funds
Restricted income funds
Total charity funds
16/17		 2021
£
52,503
8,690,864

8,743,367
79,442
99,523
50,000
228,965
(412,917)
(183,952)
-
8,559,415
5,055,069
3,297,245
207,101
8,559,415		 2020
£
87,426
8,126,808

8,214,234
46,048
156,081
-
202,129
(427,416)
(225,287)
-
7,988,947
4,598,966
3,173,709
216,272
7,988,947

The financial statements have been prepared in accordance with the Charities SORP FRS 102.

The notes at pages 16 to 28 form part of these accounts

These financial statements were approved by the Trustees on 19 July 2022 and signed on their behalf by:

Philip Freedman Chairman of the Trustees

14

Registered number 4089376

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Cash flow statement

for the year ended 31 December 2021

Cash flow statement
for the year ended 31 December 2021
2021 2020
£ £
Net cash used in operating activities 297,509 443,429
Cash flows from investing activities
Interest income 522 749
Dividends 225,208 211,135
Purchase of property plant and equipment (1,833) (65,512)
Sale of investments 4,394,586 2,393,839
Purchase of investments (4,473,399) (1,853,440)
Cash provided by (used in) investing activities 145,084 686,771
Increase (decrease) in cash and cash equivalents in the (42,863) 34,269
year
Cash and cash equivalents at 1 January 2021 242,325 208,056
Cash and cash equivalents at 31 December 2021 199,462 242,325
Reconciliation of net movement in funds to net
cash flow from operating activities
Net movement in funds during the year (10,642) (310,457)
Adjustments for:
Depreciation 36,756 31,154
Interest income from investing activities (522) (749)
Dividend income from investing activities (225,208) (211,135)
Decrease/(increase) in debtors (33,394) 122,486
Decrease/(increase) in loans receivable (50,000) -
(Decrease)/increase in creditors (14,499) (78,728)
Net cash used in operating activities 297,509 443,429
Analysis of cash and cash equivalents
Cash at bank and in hand 99,523 156,081
Notice deposits 99,939 86,244
Total cash and cash equivalents 199,462 242,325

15

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes on the accounts

1. Accounting policies

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and applicable charity law.

RoR meets the definition of a public benefit entity under FRS 102.

Basis of accounting

These financial statements have been prepared in accordance with the historical cost convention except for fixed asset investments which are recorded at market value. All expenditure is recognised on an accruals basis.

Accounting policies are supplemented by estimation techniques where judgement is required in measuring the value of income and expenditure and of assets and liabilities.

Going concern

The Trustees believe that the charity is well placed to manage its business risks successfully have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Statement of financial activities

RoR is a registered charity and so achievements cannot be measured by normal commercial criteria. Accordingly, the Trustees consider that it would be inappropriate to present a profit and loss account in one of the formats set out in the Companies Act 2006. Therefore, as permitted by the Companies Act, in order to reflect the special nature of the company’s activities, the Trustees are of the opinion that it would be more appropriate to present a Statement of Financial Activities.

Taxation

The Trustees believe that no charge to UK corporation tax will arise in respect of the year to 31 December 2021 as all activities of the company during this year were of a charitable nature. As a registered charity, the company is entitled to various exemptions from taxation on income used for charitable purposes.

Income and expenditure

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Income is only deferred where the donor has specified that the amounts received are for use in future accounting periods.

16

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

Accounting policies (continued)

Grants payable are payments made to rehabilitation centres in furtherance of the charitable objects of the charity. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of the grant payable.

Other charitable expenditure represents administrative costs payable for the period. The cost of generating funds represent advertising costs for the general fund and allocated support costs. Support costs are allocated based on management estimates of the time spent on the different activities of the charity.

VAT

As the charity is not registered for VAT, all expenses are shown gross of VAT.

Investments and investment income

All investments are stated at market value and the movement shown in the statement of financial activities comprises both realised and unrealised gains and losses. Investment income is accounted for on a receivable basis.

Social Investments

Social investments are stated at cost less impairment at the year end. Investment in the form of equipment assets are impaired is over the useful life of the investment.

Fund accounting

Funds held by the charity are either:

General funds – these are unrestricted free reserves which can be used in accordance with the charitable objectives at the discretion of the Trustees.

Endowment funds – these are funds invested by the Trustees and up to 5% of the value of the investment may be used in accordance with the charitable objectives at the discretion of the Trustees. Income earned on the endowment funds is unrestricted. However, in accordance with the endowment bequest, any such income which is unexpended in the year is transferred to the endowment funds.

