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2022-12-31-accounts

(A Charitable Company limited by guarantee and not having share capital)

Report and Financial Statements

Year Ended 31 December 2022

Charity No: 283656 Company No: 01592031

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Contents

Page:

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022

The Trustees of The National Horseracing Museum (hereafter referred to as the Charitable Company) are pleased to present their report together with the financial statements for the year ending 31 December 2022.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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).

epublic of Ireland (FRS 102).
Charity Number: 283656
Company Number: 01592031
Registered Office and Palace House, Palace Street, Newmarket, Suffolk, CB8 8EP
Operational Address:
Auditors: RSM UK Audit LLP, Blenheim House, Newmarket Road, Bury St
Edmunds, Suffolk, IP33 3SB
Bankers: Barclays Bank plc, 58 High Street, Newmarket, Suffolk,
CB8 8GL
Weatherbys Bank, Sanders Road, Wellingborough, Northants, NN8
4BX
Investment Managers: Evelyn Partners, 25 Moorgate, London, EC2R 6AY
Museum Director: Anne-Marie Hogan (until 3 June 2023)
Company Secretary: Anne-Marie Hogan (until 2 May 2023)

Directors and Trustees

The Directors of the Charitable Company are its Trustees for the purpose of law and throughout this report are collectively referred to as the Trustees.

Hon. Frances Stanley - Chair John Chatfeild-Roberts Brian Finch Sally Goodsir - resigned 26 January 2023 Annette Green Paul Lindsell Nicholas Luck Paul Taiano Richard Fletcher - resigned 27 October 2022 Ben Hanbury - resigned 26 January 2023 Lady Jane Grosvenor Jonathan Benson Adam Signy - appointed 28 April 2022 Paul Ogburn - appointed 28 April 2022

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Structure, Governance and Management

The Charitable Company is limited by guarantee and governed by its Memorandum and Articles of Association dated 16 October 1981. Under part 5, Section 60 of the Companies Act 2006, it is exempt from the requirement to use the word limited after its name. It is registered as a charity with the Charity Commission.

The Trustees determine the general policy of the Charitable Company and are elected in accordance with the Memorandum and Articles of Association. The day-to-day management of The National Horseracing Museum (the Museum) is delegated to the Museum senior staff (collectively referred to as the Executive). The National Horseracing Museum is the legal entity responsible for running the Museum at Palace House, Newmarket.

The Trustees are responsible for the preparation of financial statements, ensuring that they give a true and fair view of the results and financial soundness of the Charitable Company.

The Charitable Company has no share capital and is limited by guarantee. Each Trustee is a member of the Charitable Company and is a guarantor who undertakes to contribute to the assets of the Charitable Company, in the event of it being wound up, such amount as may be required, not exceeding £1.

The Trustees delegate authority on all strategic and day-to-day matters to the Executive. However, the following reserved matters require Trustee approval:

While new Trustees will be asked to respect the Executive’s responsibility for the operation of the Museum, Trustees may also be asked to mentor a senior member of the Museum staff working in an area which corresponds to their own professional expertise.

Appointment of Trustees

Appointment or removal of Trustees is in line with Charity Commission guidelines RS1 and in compliance with the Charitable Company’s Trustees Recruitment Policy.

At the Trustees’ Board meeting of 29 July 2019, it was agreed that, in order to extend the range of the Board’s professional expertise, better reflect our audience, and improve the diversity of Board representation, the Board should regularise the terms of its membership. These new terms are enshrined in the new drafting of the Museum’s Memorandum and Articles adopted 6 January 2021.

To summarise these terms, it was agreed that:

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

The Trustees will be asked (i) to ensure that the Museum runs smoothly and effectively by supervising and monitoring the performance of the Museum’s operation in accordance with the sector’s standards of good practice and the principles of transparency, diversity, equality, and fiscal sustainability and (ii) to assist the Executive to identify, cultivate and harness potential sources of external funding for core projects.

The appointment of Trustees is by proposal according to the skills requirements of the Charitable Company and requires a unanimous positive vote. The recruitment process focussing on the need for all Trustees to come from a variety of backgrounds, personal & experiential; ideally bringing experience in Finance; Higher Education; Museums (Policy/Operations and Collections); Events/Catering; Marketing and the Voluntary Sector.

Representation at Board meetings includes members of the Local Authorities (specifically one observer/attendee each from Suffolk County Council and West Suffolk District Council). To date, there has never been the need to remove a Trustee from office.

Trustees Induction and Training

Upon appointment, Trustees are given advice outlining their role and responsibilities to the Charitable Company. Provision is made for external training of Trustees if necessary.

Related Parties

A separately registered charity exists in connection with the Museum, in the name of The Friends of the National Horseracing Museum (registered charity number 291154). Given its independence hitherto, the Friends’ results are not incorporated within these financial statements. The Friends make regular gifts to the Museum in the form of pictures or other artefacts or provide funds to support purchases or other projects in line with the Objectives and Activities outlined in their Constitution. The basic object of the charity as defined with the Charity Commission is ‘…the education of the public by promotion, support, assistance and improvement of the National Horseracing Museum through the activity of the group of Friends.’

During the year donations towards acquisitions to the Museum’s collections were received from the Friends to the value of £995 (2021: £4,000).

The National Horseracing Museum holds 100% of the issued share capital of Palace House Trading Limited, a company registered in England and Wales. The principal activities of Palace House Trading are detailed in note 17 to the financial statements.

Pay policy for key management personnel

The Trustees consider that they, along with the Executive, comprise the key management personnel in charge of directing and controlling, running, and operating the Charitable Company on a day-to-day basis. All Trustees give of their time freely, and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in notes 12 and 26 to the accounts.

The pay of the Executive is reviewed annually. In view of the nature of the Charitable Company, the Trustees benchmark pay against levels in other provincial museums of a similar size. We follow Museums Association “Pay in Museums” guidance to ensure fair pay for all. Executive salaries are set by recommendation of the Audit & Performance Committee to the Chair of the Board.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Risk Management

The Trustees consider that the principal risks faced by the Charitable Company are generating sufficient income on an annual basis, which historically has principally been from grants and donations, to fund its charitable activities and attracting increasing visitor numbers to generate income from attending the Museum and purchasing the goods, services and events provided by the Charitable Company’s subsidiary, Palace House Trading Limited.

The Trustees regularly review the financial performance and position of the Museum to ensure that unrestricted working capital is available to support present and future levels of operation, with the longer-term goal of increasing the level of the Museum’s Endowment Fund (see also Reserves Policy below) such that it is sufficient to generate a level of income which substantially funds the charitable activities.

The Charitable Company maintains a Risk Register which is reviewed by the Audit and Performance Committee on behalf of the Trustees, to assess major operational and business risks faced by the Charitable Company. It is believed that the appropriate actions are in place to mitigate significant risks.

Objectives and Activities

The National Horseracing Museum was founded to be a world-class museum using our prestigious heritage site, nationally recognised art and heritage collections, special exhibitions, and activities to celebrate the rich history of horseracing in the UK with a special focus on the contribution that Newmarket and surrounding areas has made and continues to make to the growth of a major worldwide sport and industry.

Its purpose, as set out in the Charitable Company’s Memorandum of Association, is:

‘to promote public interest in the preservation of all articles of historical or scientific interest in connection with racehorses and persons and places connected with racehorses and to enlarge the Museum’s network of partnerships within the education, racing industry and museums sectors to mutual benefit and for the benefit of the public. ’

Key aims as set out in the Museum’s Forward Plan, approved by the Trustees, are:

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Public Benefit

The public benefits principally from the preservation and conservation of this nationally important collection of racing works of art, social history objects, archival documents, and photographs. Members of the public are able to view the exhibitions in person and increasingly, online and to use the research services of the Museum.

