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2022-12-31-accounts

RACING HOMES

Report and Financial Statements 31 December 2022

Registered charity number: 1122961 Company registration number: 06489067

Contents

1 - Officers and professional advisors 3 - Trustees’ report

23 - Independent auditor’s report

27 - Statement of financial activities 28 - Statement of financial position

29 - Statement of cashflow

30 - Notes to the financial statements

LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES AND DIRECTORS

Simon Hope (Chair) William Barlow Craig Glasper Patrick Russell Simon Stockley (Appointed June 2023)

EXECUTIVE

Dawn Goodfellow - Chief Executive Wendy Botterill - Director of Housing

REGISTERED OFFICE

Robin McAlpine House 20B Park Lane Newmarket Suffolk CB8 8QD

SOLICITORS Taylor Vinters Merlin Place Milton Road Cambridge CB4 0DP

AUDITORS

Price Bailey LLP Tennyson House Cambridge Business Park Cambridge CB4 0WZ

BANKERS Barclays Bank Plc 58 High Street Newmarket Suffolk CB8 8NM

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Our Chair, Simon Hope, reflects on 2022

CHAIR'S STATEMENT

Running a small housing association, committed to providing high quality accomodation at affordable rents, in the current economic climate is extremely challenging. Compliance requirements and upcoming environmental legislation require capital investment and in-house expertise to plan and deliver a substantial the programme of works. This is hard to achieve in a small-scale operation. The board made the decision to invest in the team by employing a new Director of Housing and a Property and Contracts Manager in order that the portfolio can achieve the required levels of health and safety compliance and can continue to deliver a standard of housing which sets the bar for housing in the industry. The team have done an excellent job. An effect is an increase in our cost base and our maintenance expenditure, although necessary to maintain national standards, has created pressures on the board to increase income to ensure that Racing Homes operates a financially viable model. The board are very conscious of the impact this will have on tenants who are also beneficiaries of our parent charity, Racing Welfare. Tenant welfare is prioritised alongside the financial demands of the portfolio. To that end the board have agreed to minimise rent increases where possible and we are grateful to Racing Welfare for the grant of £172,939 (2021: £225,223) received in the year to subside rents. This has been used to fund the maintenance programme in 2022.

The development plans in Middleham look positive but we continue to suffer the immense frustrations of planning delays due to the reorganisation of District Councils in North Yorkshire to form a unitary authority.Our plans in Lambourn have become unviable, again these having been heavily impacted by the delays from West Berkshire Council and the response to the nutrient neutrality legislation. We will explore alternative options for satisfying the housing need in the area and will revisit our funding options.

On behalf of the board, I would like to thank the team at Racing Homes and those at Racing Welfare who contribute to the ongoing success of the charity, enabling it to effectively deliver its charitable objectives.

Simon Hope Chair

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Objectives and Activities

TRUSTEES' REPORT

The Trustees present their annual report and the audited financial statements of the charity for the year ended 31 December 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

OBJECTIVES AND ACTIVITIES

WHO WE ARE

Racing Homes is the wholly owned subsidiary of Racing Welfare and the two charities work very closely together, both operationally and via their aligned charitable objectives. Racing Homes shares senior management resource and some of its trustees with Racing Welfare. Operationally it has its own fantastic team of employees.

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1975
2008 2019 2020
The Stable Converted from an Industrial & Provident Deregistered as Name changed to
Lads Welfare Trust Society to a limited company. a Housing Association. Racing Homes
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WHAT WE DO

The principal activity of the charity is the provision of affordable housing. Racing Homes’ objects, as described formally in its governing document, are to provide affordable housing and associated amenities to those people that need it. In particular, the charity has a focus on providing specially designed or adapted living facilities for those retired beneficiaries who require them due to disability.

Racing Homes manage a housing stock of 165 units (2021: 165) of accommodation. Six of these units are owned by Epsom Racing Staff Welfare (2021: six) and 13 by Racing Homes’ subsidiary charity, The Rous Charity (2021: 13). In addition, Racing Homes has 23 nomination rights in retirement properties across Newmarket and Lambourn (2021: 23).

The whole portfolio is broken down into schemes. Each scheme houses either retired beneficiaries, young people or working staff. In more recent years the Trustees, in reviewing which group of the racing community had the greatest need for access to affordable housing, decided to transition away from housing working staff and focus on young and retired.

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Objectives and Activites continued

TRUSTEES' REPORT

Today, the majority of the portfolio provides housing for these two beneficiary groups:

Young People – 23 % of the portfolio

This decision was made due to the difficulty faced by young people who work in horseracing in accessing affordable, safe accommodation. Horseracing employs a relatively high proportion of young people. For many, this can mean the first time they are living away from home. For our young person’s accomodation we deem and accept applications for housing from persons aged 18 – 24 years.

Research has shown that a relatively high attrition rate from the industry, by people in this group, can often be attributed to the experiences encountered outside of their employment. Providing schemes of accommodation where young people can be supported in their transition to independent living, has been shown to improve retention and well-being. During the year the charity took the reluctant decision to cease housing under 18’s. The provision of safe and good quality housing for this age group remains essential, however, Racing Homes is unable to provide the level of care and support within its exsiting resource to meet the expectations and safeguarding needs for those deemed as children. This policy change was communicated to trainers, British Horseracing Authority (BHA), British Racing School (BRS) and National Horseracing College (NHC).

Older People – 70% of the portfolio

The competition for social housing is fierce, particularly in many of those areas densely populated by horseracing businesses. Racing Homes commissioned a housing needs survey in 2015 which established that, due to the location of the racing centres, there is a lack of availability of suitable housing and in all cases, house prices are very high. Our older person schemes provide independent living to those over 55 years of age.