Restricted funds – these are funds that can only be used for the particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when the funds are raised for particular restricted purposes. Income generated by the restricted fund is attributed to the general fund.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Fund transfers

The Paul Mellon endowment fund represents bequests from the Paul Mellon estate in December 2001 and a further grant given in May 2015, the terms of which state that RoR may transfer to general funds not more than 5% of the fair market value of the fund each year, at the Trustees’ discretion.

17

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

Accounting policies (continued)

The bequest also states that any investment or interest income earned on the endowment funds which is unexpended in the year should be added to the endowment principal.

Intangible and Tangible fixed assets

The cost of intangible and tangible fixed assets is their purchase cost, together with any incidental costs of acquisition. Depreciation is provided so as to write off the cost of intangible and tangible

fixed assets on a straight line basis over the estimated useful economic lives of the assets concerned. The rates of depreciation are as follows:

Office equipment 3-4 years
Website / database development 4 years
Office furniture 10 years
Vehicles 4 years

Pension scheme

The charity does not, itself, operate a pension scheme. The BHA operates a pension scheme that employees of the charity are able to join. The defined benefit section of the scheme was closed to future accrual on 31 December 2015 and from 1 January 2016 all employees in the pension scheme were active members of the defined contribution section.

The charity is unable to identify its share of the underlying assets and liabilities of the defined benefit scheme on a consistent and reasonable basis and therefore as required by FRS 102, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the statement of financial activities represents the contributions payable to the scheme in respect of the accounting period in which they are paid. The charity continued to pay an amount £1,500 (2020: £1,500) into the scheme in respect of voluntary deficit funding as agreed with the BHA. Amounts of £24,502 (2020: £21,234) were also paid into the defined contribution scheme operated by the BHA.

Donated Services

Administrative support costs, which are borne by BHA, are recognised as donated services. The amounts in the Statement of Financial Activities represent an allocation of BHA employee salary based on time spent by those employees in administering the charity. Donated services also includes services and facilities provided by racecourses for RoR parades and polo events, and horse testing services provided by the BHA. All amounts are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable.

Legacies

Legacies are accounted for in whole or in part, is only when receipt is considered probable, the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Foreign currency

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

18

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

Exchange gains and losses on investments are recognised in the Statement of Financial Activities.

Debtors

Trade and other debtors are recognised at the transaction amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash

Cash at bank and cash in hand includes current account balances and cash held in deposit accounts.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the investments which are subsequently measured at market value.

Judgements in applying accounting policies and key sources of information uncertainty

In determining if leases entered into by the charity are finance or operating leases, the lease has been assessed to determine whether the risks and rewards of ownership have been transferred to the lessor by the lessee on a lease by lease basis.

Tangible and intangible assets are capitalised when the asset is deemed to have a useful life in excess of one year. Assets are then depreciated over what is assessed as their useful economic life.

2. Income from donations and legacies

Incoming resources are derived from industry funding and self generating sources. Interest income all relates to bank interest.

Donations received:
- Owners
- Racecourses
- HBLB
- Paul Mellon trust
- Trainers
- Jockeys
- Hunter certificates
- Tattersalls (in addition to sponsorship)
- Point to Point Authority
- Breeders (in addition to sponsorship)
- Other
Legacies received
Donated services
Total		 2021
£
2020
£
240,316
189,874
143,600
101,500
28,618
50,000
-
174
11,070
11,200
4,660
5,010
1,449
1,892
-
5,000
3,240
-
14,700
12,613
72,812
32,181
520,465
409,444
13,367
28,413
45,086
31,835
578,918
469,692

19

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

3. Income from charitable activities

Fundraising grants and sponsorship
Registration and clinic income
Fines
Total
vestment Income
Dividends
Interest received
Total		 2021
£
2020
£
155,973
36,112
81,938
42,587
250
50
238,161
78,749
2021
£
2020
£
225,208
211,135
522
749
225,730
211,884

4. Investment Income

5. Analysis of staff costs, trustees’ remuneration and expenses and the cost of key management personnel

The Trustees received no emoluments or benefits in kind in respect of their services to the charity during the year (2020: nil) . Total expenses incurred on behalf of Trustees during the year were £nil (2020: 1 Trustee, £480). £2,733 was incurred in respect of meeting costs and other expenses (2020: £67) .

Indemnity insurance is provided for the Trustees under a policy held by BHA, the proportion of which relating to RoR is not separately identifiable and has therefore not been included in the charity’s accounts.