The Museum also provides wider social benefit through the provision of greatly improved facilities and services for families and young people and through much improved educational facilities and learning programmes. The organisation works hard to engage the local community beyond the core racing audience. A community outreach programme has integrated the National Horseracing Museum into the life of Newmarket and its diverse communities, as well as those of the surrounding area.

All three elements of the Museum’s extensive premises are fully accessible in accordance with the provisions of the Disability Discrimination Acts (1995 & 2005). In addition, displays enhance intellectual access to the Museum in order to attract audiences of all ages and backgrounds to engage with the historical and cultural life of Newmarket, while its education and community outreach programmes support life-long learning both for specialist groups and for general audience alike, thereby contributing to the formal and informal learning offer in the region.

Economic Benefit

The Trustees are aware that the public’s opportunity to benefit must not be limited by geographical or other restrictions. Although the Museum is based in Suffolk, visitors come from all over the UK and abroad. As part of other audience development planning, the Trustees discuss the public benefit requirements to ensure the Museum’s activities continue to enhance the participation and enjoyment of as many sectors of the public as possible.

The Trustees believe they comply with the duty in Section 4 Chapter 1 of the Charities Act 2011, having due regard to the public benefit guidance published by the Charity Commission.

Achievements and Performance

The Museum started 2022 with the real possibility of future COVID-19 lockdowns. In the event the Museum was able to remain open all year although many visitors were slow to return to visitor attractions due to health concerns. However, with a comprehensive programme of events and special exhibitions 18,601 visitors came through the door and we matched the visitor numbers we achieved in 2019 the last full year of trading prepandemic.

We were the recipients of new support from the Arena Racing Foundation and with the donation and sale of three maquettes the Museum was able to end the year with healthy cash and investment balances, which will be key in supporting our expanding programme in 2023. In 2022 NHRM welcomed 1,099 pupils, 174 with English as an additional language, 193 recipients of Pupil Premium and 23 with a disability.

The Museum participated in the nationwide Holiday Activity Fun Programme which took place in July and August supported by the Sir Peter O’Sullevan Trust and West Suffolk County Council. We engaged with over 70 families and 165 children with the activity targeted at children in receipt of free school meals. This programme was extended to include the October half term and Christmas holiday period.

In September, following local research highlighting a gap in the provision and high demand for early learning for nursery age children, we launched Little Horseshoes. Designed and hosted by an experienced Early Years Lead teacher sessions encouraged development across a range of early years milestones and were oversubscribed.

In 2022 we continued to participate in the KickStart scheme which ended in October 2022. This scheme offered young people, aged between 16-24 on Universal Credit and at risk of long-term unemployment, six-month job placements. We hosted six placements between May and October 2022. All those who took part reported huge improvements in their confidence in the workplace and all six of participants secured jobs immediately after leaving us.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Achievements and Performance (Continued)

We are signatories to the Kids in Museums manifesto and a destination for the Children’s University in Suffolk. We organise a full programme of creative family activities and trails including free or low-cost events for local families throughout the year. During the school holidays, we provide children in receipt of free school meals with a nutritious lunch through the Suffolk Holiday Activity Programme, funded by West Suffolk and Suffolk Councils. We promote our events through local schools and support networks such as Suffolk Young Carers, Job Centre Plus and Newmarket Community Arts. Our creative family programming has brought in diverse family groups, many of whom have not visited before.

In August we welcomed over 60 Ukrainian refugees and their host families to the museum for guided tours, creative activities and afternoon tea. We have extended our £10 Annual Pass, to include residents within a 15-mile radius, and free entry for stable staff, many of whom are young people from low-income households.

Our volunteering programme has a strong wellbeing element, enabling local people from a range of backgrounds to make connections, learn new skills and develop confidence. We also support volunteers with a range of disabilities and mental health conditions. A number of our volunteers have gone on to employment following their volunteer experience.

We are part of the Newmarket Dementia Alliance, committed to welcoming people with dementia, and work closely with the local dementia café, who have visited. We are also working with Vibrant Communities to reach people living in care homes who may be experiencing isolation – especially as a result of the pandemic. We continue to work with Racing Welfare to reach older people at risk of isolation and we have run a free membership scheme with them and staged joint coffee mornings. In 2022 we completed our work to deliver access to our collection online.

In 2022 we were the recipients of two awards, being awarded runner up in the 2022 Suffolk Museum of the Year Awards in the large museum category and we received the award of Highly Commended for our work on the Suffolk Refugee Project in partnership with Sussex Archives and for work in the community particularly in support of young people. We were also awarded a Visit England Gold Accolade for the second consecutive year.

During 2022 the Museum benefited from National Portfolio Organisation (NPO) status, awarded by Arts Council England (ACE), and from the National Lottery Heritage Fund (NLHF). These two bodies provided support in the form of grant funding. Going forward the Museum was informed in November 2022 that it would be no longer a recipient of Arts Council England funding in the 2023-26 funding programme and as such would lose its NPO status.

The Museum’s Collection and Acquisitions

The Museum responds to offers for objects on loan and available for purchase, proactively sourcing loans, and acquisitions in line with its Collections Development Policy, with particular focus on securing long-term material for the displays at the Museum. The Trustees are grateful to all those who have supported the development of the Museum through either gifts or loans to the collections. The Collection Development policy was reviewed and agreed by the Trustees in July 2021.

As part of the Arts Council’s Acceptance in Lieu Scheme the Museum was fortunate to receive a painting ‘Lord Henniker’s grey mare ‘Fairy’ in a stable by Sir Edwin Landseer (1802-73). This painting is one of a pair with Lord Henniker’s bay mare ‘Brunette’. The Museum is fortunate to already have ‘Brunette’ on loan from a private collection and on public display in the Fred Packard galleries of Sporting Art (Palace House). The addition of ‘Fairy’ will unite these paintings and allow them to be seen together, as originally intended.

The Museum also acquired “The Stewards” Silver Cup” - A George IV silver horseracing trophy and cover. The Cup was made in 1825 by Rebecca Emes and Edward Barnard and is decorated with foliage, acanthus leaves and trailing vines. The cover has a fine, cast, standing horse finial. The centre section is engraved “Northallerton Races 1835 The Duke of Leeds The Hon’ble Col. Arden Stewards”. The Cup adds considerably to the Museum’s collections relating to racecourses of the past.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

The Museum continues to maintain the standards expected of a ‘National’ Museum as set out by the Arts Council Registration and Accreditation Schemes and continues to ensure the highest possible standards of collections care and documentation. Full Accreditation is due to be renewed in 2023.

The Trustees remain most grateful for the support received during the year from charitable trusts and foundations, generous private donors, and supporters and in particular the British Sporting Art Trust, the Racing Foundation, Arena Racing Company and the NLHF.

Special Exhibitions

The 2022 special exhibitions programme in the Moller Gallery, Thompson Gallery, and Palace House included:

We intend to further our relationships with national and international exhibition partners in future years and are currently developing plans for online as well as onsite exhibitions.

Discover Newmarket and The Newmarket Business Improvement District (BID)

The Museum has continued to work with the local joint venture Destination Management Organisation, Discover Newmarket (CIC registration number 09362242), to offer tours of the Museum and other horseracing attractions in the area. In 2022, Discover Newmarket organised visits to the Museum that contributed £12,368 to its income.

The Museum is also a subscriber to the Newmarket BID ‘Love Newmarket’, which aims to see a regeneration of the town’s High Street area and its prosperity.

Volunteers

The Management and Trustees are indebted to the volunteers who assisted the Museum during 2022. Our volunteering programme, with participants from a variety of non-traditional volunteering backgrounds, has continued to deliver successful engagement and has maintained a stable level of over 80 regular volunteers. The volunteers contribute enormously to the experience of visitors and provide an increasingly important resource in supporting curatorial work. As is explained in the accounting policy on page 19, no financial value is placed on the services provided by volunteers.