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Objectives and Activities continued

TRUSTEES' REPORT

Working Staff – 7% of the portfolio

This percentage has decreased over the last five years and now only two schemes still remain dedicated to working staff. This allows the charity to keep a small number of units available, should we have particularly vulnerable beneficiaries or those with special requirements.

WHAT WE DO (continued)

The Racing Welfare group work very closely with Epsom Racing Staff Welfare, a charity with similar objects, based solely in the racing hub of Epsom. The charity owns two three bedroom houses which are managed by the Racing Homes team. In addition, the finance and administration function is provided by Racing Welfare. In 2023 Epsom Racing Staff Welfare is expected to formally merge with Racing Welfare.

A number of our properties have disabled living adaptions and the Racing Homes team work closely with welfare officers from Racing Welfare to ensure that tenants’ needs are monitored and any special adaptations or equipment is installed.

Affordability is a key part of the charity’s objects and the trustees have bench-marked and consulted with both the housing team and the welfare team at Racing Welfare, in order to set rent levels. A significant proportion of tenants receive statutory benefits which subsidise or fulfil rental values up to Local Housing Allowances. For young people, Local Housing Allowance rates have been evaluated by the welfare team as affordable for those on standard age-related wage rates in the industry. As such the trustees agreed to transition to Local Housing Allowance rent rates over a 10 year period from 2019. There will be a gradual increase for existing tenants and immediate increase on new tenancies, which are subject to affordability testing prior to sign up.

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Objectives and Activities continued

TRUSTEES' REPORT

In 2019 the completion of the newest scheme, Summerhill House, set a new benchmark for the quality of housing Racing Homes aspires to provide across its entire portfolio. The Trustees are looking at an ambitious 10-year plan, expanding the property portfolio in those areas with the greatest need. Quality, affordable housing for all of racing’s workforce, which is estimated at 20,000 people, is not something that can realistically be achieved by a portfolio and charity of this size. However, in 2023 and beyond the trustees will consider how it can be the driving force behind a significant step change in the racing industry that will ensure that all racing’s workforce have access to quality, safe and affordable housing. This can only be achieved by working closely with the regulatory body for racing and other key stakeholders in the industry.

WHERE WE DO IT

Whilst there is a concentration of racing industry staff in the main horseracing training centres shown on the map, racing businesses and their employees can be found in all counties throughout Great Britain. The collaboration with Racing Welfare, who geographically cover the entire country, enables Racing Homes to support and advise the workforce on general housing issues, regardless of whether they are a current tenant. The strategy developed in 2020 will see Racing Homes widen this reach, through direct support or by influencing macro level change in employee housing.

The Trustees referred to the guidance contained on the Charity Commission’s general guidance on the public benefit requirement under the Charities Act 2011 when reviewing its aims and objectives and in planning future activities. In particular, they have considered how planned activities will contribute to the aims and objectives of the charity and remain confident that they continue to satisfy the statutory requirements - albeit that the charity limits the services it provides to those working in, the horseracing and thoroughbred breeding industry. (See 'Achievements and Performance, page 7).

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Achievements and Performance

TRUSTEES' REPORT

ACHIEVEMENTS AND PERFORMANCE

WHAT WE HAVE ACHIEVED

In 2022 the 165 units in the portfolio housed 171 tenants. There were 41 new lets in the year. Four units of accommodation were substantially or fully refurbished, of which three were our older person accommodations and one working staff. Whilst we continue with a refurbishment programme when our homes are relet, full elemental upgrades such as kitchen, bathroom and heating systems have been carried out only where the condition is beyond repair economic repair, or it has reached the end of its lifecycle. This is so available funds can be fairly distributed to the maintenance and upgrade of our homes, including those already tenanted in alignment with our new asset investment strategy and planned programs. All other properties which became empty were let to a good standard which included all appropriate repairs, maintenance and partial elemental replacements where needed.

During 2020 the Racing Homes board engaged with Savills to produce a growth strategy. This important piece of work was made possible by a generous grant from the Racing Foundation. The strategy enabled the board to consider all the possible funding options for growth which has enabled them to set a realistic path for the next 10 years of portfolio expansion. The results confirmed that the charity has the capacity to carry out two medium scale projects (up to 40 units) every ten years, given its capacity for fundraising and subject to receiving a mix of donations, larger grants and some debt financing. We therefore continue to be reliant on our loyal base of supporters to successfully deliver more houses for racing’s current and retired workforce. An update of the two projects outline in our last trustees report is provided below.

Middleham

Hill House in Middleham is a grade two listed property set in the centre of the town. Racing Welfare purchased the property in 2018 in order to develop it to create a multi-purpose offering for the town. The project planned to feature young people’s accommodation, a community space, an IT suite, a gym and physio treatment room plus office space for Racing Welfare’s staff who are based in the town. During 2021 an opportunity arose to explore the potential for developing a piece of land in the centre of Middleham. The trustees have secured this land with an option to purchase if planning consent can be achieved. This site, if successful, would provide more flexibility in terms of build specification than Hill House and it would allow the charity to consider the environmental impact of the build in a way that is not possible with the development of a listed property. For this reason the development of Hill House is remains on hold whilst planning permission is applied for on the new site.

