2020-12-31-accounts - The Racing Foundation

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Reference and administration	details
Trustees' report:		3-11
Structure, Governance	and Management
Objectives and Activities
Strategic Report
Independent auditor's report		12-14
Statement offinancial activities		15
Balance sheet		16
Cash flow statement		17
Notes to the accounts		18-28

The overall performance	ofinvestment	managers	exceeded	the targets	set for the year. Trustees expected performance	set for the year. Trustees expected performance	to
reflect anet increase (in	capital value	and the generation ofinvestment			income) ofCPI plus 3%which equated to3.3%		in
2020.Actual performances were:
Manager	2020 target	2020	actual	Target	from inception	Actual from inception
James Hambro	3.3%	6.3%		42.5%		91.6%
Cazenove	3.3%	5.5%		42.5%		68.8%
Sarasin	3.3%	9.9%		23.9%		47.7%

Risk description									Risk mitigation
Stock market volatility:									The Trustees have consulted widely and taken advice during on
Market volatility	may	impact upon				both levels		of	their investment policy and approach. Managers performance
investment income	generated			and	the	real	value of	the	continues to be closely monitored and Trustees have independent
funds held.									advisors who attend all meetings to advise them. L6m was
									withdrawn durin the ear.
Lackofcontinuity	and infrastructure:								Additional staffing resources have been used to support a number
The need to replace Trustees				and the small staff numbers					of projects in-year. A communication and event manager has
threaten continuity.									been appointed in February 2021. Linda Bowles and Susannah
									Gill have both extended their terms as trustees until 2024.
Industry alignment:									The Trustees and staff continue to engage widely with
The Trustees decisions on			priorities		for	use the funds may			stakeholders to inform activities and strategy. The Foundation
be questioned by industry		stakeholders							adopts an approach that sees it align clearly with industry issues
									and champion industry strategies. Increased co-operation with
									other funders includin the HBLBwas insti ated in the ear.
ITfraud, cyber-attack:									The Trustees are satisfied that the current procedures protect
The general levels	ofIT	fraud		have	escalated however			no	them as far as is reasonable.
attacks havetaken	lace	in	ear.
Covid-I9:									The Foundation executive have engaged extensively with
The implications	on	the		industry,		the	Foundations		Members, stakeholders and grantees to fully understand the
stakeholders and	wider		grantee		network		impacts	the	impact ofcovid-19. They have worked flexibly and pro-actively
delivery ofthe strategy.									to help stakeholders respond to the challenges faced. The new
									strategy is considered appropriate for the post covid-19 racing
									environment.

				Expendable
			Unrestricted	endowment	Total	Total
		Notes	funds	funds	2020	2019
			8000s	8000s	8000s	8000s
Income and endowments	from:
Donations and legacies			290		290
Income trom investments			1,831		1,831	2,300
Total income and endowments			2,121		2,121	2,300
Expenditure from:
Raising funds:
Investment management	costs		(26)	(287)	(313)	(128)
Charitable activities:
Grant making			(3,761)		(3,761)	(5,194)
Total expenditure			(3,787)	(287)	(4,074)	(5,322)
Net (expenditure)/income			(1,666)	(287)	(1,953)	(3,022)
Net gains/(losses) on investments		10	541	3,526	4,067	10,246
Transfers between funds
Net movement in funds			(1,125)	3,239	2,114	7,244
Total funds brought forward			12,828	76,841	89,669	82,445
Total funds carried forward			11,703	80,080	91,783	89,669

					Expendable
			Notes	Unrestricted funds 8000s	endowment funds KOOOs	Total 2020 8000s	Total 2019 XOOOs
Fixed Assets
Tangible assets Investments			9 ill	2 7,111	78,537	2 85,648	86,307
Total fixed asset				7,113	78,537		86,307
Current assets
Debtors Cash at bank and in hsud			11 12	100 11,005	1,543	100 12,548	23 11,570
Total current assets				11,105	1,543	12,648	11,593
Creditors: amounts within one year	failing	due	13	(4,042)		(4,042)	(4,265)
Net current assets				7,063	1,543		7,328
Creditors: amounts after one year	falling	due	14	(2,473)		(2,473)	(3,966)
Net assets
				11,703	80,080	91,783	89,669
Funds ofthe charity
Unrestricted funds - general				11,703		11„703	I@08
Endowment funds					80,080	80,080	76,841
Total funds			15	ll,703	80,080	91,783	89,669