Salaries and wages
Social security costs
Pension costs
Total		 2021
£
2020
£
289,448
274,873
29,628
27,937
24,547
21,251
343,623
324,061

Administrative support costs are borne by BHA and in 2021 these amounted to £39,916 (2020: £27,060).

The number of employees who received emoluments between £90,000 and £100,000 was 1 (2020: £90,000-£100,000 1) , this includes pension benefits accruing under a defined benefit scheme.

The key management personnel of the charity comprise Trustees and the CEO. The total employee salary, pension and benefits in kind of the key management personnel were £95,069 ( 2020: £94,717 )

20

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

6. Staff numbers

The average monthly head count was 7 (2020: 7) .

7. Analysis of general fund expenditure on charitable activities

Directly attributable costs
Grants and assessment
Event management
Audit fee
Investment management
Governance and strategic
reviews
Trustees expenses and
meeting costs
Total
Support costs allocated
Staff costs
Travel costs & car leasing
Website
Advertising
Professional fees
Equipment Depreciation
Pension Deficit Funding
Fundraising event costs
Other office costs
Total		 Directly attributable costs
Grants and assessment
Event management
Audit fee
Investment management
Governance and strategic
reviews
Trustees expenses and
meeting costs
Total
Support costs allocated
Staff costs
Travel costs & car leasing
Website
Advertising
Professional fees
Equipment Depreciation
Pension Deficit Funding
Fundraising event costs
Other office costs
Total		 Charitable activities
Cost of
generating
voluntary
income
£
Investment
management
fees
£
Promotion
of ex-
racehorses
in 2nd
careers
£
Vulnerable
Horse
Scheme
£
Governance
costs
£
2021
Total
£
2020
Total
£

-
-
-
312,626
-
312,626
454,535
-
-
276,557
-
-
276,557
224,531
-
-
-
-
9,720
9,720
9,240
-
45,397
-
-
-
45,397
45,362
-
-
-
-
-
-
5,855
-
-
-
-
2,733
2,733
547
-
45,397
276,557
312,626
12,453
647,033
740,070

18,812
-
197,525
18,812
19,958
255,107
223,677
-
-
8,125
8,126
-
16,251
26,382
11,021
-
11,021
11,021
-
33,063
35,149
190
-
190
190
-
570
999
-
-
-
-
23,551
23,551
12,715
797
-
798
798
-
2,393
3,135
500
-
500
500
-
1,500
1,500
38,200
-
-
-
-
38,200
216
11,928
-
11,928
11,927
-
35,783
31,937
81,448
-
230,087
51,374
43,509
406,418
335,710
Total expended 81,448
45,397
506,644
364,000
55,962
1,053,451
1,075,780

21

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

8. Net income/(expenditure) for the year

This is stated after charging:

his is stated after charging:
2021 2020
£ £
Depreciation 36,756 34,654
Auditor’s remuneration:
Audit fees 9,720 9,420
Additional fees - 5,000

9. Grants paid

The number and value of grants given to organisations in pursuit of the objectives of the charity are as follows.

Greatwood
New Beginnings Horses
The British Thoroughbred Retraining
Centre
World Horse Welfare
Heros
Frederick A Cook Partnership
Horses & Ponies Protection Association
Racehorse Relief
Racehorse Rescue Centre
Grange Farm
Claire Hart Equine
Victoria Cartmel
The Racehorse Sanctuary &
Rehabilitation Centre
Peopleton Brook Farm
Retreat Livery (J A Clark)
Justo Development Ltd
Jody Sole
Sophie Spiteri
Impel Equines
Grants to 3rdparties for emergency relief,
vet fees and transport
Total grants made in the year		 2021
Number
6
26
6
7
14
5
6
4
4
3
2
2
1
3
1
1
-
-
-
31
122		 2020
Number
2021
£
2020
£
13
56,500
66,000
21
39,826
29,915
1
14,745
40,000
5
12,000
14,000
22
9,000
29,504
7
8,500
8,192
1
7,000
1,000
1
6,000
3,000
1
4,000
1,500
4
3,500
5,500
2
2,500
2,500
2
2,000
1,500
-
2,000
-
6
1,500
10,500
1
1,000
1,000
1
500
1,000
6
-
7,500
6
-
7,500
1
-
1,500
48
12,264
25,999
150
182,835
347,610

All grants paid in 2021 have been awarded on the basis of RoR’s vulnerability criteria.