Fundraising

During 2022 the Museum was the grateful recipient of £325,080 from the sale of three maquettes kindly donated by Charlie Langton.

In 2022 the Museum engaged with a private fundraiser to assist with its fundraising activities and confirms that it has not received any complaints concerning its fundraising activities.

Diversity

The Museum is committed to encouraging diversity and eliminating discrimination – both visible and invisible. Our aim is that our approach to working with partners and stakeholders, audiences, and participants as well as our own workforce, should be truly representative of all backgrounds and perspectives.

The Museum remains committed to focusing on the following protected characteristics most relevant to our region, our mission, and our collection, notably: age (both older groups and young people), socio-economic deprivation, disabled visitors, and minority ethnic groups – particularly foreign nationals working within horseracing in Newmarket.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

We aim to ensure equality and fairness for all partners, stakeholders, audiences and participants, trustees, members, volunteers, and employees. We will not discriminate because of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, ethnic origin, nationality, national origin, religion, belief or sex and sexual orientation, and we oppose all forms of unlawful and unfair discrimination .

Financial Review

The consolidated net income for the year, before transfers and net gains/losses on investments derived from donations, investments and activities designed to generate funds, was £45,394 (2021: £367,254) and net expenditure of £230,459 (2021: £636,823 income) after net gains/losses on investments.

Within total net income we incurred a surplus for the year on unrestricted general funds of £168,918 (2021: £167,554). This is stated after transfers between the designated, restricted and endowment funds of a total of £265,175; comprising £714,764 from the restricted fund (2021: £467,963), £442,215 to (2021: £107,012 from) the endowment fund and £7,374 (2021: £514,511) to the designated fund. This leaves a balance carried forward on group unrestricted funds of £770,026. After deducting the amounts represented by Heritage Assets and Other Tangible Fixed Assets, this leaves a balance of free reserves at group level of £487,654. Free reserves at charity level are £403,758.

The Trustees are pleased that the free reserves at group level of £487,654 exceed their aim of three months of operating costs of approximately £300,000 (for further detail see the reserves policy paragraph). The Museum management team’s planning goal will continue to be building the profitability and financial resilience for the medium and long term with less reliance on grants from the National Lottery Heritage Fund.

The overall year-end balance of unrestricted, designated, and restricted funds was £14,131,676 (2021: £14,891,509), excluding endowment fund balances of £3,926,171 (2021: £3,396,797) (see note 23).

A key feature of the Museum’s financial structure is its endowment fund. The endowment fund is comprised of permanent endowments of £2,861,532 (2022: £2,365,797) and expendable endowments of £1,064,639 (2022: £1,031,000). Further details on purpose can be found in note 23.

Reserves Policy

In line with guidance published by the Charities Commission, the Trustees are concerned to establish an adequate level of unrestricted reserves to enable the organisation to carry out its charitable objectives and to safeguard its activities in the event of unplanned financial challenges.

The Museum currently holds an endowment fund of £3,926,171, restricted funds for specific purposes of £306,580, designated funds of £13,055,070 and an unrestricted operational fund of £770,026.

The Trustees' policy is to build the endowment fund to such a level that the income from it will be sufficient to cover the core operating costs.

The Trustees' policy with regard to free reserves (funds not tied to fixed assets, designated, or restricted funds) has been to maintain sufficient resources to meet its obligations as they fall due. Mindful of the need to protect the organisation against future financial challenges through either unplanned operational costs, loss of grant income or unexpected reductions in commercial income, the Trustees are pleased that for the first time last year the level of free reserves at group level exceeded its target of three months of operating costs of approximately £300,000. The Museum Executive’s planning goal will continue to be building profitability and financial resilience for the medium and long term.

In line with Charities Commission advice, financial performance will be kept under regular review by the Audit and Performance Committee, under delegated authority from the full Board, and will be reviewed annually by the full Board in order to ensure that there is an appropriate balance between monies tied up in free reserves and sums available to be spent for charitable activities.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Future Plans

The Trustees and Executive are working on securing continuity of existing grants and seeking new sources of income to establish long term financial equilibrium in the Museum's day-to-day activities through:

Investment Policy

Management of the Charitable Company’s investment portfolio is delegated by the Trustees to Evelyn Partners, who advise the Trustees on investment performance. The investment advisors are given the freedom they need to achieve the best results practicable in the circumstances without specific constraints on such matters as social, ethical, or environmental considerations.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for at least the next 12 months. For this reason, they continue to adopt the going concern basis in preparing the Charitable Company’s financial statements. Full details of the Trustees' reasoning for the adoption of the going concern basis are included in the going concern note in the accounting policies section of the financial statements.

Trustees’ Responsibilities for the Financial Statements

Charity law and company law both require the Trustees (who also act as Directors for the purposes of company law) to prepare for each financial year financial statements which give a true and fair view of the state of affairs of the Group and the Charitable Company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Trustees are required to follow best practice and:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charitable Company 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 Group and the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Report of the Trustees for the year ended 31 December 2022 (Continued)

Auditors

A resolution to reappoint RSM UK Audit LLP, Chartered Accountants, as auditors will be put to the Trustees at the Annual General Meeting.

Statement as to disclosure of information to auditors

The Trustees who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

30th October 2023

By order of the Trustees on ……………………………

……………………………………………………………..

Hon. Frances Stanley (Chair of Trustees)

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Independent Auditor’s Report to the Members and Trustees of The National Horseracing Museum

Opinion

We have audited the financial statements of The National Horseracing Museum (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities incorporating the Income and Expenditure Account, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 group and parent 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 group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Independent Auditor’s Report to the Members and Trustees of The National Horseracing Museum (Continued)

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 the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or parent 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

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THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Independent Auditor’s Report to the Members and Trustees of The National Horseracing Museum (Continued)

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Report of the Trustees, remaining alert to new or unusual transactions which may not be in accordance with the governing documents and inquiring of management whether the company is in compliance with these law and regulations.

The group audit engagement team identified the risk of management override of controls and the completeness of income as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business, and performing tests of detail in relation to completeness of income.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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 as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Sutherland

CLAIRE SUTHERLAND (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Blenheim House Newmarket Road Bury St Edmunds Suffolk IP33 3SB Date 30 October 2023

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

14

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Consolidated Statement of Financial Activities incorporating the Income and Expenditure Account for the year ended 31 December 2022

Total Total
Note Unrestricted Designated Restricted Endowment 2022 2021
£ £ £ £ £ £
Income from:
Donations and legacies 3 608,171 - 322,362 240,983 1,171,516 1,205,065
Charitable activities 4 179,356 - - - 179,356 137,177
Other trading activities 5 181,696 - - - 181,696 110,387
Investments 2 89 - - 111,439 111,528 107,050
Other income 6 12,000 - - - 12,000 252,290
Total income 981,312 - 322,362
352,422		 1,656,096 1,811,969
Expenditure on:
Raising funds 7 194,224 - 3,572 - 197,796 202,735
Charitable activities 8 872,755 294,826 245,325 - 1,412,906 1,241,980
Total expenditure 1,066,979 294,826 248,897
-		 1,610,702 1,444,715
Net (losses)/gains on 16 (10,590) - -
(265,263)		 (275,853) 269,569
investments
Net
(expenditure)/income (96,257) (294,826) 73,465 87,159 (230,459) 636,823
Transfers between funds 23/25 265,175 7,374 (714,764) 442,215 - -
Net movement in funds 168,918 (287,452) (641,299)
529,374		 (230,459) 636,823
Reconciliation of funds:
Fund balances brought
forward 23/25 601,108 13,342,522 947,879 3,396,797 18,288,306 17,651,483
Fund balances carried
forward 23/25 770,026
 13,055,070
 306,580
 3,926,171
 18,057,847 18,288,306

All recognised gains and losses are included within the above statement. All amounts relate to continuing activities.