Summerhill House, Newmarket

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Achievements and Performance continued

TRUSTEES' REPORT

WHAT WE HAVE ACHIEVED (continued)

Lambourn

In line with the Growth Strategy produced by Savills in 2020, Racing Homes continue to consider development opportunities in areas with the greatest housing need. Research identified that Lambourn has a significant shortage of racing staff accommodation, and this is a limiting factor for the success of training businesses in the area. Racing Homes acquired an agreement to purchase a property with a parcel of land in the centre of the village, conditional on achieving planning. The planning process has been very challenging and long, the latest issue to be presented was the moratorium on decisions imposed on 42 councils across the country in March of 2022. The new rules imposed in relation to nutrient neutrality meant that Berkshire County Council would spend the next 12 months recruiting an inhouse expert to assess planning applications and the council would inform us that no applications would be processed until later in 2023. These further delays, the significant rise in build costs since we embarked on the project and the associated impact on land prices has seen the Racing Homes trustees make the decision to look at other housing options in the area. As a number of years have passed since we started this journey, the executive will also conduct another housing needs survey in 2023.

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Achievements and Performance continued

TRUSTEES' REPORT

WHAT WE HAVE ACHIEVED (continued)

Case Study - Beth, 19

Beth, 19, moved into Racing Welfare’s accommodation after completing the five-week Equine Student Progression Programme at the British Racing School. She held her tenancy for almost two years before moving into private accommodation at the end of 2022.

Beth began working for a trainer in Newmarket and got to know some of the other tenants at the recently renovated MacDonald Buchanan house. She put her name onto the Racing Homes waiting list, and within a few months she was moving into one of the 18 self-contained units within the building.

The Racing Homes initiative offers accommodation with the benefit of a project worker who supports young people with life skills to prepare for moving into private accommodation at the end of their stay. Recalling her enjoyable experience, she said: “It was nice to have people around you of similar ages. You had your own space so could spend time on your own if you wanted to, or you could all chill together and socialise. In the summer we’d do loads of things together. I enjoyed [my time there].”

A real benefit to Beth during her tenancy was the affordability of the accommodation, when compared with previous living arrangements that saw her lodging with a local family.

She said: “You’re able to save whilst you’re living there. I was learning to drive, and I passed my test during those two years. So, as well as being able to afford the accommodation, I managed to pay for my lessons and save for a car. After [passing my test] I was saving for a deposit so that I could eventually move on. It was good that it was an affordable price, which allowed me to do that.”

Racing Welfare’s Housing Support Officers, Sue Shirley and later Sarah Ashley, oversaw all the young people living at MacDonald Buchanan house during that time. Beth said: “They were both really friendly, and if there were ever any problems they would sort them out - if you needed them they were always there for you.”

Beth used the money she saved during her time at MacDonald Buchanan House to put down a deposit on a two-bedroom house, which she rents with a friend who also works in racing. She closes by saying: “Had I not had the option of [Racing Welfare’s] affordable accommodation it would have been much more difficult for me to save up for my driving lessons and my own place.”

In 2021 we issued a customer survey to gather feedback on what our tenants thought of our service which was substantially positive for example , 84% of our tenants are satisfied with the service provided by Racing Homes and the quality of their homes. 91% of tenants are satisfied with where they live and 98% feel safe in their homes. However, there were some areas we could improve, and the Housing Team have taken action to act on this feedback throughout 2022. We have given our tenants the opportunity to engage with us more through the roll out of an annual program of resident meeting on our housing schemes and to accompany the Housing Officer on an estate inspection. Remaining visible and approachable remain a top priority for us.

We have made it easier to access information by introducing a new text messaging service which tenants can use and also helps us to communicate important messages more easily. Improvements to our website to increase available information and improve accessibility are yet to take place but remains in our plan of action for 2023.

A newsletter was issued twice in the year which provided feedback on the resident survey and the action planned and undertaken. The newsletters also included informative articles which aimed to improve communication and knowledge of our services.

We also took action to address some specific comments and concerns raised in the survey such as backdoor replacements at Jack Jarvis which was a high priority for many of the residents living there. A further survey is planned in 2023.

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Achievements and Performance continued

TRUSTEES' REPORT

HOW WE ACHIEVED IT

Racing Homes shares senior management team resource with Racing Welfare. The newly appointed Director of Housing oversees the day to day running of the charity reporting into the Chief Executive, with support from the Chief Operating Officer. For our capital projects work we are supported by the Group Property Team at the Jockey Club.

Racing Homes finance function is provided by the Racing Welfare finance team. Racing Homes has it’s own accounts assistant who reports into the Finance and Operation Director of Racing.

Welfare, who in turn reports into the Chief Operating Officer. Welfare support and advice is provided by Racing Welfare’s Welfare Team headed up by the Director of Welfare and fundraising for capital projects in Racing Homes is provided by Racing Welfare’s fundraising team, headed up by the Head of Fundraising.

In addition to the close association with Racing Welfare’s Welfare Team, Racing Homes employs a Young Person Project Officer. The role was introduced in 2019 and they are on hand to check in with the residents, giving guidance and carrying out reviews, these cover a range of topics such as debt and budgeting, health, people, support, choices and behaviour. The focus is on providing residents with life skills to live independently and be able to sustain a tenancy in private housing once their two year stay comes to an end with us. The emphasis is on providing holistic support to enable them to thrive in both their home and work lives. This post was funded in 2022 by a grant from Racing Welfare, made possible by the generous support of Dr Johnny Hon.