					Notes	Total	Total
						2020	2019
						%000s	g000s
Cash llows from operating		activities			16a	(5,577)	(3,912)
Cash llows from investing		activities
Investment income received						1,831	2,300
Proceeds	fiom sale ofinvestments					25,419	29,921
Payments	to acquire investment assets					(20,693)	(28,669)
Payments	to acquire tangible	fixed assets				(2)
Net cash	used in investing	activities				6,555	3,552
Change	in cash and cash equivalents		in the reporting	period	16h	978	(360)

3.	ANALYSIS	ANALYSIS	OF INCOMING RESOURCES	OF INCOMING RESOURCES	2020	2019
					g000s	f000s
	Donations	and legacies
	Donations				290
	Investment		income
	Dividends	receivable			1,798	2,238
	Bank interest				33	62
	Total				2,121	2,300
4.	ANALYSIS		OFRESOURCES EXPENDED		2020	2019
					g000s	g000s
	Cost ofgenerating funds
	Investment	management		fees	258	100
	Independent		investment	advice	29	28
	Support costs				26
					313	128
	Charitable		activity: grant making
	Grants payable (see note 5)				3,465	4,905
	Other charitable activity				48	76
	Support costs (see note 6)				232	197
	Governance		-Auditor's	fee	16	16
	Governance		-Trustees expenses
					3,761	5,194
	Total				4,074	5,322

OR	THK YEAR ENDED 31DECEMB	THK YEAR ENDED 31DECEMB	ER	2020
5.	GRANT EXPENDITURE					2020	2019
						%000	%000
	Social Welfare:
	Horseback UK						9
	Diversity in racing						275
	University ofBath						186
	Great British Racing						50
	Go racing in Yorkshire						44
	Women in racing						20
	Arabian racing						182
	PJA, JETS,IJF						2,230
	Racehorse Owners Association						10
	Racing Homes					51
	Racing Welfare						80
	Racing Centre						156
	Riding a dream					10
	Concussion Foundation					10
	Inspire Foundation					20
	Liverpool John Moores University					120
	Take the reins					15
	Injured Jockey's Fund					10
	Racehorse Association					38
	Urban Equestrian Academy					20
	Professional Jockeys Association					603
	National Trainers Federation					108
	Amateur Jockeys Association					19
	National Association ofRacing Staff					43
						1,067	3,242
	Education, Training	and Participation:
	National Horseracing	College (Formerly,		Northern	Racing College)	190	243
	British Racing School					85	10
	Greatwood Charity					110
	University ofLiverpool					78
	HEROS					213
	Pony Racing Authority					905
	Thoroughbred Breeders Association						570
	Racing to School					14
	Writtle University College						46
	Injured Jockeys Fund					5
	Resume Foundation					9
	Scottish Racing					240	120
	Racehorse Sanctuary					-5
						1,844	989
	Equine Science Research:
	Horserace Betting Levy Board						210
							210
	Thoroughbred Horse	Welfare:
	Retraining ofRacehorses						48
	Moorcroft					46
	Racehorse Rescue Centre					7	20
	British Thoroughbred	Rehabilitation	Centre			208
	The Royal Veterinary	College					50
	Aintree Racecourse Charitable Trust						20
	Animal Health Trust						26
	Horse Welfare Board					60
					21

New Beginnings		64
Racehorse Sanctuary		84
Racehorse relief fund		64
		533	164
Heritage and Culture:
National Horseracing	Museum		300
National Trainers Federation		21
		21	300
Total grant expenditure		3,465	4,905

SUPPORT	COSTS	Grant
		making f000s	Total g000s
Management	&administration	160		160
Website, IT and communications		41		41
Travel and general office expenses		31		31
		232		232

STAFFCOSTS			2020	2019
			6000s	6000s
Gross wages			144	115
Employer's national	insurance	contributions	17	14
Pension costs			12	12
Total staff costs			173	141