The notes on pages 19 to 37 form part of these financial statements.

15

Company number: 01592031 Charity number: 283656

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Consolidated Balance Sheet at 31 December 2022

Note 2022 2021
£ £ £ £
Fixed assets
Tangible fixed assets 13 13,112,422 13,394,000
Heritage assets 15 278,667 278,667
Investments 16 4,009,213 2,935,472
Total fixed assets 17,400,302
16,608,139
Current assets
Stocks 18 30,712 31,329
Debtors 19 148,880 189,604
Cash at bank and in hand 698,413 1,562,493
Total current assets 878,005
1,783,426
Liabilities
Creditors falling due within one year 20 (220,460) (103,259)
Net current assets 657,545 1,680,167
Net assets 18,057,847 18,288,306
The funds of the group:
Unrestricted funds
General fund 23 770,026 601,108
Designated Palace House fund 23 12,542,677 12,828,011
Designated Mews Project fund 23 512,393 514,511
Restricted funds 25 306,580 947,879
Endowment funds 23 3,926,171 3,396,797
Total group funds 18,057,847 18,288,306

The financial statements on pages 15 to 37 were approved by the Trustees and authorised for issue on……………………………………… 30th October 2023

…………………………………………… Hon. Frances Stanley (Chair of Trustees)

A J Green

……………………………………………Annette Green (Trustee)

16

Company number: 01592031 Charity number: 283656

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Charity Balance Sheet at 31 December 2022

Note 2022 2021
£ £ £ £
Fixed assets
Tangible fixed assets 14 13,100,954 13,380,774
Heritage assets 15 278,667 278,667
Investments 16 4,009,214 2,935,473
Total fixed assets 17,388,835
16,594,914
Current assets
Stocks 18 - -
Debtors 19 254,384 205,848
Cash at bank and in hand 515,656 1,434,896
Total current assets
770,040
1,640,744
Liabilities
Creditors falling due within one year 20 (196,391) (84,576)
Net current assets 573,649 1,556,168
Net assets
17,962,484		 18,151,082
The funds of the charity:
Unrestricted funds
General fund 24 674,663 463,884
Designated Palace House fund 24 12,542,677 12,828,011
Designated Mews Project fund 24 512,393 514,511
Restricted funds 25 306,580 947,879
Endowment funds 24 3,926,171 3,396,797
Total charity funds
17,962,484		 18,151,082

As permitted by s408 Companies Act 2006, the Charity has not presented its own profit and loss account and related notes as it prepares group accounts. The Charity's deficit for the year was £188,598 (2021: £663,366 surplus).

The financial statements on pages 15 to 37 were approved by the Trustees and authorised for issue on 30th October

………………………………………..

…………………………………………… Hon. Frances Stanley (Chair of Trustees)

A J Green

……………………………………………Annette Green (Trustee)

17

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Consolidated Cash flow statement for the year ended 31 December 2022

Note
2022 2021
£ £
Net cash provided by operating activities a 409,688 634,567
Cash flows from investing activities
Interest income 89 38
Investment income 111,439 107,012
Movement in investment cash (30,066)
4,299
Purchase of investments (2,334,629)
(250,006)
Purchase of tangible fixed assets (35,702)
(493,939)
Purchase of heritage assets - (6,225)
Proceeds on disposal of investments 1,015,101 240,971
Cash used in investing activities (1,273,768)
(397,850)
(Decrease)/increase in cash and cash equivalents
in year		 (864,080)
236,717
Cash and cash equivalents at the beginning of the
year		 1,562,493
1,325,776
Cash and cash equivalents at the end of the
year		 b 698,413 1,562,493
Relating to:
Cash at bank and in hand 698,413 1,562,493
Note a. Reconciliation of net movement in funds to net cash inflow from operating activities
2022
2021
£
£
Net (expenditure)/income for the year (230,459)
636,823
Depreciation charge 317,280
307,586
Loss on disposal of tangible fixed assets -
17,259
Investment losses/(gains) 275,853
(269,569)
Investment income (111,528)
(107,050)
Decrease in stock 617
19,326
Decrease in debtors 40,724
52,121
Increase/(decrease) in creditors 117,201
(21,929)
Net cash provided by operating activities 409,688
634,567
Note b. Analysis of changes in net funds
1 January
2022		 Cash flow 31 December
2022
£ £ £
GROUP –Cash at bank and in hand 1,562,493 (864,080) 698,413

18

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022

ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

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

The National Horseracing Museum is a Charitable Company limited by guarantee, incorporated in England and Wales which meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in sterling, which is the functional currency of the Charitable Company. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of consolidation

The consolidated financial statements incorporate the accounts of the Charitable Company and those of its trading subsidiary, Palace House Trading Ltd, for the year ended 31 December 2022 on a line-by-line basis. A separate Statement of Financial Activity (SOFA) is not presented because the Charitable Company has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

The Charitable Company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this Charitable Company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Charitable Company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

Going concern

The group finances its day-to-day operations primarily from grants and donations The Trustees have prepared forecasts and projections through to 31 December 2024 based on a number of potential scenarios. And after reviewing these forecasts and projections, with the back-up of an expendable endowment, which can be utilised to meet any shortfall in forecast income, at the time of approving these financial statements, the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for at least the next 12 months. The Trustees therefore consider it appropriate to continue to adopt the going concern basis in preparing the group’s financial statements.

Income

All grants, donations and income from charitable activities are recognised when the Charitable Company is legally entitled to the income and the amount can be quantified with reasonable probability. Income is only deferred when admission fees or other income are received in advance.

Income from other trading activities is recognised as earned when the related goods and services are provided.

Investment income is recognised on a receivable basis.

19

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

1 ACCOUNTING POLICIES (Continued)

Volunteers and donated services and facilities

The value of services provided by volunteers is not incorporated in these financial statements. Their valuable contribution is recognised in the Report of the Trustees.

There are no donated services or facilities to recognise in these financial statements. If services are provided to the Charitable Company as a donation that would normally be purchased from suppliers, these will be included in the financial statements at an estimate of the value of the contribution to the Charitable Company.

Expenditure

Expenditure is recognised when a liability is incurred. Contractual arrangements are recognised as goods and services when supplied or when a constructive obligation arises which results in the payment being unavoidable.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to that category. The Charitable Company is partially culturally exempt, and irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Museum collections heritage assets

The collection consists of historic assets associated with horseracing. The value shown in the accounts is that of purchases added to the collection over a period of years. No value has been attributed to donated items added to the collection prior to 2005.

The Trustees consider that the historic nature of the collections, which is displayed in the National Horseracing Museum in furtherance of the Charitable Company’s objects, is such that it is not appropriate to place a value on the entire collection, as the significant cost involved would be onerous compared with the additional benefit derived by the users of the financial statements.

No provision is made for diminution in value of the Museum collections, as in the opinion of the Trustees its value is maintained.

Tangible fixed assets and depreciation

Tangible fixed assets (those items purchased costing in excess of £350) are stated at cost, less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value, of each asset on a straight-line basis, over its expected life as follows:

Leasehold property
 - over 50 years
Computer equipment
 - over 3 years
Other equipment/fixtures, fittings, furniture
 - over 5 years
Motor vehicles
 - over 5 years

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were the age and in the condition expected at the end of its useful life.

Tangible fixed assets are assessed for impairment at each reporting date. Any impairments losses or reversals of impairment losses are recognised immediately in the net movement in funds.