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Achievements and Performance continued

TRUSTEES' REPORT

HOW WE ACHIEVED IT (continued)

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The Racing Homes Board of Trustees
Racing Homes Employees
CEO of Racing Welfare Group
Racing Welfare Employees
Contracts Manager Director of Housing
Head of Housing
Housing Support Worker Housing Administrator Housing Officer
Support Services Provided by Racing Welfare
Finance & Operations Service & Support
RW Chief Operating Officer
Welfare Support & Advice Fundraising Support
Director of Finance & Operations
RW Director of Welfare RW Head of Fundraising
Finance
Head of Finance
Operations
RH Accounts Assistant Manager at RW
Welfare Team RW Fundraising Team
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Achievements and Performance continued

TRUSTEES' REPORT

WHAT WE PLAN TO DO NEXT

In 2022 the Director of Housing and the new Contracts Manager started the process of developing a comprehensive asset management plan in order that the standard and safety of our properties can be maintained, and a rolling programme of works can be developed. The legislative requirements in relation to the energy efficiency of our homes is also expected to have a significant impact on our future investment levels and like all landlords, some units in our portfolio may prove uneconomical to retain. In 2023 the team will develop a manageable plan and go to tender on the major works programme whilst the board consider the make up of the portfolio. Feedback in the 2021 tenant satisfaction survey also indicated that the maintenance and repair of our homes and knowing what our investment plans are is important to our tenants. Adopting a planned investment approach will enable the housing team to better communicate where and when we intend to carry out works to either their homes or communal areas where they live.

The trustees have considered the housing associations ability to finance this programme of works and it recognises that a history of maintaining rent rates at social housing levels, without the benefit of government grant funding, has left the charity with insufficient reserves to deliver these works. It is imperative that the trustees maintain their decision of three years ago, to move rents to those aligned with Local Housing Allowance (LHA) rates over a 10 year period. In the interim the housing association is reliant on the option to request an annual grant from Racing Welfare for the difference between rent charged and what would have been charged at LHA rates. Racing Welfare provides this grant on the basis that it would prefer a gradual increase for its beneficiaries to ease the impact of any increased living costs.

The board considered at length the rent increase applied in January 2023. The maintenance programme works required, alongside the trajectory to LHA rates suggested that an increase of up to 8% should be applied (2021:3%). However, the cost of living crisis led the trustees to cap the increase at 5% (2021: 3%) in order that tenants were protected gainst the higher increase in such a difficult year.The board and executive are now tasked with developing a plan to finance the asset management plan.

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Achievements and Performance continued

TRUSTEES' REPORT

WHAT WE PLAN TO DO NEXT (continued)

Health and Safety of our homes and estates remains of paramount importance and significant time and resource has been spent ensuring we have robust compliance practices in place. Fire risk reviews were carried out all housing schemes with internal communal area. Racing Homes carried out a number of fire safety upgrades to further improve safety with more work programs planned in 2023, Our electrical testing program concluded in 2022 which also saw large scale electrical upgrades undertaken in many of our homes and communal areas.

The government decarbonisation strategy aims for the UK economy to become net carbon zero by 2050. This will have a significant impact on the housing sector. We have started to undertake work to help us form our own strategy. Our initial steps have been to capture the essential energy information and work with an external consultant to measure our current carbon footprint. 2023 will see us announce our own commitment and to develop a strategy to achieve it alongside our existing asset management strategy and plan.

Gaining planning permission in Middleham and investigating new opportunities in Lambourn will remain a priority for the housing development team who continue to carefully assess the risks associated with development and revisiting budgets and costings. Financing our projects is still an area of focus for the team, along with planning how we can begin to work towards our vision: that everyone from the horseracing and breeding industry has access to high quality, affordable, safe housing. This is alongside our mission: to sustainably grow a high quality, affordable housing portfolio that demonstrates best practice in housing management and delivers services that improve beneficiaries’ lives.

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Financial Review

TRUSTEES' REPORT

OUR FINANCIAL PERFORMANCE

Our Income

The total income for the year was £1,117.8k (2021: £1,110.8k), the small increase due to increased rents receivable.

Income from housing activities increased by 5% in 2022 (2021: 8%), the effect of the charity’s policy of adopting Local Housing Allowance-based rents for new tenants in refurbished properties alongside a general rent rate increase of 3%.

Our Expenditure

Expenditure in the year increased from £896.8k in 2021 to £1,102k. The charity has experienced an increase in management costs due to the expansion of the in-house team, a necessity to achieve compliance across the portfolio, alongside an increase in maintenance spend.

Net income for the year was £29.8k, down from £214.0k in 2021.

Balance Sheet

Cash is managed at a group level and has resulted in a balance of £443.0k due from Racing Welfare at the year-end (2021 £195.3k). The increase in costs has reduced cash at bank from £732.1k to £559.3k. Therefore there has been change in the net current asset position of the Charity to £904.9k at the end of 2022 from £705.5k a year earlier.Net assets as at 31 December 2022 remained at £12.4m (2021: £12.4m).

Managing our Reserves

Racing Homes holds reserves for the purpose of owning, maintaining and developing the housing portfolio. As at 31 December 2022 the charity held total reserves of £12.4m (2021 - £12.4m). Unrestricted funds amounted to £4.7m (2021 – £4.7m) and restricted funds were stated at £7.7m (2021 – £7.7m). Within the unrestricted funds are £4.4m (2021 - £4.5m) of designated funds which represent the net book value of fixed assets and associated liabilities that are not classified as restricted. The designated fund will be expended in line with the amortisation of the properties represented by the fund.

Restricted funds represent properties which have been transferred to Racing Homes with a restriction imposed relating to the requirement to house individuals working in or retired from the horseracing and breeding industry along with funds received towards future developments.

The charity has a reserves policy, in line with its parent, to keep six months of property management costs in free reserves. This is estimated at £250.0k. Free reserves, represented by the revenue reserve, are £299.8k as at 31 December 2022 (2021 – £218.5k).

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Financial Review continued

TRUSTEES' REPORT

Going Concern

The trustees have considered whether there are any material uncertainties about the charity’s ability to continue as a going concern.

With need to invest in the long-term maintenance of our housing stock, a requirement to spend an approximate additional £400,000 per year has been identified by the Director of Housing and Contracts Manager. This will be funded in part by the gradual increase in rents to LHA levels in conjunction with the annual grant applications to Racing Welfare.

