REGISTERED COMPANY NUMBER: 07890908 (England and Wale$) REGISTERED CHARifY NUMBE￿ 1145297 RACING FOUNDATION STRATEGIC REPORT, TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 FOR THE RACING FOUNDATION Xeinadin 12 Conqueror Court Sittingboume ME105BH THE RACING K>UNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024 Page Reference and Admlnlthallve Detulls Strat•glc Report 3 to 13 Trvstees. R•port 14 to 15 R•port of the Independent Avdllors 16 to 19 Statement of Flnanclal Aclmlles 20 Balance Sheet 21 Cash Flow Statement Noles to Ihe Cash Flow Stglement Not•s to Ihe Flnanclal Statements 24 to 39 THE RACING FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 2024 Charfty name The Racing Foundation Chaiily r•glslrallon number 1145297 Company reglstrallon number 07890908 Reglslered addre Holbom Gate. 26 Southampton Buildings London WC2A IAN Dkeclors and Trustees durfng the year Lindo Bowles Senior Independent Dtrector James Boyle Julia Budd Susannah Glll Louise Kemble Alice Poge Rishi Persad Algy Smith-maxwell Chair (Tem ended 9th April 20241 Key Manugement Petsonnel Chl•f Ex•cutfve Offlcer Tansy Challis ants Manager Stanley Wong Head of Commvnlcallons ond Events Rhi Lee-jones Independent audllor Xeinadin 12 Conqueror Court Sittingboume MEIO 5BH Bankers Weatherbys Bonk Ltd Sanders Road Wellingborough Northampton5hire NN8 4BX Page I THE RACING FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 21)24 Inveslment managers James Hambro & Partners Ryder Court 14 Ryder Street London SWIY 6QB Sorosin & Partners LLP Juxon House I co st Paul's Churchyard London EC4M 8BU Jupiter Fund Management plc The Zig Zag Building 70 Victoria Street London SWI E 6SQ Dimensional Fund Advisors Ltd 20 Triton Street Regent's Place London NWI 3BF Page 2 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 The Truslees ore pleased to present th8lr annual directors report together with the financial statements of the charity for the year ending 31 December 2024 which are also prepared to meet the requirements for directors, report ond occovnls for companies ac* purposes. The financial statements compty with the charities act 201 i. the Componies Act 2C()6. and Accounting and Reporting by Charities: Statement of Recommended Practice appllcable lo charities preparing their account5 in accordance with financial reporting standard applicable in Ihe UK and Repvblic of Ireland IFRS 102). STRUCTVRE, GOVERNANCE AND MANAGEMENT Government Docvment The Racing Foundation wos founded by its Members. the British Horseracing Aulhoiity, the Racecovrse Association and the .Thoroughbred Group in December 2011 so that the racing industry had an appropriate vehicle to accept and distribule fvnds arising from the govemment's sole of the Horserace Totafisator Board {'Tote'l. To comply wth State Aid njles, it was required to be established as a registered charity wlh objects to provide funding to charities WOTking in UK Racing. The Racing Foundation is constituted as a compony limited by guarantee. incorporated on 22nd December 2011 and registered os a chaiity on 6th Januory 2012. In the event of the company belng wound up, Members are required to contribute an omount not exceeding £1. The company was established Under a Memorandvm of Associotion, which estoblished the objects and powers of the charilable company and is govemed under its Articles of Association. The Racing Foundation amended its Articles of Association in 2019, with approval from the Charities Commission and its Members to allow it to make grants for the furtherance of its purposes to nonovllkey-documents As with previous years, the refresh devebped a stralegic plan lo provide a framework for how the Foundation will operat8 over the 2024 period in Ihe fvrtherance of its objects. Our Trustees consider that the funds originally received from the govemment's sale of Ihe Tote represent o unique opportunity to establish a lasting legacy for the hors8racing and Thoroughbred breeding industy. Therefore, In developing plans, they agreed to continue wlth an approach that: - Balances the needs of current and future generations: - Develops supportive relationshlps with stakeholders, based on mulual Irust and respect: Encourages continuous improvement. reflection and learning; and: - Refiects our independence and long-term perspective. The Foundation's one-year strategy for 2024 identified a need to build racing's social ficense and we updated ovr key areas of focu5 to more closely reflect this. Our four key areas of focus were, Iherefore: l. Raclng'$ People 2. Equlne Wellare 3. Youlh and Commvnlty Engagement 4. Envronmenl We f881 thot addressing issues in these areas is critical to rocing's engagement with ils people. its horses and its communities. Th8y can posilivew influence the sport's standlng its communities and politicions at both a local and national level and are important for securing a sustainable futwe. Our purpose was revlsed to: We wll work in portnershlp vAth the racing industry to ensure a sustainable future for the SF)Ort. Our ambition statement was revised to: We will develop understanding and action around the key charitable issues facing racing and to assist the industry with developing a collaborative and strategic response. Our approach to delivering against our focus areas remained the same as our 2021-2023 stralegy. with three ele)rents: Page 5 THE RACING FOUNDATION STrATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 Bulld Understandlng: We wll build understanding. define progress and measure svccess across the key areas of activity we V￿11 SUPF)Ort. Prompl Collaborotlon: We will support those delivering activities we fund with advice. guidance. training and development and promote baming and grovAh for those delivering racing's future. Fund Acllon: We will provide increased levels of funding and pro-aclively WOTk wlh other fvnder5 to leverage additional resources. The Foundation's activity in 2024 involved: - Gront and ongoing loan funding - Supporting the development of industy strategies and the industvs charity sector - Ensuring delivery of our own processes and govemance Detolled operational plans. budgets ond a one-year strategy were approved by Trustees for 2024, against which progress was monitored throughovf the year. These plans built on the activity of the 2021-2023 strategy and provided o framework against which perfornance could be monitOTed at both an organisational and individual grant level. Gronl Maklng Polcy The Foundotion may only make grants for charitable purposes to charitable orgonisations vh)ich have been established in the UK or to other UK bodies and organisations for charitable pU￿oSe5. The Twstees of the Foundation ensure that the funds are applied appropiiately for eligible purposes only and are subject to Op￿Opriate tenns and conditions. To that end. the Twstees set out the areas of focus lor giving during Ihe 2024 strategy refresh. which are: People: social welfare. training & educotion ond diversity & inclusion - Equine Welfare: horse welfore, oftercare and equine science research - Youth and Community Engagement Environmental Sustainability Trustees are therefore. satisfied thot the Foundation meets the Charity Commission's public benefit test. Details of the Foundation's ochievements and performance in 2024 against the strategic plan are listed below: Achlevements and Performance The performance of the funds by monager is reported in more detail below: Follovrfing agreement by Trustees that the Foundation would deliver a one-year strategy for 21Y24. they were provided wth quarterly reports to update them on progress being made against the delivery of the strategy refresh. At the end of 2024 they were provided with a review of progress mode during the year as well 0$ o wder revtew of the fvll 2021-2024 period. The full review document can be lound on our website: wwwJaclngfoundaNon.co.vk/aboul/key-documents Page 6 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 The following provides an overview of achievements and perfonnonce in 2024 against our key areas of approach: Fvnd Acllon 18 new grants aworded totalling £l.226.296 {gross): Rocing People £379k Equine Welfare £521 k Youth and Communlty Engagemenl £326k Environment- no new grants 1£10.2m awarded during Ihe ￿lI2021-2024 period) 1£4.4m awarded dvring the full 2021-2024 period) 1£2.3m awarded during the full 2021-2024 period) {£304k awarded during the full 2021-2024 period) 7 gronts were for in-year delivery.