Investments

Listed fixed asset investments are included in the balance sheet at their bid valuation, as advised by the Investment Managers, adjusted for impairment in value. Realised and unrealised gains or losses from the respective sale and revaluation of investments are separately identified in the Statement of Financial Activities.

20

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

1 ACCOUNTING POLICIES (Continued)

Investment in subsidiary

In the separate accounts of the Charitable Company, the interest in the subsidiary is initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

The interest in the subsidiary is assessed for impairment at each reporting date. Any impairment loss or reversal of impairment losses are recognised immediately in the net movement in funds.

Stock

Stock, being goods held for resale, is stated at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in first out basis. Net realisable value is based on estimated selling price.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss.

Operating leases

Rental expenditure applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

Financial instruments

The Charitable Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments. Financial assets and financial liabilities are recognised when the Charitable Company becomes a party to the contractual provisions of the instrument.

Financial assets

Basic financial assets including trade and other receivables are initially measured at transaction price (including transaction costs) and are subsequently carried at amortised cost using the effective interest method.

Financial instruments at fair value

Trade investments

Trade investments are equity investments over which the Charitable Company has no significant influence, joint control or control and are initially measured at transaction price. Transaction price includes transaction costs, except where trade investments are measured at fair value through profit or loss when transaction costs are expensed to profit or loss as incurred. Trade investments are measured at fair value through profit or loss or cost less impairment if fair value cannot be measured reliably.

The fair value of trade investments quoted on a recognised stock exchange is the quoted bid price.

Financial liabilities

Basic financial liabilities, including trade and other payables are recognised at transaction price. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities where payment is due within one year or less. If not, they are presented as creditors due after more than one year. Trade and other payables are subsequently measured at amortised cost.

Pensions

The Charitable Company contributes to the personal pension plans of certain employees. The cost is charged to the income and expenditure account as contributions fall due.

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. The contributions payable by the group at year end are £3,424 (2021: £3,194), which is shown in other creditors.

21

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

1 ACCOUNTING POLICIES (Continued)

Taxation

The Charitable Company is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met, and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Fund accounting

The Charitable Company maintains various types of funds as follows:

Endowment funds

The HLF Catalyst endowment fund represents monies raised to establish a permanent endowment fund which will continue in perpetuity and only investment income from the endowment fund may be drawn upon for transfer to the General Fund. The expendable endowment fund relates to funds received to support any shortfall in income or exceptional costs.

Restricted funds

The restricted funds represent monies received to fund specific activities and to purchase certain items for the collection as set out in note 25 of the financial statements.

Unrestricted funds

General unrestricted funds represent monies which are expendable at the discretion of the Trustees in the furtherance of the objects of the Charitable Company. Such funds may be held in order to finance both working capital and capital investment.

Designated funds

The designated funds represent amounts which have been put aside out of unrestricted funds at the discretion of the Trustees, as set out in note 23 of the financial statements.

Legal status of the Charitable Company

The Charitable Company has no share capital but is limited by guarantee. Every member of the Charitable Company is a guarantor and undertakes to contribute such amounts as may be required to the assets of the Charitable Company in the event of it being wound up. Each guarantor’s liability is limited to £1.

Critical accounting estimates and areas of judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstance.

Critical accounting estimates and assumptions

The Charitable Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

The carrying value of the Museum’s collection of heritage assets is held at cost and not depreciated. In concluding that these assets are not impaired management makes estimates as to the current value of the assets and their value in use.

22

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

1 ACCOUNTING POLICIES (Continued)

Critical areas of judgement

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Charitable Company as lessee.

The Charitable Company accounts for depreciation on leasehold property in accordance with FRS 102. Properties are depreciated over their estimated useful life, taking into account any residual value. Judgements are made on the residual values and estimated useful live of the assets which are regularly reviewed. The Trustees have taken the decision to hold the leasehold property in a separate designated fixed asset fund.

2 INVESTMENT INCOME

Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds 2022
2021
£ £ £ £ £
£
Listed investments
-		 - - 111,439 111,439
107,012
Bank deposits
89		 - - - 89
38
89
-
-
111,439
111,528

107,050
3 INCOME FROM DONATIONS AND LEGACIES
Unrestricted Designated Restricted Endowment
Funds Funds Funds Funds 2022 2021
£ £ £ £ £ £
Donations
608,171		 - 332,362 240,983 1,171,516 1,205,065
608,171
-
332,362
240,983
1,171,516		 1,205,065

Details on the contribution of volunteers to the Charitable Company have been included within the Report of the Trustees, on page 8.

4 INCOME FROM CHARITABLE ACTIVITIES

Unrestricted income
Admissions
Other income
5 INCOME FROM OTHER TRADING OPERATIONS
Fundraising activities and shop
Palace House Trading		 2022
£
154,869
24,487

179,356

2022
£
30,222
151,474

181,696		 2021
£
104,500
32,677
137,177
2021
£
8,625
101,762
110,387

23

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

6 OTHER INCOME

Government Coronavirus Job Retention Scheme
Government Local Restrictions Support Scheme		 2022
£
-
12,000

12,000		 2021
£
73,894
178,396
252,290

There are no unfulfilled conditions or other contingencies attaching to government grants received.

7 ANALYSIS OF EXPENDITURE ON RAISING FUNDS

Unrestricted
Designated
Restricted
Endowment
Funds
Funds
Funds
Funds
£
£
£
£
Other activities
519
-
-
-
Fundraising activities and
events
11,516
-
3,572
-
Support costs
16,086
-
-
-
Palace House Trading
166,103
-
-
-


194,224
-
3,572
-		 Total
2022
£
519
15,088
16,086
166,103

197,796		 Total
2021
£
1,268
11,251
11,289
178,927
202,735

8 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted
Designated
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
2022
£
£
£
£
£
Practical gallery
wages
18,970
-
-
-
18,970
Exhibition and
conservation costs
36,696
-
8,767
-
45,463
Support costs
817,089
294,826
236,558
-
1,348,473


872,755
294,826
245,325
-
1,412,906		 Total
2021
£
15,455
31,360
1,195,165
1,241,980

24

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

9 ALLOCATION OF GOVERNANCE AND SUPPORT COSTS

The Charitable Group allocates its support and governance costs as shown below. Support and governance costs are allocated on a basis consistent with the use of resources.

Support cost
Raising
funds
Charitable
activities
£
£
Wages and salaries
-
559,954
Property costs
2,310
223,373
Depreciation and loss on disposal
3,455
309,621
Advertising and publicity costs
657
39,419
Administration costs
9,664
216,106
16,086
1,348,473


1 0 MOVEMENT IN TOTAL FUNDS FOR THE YEAR
This is stated after charging/(crediting):
Auditor’s remuneration: - statutory audit of charity
- statutory audit of subsidiary
Accountancy services
Tax advisory services
Depreciation of tangible fixed assets
Loss on disposal of tangible fixed assets
Operating lease rentals – plant & machinery
11 STAFF NUMBERS
Administration
Visitor Services/Retail		 Total
2022
Total
2021
£
£
559,954
554,007
225,683
149,904
313,076
322,912
40,076
33,996
225,770
145,635

1,364,559
1,206,454

2022
2021
£
£
19,050
16,995
3,450
3,100
4,525
4,375
1,735
1,285
317,280
307,586
-
17,259
10,050
6,992
2022
2021
Number
Number
14
15
21
22

35
37

The above employee numbers include part-time staff. An estimate of the average number of full-time equivalent employees is 16 (2021: 21).