The Directors note the inter-charity balance between Racing Welfare and Racing Homes. In 2023, the Finance, Investment and Audit Committee of Racing Welfare have approved a draw down from investments in part to repay that inter-charity loan.

The balance sheet impact is assessed as minimal, as the majority of the funds are represented by land and building of which there are no plans to liquidate. The majority of housing income is received from retired beneficiaries (74%) and a significant number of these people will be in receipt of state pension and/or benefits. Tenants facing hardship are able to access support through Racing Welfare. The Charity’s forecasts cover a period of 12 months from the approval of this report and no issues were identified that would give rise to a going concern risk.

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Financial Review continued

TRUSTEES' REPORT

Principal Risks and Uncertainties

Racing Homes is responsible for ensuring that effective and adequate risk management and internal control systems are in place to manage the major risks to which the charity is exposed. Racing Homes is included under Racing Welfare in terms of risk management and a formal risk management process to assess business risks and implement risk management strategies is in place. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of this process, the trustees keep under constant review the adequacy of the charity's internal control systems.

Set out in the table below are the principal risks that are specific to Racing Homes and actions taken to mitigate the risks. The trustees acknowledge that there are further, more generic risks, which are included on the charities risk register and may score highly but these risks are not listed here due to their generic nature or because they, by nature, are not within our power to control or mitigate e.g. changes in the economy

Risk Description

Risk Mitigation

Failure to protect vulnerable adults and young people:

This is included due to the inherent risk associated with dealing with vulnerable adults and young people.

All staff are appropriately vetted in accordance with law and current regulations. The charity adopts Racing Welfare's safeguarding policy which is regularly reviewed by dedicated safeguarding staff and is the recipient of the SafeCic Safe Award recognising excellence in safeguarding standards. Safeguarding training is undertaken by all staff. DBS checks are carried out on all trustees. All line managers and HR staff undergo Safer Recruitment training.

Non-compliance with electrical, gas and fire safety requirements:

Failure to comply with safety requirements could lead to serious harm to tenants and property

This is included due to the inherent risk of being a landlord, holding a portfolio of residential housing.

Fire risk assessments are conducted at all schemes, with recommended servicing and in house testing regimes of fire equipment/ systems in place. The Housing Team with the assistance of Racing Welfare personnel regularly check communal areas for good housekeeping. Annual PAT testing is conducted where appropriate in communal shared facilities along with five year fixed-wire testing. The central housing management software triggers compliance reminders in addition to internal management systems that monitor compliance activity and actionable safety tasks.

Stock deterioration

Tenant, staff injury or detriment to health sustained from deterioration of housing stock or sub-standard housing as well as risk of reputational damage associated with such a failing.

Racing Homes has committed to providing housing of a high standard. We have appointed a new position of Property and Contracts Manager to implement a long-term asset management plan, overseen by the Director of Housing. The housing team continue to forge a close relationship with Jockey Club Estates to ensure immediate repairs are carried out quickly and safely.

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Governance and Structure

TRUSTEES' REPORT

Our Governance, Structure and Management Group Structure

Racing Welfare F,I & A Committee Governance Committee Welfare Committee Fundraising Committee Racing Homes Racing Welfare (Enterprises) Limited

The�Rous Charity

Racing Welfare is the sole member of Racing Homes. Racing Welfare is a company limited by guarantee (company registration number 04116279) and a registered charity (charity registration number 1084042). Racing Homes is the sole trustee of The Rous Charity (charity registration number 1068581).

The entire group benefits from the senior leadership team who sit within Racing Welfare. The other group charities benefit from the advice and guidance of all of Racing Welfare’s sub committees. For details on the terms of reference for each committee please refer to Racing Welfare’s consolidated financial statements.

Racing Homes is constituted as a company limited by guarantee, with governance arrangements set out in the charity’s Memorandum and Articles of Association.

The Trustees have fully adopted the Charity Governance Code. One of the outcomes of the adoption of the code was the creation of the Governance Committee in 2019, and since then numerous improvements have been implemented as a result of the work generated by the new committee. The initial review of the charity’s performance against the Charity Governance Code provided a score given for each of the seven principles and identified priorities in relation to improving diversity and inclusion, board effectiveness and improving the way in which we communicate our governance to the public.

The impact of the work carried out by the committee and the executive has seen a significant increase in the diversity of thought on the various committees across the group, with 2 new committee members joining the board of Racing Homes, both from non-horseracing backgrounds.

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Governance and Structure continued

TRUSTEES' REPORT

Governance (continued)

Improvements to our board effectiveness have been reviewed via our board member surveys and a trustee performance review process has been introduced.

Our trustee strategy days in 2022 were postponed to early 2023 and focused on the first stages agreeing our environmental commitment, the evaluation of our services and a revisit of our three year strategy given the significant changes in the economic environment since it was developed.

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Governance and Structure continued

TRUSTEES' REPORT

Trustees

The maximum number of trustees permitted is 15, and a minimum of 3. One third of the Trustees automatically retire each year (those being longest since appointment or reappointment) and may be re-elected. In line with the Charity Governance Code the charity imposes a maximum term of 9 years except where the permanent retirement would have a clear detrimental impact on the charity. All trustees are also directors. With the exception of one trustee, the remaining trustees are also trustees of Racing Welfare. The Racing Homes board is joined by one committee member who is not a trustee.