22

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

10. Tangible fixed assets

Office
equipment
Website/
Database
Development
£
£
Cost
At beginning of year
22,469
153,966
Additions
1,497
-
Disposals
(1,644)
-
At end of year
22,322
153,966
Depreciation
At beginning of year
19,410
71,752
Charge for year
2,035
34,330
Disposals
(1,644)
-
At end of year
19,801
106,082
Net book amount
At 31.12.2021
2,521
47,884
At 01.01.2021
3,059
82,214		 Office
furniture
£
3,828
336
-
4,164
1,675
391
-
2,066
2,098
2,153		 Vehicles
£
43,956
-
-
43,956
43,956
-
-
43,956
-
-		 Total
£
224,219
1,833
(1,644)
224,408
136,793
36,756
(1,644)
171,905
52,503
87,426

All fixed assets are held for charitable purposes

23

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

11. Investments

11.
Investments
Money
Market & UK
Cash
Global
Equities
Fixed Income
Corporate &
Treasury Bonds
£
£
Market Value at 1 January 2021
80,133
5,347,493
1,152,323
Add: acquisitions
-
3,926,279
464,045
Less: disposals at opening book
value
- (3,687,262)
(707,324)
Add: net gain/(loss) on revaluation
-
376,403
(1,817)
Add: net movement in cash
5,076
-
-
Add: dividends
8,615
-
-
Less: accrued fees
(6,889)
-
Market value at 31.12.2021
86,935
5,962,913
907,227
Historical cost at 31.12.2021
86,935
5,330,233
902,409		 Property
Mixed Asset
Funds
Total
£
£
£
-
1,535,359
8,115,308
83,075
-
4,473,399
-
-
(4,394,586)
22,052
84,803
481,441
-
-
5,076
-
-
8,615
-
(6,889)
105,127
1,620,162
8,682,364
83,075
1,374,125
7,776,777
8,682,364
7,776,777

Material investments

The following listed investments were considered by the Trustees to be material to the portfolio at the year end:

Brompton Global Income P
Vulcan Global Value Fund PLC
Liontrust Fund Partners LLP Special Situations Inc
Man Fd Mgmnt UK Man Glg UK Inc Prof D Inc
Blackrock Fund Manager Ltd European Dynamic FD
Ishares VII PLC Core S&P 500 units ETF USD
Matthews Asia Funds Asia Ex Japan
Polar Capital Funds Global Technology
Artemis Fund Managers Income
Royal London Asset Sht Dur Gbl High Yld Bond Z
Lindsell Train Ltd Global Equity
FIL Investment Services (UK) Limited Global Dividend
Other holdings
Cash
Total portfolio		 2021
2021
Value
Portfolio
£
%
1,620,162
19
610,014
7
530,396
6
529,440
6
502,572
6
383,005
4
317,401
4
282,393
3
232,144
3
6,641
>1
-
0
-
0
3,568,527
41
__
8,582,425
99,939
1
8,682,364
100		 2020
2020
Value
Portfolio
£
%
1,535,359
19
-
-
-
-
-
-
-
-
292,343
4
389,021
5
336,192
4
990,743
12
299,335
4
944,506
11
452,275
6
2,795,401
34
__
8,035,175
80,133
1
8,115,308
100

24

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

12. Social Investment

Programme related investment 2021
2020
£
£
8,500
11,500

8,500
11,500

The charity purchased a Balemaster straw shredding machine at a cost of £12,000. The value of £8,500 is after an impairment charge of £3,500. This is on loan to New Beginnings Horses.

13.
Loans Receivable
Amounts due within 1 year
Loans Receivable
Amounts due in greater than 1 year
Moorcroft
BTRC
Greatwood
Provision		 2021
2020
£
£
-
-
100,000
100,000
133,000
83,000
10,000
10,000
(193,000)
(193,000)

50,000
-

An interest free loan of £50,000 was provided in the year to BTRC. This is due for repayment on 31 December 2022.

14.
Debtors
Amounts due within 1 year
Prepayments and accrued income
15.
Creditors: amounts falling due within one year
Accruals and trade creditors
Deferred income		 2021
2020
£
£
79,442
46,048

79,442
46,048

2021
2020
£
£
412,917
388,046
-
39,370
_
_
412,917
427,416

25

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

16. Reconciliation of movement in accumulated funds

Opening Incoming Outgoing Gain on Transfers Closing
balance resources resources investments balance
£ £ £ £ £ £
Unrestricted funds
General fund 4,598,966 949,122 (1,005,908) 339,366 173,523 5,055,069
Restricted funds
ERT fund 71,067 2,032 (8,367) 5,245 - 69,977
Paul Mellon capital
projects fund 104,118 2,639 (3,532) 6,808 - 110,033
Paul Mellon welfare
database 41,087 1,185 (18,239) 3,058 - 27,091
Endowment funds
Paul Mellon 3,173,709 87,831 (17,405) 226,633 (173,523) 3,297,245
endowment fund
_ _ _ _ ______
Total 7,988,947 1,042,809 (1,053,451) 581,110 - 8,559,415
_ _ _ _ _ _

The unrestricted General Fund represents free reserves and can be used in accordance with the charitable objectives at the discretion of the Trustees.