- 10 for projects delivered over 2024-2025; and T for a project to be delivered durlng the 202516 academic year. New grants awarded by area of focus were: vine Welfare Peo Youth and Communi Environment 31% En ement These percentages do not refiect the actual grant payments made during Ihe year (including payments made os multi-year funding commitments from prevlous yearfs grant owardsl. Total grant expenditure was £1.2m, including the 2024 instalments for previously cwarded multi-year grants. This doesn't include adjustrnents for prior year grants awarded and it doesn't include grants withdrawn in year or the adjustments for prior year grants withdrawn. Bvlld vnderslandlng - Industry staff recnJitment. retention and training svNey for sluds and stud staff was underlaken at b8ginning of 2024. Grants were awarded for four research projects - including two equine science research projects in conjunction with the Horserace Betting Levy Board IHBLBI; a project investigating the effects of sauna induced weighl1055 on jockey performance in conjunclion wth the British Horseracing Authority and Liverpool John Moores Univerxty: and an extension of our prevDus support of the Concussion Foundation looklng ot the long-tenn effects of concussion on retired jockeys. The annual Racing Foundation Conference was delivered in October 2024: with 304 delegotes registered: 100 free charity tickets provided by the Foundation to ensure cost was not a ba￿ler for attendonce; and subsidised lickets provided for young people in the eaTty stages of their horseracing careers. Keynote speakers included those from outside of racing, offering insights from other sports and industries, with the most notable speaker being Bob Langert, fomier Vice President of Corporote Social Responsibility ot McDonald's. The conference was delivered as a sustainable event and was used os an opportvnlty to raise awareness of the Foundation's work. Page 7 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 - Communications and news outlets 50w engagement levels increase over the previous year - the 2023 annual review video Ireleased eatly 20241 had a 66% increase in view5 from Ihe previou5 year. Website visits saw 0 43% increose in sessions. the Racing Foundation newsletter a 12% increase in svbscribers. With a focus on engaging stokeholders ond charities. the Linkedln account grew dramatically in 2024. It saw 0 75% increase in follower5 and 0 246% increase in impressions from Ihe previous year. Instagram. the Fovndalion's key plalfom for engaging the next generation of stokeholders. saw 0 30% increase in follower5 and 70% increase in impressions. 2024 saw the comms team create a fikTok account to engage this demogrophic further. amassing 1093 followers over the yeor. The Foundation wos also featured in 45 pieces of wtitlen (Jnd broadcast media. Prompt collaborollon - Foundotion staff contrrbuted to 14 racing industry w0￿1ng or sleering groups. - We oworded granls for Equine Science Research projects in collaboration with the HBLB and Gerold Leigh Charifoble Tnjst. - We awarded grants for community engagement projects in collaboration with the Racing Post and Godolphin. - We funded projects involving collaborallon be￿een industy stakeholders and 0150 project5 involving collaboration with non-racing organisotions. - The Foundation's Chief Execulive continued to Choir a racing induslry granlmokers, nefviork that led to a number of collaborative funding initiatives be￿een members. Olh•r support Throughout 2024, the Racing Foundation's Execulive Team provided odditional, non-financial support for charities. This is sometimes referred fo as 'Funder Plus. which is generally thought of as support from funders in oddilion to Ihe grant-making process. These aclivities may not hove o direct finanaal value, but they provide additional forms of assistance designed to help charities achieve their goals. During 2024 this included support to enhance the communication copabililies of racing charities ond projects.. recruitment support for communications and grant-making roles", sharing knowledge and best practise regarding Ihe delivery of more environmentally sustainable events," providing subsidised tickets for industy events for small charities: and providing a management training course aimed at the nexP generation of leaders. with representatives from 12 racing charities completing the course. FIr￿nCIal Revlew The Racing Foundation received its final payment from the Departrnent of Media. Cullure ond Sport in 2014.lts receipts have been placed with investment managers. with Ihe aim of preserving the capital over the long term and generating investment income to fund grant-making aclivities. The Foundation generated income from donations. grants, bank deposits ond investments amounting to £1 .8m12023: £2.7 m). Investment gains of £6m (2023: £4.4rn1 Occu￿ed. Expenditure lotalled £l.8m12023: £2.6m}, including grants of £l.2m {2023: £1.8ml. Thls figure reFffesents the value of grants awarded at the date Trustees approved them. Many awards are mvlti-year in nolvre despite the full cost being recognis8d in 2023 and in cash temis will be funded out ol future income. Overall. as at 31 December 2024 the Foundation's net funds stood at £90.1 m (2023: £84.2ml. Page 8 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 Reserves Pollcy and golng concem The Foundotion hos adopted o policy of maintaining the long-term Yeol capilal volue of oll receipts arising from the government's sole of the Tote and only spending the financial relwn derived from the capilal. This will ensure Ihat Ihe Tote sale proceeds generate a lasting legacy. which will benefil both cu￿ent and future generotions. The funds received from the Department of Culture Media and Sport as expendable endowment. are held separately in the accounts along wth a designoted fund. representing those fvnds received from the Department of Culture Media and Sport in 2012. which did not carry the expendable endowment restiiction on use. Whilst these monies came wthout restriction. the Tnjstees felt thot it was importanl to treat these as contribuling towards the long-tenn legacy of the Tote sale and placed an expendable endowment reslriction on them too. While Charity Lcm does not allow for these funds to be merged. they are treated identicolty. The Foundation also maintains o general