The board is charged to use its best endeavours to ensure the composition of the board at any time represents an appropriate balance of skills including knowledge and experience of housing matters as well as activities within the horseracing industry. The newly implemented trustee recruitment process requires any trustee to join firstly as a committee member and serve at least 12 months prior to being considered by the board for trusteeship. New committee members are recruited according to any gaps identified by the trustee skills audit and a recruitment process is followed involving extensive advertising via internal and external channels. Each position’s recruitment strategy is developed according to the specialism required and is signed off by the Chief Operating Officer who sits on the Governance Committee. The process has been designed to improve diversity on the board. All new committee members and trustees are provided with an induction programme so that they can fulfil their role on the Board. Trustees are DBS checked and are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

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Governance and Structure continued

TRUSTEES' REPORT

Employment Practices and Pay

Racing Homes, as part of the Racing Welfare group of charities, is developing our diversity, inclusion and equality agenda. A diversity and inclusion (D&I) champion has been appointed and is actively working with the senior management team to help ensure that nurturing a diverse and inclusive working environment, where we attract the full range of talent and everyone can be themselves, is embedded within all processes and policies within the charities. The D & I champion is also a member of the Jockey Club’s equality, diversity and inclusion group.

All salaries for Racing Homes employees are benchmarked against salary rates across other similar organisations. The Director of Housing is part of the housing association benchmarking group Acuity and has created a staffing structure and remuneration rates that are competitive and fair.

All salary rates are proposed to the Finance, Investment and Audit Committee in Racing Welfare which approves any changes as part of the annual budget process. Subject to affordability, the charity’s policy has been to award an annual pay rise consistent with increases in cost of living indices and having regard to the level of pay award agreed by the Jockey Club. . During the year remuneration received by key management personnel of Racing Welfare totalled £369k (2021: £317k).

The Racing Welfare group is passionate about promoting positive mental health and wellbeing across the racing industry but also within its own walls. The group provides flexible working options to help promote a good work/life balance and to support those with families. The senior management team has an ongoing agenda of reviewing the wellbeing of the workforce, introducing new initiatives, consulting with employees and undertaking specific training to improve leadership, all with the aim of maximising employee potential and satisfaction. In 2022 the organisation took part in a staff satisfaction survey. The results reported that: 100% of Racing Homes staff felt valued for the contribution they made to the organisation and that their wellbeing is a priority and that the work they do is worthwhile and enjoyable; 100% can see how the work they do makes a positive difference at Racing Welfare.100% felt productive and equipped in their roles and are able to access support and resources when needed. This survey will be repeated in 2023.

An extensive learning and training programme is afforded to every employee with a mixture of online learning opportunities including Linkedin Learning as well as traditional courses and qualifications.

Each year the Racing Welfare group hosts two staff forums where all staff meet for a programme of training and strategy setting. Racing Homes is also a member of National Housing Federation that also offers additional learning and training opportunities and several of the team are Chartered Institute of Housing members.

Each year the Racing Welfare group hosts two staff forums where all staff meet for a programme of training and strategy setting. Racing Homes is also a member of National Housing Federation that also offers additional learning and training opportunities and several of the team are Chartered Institute of Housing members.

20

Governance and Structure continued

TRUSTEES' REPORT

Employment Practices and Pay (continued)

Employee Health and Safety training is delivered by The Jockey Club’s health and safety online training programme, iHasco. This provides relevant, quality training as well as providing efficient monitoring.

Fundraising

The charity does not undertake fundraising. All fundraising is carried out by Racing Welfare and any funds collected for projects which are to be delivered by Racing Homes are transferred via a restricted grant. Full details on the fundraising policies and practices of Racing Welfare are contained in the group consolidated financial statements.

No activities are undertaken by the Charity or by any person on behalf of the Charity for the purpose of fundraising, and in particular no professional fundraiser or commercial participator have carried on any such activities.

Neither the Charity nor any person acting on behalf of the Charity was subject to an undertaking to be bound by any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising, in respect of activities on behalf of the Charity. In light of this, there was no failure to comply with a scheme or fundraising standard, and there was no requirement for any monitoring of activities carried on by any person on behalf of the Charity for the purpose of fundraising. No complaints have been received by the Charity or a person acting on its behalf about activities by the Charity or by a person on behalf of the Charity in connection with fundraising.

Whilst the trustees are aware and supportive of the need to protect vulnerable people and other members of the public from any fundraising activities that potentially puts people at risk, as the Charity does not undertake any fundraising, the trustees are confident that no one was put at risk from inappropriate fundraising activities of the Charity.

Environmental

The Racing Welfare group is committed to improving its impact on the environment and is part way through developing a strategy and a commitment. Between 2021 and 2022 the focus was on delivering quick wins. We have a green champion that sits on the Jockey Club’s Green Champion Board and the charities have made improvements in correlation and monitoring of energy usage, waste disposal, introducing hybrid or electric company cars, reducing paper waste in our offices and where possible meetings are held online and travel-green initiatives have been promoted at staff meetings where they are not . In the last quarter of 2022 the group engaged with an external consultant to measure the group’s carbon footprint and to give the board the information it needs to develop an appropriate commitment and subsequent strategy. Racing Homes has legislative demands, in particular around EPC ratings, that will affect the commitment it makes, it will also require significant investment in our properties. This has been a significant part of the large programme of works that has been developed by the housing team and will see Racing Homes invest over £1.5m in its existing portfolio over the next three years.

The trustees will undertake a number of strategy days in 2023 with our external consultant, the outcome of which will be an announcement of our commitment and an outline strategy by the end of 2023.

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STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also Directors of Racing Homes for the purposes of company law) are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the charity and enable it 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 Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Racing Welfare website.

Statement as disclosure to our auditors

In accordance with company law, the trustees, as the company’s directors, certify that

so far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware.

each director has taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Auditors

Price Bailey LLP were appointed as auditors during the year and have expressed their willingness to continue in office. A resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.