25

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

12 STAFF COSTS, TRUSTEE REMUNERATION AND THE COST OF KEY MANAGEMENT STAFF COSTS, TRUSTEE REMUNERATION AND THE COST OF KEY MANAGEMENT PERSONNEL
2022 2021
£ £
Wages and salaries 561,949 546,087
Social security costs 39,476 31,684
Pension costs 21,544 20,678

622,969
 598,449

The number of employees who earned £60,000 or more (including taxable benefits but excluding employer pension contributions) during the year was as follows:

£60,000 - £70,000
£70,000 - £80,000		 2022
2021
Number
Number
-
1
1
-

The Trustees of the Museum were not paid and did not receive any other benefits from employment with the Museum in the year (2021: £Nil). Reimbursed expenses for specific travel, accommodation and reimbursement of sundry expenses personally and properly incurred on behalf of the Museum during the year were £377 (2021: £155). None of the Trustees received payment for professional or other services supplied to the Charitable Group (2021: £Nil).

The key management personnel of the Museum comprise the Museum Director and the Packard Curator. The total employee remuneration, benefits, and employer costs of the key management personnel of the Charitable Group were £135,241 (2021: £124,800).

13 TANGIBLE FIXED ASSETS (GROUP)

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Carrying value
At 31 December 2022
At 31 December 2021		 Land &
Buildings
£
14,726,282
20,738
14,747,020
1,425,335
294,826
1,720,161
13,026,859
13,300,947		 Equipment
Fixtures
Fittings &
Furniture
£
235,923
14,964
250,887
142,912
22,412
165,324
85,563

93,011		 Motor
vehicles
£
20,733
-

20,733

20,691
42

20,733

-

42		 Total
£
14,982,938
35,702
15,018,640
1,588,938
317,280
1,906,218
13,112,422
13,394,000

26

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

14 TANGIBLE FIXED ASSETS (CHARITY)

Land &
Buildings
Equipment
Fixtures
Fittings &
Furniture
£
£
Cost
At 1 January 2022
14,726,282
208,995
Additions
20,738
12,809


At 31 December 2022
14,747,020
221,804


Depreciation
At 1 January 2022
1,425,335
129,211
Charge for the year
294,826
18,498


At 31 December 2022
1,720,161
147,709


Carrying value
At 31 December 2022
13,026,859
74,095


At 31 December 2021
13,300,947
79,784		 Motor
vehicles
Total
£
£
20,734
14,956,011
-
33,547


20,734
14,989,558


20,691
1,575,237
43
313,367


20,734
1,888,604


-
13,100,954


43
13,380,774

15 HERITAGE ASSETS (CHARITY AND GROUP)

Cost
1 January 2022
Additions
31 December 2022		 2018
£
264,917
2,500
267,417		 2019
£
267,417
25
267,442		 2020
£
267,442
5,000
272,442		 2021
£
272,442
6,225

278,667		 2022
£
278,667
-
278,667

During the year, there were recognised additions of £nil (2021: £6,225) donated by the Friends of the National Horseracing Museum.

27

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

16 FIXED ASSETS INVESTMENTS (CHARITY AND GROUP)



Market value 1 January 2022
Additions
Disposal proceeds
Realised and unrealised investment
losses)/gains
Market value
31 December 2022
Cash
Total investments at 31 December
2022
Group
Charity
Historical cost of investments held
at 31 December 2022
Group
Charity		 Shares in
subsidiary
Investment
Portfolio
2022
£
£
£
1
2,911,193
2,911,194
-
2,334,629
2,334,629
-
(1,015,101)
(1,015,101)
-
(275,853)
(275,853)



1
3,954,868
3,954,869
-
54,345
54,345



1
4,009,213
4,009,214



-
4,009,213
4,009,213
1
4,009,213
4,009,214



-
3,825,906
3,825,906
1
3,825,906
3,825,907		 2021
£
2,632,590
250,006
(240,971)
269,569
2,911,194
24,279
2,935,473
2,935,472
2,935,473
2,572,729
2,572,730

17 INVESTMENT IN SUBSIDIARY – CHARITY

Cost at 1 January and 31 December 2022

£ 1

The following was a subsidiary undertaking throughout the year and has been included in the consolidated financial statements:

Proportion of
Name of Class of nominal value Nature of
undertaking Registered office shareholding held directly business
Palace House Palace House, Palace Ordinary 100% Retail, restaurant,
Trading Limited Street, Newmarket, café, and event
(10343747) Suffolk CB8 8EP catering services

28

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

17 INVESTMENT IN SUBSIDIARY – CHARITY (CONTINUED)

Financial statements of the company will be filed with the Registrar of Companies. The company's results for the year ended 31 December 2022 are shown below:

e year ended 31 December 2022 are shown below:
2022 2021
£ £
Turnover 151,474 101,762
Cost of sales (60,700) (62,873)
Gross profit 90,774 38,889
Administrative expenses (132,703) (116,054)
Other operating income - 50,583
Interest receivable 68 38
(Loss)/profit before taxation (41,861) (26,544)
Tangible fixed assets
11,468		 13,226
Current assets 218,181 163,017
Current liabilities (527,896) (432,629)
Net liabilities and reserves (298,247)
 (256,386)

18 STOCK

STOCK
Group Charity
2022 2021 2022 2021
£ £ £ £
Goods held for resale 30,712 31,329 - -

During the year, an impairment loss of £nil (2021 - £19,000) was recognised. No earlier stock write-downs have been reversed during the current, or preceding, period.

19 DEBTORS

Trade debtors
Amounts owed by subsidiary
Other debtors
Prepayments and accrued income		 Group
2022
2021
£
£
35,762
4,497
-
-
19,901
30,617
93,217
154,490

148,880
189,604		 Charity
2022
2021
£
£
32,317
2,693
106,453
15,424
23,665
35,528
91,949
152,203
254,384
205,848

29

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

20 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Other taxes and social security
Accruals and deferred income		 Group
2022
£
51,871
114,006
12,628
41,955
220,460
2021
£
33,610
19,851
12,781
37,017
103,259		 Charity
2022
£
40,295
113,775
11,784
30,537

196,391		 2021
£
26,816
19,728
12,311
25,721
84,576

21 GROUP ANALYSIS OF NET ASSETS BETWEEN FUNDS

General fund
Designated funds
Restricted funds
Endowment fund		 Heritage
Assets
Other tangible
fixed assets
Investments
Net current
assets
Total 2022
£
£
£
£
£
141,978
57,352
83,042
487,654
770,026
-
13,055,070
-
-
13,055,070
136,689
-
-
169,891
306,580
-
-
3,926,171
-
3,926,171





278,667
13,112,422
4,009,213
657,545
18,057,847

Prior year -

General fund
Designated funds
Restricted funds
Endowment fund		 Heritage
Assets
Other tangible
fixed assets
Investments
Net current
assets
Total 2021
£
£
£
£
£
141,978
51,478
-
407,652
601,108
-
13,342,522
-
-
13,342,522
136,689
-
555,840
255,350
947,879
-
-
2,379,632
1,017,165
3,396,797





278,667
13,394,000
2,935,472
1,680,167
18,288,306

22 CHARITY ANALYSIS OF NET ASSETS BETWEEN FUNDS

General fund
Designated funds
Restricted funds
Endowment fund		 Heritage
Assets
Other tangible
fixed assets
Investments
Net current
assets
Total 2022
£
£
£
£
£
141,978
45,884
83,043
403,758
674,663
-
13,055,070
-
-
13,055,070
136,689
-
-
169,891
306,580
-
-
3,926,171
-
3,926,171




278,667
13,100,954
4,009,214
573,649
17,962,484

30

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

22 CHARITY ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

Prior year –
General fund
Designated funds
Restricted funds
Endowment fund		 Heritage
Assets
Other tangible
fixed assets
Investments
Net current
assets
Total 2021
£
£
£
£
£
141,978
38,252
-
283,654
463,884
-
13,342,522
-
-
13,342,522
136,689
-
555,841
255,349
947,879
-
-
2,379,632
1,017,165
3,396,797