reserve. This unreslricted fund 15 used to accumulate investment income prior to being spent on charitable grants ond costs associated with administering the Foundation. Invethnenl Pollcy and Performance The Foundation has an investment policy, which applies to oll monies held within the expendable endowment fvnd and the designated fund. The policy aims to maintain the real capital valve over Ihe bn￿terrn. whilst generating a sustainable level of retum to support Ihe grant-making activities of the Foundation. In order to control rfsk and volalility in the investment portfolio, Trustees have adopted a long-teTm annual expenditure target of al least 3% of the investment asset value. As a result. the Twstees have adopted on investrnent performance benchmark of inflation (as measured by the Consumer Prices Index) plus 3% per annum. in trie medium lo long temi ofter all costs. The Foundation used the services of the following investment managers during the year: Jomes Hombro and Parlners. Sarasin and Portners LLP, Jupiter Fund Management ond Dimensional Fund Advisors. The performance of Ihe5e investrnent managers is closely monitored by the Trustees. )Mth the ossislance of a specialist independent investment advi50r who also advises Trustees on reviewing and updating the investment policy. Perfomianc• The overall perfomance of investment managers exceeded the targets set for the year. T￿SleeS expected performance to reflect a net increase lin capital value and the generation of investment income) of 5.8%. Actual performan￿5 were: Manag•r James Hombro Sorasin Jupiter Dimenslonal 2024 kng•t 5.8% 5.8% 5.8% 5.8% 2024 acluol Targ•t from Inceptk>n 77.25% 56.44% 7.21% 7.21% Ach￿1 from Incepllon 715.49% 97.00% -1.74% 12.90% Page 9 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 This resulted in a gain on investrnenls of £6m12023: £4.4m). The Foundation investrnent5 are made for the long-term in line with our investment policy. based on Ihe professional advice we source. Plan$ for fvlvre Perfjods Followng o review of the 2024 strategy refresh and our 2021-2023 strat8gy performance, Ihe Foundation's Trustees have agreed a slrotegic plan for the period 2025 - 2027. A full overview of this strategy can be found on our website". ww.raclngfoundation.co.uk/abovt/key-documents but a summary of the key elements is provided below. Summary of Ihe Racing Foundalion's 2025- 2027 Strategy Our purpose is: To work in partnership wlh the racing industy to help achieve a sustoinable future for the sport. Our ambition is: To develop understanding and action around the key charitable issues facing racing and to assist the industry with developing a collaborative and strategic response. Ovr areas of focus are: l. Rocing's People- welfare. education, Iraining, recruitment ond retention 2. Equine welfore - safety. traceability, aftercare and equine science research 3. ESG - environment, social impact. youth & community engagement and occovntability Our approach to delivering against our focus areas is: -Build Understanding -Prompt Collaborolion -Fund Actlon Our role As requested by stakeholders, w8 will maintain our role as an enabler ralher than a leader. We will: - Continue working closely wth industry stakeholdeT5 and other grantmokers. - Support data gathering to inform decision-making. - ￿cOurage collaborolion. - Encourage the sharing of best-pra¢ti¢e. - Encouroge the setting of impact measures and accountability. - Consider supporling projects where potential benefits are scalable ond wlder reaching. Ovr annual budget We wll remain flexible and agile in our endeavours to balance the requirements of pre*nt beneficiaries for immediate support witt) the need to mainlain the value of our endowment fo support fulvre projects, charitable initialives and respond to emerging issues faced by the industry. During the 202&27 Strategy. our annual budget for grantmoking ond other charitable expenditure will be based on the market performance of our investments. although thls moy be reviewed and acfjusted at the discretion of our Trustees. Page 10 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31 ST DECEMBER 2024 A detailed operational plan and budget has been approved by Tnjstees for 2025 and performance 11 be reviewed at the end of the year to enable u5 to amend ovr strategy and set a detailed operational plan and budget for 2026. In undertaking the acllvities identified in the business plan Ihe Foundotion wll support the delivery of the outcomes identified in ils strotegy ond in doing so wll be delivering against its purpose. Prfnclpal Rtsks and Une•rtalnHos The principal risks identified by TnJstees together with the actions taken to mitigate these risks are set out below. Rl$k deKrl Ilon Slock m(wkel volalfflty: Market volotility may impact upon bolh levels of investment income generated and Ihe real value of tt)e funds held. Rlsk mlll amon The Trustees have consulted widety ond taken advice during the year on their investment policy and approach. Whilst no serious concems were raised for Ihe short-term. tt was agreed to toke some acllons to mitigate future risk. As a resvlt, an Investment Committee has been set up comprising the Chair, Iwo Twslees with investment monagemenl experlise and the CEO. This Committee conducted on investment govemance revK?w. produced on Endowment Governance Pollcy and revised Ihe role description for an investment consultant to support TnJstees with the management of the endowment. At the end of 2024 a tender process was commenced to appoint o new invesfmenl consultant with interviews scheduled for Jonuary 2025 and a new appoinlment to be made in February 2025. The new consultant wll be tasked with devebping, implèmenting and monitor the Foundation's Investment Poficy, including providing odvice on strategic and tactical asset ollocation, portfolio slnJcture. perfomonce benchmarks and investment mana er selection. At the beginning of 2024, 0 new agreement wth accovntonts. 5BC was implemented to miligate risks linked to the Fovndation preparing its accounts intemally and to add an additional layer of scrutiny. This also mitigated the risk of appointing a CEO with no accountancy background. SBCA now operate as a vlrtual financial officer and also provide direct 5UPPOrt with the Foundation's audit. Lack of conllnulty and Infraslrvclvre: The need lo replace Trustees ond the small staff numbers threaten continuity. An additional stoffing resource was vsed to support the COm￿lS and events team during Ihe yeor, including wth the delivery of the Raclng Fovndation conference. No need was idenlrfied to increase the number of full-time staff or infraslructure. Susannah Gill ended her term as a Trustee on Ihe 91h April 2024 having served 6 years as Tnjstee. It was agreed to wait Until Q l of 2025 to appoint her successor followng the pubfication of the Racing Foundation's 2025-2027 slrotegy and a review of the skill set requlrements for o new Trustee to help deliver the strategy. In the meantime. three Trustees, including the Choir, whose terms were due to end in January 2025 agreed, al Ihe end of 2024, to extend their temis to ensure continuity on the Board. As a result no rlsk was identified in waitin to recwit an ei hth Trustee in Q l of 2025. Pagell THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 Induslry allgnmenl: The Trustees decisions on priorities for use of the funds may be questioned by Industy