The trustees' report was approved on 15 September 2023 and signed on its behalf:

Simon Hope (Chairman)

22

INDEPENDENT AUDITOR'S REPORT

Opinion

We have audited the financial statements of Racing Homes (the ‘charitable company’) for the year ended 31 December 2022, which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including 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:

have been prepared in accordance with the requirements of the Companies Act 2006.

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 12 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 other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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.

23

INDEPENDENT AUDITOR'S REPORT

Other information (continued)

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 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.

Opinions 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 Directors’ report included within the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 22, 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.

24

INDEPENDENT AUDITOR'S REPORT

Responsibilities of trustees (continued)

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 responsibilities 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:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and how it operates and considered the risk of the charitable company not complying with the applicable laws and regulations, including fraud, and in particular those that could have a material impact on the financial statements.This included those regulations directly related to the financial statements. In relation to the charity, this included data protection, employment law and financial reporting.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

25

INDEPENDENT AUDITOR'S REPORT

Auditor’s responsibilities for the audit of the financial statements (continued)

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.

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 the charitable company’s members, for our audit work, for this report, or for the opinions we have formed.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor) For and on behalf of Price Bailey LLP Chartered Accountants Statutory Auditors Tennyson House Cambridge CB4 0WZ

Date: 19 September 2023

26

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2022

27

STATEMENT OF FINANCIAL POSITION as at 31 December 2022

Company number 06489067

The financial statements have been prepared in accordance with the provisions applicable to the companies subject to the small companies' regime.

The financial statements on pages 27 to 42 of Racing Homes were approved by the Board of Directors and authorised for issue on 15 September 2023 and signed on its behalf by:

Simon Hope (Chairman)

28

STATEMENT OF FINANCIAL CASHFLOWS for the year ended 31 December 2022

29

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of certain fixed assets and investments which are included at market value or deemed cost. The financial statements have been prepared in accordance with the 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) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Racing Homes meets the definition of a public benefit entity under FRS 102. The financial statements are presented in sterling, which is the functional currency of the charity and rounded to the nearest £100.

Basis of consolidation

The charitable company is exempt by virtue of section 398 of the Companies Act 2006 from the requirement to prepare group accounts. The financial statements present information about the company as an individual undertaking and not about its group.

Going concern

The directors have identified no material uncertainties and have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future, a period of at least 12 months from the date of approval of the financial statements, and the charity is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Income

Income from charitable activities represents rents and service charges receivable. All rental and service charge income is from social housing lettings. Grants and donations are recognised as income upon approval of application or receipt, whichever is sooner and only to the extent that any performance criteria has been met. Interest receivable is included in the accounts when due.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Tangible fixed assets and depreciation

Housing properties are stated at deemed cost less accumulated depreciation; the company having taken advantage of the exemption in paragraph 35.10 (d) of FRS 102 to use the valuation at the date of transition as deemed cost. Other fixed assets are stated at cost less accumulated depreciation.

30

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES (CONT.)

Depreciation is charged on a straight line basis over the expected useful economic lives of the assets as follows:

Housing properties (including leasehold) 2% per annum or over the lease term Housing property improvements 10%-25% per annum Housing property fixtures and fittings 25% per annum IT and computer equipment 33% per annum

Freehold land is not depreciated. The residual value (land) is calculated as a proportion of the deemed cost of the properties at the balance sheet date, calculated using the guidance issued by the National Housing Federation. The Charity capitalises expenditure on housing which results in an increase in net rental income, which adds to the value of the property or which extends its useful economic life.

Intangible fixed assets - nomination rights

Nomination rights cover the right to nominate 6 residents to Childwick House, Newmarket and 17 residents to Fielden Court, Kingsclere. They are depreciated in equal amounts over a period of 125 years. They are stated at net book value.

Interest payable

Interest payable is charged to the SOFA in the year which it accrues.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of expense for which it was incurred.

Fund accounting

Unrestricted funds are those which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes.Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund.

Judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for income and expenditure during the period. However, the nature of the estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements:

Tangible fixed assets:

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal value.

31

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

2. INCOME

32

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

3. TOTAL EXPENDITURE

Audit fees included in support costs amount to £4.9k (2021: £4.8k)

Management and administration overheads of £46k (2021: £46k) allocated to the charity from Racing Welfare are apportioned on the basis of Racing Welfare staff time spent on Racing Homes matters.

4. ANALYSIS OF SOCIAL HOUSING COSTS

33

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

5. STAFF COSTS

The average number of staff in the year was 5 (2022: 3)

No employees earned over £60,000 in the year

Key staff, which are deemed to be The Chief Executive Officer and Chief Operating Officer of Racing Welfare along with Racing Homes's former Head of Housing (to December 2020), are employed by Racing Welfare or The Jockey Club Estates, therefore the Charity incurred total remuneration costs of £nil in this respect during the year (2021: £nil).

6. DIRECTORS' REMUNERATION

No remuneration was paid to the Directors during the year, nor in the previous year. No travelling and subsistence expenses were paid in 2022 (2021: £nil).

7. INTANGIBLE FIXED ASSETS

34

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

8. TANGIBLE FIXED ASSETS - HOUSING PROPERTIES

Housing properties include freehold land of £3,111.3k (2021: £3,111.3k) that is not depreciated.

35

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

9. TANGIBLE FIXED ASSETS - OTHER

10. DEBTORS

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

36

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

12. CREDITORS: AMOUNTS FALLING DUE AFTER NORE THAN ONE YEAR

There are two housing loans:

A loan was taken out in 2019, secured against Summerhill House. The loan bears interest of 3.55% and is repayable over a period of 10 years from 2018 at £40k p.a with a break clause after 5 years. The balance will be paid on the maturity date.