278,667
13,380,774
2,935,473
1,556,168
18,151,082

23 GROUP ANALYSIS OF MOVEMENTS IN UNRESTRICTED, DESIGNATED AND ENDOWMENT FUNDS

Balance at
1 January
2022
£
General fund
601,108
Designated funds:
Palace House fund
12,828,011
Mews Project fund
514,511
13,342,522
Endowment funds:
Permanent endowment
HLF Catalyst
Endowment Fund
2,365,797
The Hon John Lambton
Voluntary Settlement
-
Expendable
endowment
Jim Joel Legacy
Scheme
31,000
Thompson Family
Charitable Trust
500,000
The Hon John Lambton
Voluntary Settlement
500,000
3,396,797		 Income
£
981,312

-
-

-

77,615
160,655
1,017
16,404
96,731

352,422		 Expenditure
Transfers
Investment
(losses)
Balance at
31
December
2022
£
£
£
£
(1,066,979)
265,175
(10,590)
770,026


(285,334)
-
-
12,542,677
(9,492)
7,374
-
512,393


(294,826)
7,374
-
13,055,070


-
(77,615)
(184,750)
2,181,047
-
519,830
-
680,485
-
-
(2,421)
29,596
-
-
(39,046)
477,358
-
-
(39,046)
557,685


-
442,215
(265,263)
3,926,171

31

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

23 GROUP ANALYSIS OF MOVEMENTS IN UNRESTRICTED, DESIGNATED AND ENDOWMENT FUNDS (CONTINUED)

Prior year –

Balance at
1 January
2021
£
General fund
433,554

Designated funds:
Palace House fund
13,113,078
Mews Project fund
-

13,113,078

Endowment funds:
HLF Catalyst
Endowment Fund
2,158,215
Expendable
endowment
500,000
Jim Joel Legacy
Scheme
31,000
Thompson Family
Charitable Trust
-

2,689,215

16,235,847		 Income
Expenditure
Transfers
Investment
gains
Balance at 31
December
2021
£
£
£
£
£
1,046,002
(938,912)
60,464
-
601,108



-
(285,067)
-
-
12,828,011
-
-
514,511
-
514,511



-
(285,067)
514,511
-
13,342,522



107,012
-
(107,012)
207,582
2,365,797
-
-
-
-
500,000
-
-
-
-
31,000
500,000
-
-
-
500,000


607,012
-
(107,012)
207,582
3,396,797


1,653,014
(1,223,979)
467,963
207,582
17,340,427

The designated Palace House and Mews Project funds reflect the net book values of those assets at the reporting date. Transfers into the Mews Project fund reflect the capital spend on those assets, funded by both restricted and unrestricted funds. Expenditure on the Palace House and the Mews Project fund reflects depreciation charged on these assets in the year.

All capital raised for the Heritage Lottery Fund Endowment Fund will form a permanent fund. The investment income of £77,615 (2021: £107,012) derived from this fund is eligible for transfer to the General Fund and was so transferred.

The Jim Joel Legacy Scheme relates to endowed income received in 2020 in recognition of Mr Joel’s contribution to UK racing – this scheme, sponsored by the Childwick Trust who gave £31,000 to set up the scheme to encourage legacy giving.

The Thompson Family Charitable Trust Funds and The Hon John Lambton Voluntary Settlement Fund are for the long term support of the operation of the Charity.

32

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

24 CHARITY ANALYSIS OF MOVEMENTS IN UNRESTRICTED, DESIGNATED AND ENDOWMENT FUNDS

Balance at
1 January
2022
£
General fund
463,884
Designated funds:
Palace House fund
12,828,011
Mews Project fund
514,511
13,342,522
Endowment funds:
Permanent endowment
HLF Catalyst Endowment
Fund
2,365,797
John Lambton
Expendable endowment
The Hon John Lambton
Voluntary Settlement
500,000
Jim Joel Legacy Scheme
31,000
Long-term operational
support
500,000
3,396,797

Prior year –
Balance at
1 January
2021
£
General fund
269,787
Designated funds:
Palace House fund
13,113,078
Mews Project fund
-

13,113,078
Endowment funds:
HLF Catalyst Endowment
Fund
2,158,215
Expendable endowment
500,000
Jim Joel Legacy
Scheme
31,000
Long-term operational
support
-
2,689,215
16,072,080		 Income Expenditure
Transfers
Investment
(losses)
Balance at 31
December
2022
£
£
£
£
£
857,070
(900,876)
265,175
(10,590)
647,663



-
(285,334)
-
-
12,542,677
-
(9,492)
7,374
-
512,393


-
(294,826)
7,374
-
13,055,070


77,615
-
(77,615)
(184,750)
2,181,047
160,655
-
519,830
-
680,485
96,731
-
-
(39,046)
557,685
1,017
-
-
(2,421)
29,596
16,404
-
-
(39,046)
477,358
352,422
-
442,215
(265,263)
3,926,171


Income Expenditure
Transfers
Investment
gains
Balance at 31
December
2021
£
£
£
£
£
921,099
(787,466)
60,464
-
463,884



~~-~~
(285,067)
-
-
12,828,011
-
-
514,511
-
514,511





-
(285,067)
514,511
-
13,342,522


107,012
-
(107,012)
207,582
2,365,797
-
-
-
-
500,000
-
-
-
-
31,000
500,000
-
-
-
500,000
607,012
-
(107,012)
207,582
3,396,797


1,528,111
(1,072,533)
467,963
207,582
17,203,203

Prior year –

33

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

24 CHARITY ANALYSIS OF MOVEMENTS IN UNRESTRICTED, DESIGNATED AND ENDOWMENT FUNDS (CONTINUED)

The designated Palace House and Mews Project funds reflect the net book values of those assets at the reporting date and includes £41,575 of equipment installed during the refurbishment. Transfers into the Mews Project fund reflect the capital spend on those assets, funded by both restricted and unrestricted funds. Expenditure on the Palace House and the Mews Project fund reflects depreciation charged on these assets in the year.

All capital raised for the Heritage Lottery Fund Endowment Fund will form a permanent fund. The investment income of £77,615 (2021: £107,012) derived from this fund is eligible for transfer to the General Fund and was so transferred.

The Jim Joel Legacy Scheme relates to endowed income received in 2020 in recognition of Mr Joel’s contribution to UK racing – this scheme, sponsored by the Childwick Trust who gave £31,000 to set up the scheme to encourage legacy giving.

The Thompson Family Charitable Trust funds and The Hon John Lambton Voluntary Settlement Funds are for the long term support of the operation of the Charity.

25 ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS

Charity and Group
Balance at
1 January
2022
£
Museum Collection
136,689
Purchases
Exhibition Donations
13,439
Project Posts Funding
25,938
Education Funds
30,766
Other
7,668
HLF Resilience
(165)
Completion of Permanent
Galleries
181,000
The Hon John Lambton
Voluntary Settlement
534,755
COVID continuity
17,789
Mews car park - ENTRUST
-
National Hunt scheme
-
Kickstart
-
Racing Foundation
-
NLHF
-
Retraining of Racehorses
-
947,879		 Income
Expenditure
Transfers
Investment
gains
Balance at
31 December
2022
£
£
£
£
£
-
-
-
-
136,689
36,750
(17,790)
(4,812)
-
27,587
94,857
(90,490)
(13,675)
-
16,630
35,414
(35,443)
(22,563)
-
8,174
-
(2,324)
(5,344)
-
-
-
-
165
-
-
-
(14,431)
(119,641)
-
46,928
-
-
(534,755)
-
-
-
(2,324)
(15,465)
-
-
5,972
(7,298)
1,326
-
-
5,000
-
-
-
5,000
23,627
(23,627)
-
-
-
75,000
(25,170)
-
-
49,830
15,742
-
-
-
15,742
30,000
(30,000)
-
-
-


322,362
(248,897)
(714,764)
-
306,580

A transfer of £119,641 was made to unrestricted funds from the Completion of Permanent Galleries fund representing the completion of the projects for which those funds were received.