stakeholders. The Trustees and staff continue to engage widely with stakeholders to infom activities and strategy. The Foundation adopts on approach that sees it align clearfy wth industry issues ond champion industry strategies. Dvring 2024 the Foundation worked closely with the Industry Programme Group {IPGI and continued to liaise wth other funders. includin the HBLB. The Trustees are satisfied thal Ihe Cu￿ent procedures protecl them as far as is reasonable and no serious threat has been identified as requiring action. IT fravd. cyber-allack. The general levels of IT fraud have escalated however no attacks have taken place In ear. Repvl¢thonal rf$k Issues raised about the Foundation or the projectslchariti8s we support COU￿ reduce the impact of our ivin Any issues raised about the Foundation's work or the projects that are being supported are investigated and addressed in a timely manner to miligate the risk of escalation. Trustees are made aware of all risks vio a quartety Executive Report produced by the CEO. which includes a risk register to svmmarise how any issves are being addressed and ovides subse uent u ates. Page12 THE RACING FOUNDATION STRATEGIC REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 The TnJ5tees have adopted o formal rfsk managerrEnt process to asses5 risk and implement risk manogement strategies. This process involves: - A quarterly review to identify the risks the Fovndotion may face. - The establishment of systems and procedures to mitigate Ihose risks. As a result of this process, the Trustees are satisfied that odequate procedures and systems are in place to effectively manage risk. Approved by order of the board of Iwstee5 on 41h June 2025 and signed on its behalf by: Mrs J K Budd - Chalr of the Board of TTUStees Page 13 THE RACING FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 ST DECEMBER 2024 The Iwstees who are also directors of the charify for the purpose5 of the Companies Act 2006. present their report with the financial statements of the chority for the year ended 31 st December 2024. The ITUStees hove odopted the provisions of Accounting and Reporting by Charilies: Statement of Recommended Practice applicable to charwlies preparing their accounts in accordance with the Financial Reporting Standard appficable in the UK and Republic of Ireland IFRS 102) (effective I January 2019). Inveshnent pollcy The investment policy applies to oll monie5 held within Ihe expendable endowment fund and the designated fund. Investments are slated at market value at the bolance sheet date, the cost of investments includes commission paid to the investment managers. The SOFA includes the net gains and losses arising on revaluations and disposols throughout the year. Inveslments held in foreign cuffencies have been valued on Ihe relevant basis and tronslated into sterling at ttie rate ruling at Ihe bolonce sheel date. Exchange gains and losses arising on translation are included a5 part of the change of market value in Ihe investments. STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng docvmenl The charity is controlled by its goveming document. a deed of Iwst. and constitutes o limited company, limlted by guarantee, as defined by the Companies Act 2006. STATEMENT OF TRUSTEES. RESPONSIBILMES The trvstees (who are also the directors of The Racing Foundation for the pvrposes of compony lawl are Tesponsible for preparing Ihe Trustees. Report and the financial statements in accordance with appficable law and United Kingdom Accounting Standards (Uniled Kingdom General￿ Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each finanaal year which give a true and fair view of the state of affai￿ of the charitable company and of Ihe incoming resources and application of resources. including Ihe income and expenditure. of the charitable company for that period. In preparing those financial statements. the Irustrees are requ￿ed to select suitable accounling policies and Ihen opply Ihem con5iStenNy: observe the methods and principles in the Charity SORP: rnake judgements and estimates that are reosonable and prudent: state whelher applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial stotements." prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in bu5ines5. The trustees are responsible for keepng proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable compony and to enoble them to ensure Ihat Ihe financial statements comply wth the Companies Acl 2CI)6. They are also responsible for safegvarding the 055ets of Ihe charitable company and hence for taking reasonable steps for Ihe prevention and detection of fraud and olher wregularities. Page 14 THE RACING FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31ST DECEMBER 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES - conllnued In so far as the trustees are aware". there is no relevant audit information of vhiich the charitable company'5 auditors are unaware: ond the trvslees have token all step5 that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors. Xeinadin, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the board of trustees on 41h June 2025 ond signed on its behalf by: Mrs J K Budd - Chair of the Board of Trustees Page15 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE RACING FOUNDATION Oplnlon We have audited the financial statements of The Racing Foundation Ithe 'charitable company.) for the year ended 31 December 2024 which comprise Ihe Statement of Financial Activities, the Balance Sheet, Ihe Cash Flow Statement ond notes to Ihe financial Statements. including a summary of significant accounting policies. The financial reporting fromewort that has been applied in their preparation is applicable low ond United Kingdom Accounting 5tondords (United Kingdom Generoi Accepted Accounting Practice). including ffnanci(Jl Reporling Standard 102 'The Financial Reporting standard applicable in the UK and Repub￿ of Ireland,. In our opinion the financial statements: - give a true and fair view of the state of Ihe choritable company's affairs as at 31 December 2024 and of its incoming resources and applicalion of resources, including its income and expenditure, for the year then ended; - have been properly prepared In accordance wth United Kingdom Generally Accepted Accovnting Practice, including Financial Reporting Standard 102'The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and - have been prepared in accordance with requirements of the Companies Act 2006. Bas1$ for oplnlon We conducted our audit in accordonce wth Intemationol Standards on Auditing IUKI IISAS {UKI} and opplicable law. Our responsibilities under those sfandards are further described in the Auditors, responsibilities for the audit of the financiol statements section of our report. We are independent of the charitoble compony in occordance wth the ethicol requirements that are relevant to our audit of Ihe financiol statements in the UK. including the FRC'S Ethical Stondard. 