9.	TANGIBLE FIXEDASSETS	TANGIBLE FIXEDASSETS		Office
				Equipment	Total
				g000s	%000s
	Cost
	Balance brought forward			11	11
	Additions			2	2
	Balance carried forward			13	13
	Depreciation
	Balance brought forward
	Depreciation charge for the year
	Balance carried forward
	Net book value
	Balance brought forward
	Balance carried forward
10.	FIXEDASSETSINVESTMENTS			2020	2019
				g000s	g000s
	Carrying market value at	the beginning	ofthe year	86,307	77,313
	Additions to investments	at cost		20,693	28,669
	Disposals at carrying value			(25,419)	(29,921)
	Investment gains/(losses)			4,067	10,246
	Carrying market value at	end ofyear		85,648	86,307
	Historical cost at end ofyear			69,978	74,646
	Analysis ofinvestments	(at market value)		%000s	8000s
	Listed investments:
	Fixed interest securities			11,298	11,622
	Equity shares			60,654	62,114
	Common investment funds, investment		trusts 4t unit trusts	13,696	12,571
	Carrying market value at	end ofyear		85,648	86,307

11.	DEBTORS						2020	2019
							g000s	g000s
	Other debtors						100
	Prepayments and accrued	income						23
12.	CASH AT BANK						2020	2019
							g000s	g000s
	Cash on deposit with investment		managers				1,543	3,097
	Cash on bank deposit						10,976	8,307
	Current account						29	166
							12,548	11,570
13.	CREDITORS: amounts	falling	due within one year				2020	2019
							g000s	g000s
	Grant commitments						3,924	4,218
	Accroals and deferred income						100	29
	Other creditors						18	18
							4,042	4,265
14.	CREDITORS: amounts	falling	due after more than		one year		2020	2019
							0000	0000
	Grant commitments						2,473	3,966
15.	FUNDS ANALYSIS	Balance						Balance
		Brought		Incoming	Outgoing		Gains and	Carried
		Forward		Resources	Resources	Transfers	Losses	Forward
		%000s		%000s	%000s	g000s	5000s	g000s
	Unrestricted funds
	General reserves	971		2,121	(3,787)			(695)
	Designated	11,857					541	12,398
		12,828		2,121	(3,787)		541	11,703
	Endowment funds
	Expendable:
	Tote Sale Proceeds	76,841			(287)		3,526	80,080
	Total funds	89,669		2,121	(4,074)		4,067	91,783

16.	NOTES TO THE CASH FLOW	STATEMENT	STATEMENT		2020	2019
					g000s	%000s
(a)	Reconciliation ofnet income to net cash inflow from operating			activities:
	Net income				(1,953)	(3,022)
	Adjustments:
	Items not involving the movement	offunds:
	Depreciation charge
	Investment income receivable				(1,831)	(2,300)
	Changes in working capital:
	Increase in debtors				(77)	(8)
	Decrease in creditors				(1,716)	1,418
	Net cash outflow from operating	activities			(5,577)	(3,912)
(b)	Reconciliation ofnet cash flow to movement		in net funds:
	Increase/(Decrease) in cash in the	year			978	(360)
	Change in net funds				978	(360)

Analysis	ofthe change in net funds:
		IJan 2020	Cash flow	31Dec 2020
		g000s	g000s	%000s
Net cash:
Cash at	bank and in hand	11,570	978	12,548
Change	in net funds	11,570	978	12,548

					Expendable
				Unrestricted	endowment	Total
				funds	funds	2019
			Notes	%000's	8000's	8000's
Income and endowments	from:
Donations and legacies
Income from investments				2,300		2,300
Total income and endowments				2,300		2,300
Expenditure on:
Raising funds:
Investment management	costs				(128)	(128)
Charitable activities:
Grant making				(5,194)		(5,194)
Total expenditure				(5,194)	(128)	(5,322)
Net gains/(losses) on investments				1,363	8,883	10,246
Net movement in funds				(1,531)	8,755	7,224
Net income/(expenditure)		for the year			2020	2019
					8000s	8000s
This stated after charging:
Depreciation
Auditors remuneration					16	16
Financial instruments					2020	2019
					8000s	8000s
Financial assets:
Debt instruments measured		at amortised	cost		100	23
Equity instruments measured		at cost less impairment			85,648	86,307
Financial liabilities:
Measured at amortised cost					6,515	8,231