13. RESERVES

37

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

13. RESERVES (CONT.)

The designated Fixed Asset Fund sets aside funds equivalent to the net book value of both tangible and intangible fixed assets (less; the value of fixed assets associated with the restricted reserve and any liability secured against the asset) and is intended to highlight reserves allocated for such use.

The designated Revaluation Reserve recognises the effect of the historic revaluation of our housing stock.

The restricted fund, Housing for Racing Industry, arises as a result of the transfer of housing assets from Racing Welfare. These assets were transferred to Racing Homes with a restriction that they are used to house individuals working in or retired from the horseracing and thoroughbred breeding industry. The value of the reserve equates to the net book value of the assets transferred from Racing Welfare less any liability secured against the asset.

The restricted HFRIS - Revaluation Reserve recognises the effect of the historic revaluation of our housing stock.

The Repairs and Maintenance fund arises from grants received from Racing Welfare to be used for major repairs and maintenance or refurbishment works of housing stock.

The restricted Middleham Development fund arises from a grant received from Racing Welfare to be used towards the costs of a new development in Middleham, a key racing centre.

The restricted Young Person Support fund arises from a grant received from Racing Welfare towards security costs at a young persons scheme during the year.

The restricted Housing Support Officer fund arises from a grant received to be used towards the costs of employing a Housing Support Officer.

38

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

13. RESERVES (CONT.)

Transfers between funds: 2022

An amount of £22.4k was transferred from the Revenue Reserve to the Designated Fixed Asset Fund, being additions to designated assets that were funded from the Revenue Reserve. Also funded by the revenue reserve were loan repayments of loans secured against designated assets totalling £112.2k and development costs of £16.3k, for which transfers from general funds to designated funds has been made.

An amount of £23.6k was transferred from the Restricted Repairs and Maintenance Fund to the Restricted Housing for Racing Industry Staff Fund being capitalised property refubishments of restricted assets paid from restricted funds.

Transfers between funds: 2021

An amount of £3.9k was transferred from the Revenue Reserve to the Designated Fixed Asset Fund, being additions to designated assets that were funded from the Revenue Reserve. Also funded by the revenue reserve were loan repayments of loans secured against designated assets totalling £113.2k and development costs of £18.9k, for which transfers from general funds to designated funds has been made.

An amount of £90.5k was transferred from the Restricted Repairs and Maintenance Fund to the Designated Fixed Asset Fund being refubishments of designated properties paid from restructed funds. An amount of £70.5k was transferred from the Restricted Repairs and Maintenance Fund to the Restricted Housing for Racing Industry Staff Fund being capitalised property refubishments of restricted assets paid from restricted funds.

It was identified in the year that the land on which Summerhill House was built should be classed as designated not restricted. As such a transfer of £195.0k has been made from the Restricted Housing for Racing Industry Staff Fund to the Designated Fixed Asset Fund.

14. ANAYSIS OF NET ASSETS BETWEEN FUNDS

39

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

15. CONNECTED CHARITIES

The Charity has some directors and administration in common with the following charities:

The Bentinck, Beresford and Rendlesham Charity

These charities have the same principal office as Racing Homes.

Racing Welfare is the sole member of the Charity. Its charitable objects include the relief of poverty and distress amongst people working in, or retired from, the thoroughbred racing and breeding industry and their dependants. This is congruent with the objects of Racing Homes.

The Rous Charity is an almshouse charity, of which Racing Homes is the sole Trustee.

Jockey Club Estates Limited (JCE), a Jockey Club group company, provided maintenance and repairs services to Racing Homes during the year. Payments made to JCE in the year amounted to £190.6k (2021: £236.4k).

Balances due to/(from) Racing Homes were as follows:

During the year £46k (2021: £46k) in respect of management and administration overheads were allocated to the Charity by Racing Welfare. The Racing Welfare group manages its cash across entities as needed, therefore inter-charity balances are perpetually in existance.

During the year total grants of £208.2k (2021: £240.2k) were received from Racing Welfare.

The charity collects rents on behalf of the Rous Charity and pays for shared costs between the two charities. During the year the charity collected rents amounting to £64,404 (2021: £60,913) on behalf of the Rous Charity and received shared costs attributable to the Rous Charity of £48,407 (2021: £38,447), including staff costs of £22,232 (2021: £14,380). During the year the charity paid £Nil (2021: £47,000) to the Rous Charity in settlement of the inter-charity loan account.

40

for the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

16. PARENT AND ULTIMATE CONTROLLING PARTY

The charity's parent undertaking is Racing Welfare, Charity number 1084042, Company registration number 04116279, whose address is the same as Racing Homes and whose charitable objectives are the relief of poverty, sickness, injury and the advancement of education to those employed or formally employed in the racing industry.

The Ultimate Controlling Party is The Jockey Club, Company Registration Number RC000287, governed by Royal Charter, whose address is 75 High Holborn, London, WC1V 6LS by virtue of being the sole member of Racing Welfare.

During the year The Jockey Club provided professional services to the charity, valued at £27k (2021: £31k), free of charge. This has been recognised as a donation in kind and a management cost in the statement of financial activities .

17. CONTINGENT LIABILITIES

Social Housing Grant (SHG) is subordinated to the repayment of loans by agreement with the Homes and Communities Agency (HCA). SHG released on sale of a property may be repayable, but is normally available to be recycled and is credited to a recycled capital grant fund and included in the balance sheet within creditors.

SHG is repayable under certain circumstances such as where a property is sold. The SHG at the date of transition to FRS 102 of £397.5k and previously shown as a reduction of the housing property value has, in accordance with the performance model, been written off to reserves.

41

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022

18. STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR YEAR ENDED 31ST DECEMBER 2021

42