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 piovide o basis for our opinion. Conclvslons relatlng lo golng concem In ouditing the financial statements, we hove concluded that the trustees, use of the going concem basis of accounting in the preparation of the fnancial stalements is appropriate. ased on Ihe work we have performed, we have not idenlifEd any material uncertainties relaling to events or conditions that, individuolly or collectively. may cast significant doubt on the choritablè company's ability to continue os o going concem for a period of at leasl Iwelve monlhs from when the rinancial statements are authorised for issue. Ovr responsibilities and the responsibilities of the trustees wilh respect to going concern are described In Ihe relevant sections of thls report. Page 16 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBER5 OF THE RACING FOUNDATION Olher Infonnatlon The Irustees are responsible for the olher informotion. The ofher information comprises the informalion included in Ihe Annual Report. other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on Ihe financiol statements does not cover the olher informotion and. except to the extent otherwise explicitly stated in our report, we do nol express any form of assurance conclusion thereon. In connection wrth our audit of the financial statements, our respon5ibilily 15 to read the other information and, in doing 50, consider whether the other infomation is materially inconsi51ent ￿ryth the financial statements or our knowledge obtained in Ihe audit or otherwi* appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to o material misstatement in the financial statements thernselves. If. based on the work we have performed. we conclude that Ihere is a malerial misstatement of this olher information. we are required to report that fact. We have nothing to report in this regord. Oplnlons on other matters prescrlb•d by th• Companle$ Act 2006 In our opinion. based on the work undertaken in the course of the audit: the informotion given in Ihe Report of the Twstees for the finoncial year for which the financial slatements are prepared is consistenl with the finonciol statements", and the Report of the Trustees hos been prep￿ed in accordance wth appllcable legal requlrements. Mallers on whlch we are requlred lo report by excopll¢)n In the light of the knO￿edge ond understanding of the charitable company and its environment obtained in the course of the ovdit, we have not identif￿d motetial misstatements in the Report of the Trustees. We have nothing to report in respect of the follo￿ng matters ￿ere the Companies Act 2006 requires us to report to you if, in our oplnion: adequate accounting records have not been kept or retums adequate for our audit have not been received from branche5 not ViSFted by us". or the financial statements are not in agreement with the accounling records and relums: or certoin disclosures of trvstees. remuneration specified by low are not made; or we have not received all the information and explanations we require for our audit. Re5ponslbllllles of Irwtees As explained more fully in the Statement of Trustees. Responsibilities. the trustees {vAio are also the Directors of the charitable company for the purposes of company lawl are responsible for the preF)aration of the financial statements and for being satisfied that they give a Irue and fair view. and for such internal control as the trustees determine is necessary to enoble Ihe preparation of financial statements Ihat are free from material misstatement. whelher due to fraud OT e￿Or. In preparing the financial slatements. the twstees are responsible for assessing the charitable companys ability to continue a5 a going concem. disclosing. as applicable, matters relaled to going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the charitoble company or lo cease opgrations, or have no realistic altemative but to do so. Poge 17 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE RACING FOVNDA710N Ovr respon￿bIll11e8 for the avdlt of the financlal stalements Our objectives are to obtain reasonable assvrance about whether Ihe financial statements os a whole ore free from material misstatement, whether due lo fraud or e￿Or, and to issue o Report of Ihe Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee thot on oudil conducted in accordonce ISAS IUKI wll olways detect a moteriol misstalement when it exists. Missta*emenls can orise from fraud or error and ore considered motwial if. individually or in the aggregate. they could reasonably be expected to influence Ihe economic decisions of users taken on Ihe basi5 of these financial statements. Trie extent to which our procedures are Copable of detecting trregulorities. including fraud is detailed below: Ovr objectives in performing the audit are to identify and asses the risk of material misslatemenl in the financial statemenls due to fraud or error and lo obtain sufficient audit evidence to support this. We olso evaluate and respond to the risk of malerial misstatements. Audit procedures performed by Ihe engagement team included: Understanding the entity's current activities. assets and liabilities and comparing these to the charitable objeclives and aims. Enquiring of management and those charged wlh goveman¢e as to any known or suspected instances of non-compliance wilh laws and regvlotions, including fraud. Obtaining an understanding of the legal and regulatory framework opplicable to the entity and how the entity is complying wilh that framework. Evalvating the svsceptlblllty of the enlity's financial statements to material misstatement. including how fraud might occur. Confirmations from management ond those charged with governance a5 regards related parties. Gaining an Under￿anding of intemal control relevant to Ihe audil in order to design audit procedures that are appropriale In the circumstances. but not for Ihe purpose of expressing an oplnion on the effectiveness of the company's intemal control. Assessing the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the tfustees. whilst challenging assumptions made by those charged wlth govemance in the course of accounting estlmates. Identifying and testing manual joumal entries. Reoding minutes of meetings of those charged wth govemonce. Evaluating the overall presentotion, stwcture and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentallon. A further description of our responsibilities for Ihe audit of the financial statements is located on the Financial Reporling Council's website at www.frc.org.uVauditor5responsibilities. This description forms port of our Report of the Independent Auditors. Poge 18 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE RACING FOUNDATION Use of our report This report is made solely to trhe charwlable companys members. as a body. in accordance V*ith Chapter 3 of Part 16 of the Companies Act 2006. Our audit WOTk ho5 been undertaken so that we might state to the charitable company's members those matters we are required to 5tote to Ihem in an auditors. report and for no other purpose. To the fullest extent pennitted by law. we do not occept or assume responsibility to anyone other than the charitoble company ond the charitable companvs members as a body, for our audit worl for this report, or for the opinions we have fomed. Rosanna Turner ACA DChA (Senior Stalvtory Audilor) forond on behalf of Xeinadin 12 Conqueror Court Sittingboume MEIO 5BH 4.