The Paul Mellon endowment fund represents bequests from the Paul Mellon estate in December 2001 and May 2015, the terms of which state that the RoR may transfer to general funds not more than 5% of the fair market value of the fund each year. The Trustees transferred £173,523 of the bequest to general funds during the year (2020: £166,943). Under the terms of the bequest, any unexpended income earned on the endowment funds should be added to the endowment principal at the end of the year. In the year ended 31 December 2021, £87,831 was added to the endowment principal (2020: £82,911).

Also, included within the movement in funds during the period is a realised gain of £44,212 (2020: realised loss £83,922) and an unrealised gain of £182,421 (2020: unrealised gain of £130,511) .

The Paul Mellon capital projects fund was funded by a bequest from the Paul Mellon estate in December 2001. The terms of the bequest state that it must be used to build, acquire or improve structures, equipment and other facilities to be used for the care and maintenance of retired thoroughbred racehorses. The fund was used in 2020 to purchase a Balemaster bale shredder at a cost of £12,000 for use by New Beginnings Horses under RoR’s social investment policy. The depreciation charge in 2021 was £3,000 (2020: £500).

The Paul Mellon welfare database fund is donation provided for the development of a welfare database. During the year £15,000 depreciation on the capitalised development costs was charged to the fund (2020 £8,200).

The Emergency Relief for Thoroughbreds fund (ERT) was established in 2008 with the transfer of the ERT funds from the Racehorse Owners Association. During the year grants of £7,958 (2020: £104,085) were made from the fund (2020: included grants provided in conjunction with the Racing Foundation to centres, to provide emergency support during the Covid-19 pandemic ) .

26

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

17. Analysis of net assets between funds as at 31 December 2021

General Endowment Restricted
Funds Funds Funds Total
£ £ £ £
Fixed assets 16,912 - 35,591 52,503
Investments 5,222,109 3,297,245 171,510 8,690,864
Cash at bank and in hand 99,523 - - 99,523
Other assets 129,442 - - 129,442
Current liabilities (412,917)
 - - (412,917)
5,055,069
 3,297,245 207,101 8,559,415

18. Financial commitments

At 31 December 2021 the Company had total commitments under non-cancellable operating leases as follows:

Expiring
2021
Land and
Buildings
£
within one year
17,421
between two and five years
inclusive
over five years
70,436
90,980
178,837		 2021
Vehicles
£
6,547
14,218
-
20,765		 2021
Total
2020
Total
£
£
23,968
24,324
84,654
90,980
3,401
199,602
27,725

19. Liability of members

The members of the Company have undertaken to contribute a sum not exceeding £1 each to meet the liabilities of the company in the event that it is wound up.

27

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2021

Notes (continued)

20. Related party transactions

The company has transacted with the following related parties, all of which are related by virtue of one of their employees, appointments, or directors being a director of the company.

Details of sales and recharges to and administrative expenses incurred from related parties are detailed below

Aintree Racecourse Developments
British Horseracing Authority
Chester Race Company Ltd
Point to Point Authority Limited
Musselburgh Racecourse Limited
Thoroughbred Breeders Association		 Sales sponsorship & donations
Good & services supplied from
2021
2020
2021
2020
-
-
20,719
-
38,866
27,060
371,447
350,597
1,500
600
-
-
3,240
-
10,154
16,488
2,600
2,100
-
-

8,375
5,888
-
-

Related party transactions included in year end debtors and creditors were as follows;

British Horseracing Authority
Point to Point Authority Limited		 Receivables outstanding
Creditors outstanding
2021
2020
2021
2020
-
-
326,648
327,716
-
-
11,154
10,164

The charity held one fundraising event in 2021 and there was £2,000 income from two Trustees and their related parties as a result (2020: £nil 0 Trustees) .

21. Ultimate controlling party

RoR is controlled by its Board of Trustees. Accordingly, there is no single individual that can, or does, exert control over the charitable company.

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