A transfer of £519,830 was made to the Permanent Endowment fund from The Hon John Lambton Voluntary Settlement fund representing the balance of the funds after the redevelopment of the Mews. A transfer of £14,925 was made to unrestricted and designated funds to reflect the amounts spent on the Mews project.

Transfers have been made from remaining restricted funds of £60,367 to unrestricted funds to represent either the completion of projects for which those funds were received or where applicable expenditure has been previously met from unrestricted funds.

34

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

25 ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS ( CONTINUED)

Prior year –
Charity and Group
Balance at
1 January
2021
£
Museum Collection
Purchases
136,689
Exhibition Donations
13,439
Project Posts Funding
74,616
Relocation Funds
(13,875)
Education Funds
32,766
Other
7,668
HLF Resilience
67,708
Completion of Permanent
Galleries
177,958
The Hon John Lambton
Voluntary Settlement
919,867
Rank Foundation
(1,200)
KickStart
-
COVID continuity
-
Mews garden -
ENTRUST
-
1,415,636		 Income
Expenditure
Transfers
Investment
gains
Balance at
31 December
2021
£
£
£
£
£
-
-
-
-
136,689
25,000
(25,000)
-
-
13,439
-
(48,678)
-
-
25,938
-
-
13,875
-
-
34,818
(36,818)
-
-
30,766
-
-
-
-
7,668
-
(78,620)
10,747
-
(165)
5,000
(5,000)
-
3,042
181,000
-
-
(444,057)
58,945
534,755
-
-
1,200
-
-
25,356
(25,356)
-
-
19,053
(1,264)
-
17,789
49,728
-
(49,728)
-



158,955
(220,736)
(467,963)
61,987
947,879

Details on the funds for which there is a balance at the year-end are as follows:

Museum Collection Purchases

Represents amounts received from the Friends of the National Horseracing Museum for the purpose of acquiring items for the permanent collection. £136,689 is represented by heritage assets and is considered to have been fully spent in accordance with the terms of the original restriction.

Exhibition Donations

This fund is for amounts received for expenditure relating to specific exhibitions.

Project Posts Funding

Income which has been acquired for a fixed period for the purpose of project development and funding additional employee costs in relation to the project.

Education Funds

Monies received to facilitate continued employment of Education Officer, education activities and marketing of the education function.

Other

Various smaller grants and donations received for specific purposes.

NLHF Resilience

Grant from the National Lottery Heritage Fund to develop new commercial income through the implementation of a new marketing strategy.

Completion of Permanent Galleries

Funds received to facilitate works to complete and improve the galleries and visitor experience.

35

THE NATIONAL HORSERACING MUSEUM (A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

25 ANALYSIS OF MOVEMENTS IN RESTRICTED FUNDS ( CONTINUED)

The Hon John Lambton Voluntary Settlement

Grant awarded to assist with the costs of refurbishing the Lecture Hall and Mews Building to be more attractive to visitors. Any monies not spent on the refurbishment will be added to the endowment fund on completion of the project.

COVID continuity

Grant awarded to support the development and enhancement of our digital programme, to enable a new way of reaching audiences who are not physically able to access the Museum and were severely disadvantaged by the pandemic.

Mews car park – ENTRUST

Grant awarded to fund the cost of refurbishment of the car park and planting.

National Hunt scheme

Grant awarded to help sustain the core activities of the National Hunt gallery.

Kickstart

The Kickstart Scheme provides funding to create new jobs for 16 to 24 year-olds.

Racing Foundation

This grant is restricted for use towards the activities and associated costs to deliver the Creative Programme.

NLHF

Grant from the National Lottery Heritage Fund to develop new commercial income.

Retraining of racehorses

Grant monies receivable from Retraining of Racehorses for retraining racehorses' onsite.

26 RELATED PARTY TRANSACTIONS

An independent and separately registered charity exists in connection with the National Horseracing Museum in the name of The Friends of the National Horseracing Museum, (charity registration number 291154). Given its independence the Friends’ results are not incorporated within these financial statements.

During the year donations were made by the Friends of the National Horseracing Museum of £995 (2021: £4,000 to the Heritage Assets collection).

The Charitable Company is a member of Discover Newmarket, a community interest company (registration number 09362242). During the year income of £12,369 (2021: £5,570) was derived from this association in the form of admissions and cafe revenue and purchases in the year totalled £Nil (2021: £Nil). At the year end, a balance of £400 (2021: £579) was owed by the subsidiary has been provided against by this entity.

With the consent of the Charity Commission, Trustees indemnity insurance has been purchased as a part of the insurance cover of the Charitable Company as a whole and is not separately identified within total insurance costs of £23,956 (2021: £30,492).

During the year the Charitable Company recharged costs of £36,061 (2021: £32,945) to its subsidiary Palace House Trading Ltd. At the year end, a balance of £106,453 (2021: £15,424) owed by the subsidiary was recognised in debtors of the Charitable Company. A further balance of £393,610 (2021: £393,610) owed by the subsidiary has been provided against and has not been recognised in the Charitable Company’s debtor balance. During the year there was a management charge totalling £27,300 (2021: £27,300) between the Charitable Company and its subsidiary Palace House Trading Ltd.

Donations from Trustees in the year totalled £7,450 (2021: £5,500), of which £Nil (2021: £Nil) is within accrued income at the year end.

36

THE NATIONAL HORSERACING MUSEUM

(A Charitable Company limited by guarantee and not having share capital)

Notes forming part of the financial statements for the year ended 31 December 2022 (Continued)

27 FINANCIAL INSTRUMENTS

The carrying amount of the Group and Charity’s financial instruments at 31
Financial assets:
Measured at fair value through SOFA		 December were:
2022
2021
£
£
4,009,213
2,935,472

28 FUNDS HELD FOR THIRD PARTIES

During the year the Group and Charity received cash of £93,922 (2021: £nil) on behalf of Presents Galore which is held within the Group and Charity’s bank account. Presents Galore is a fundraising event which raises money via a Christmas fair, all proceeds of which are split between the Charity and Cambridge Children’s Hospital. At the year end £93,922 (2021: £nil) was owed to Presents Galore and is included within other creditors in the financial statements.

29 ANALYSIS OF PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES BY FUND

Total
Unrestricted Designated Restricted Endowment 2021
£ £ £ £ £
Income from:
Donations and legacies 546,110 - 158,955 500,000 1,205,065
Charitable activities 137,177 - - - 137,177
Other trading activities 110,387 - - - 110,387
Investments 38 - - 107,012 107,050
Other income 252,290 - - - 252,290
Total income 1,046,002 - 158,955
607,012		 1,811,969
Expenditure on:
Raising funds 202,735 - - - 202,735
Charitable activities 736,177 285,067 220,736 - 1,241,980
Total expenditure 938,912 285,067 220,736
-		 1,444,715
Net (losses)/gains on - - 61,987
207,582		 269,569
investments
Net income/(expenditure) 107,090 (285,067) 206
814,594		 636,823
Transfers between funds 60,464 514,511 (467,963) (107,012) -
Net movement in funds 167,554 229,444 (467,757)
707,582		 636,823
Reconciliation of funds:
Fund balances brought forward 433,554 13,113,078 1,415,636 2,689,215 17,651,483
Fund balances carried forward 601,108
 13,342,522
 947,879
3,396,797
 18,288,306

37