-ILLrfLQ 202 Page 19 THE RACING FOUNDATION STATEMENT OF ANANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2024 31,12.24 Total lunds 31.12.23 Total funds £'cKJo unre￿ricted Endowment funds fund £'ooo Notes INCOME AND ENDOWMENTS FROM Donalions and legacies 170 170 22 Investment income 1,654 1.654 2.081 Tolal 1.824 1,824 2.103 EXPENDITURE ON Raising funds 131 Charflable acmvllles Support costs Granls payable Governance - Twstee expenses Govemence - Auditorfs fee 468 1,774 468 1.174 581 1,820 21 21 20 Tolal 1,663 161 2,553 Net gains on investments 798 5,202 4,415 NET INCOME 959 5,041 3.965 RECONCILIATION OF FUNDS Total funds brought foward 2.341 81,838 84.171 80,214 TOTAL FUNDS CARRIED FORWARD 86.879 90.179 84,179 The notes fonm part of these financial sFatement5 Page 20 THE RACING FOUNDATION BALANCE SHEEr 31ST DECEMBER 2024 31.12.24 Total fvnds 31.12.23 Total funds £'coo Unrestricted Endowment fvnds fund £'ooo Noles FIXED ASSETS Tangible assets Investments 12 13 3.215 79,979 78,674 3217 79.979 83,196 78,676 CURRENT ASSETS Debtor5 Cash at bank 14 6.000 6,388 3,730 7.951 2,306 3218 6,900 10,118 10.257 CREDITORS Amounts falling due wthin one year 15 (1,964) (1.964) (3.063) NET CURRENT ASSEtS 6.900 8.154 7.194 TOTAL ASSETS LESS CURRENT LIABILMES 4.471 ,879 91,350 85,870 CRED￿ORs Amounts falling due after more than one year 16 (1,171) (1,171) 11.6911 NEf ASSETS 86.879 90,179 84,179 FUNDS Unrestiicted fund5 Endowment funds 17 3.300 86,879 2,341 81.838 TOTAL FUNDS 90,179 84,179 The financial statements were approved by the &oard of Trustees and authorised for issve on . and were signed on Its behalf by: J K Budd - Tnjstee The notes form part of IheE financial statements Page 21 THE RACING FOUNDATION CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2024 31.12.24 31.1223 Notes Cash Ik•WS from operallng adlvlHe3 Cash generoled from operation5 174 10.219 Net cash used in operating activities 174 10.219 Cash flows from Invesllng ocllvllies Purchose of fved asset investments Sale of fixed 055et investments Interest received (10.319) 11.799 277 {32.418) 31.153 370 Net cash provided byllused in} investing activities 1.757 895 Cosh flows from flnanclng aclMII•s Income attributable to endowment Expenditure attrlbutable to endowment 275 Net cash (used in}/provided by financing activities 144 Change In cash ond ¢osh equlvalents In Ihe reporflng wlod Cash and cash equlvalents at th• begSnnlng of the reportlng perlod IA22 (10.9701 13.276 Cash and Cash •qulval•nts at the end of th• r•porHng perfod 3.730 2,306 The notes form part of Ihe5e financial statements Page 22 THE RACING FOUNDATION NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2024 RECONCILIATION OF NEf INCOME TO NET CASH FLOW FROM OPERATING AcnvmES 31.1224 31.12.23 Net income for lh• reporllng perf¢xl (os per the Statom•nt Flnanclol Acllvllles) AdJu$lments for. Depreciation charges Gain on investments Interest received Income atlributable to endowment Expenditure attributable to endowment Decreasellincreasel in debtors Decrease in creditors 3,965 {é.£#Jo) (27n 14.4151 {370) (275) 131 {7.7511 1,504 161 1.564 Net cash used In opwallons 174 10.219 ANALYSIS OF CHANGES IN NE[ FUNDS Ati.1.24 £'oco Cash flow £'ooo Al 31.12.24 N•t coth Cosh at bank 1306 IA24 3.730 2,306 1,424 3.no Total 1,424 The notes fom part of these financial statements Page 23 THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS IOR THE YEAR ENDED 315T DECEMBER 2024 ACCOUNnNG POLICIES Bosls of preparfng Ihe flnonclal 31alements The financial statements of the chorwlable company. which is o public benefit entity vnder FRS 102. have been prepared in accordance with the Charities SORP IFRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Praclice applicable to chatities preparing their accounts in accordance with the Financial Reporting Standard opplicable in Ihe UK and Republic of Ireland IFRS 1021 {effective l Jonvary 20191.. Financial Reporting Standard 102 The noncial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial Statements have been prepared under the historicol cost convention, with the exception of investments which are inclvded at market value. a5 modified by the revaluation of certain assets. Going concem The Trustees have a reasonable expectation that the charity has adequat8 resources to conlinve in operational existence for Ihe foreseeable future and the company 15 well placed to manage its risks successfully. Accordingly. they adopt the going concem basis in preparing the annual report and accounts. Crlllcal accounffng Judgements and key K•urces ol esffm¢JHon uncertalnty In the application of the charity's accounting policies. the trustees ore required to make judgements, estimates ond assumptions about the carrying amount of assets and liobifilies thot are not readily apparent from other sowces. The estimates and associated assumplions are based on historical experience and olher factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and undertyrng assumptions are reviewed on an ongoing basi5. Revisions to accounling estlmales are recognised in the period in thich the estimate is revised where the Tevision affects only that period, or in Ihe period of the revision ond future periods where the revlsion affects both current and fulure periods. The key accounting estimates made by the trustees in preparing these financial stotement5 is in respect of depreciation as detailed in the occovnting policies. Incomlng resources Income is included in Ihe Stalement of Financial Activities (5oFAI when: - the charity becomes entitled to the resources; - the Tnjstees are virtually certain they will receive ttie resources; ond - the monetary value can be measured with sufficient reliability. Where incoming resources have related expenditure the incoming resovrces and related expenditure are reported gross in the SOF Grants and donations ore only included in the SOFA when the charity hos unconditional entitlement to the resources. Short term debtors are measured at transaction price. le55 any irnpairment. Page 24 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2024 ACCOUNTING POLICIES . contlnued Incomlng resources Investment income is included in the accovnls when due. Investment gains and losses include ony goin or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of ttie year. Expendltvre and IlablllHes Creditors and provisions are recognised where ttie charity has a present obligation resulting from a post event that will probably result in the transfer of funds lo a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nonnolly recognised at their settlement amount after allowng for any trade discovnls due. Govemance costs include costs of the preparation and audit of statutory accounts. the costs of Trustee meeting5 and cost of any legal advice to Tnjstees on govemance or conslrfutional matters. Where the charity gives a grant commtlment with condltlons for its payment being a specific level of seNice or output to be provided. such grants are only recognlsed In the SOFA once the recipient of the grant has agreed to provide the specified service or ovtput. Grants commitments payable wthout performance conditions are recognised in the accounts when a commitment has been made and there ore no conditions to be met relating to the grant which remain in the control of the charity. Support costs have been allocated lo actNity on the basis of staff lime and resources. Cash ot bank and In hand Cash at bank and in hand includes cash and short term highly liquid investmenls with a short maturify of three months or less from the date of acquisition or opening of Ihe deposit or similor account. Flnanclal Instruments The charity only has finoncial assets and financial liabifities of a kind that quafify as bosic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initialFy recognised at transaction valve and subseqvently measured at setNement value. Inveshnenl pollcy The Investment policy applies to all monles held v￿thin the expendable endowment fund and the deslgnated fund. Investments are Stated ot morket value at the balance sheet date, th8 Cost of inv8Stments includes commission paid to the investment managers. The SOFA include5 the net gains and losses arising on revaluations and disposols throughout the year. Investments held in foreign currencies hove been valued on the relevant basis and translated into steding ot the rate ruling at the balance sheet date. Exchange gains and losses arising on translation are inckjded as part of the change of market value in the investments. Page 25 continued... THE RACING K)UNDATION NOTES TO THE FINANCIAL STATEMEKfs . contlnved FOR THE YEAR ENDED 31 ST DECEMBER 2024 ACCOUNTING POLICIES - conllnued Tanglble fixed assets Tangible fixed assets for use by charity are capitalised rf they can be used for more than one year. and cost at least £l,OC(l. They are valued at cost or a reasonable value on receipt. Depreciation is provided on all tangible fLxed assets al rates calculated fo write off the cost on a straight-line basis over their expected useftjl economic lives as follows.. Office equipment over 4 years Investments are a form of bosic financial instruments and are initially shown in the financial statements at market volue. Movements in the market values of investments are shown os unrealised gain5 and losses in the Statement of Financial Activities. Taxollon The charity is exempt from corporation tox on its charitable aclivities. Funds General unrestricted funds are donatiorys and other income receNable or generaled for the object5 of the charity. Expendable endowment funds and designated funds are held separately from general unresfvicted funds. There is no requirement to spend or apply the capital from either of Ihese funds unless. or until. the Trustees decide to spend it. If the Tnjstees exercise the power to spend or apply the capital of the expendable endowTnent or designated funds, the relevant funds are transferred to unreslricted general funds in line with ttie terms of the original granl from the department of culture. media and sport. Penslon costs and other post-rellrement beneflls The choritable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme ore chorged to the 5totement of finoncial Activitie5 in the period to which they relate. Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as baslc flnancial instruments. Basic financial instruments, Including trade and other debtors and creditors are initial recognised at transaction value and svbsequently measured at settlement value. Page 26 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOR THE YEAR ENDED 31ST DECEMBER 2024 DONATIONS AND LEGACIES 31.12.24 31.12.23 £'ooo io 12 Donalions Conference Income 160 io 170 INVESTMENT INCOME 31.12.24 31.12.23 £'ooo 1,711 95 275 DNidends receivable Bank interest other Interest 1,377 31 1.654 2.081 RAISING FUNDS Investment management costs 31.12.24 31.12.23 £,￿0 102 29 Investment management lees Investment advlce 131 CHARITABLE ACTivifiES COSTS Grant funding of octivities (see note Support costs (see note 71 £'ooo 468 61 Totals Support costs Grants payable Govemence - Auditorfs fee 1,174 1.174 21 21 1,174 1.663 Page 27 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conlinved FOR THE YEAR ENDED 31 ST DECEMBER 2024 GRANTS PAYABLE 31.12.24 31.12.23 Grants payable 1.174 1.820 Page 28 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnved FOR THE YEAR ENDED 31ST DECEMBER 2024 GRANTS PAYABLE - conHnued Communlty Engag•m•nt: 31.12.24 31.12.23 Apiafi Associates Great British Racing British Horserocing Authority Greatwood Charity Racing lo School Jo Foster Racing National Horseracing Museum Racing Together Aut15m in Racing The Racing Centre The Urban Equestrian Academy Riding A Dream Academy 16 46 107 20 18 20 53 20 60 19 36 112 People: British Horseracing Authority The British Racing School Industry People Board Durham Universlty Urban Equestrian Academy Women in Racing National Association of Racing Staff National Horserocing College The Concussion Foundation Scottish Rocing Newmarket Charitable Foundation 85 53 24 153 84 20 64 35 98 30 319 122 117 20 Equlne: Horserace Betling Levy Board Retraining of Racehorses Horse Welfare Boord 321 87 Page 29 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conlinued FOR THE YEAR ENDED 31ST DECEMBER 2024 GRANTS PAYABLE - conllnued Envlronment and Emerglng Issues: British Horseracing Authority Jockey Club Stable Carbon Ltd Wodd Horse Welfare The Brftish Racing School 124 25 30 70 Adjustments to the current year grant expenditure in relation to prK)r year gronts awarded: 214 Tolal granl •xp•ndllvre Grants redvcedlwlthdrawn: People: Racing Welfare University of Liverpool National Hor5erocing College Durham University Imperial College London University of Exeter 1781 1201 {io) {io) (9) 29 Equlne: Horse Welfare Board Horserace Betling Levy Board 1871 {11} Communlty Engagemenl: Future Proof {12) Adjustments to the current year grant expenditure in relolion to prior year grants withdrcmn: Net granl expendllure 174 Page 30 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOR THE YE AR ENDED 31ST DECEMBER 2024 GRANIS PAYABLE . contlnved All gronls were made to organisations. No grants were mode lo incfividuals. SUPPORT COSTS Infomotion technology Monagement ￿nance £'oc £'ooo 297 Support costs Govemence - Auditorfs fee 69 297 69 Govemance cosls Olher £'ooo 75 Totats £'ooo 21 21 Support costs Govemence - Avditorfs fee 21 75 42 NET INCOME/(EXPENDITURE) Net incomellexpendilurel is stated atter charging/(crediling): 31.12.24 31.1223 The auditing of accounts of any associate of the charity other operatlng leases 21 20 15 TRUSTEES, REMUNERATION AND BENEFITS There were no Irustees. remvneration or other benefits for the year ended 31 st December 2024 nor for the year ended 31 st December 2023. Page 31 continved... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 ST DECEMBER 2024 TRUSTEES, REMUNERATION AND BENEFITS . conllnued Trusl••s' expen$e¥ Trustee's expense5 of £365 12023: £600) are included in charitable activities. ￿enSeS were imbursed to 3 trustee512023: 5}. I O. STAFF COSTS 31.12.24 31.12.23 Woges and salarles Social securfty costs Olher pension cost5 230 239 27 22 279 283 The average Monthly number of employees during the year was as follows: 31.12.24 31.12.23 Employees Key management personnel incurred total remuneration costs of £202k during year (2023: £182kl. l employee eamed between £9&1 Ook during Ihe period {2023: 1- £90-95k). I I. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcnvmES Unrestrfcted Endowrnent funds fund £'ooo Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 22 22 Investment Income 1,806 275 2,081 Total 1.828 275 2.103 EXPENDITURE ON Raising funds 131 131 Charflable aclfvllles Suppcjrt costs Grants payoble Govemance- Truslee expenses Govemance- Auditorfs f88 581 1.820 1,820 20 20 Page 32 continved... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conNnued FOR THE YEAR ENDED 31ST DECEMBER 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - conllnued Unrestricted Endowment funds fund £'ooo £'OCM) Total funds £'ooo Tolal 2,422 2.553 Net gains on investments 587 3.828 4.415 NEf INCOMEI(EXPENDITURE) {71 3.972 3.965 RECONCIUATION OF FUNDS Total funds brought forward 77.866 80.214 TOTAL FUNDS CARRIED FORWARD 2,341 81,838 84,179 12. TANGIBLE FIXED ASSEtS Computer equipment COST At 1st January 2024 and 31st December 2024 15 DEPRECIATION At I st January 2024 8iminated on disposal 14 Al 31 st December 2024 13 NEf BOOK VALUE At 31 st December 2024 At 31 st December 2023 Page 33 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOR THE YEAR ENDED 31 ST DECEMBER 2024 13. FIXED ASSET INVESTMENTS LI￿ed investments MARKET VALUE At Ist January 2024 Additions Disposals Revaluations 78,674 10,319 (11,799) At 31 sl December 2024 83.194 NEf BOOK VALUE At 31 st December 2024 83,194 At 31 st December 2023 78,674 All investments held by the Foundotion are registered on recognlsed UK, USA and International stock exchanges. The market value of fixed osset investments al the year-end date is £83.193k12023: £78,676k). The historical cost of fixed asset investments is £67.095k. 14. DEBTORS 31.12.24 31.12.23 £'ooo 1,530 275 other debtors Prepayments & Accrued Income 1,570 228 1,798 1.805 Amounts falling due after more than one year: Olher debtors 4.590 6,146 Aggregate amounts 6,388 7,951 Page 34 conlinued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOR THE YEAR ENDED 31ST DECEMBER 2024 15. CREDITORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 31.12.24 31.12,23 £'ooo 2.990 Grant Commitments < l Year Social security and other taxes other creditors Accwed expenses 1.888 15 61 69 1.964 3,063 Id. CREDtroRS: AMOUNTS FALUNG DUE AFTER MORE THAN ONE YEAR 31.1224 31.1223 Grant commilments > l year 1,691 17. MOVEIAENT IN FUNDS Net movemenl in funds £'ooo At 31.12￿4 Al 1.1.24 £'ooo Unreslrlcted funds General fund 2J41 959 Endowmenl funds Expendable endowment 81.838 5,041 86A79 TOTAL FUNDS 84.179 90.179 Net movement in funds. included in the above are as follows: Incomlng resources £'ooo Resources expended £'ooo Gains and Movement losse5 in funds £'ooo £'ooo Unresfrlcled lunds General knnd (1.663) 798 ?59 Endovfflienl funds Expendable endowment (161) 5202 5,041 TOTAL FUNDS 1.824 Page 35 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conffnved FOR THE YEAR ENDED 31ST DECEMBER 2024 17. MOVEMENT IN FUNDS - contlnued Comparallves lor movement In funds Net movement in fund5 £'ooo Transfers befv4een funds £'o At 31.12.23 £'OQM) Atl.1.23 £'ooo Unre$lrlcled lund¥ General fund Designated 19.794) 12.142 (7) 12,142 12,142) 2,341 2,348 17) 2,341 Endowment funds Expendable endovrnent 77.866 3.972 81.838 TOTAL FUNDS 80,214 3,965 84.179 Comparative net movement in funds. included in the above are as fcllows: Incoming resources £'ooo Resovrces expended £'ooo Gains and Movement 1055es in funds Unreslrfcled funds General fund 1,828 {2.4221 587 17) Endowmenl Ivndl Expendable endowment 275 {131) 3,828 3,972 TOTAL FUNDS 2,103 2.5531 4.475 3.965 Page 36 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnu•d FOR THE YEAR ENDED 31ST DECEMBER 2024 17. MOVEMENT IN FUNDS - Conllnved A current year12 months and prior year 12 months combined posltion is as follows: Net movemenl in funds £'ooo Transfers be￿een funds £'c(Jo At 31.12.24 Al 1.1.23 Ilnreslrlcted funds General fund Designated 19.7941 12,142 952 12.142 12.1421 3,300 952 3.300 Endowment lunds Expendable endowment 77.866 9.013 86.879 TOTAL FUNDS 80.214 9.965 90,179 A cuffent year 12 months and yior year 12 monlhs comblned nef movemenl in funds. included in the above are as follows: Incoming resources Resources expended £'ooo Gains and Movement losses in funds £'ooo £'ooo Unreslrfcled funds General fund 3,652 14,0851 1.385 952 Endowment funds Expendable endowm8nt 275 1292} 9.030 9.013 TOTAL FUNDS 3,927 10,415 9.965 Poge 37 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS . continu•d FOR THE YEAR ENDED 31ST DECEMBER 2024 RELATED PARTY D15CLOSURES Grants During the year, no grants were awarded to the Jockey Club12023: £25kl. Julia Budd was Chair ond a Trustee of the Racing Foundation and Member of the Jockey Club during the year. Rishi Persad wa5 a Trustee of the Racing Foundotion and a Member of the Jockey Club during the year. At the year end the balance due to the Jockey Club was £012023: £01. During the year. no gront5 were awarded to the British Racing School12023: £36kl, although one grant of £l12k was made to the Riding A Dream Academy12023: £0}. which is now part of the British Racing School. Julia Budd was Chair and a Trustee of the Racing Foundation and Chair and a TTUStee of Ihe Brifish Raclng School during the year. At the year end the balance due to Ihe British Racing School was £Ok {2023: £28k) and the bolance due to the Riding A Dreom Academy (including prior year gronl commitments) was £185k. During the year, one grant of £19k was mode to Racing to School12023: £18kl. Susannah Gill was a Trustee of the Racing Foundotion vntil 9th April 2024 and an Ambassador for Racing to School during the yeor, although Ihe grant award was made after she had resigned os a Racing Foundation Trustee. At the year end the balance due to Racing to School was £0. During Ihe year no grant512023: £0} were mode to the Thoroughbred Breeders Association, no grants 12023.. £01 lo the National Trainers Federation. no grants 12023: £01 to The Professional Jockeys Association and no grants12023: £35kl to the National Association of Rocing Staff. All these bodies are Members of the Thorovghbred Group. who are one of the three Members of the Rocing Foundation. At the year end the balance dve to the Thoroughbred Breeders Association was £55k12023: £144kl and the Notional Association of Racing Staff was £0 (2023: £35k). During the year, one grant of £85k (2023: £284k) was mode to the British Horserocing Authority. {BHAI. The BHA is one of the three Members of the Racing Foundation. At the year end the balance due to th8 BHA was £79k12023: £237kl. Olh•r pqyments During the year. £1,162 was paid to the British Racing School for room hire and catering costs for Racing Foundallon meetings and events. Jufia Budd was Chair and a Trustee of the Raclng Foundation and Chair and a Trustee of the British Racing School during the year. During the year, £1,000 was paid to Racing to School as a bursary lo subsidise the cost of tickels for small charities attending the Racing to School/Racing Together 'lndustry Dav community engagement conference. Susonnah Gill was a Twstee of the Racing Foundation until 9th Apnl 2024 and an Ambassador for Racing to School dvring the year. D(ring the year, £260 wos paid to Ihe Thoroughbred Breeders Association ITBAI to cover Ihe expenses for guest speakers at the Racing Foundation conference. The TBA 15 a member of the Thoroughbred Group, which is one of the three Members of the Racing Foundation. Page 38 continued... THE RACING FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnved FOR THE YEAR ENDED 31ST DECEMBER 2024 18. RELATED PARTY DISCLOSURES - conllnved During the yeor, £189 was paid to the Raceho￿ Owners Associalion (ROA) to cover the expenses for guest speakers at the Racing Foundation conference. The ROA is o member of the Thoroughbred Group. which is one of the three Members of the Racing Foundalion. During the year, £601 was paid to Russell Reynolds Associates. to cover catering costs for Racing Foundation events and meetings held at the companys offices. Meeting rooms were provided free of charge. Julia Budd was Chair and a Tnjstee of the Racing Foundation and a Partner ot Russell Reynolds Associates durlng the yecy. Page 39