2020-07-31-accounts

Registered number: 02266267 Charity number: 700405

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the company, its Trustees and advisers	1 - 2
Trustees' report	3 - 12
Independent auditor's report on the financial statements	13 - 16
Consolidated statement of financial activities	17
Consolidated balance sheet	18 - 19
Company balance sheet	20 - 21
Consolidated statement of cash flows	22
Notes to the financial statements	23 - 55

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020

Trustees

Mr Gerard Sutcliffe, Chairman Mr Howard Wright, Deputy Chairman Mr Timothy Adams MBE Mr Timothy Lyle Mr James Hetherton Mr Jeffrey Ennis The Honourable Oliver Greenall Mr Christopher Mallinson (resigned 13 December 2020) Ms Susannah Cordelia Gill Ms Nicola Frampton Ms Sally Iggulden Mr N Brewster

Company registered number

02266267

Charity registered number

700405

Registered office

The Stables, Rossington Hall, Great North Road, Doncaster, South Yorkshire, DN11 0HN

Patron

Countess of Halifax

Chief executive officer

Mr Stephen Padgett OBE

Independent auditor

BHP LLP, 2 Rutland Park, Sheffield, S10 2PD

Bankers

Yorkshire Bank, 19 St Sepulchre Gate, Doncaster, DN1 1TD

Solicitors

Jordans, 4 Priory Place, Doncaster, DN1 1BP

Page 1

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Pension Administrators

South Yorkshire Pensions Authority, P O Box 37, Regent Street, Barnsley, S70 2PQ

Vice Presidents

Mr Colin Wedd (deceased January 2020) Mr Martin Crawshay Mr Sandy Struthers Sir Robert Ogden CBE LLD Monsieur Didier Garnier Mr Roy Thwaites Mr Gordon Gallimore The Rt Hon Richard Caborn Ms Julie Krone

Page 2

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 July 2020. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The objects of the charity are to advance education, particularly among young persons, and to relieve the need of unemployed persons by the provision of vocational and academic training connected with the horse racing, equestrian, agricultural, horticultural and their allied areas.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

• Provide accessible and inclusive training opportunities for people wanting to work in the horse racing industry.

• Ensure training is realistic and relevant but delivered progressively to develop learners to be ready for work.

• Provide a supportive, encouraging environment around that training enabling as many learners as possible to achieve their goals.

• Engage widely and collaboratively with employers across the industry to maximise learners’ chances of gaining and keeping paid employment.

• Promote constructive behaviours and positive attitudes in all that we do.

• Make the very best of resources available to optimise the College’s contribution to public benefit.

c. Activities undertaken to achieve objectives

• Recruit widely and remove as many barriers as possible that could deter potential learners.

• Provide bursaries and other practical support to ensure those with limited resources can access training opportunities.

• Provide intensive residential Foundation Courses covering a comprehensive syllabus that prepares them for the jobs that are available.

• Deliver life skills training to increase learners’ resilience, confidence and independence.

• Match learners with the most appropriate employment opportunities to optimise their chances of satisfaction and success.

• Provide ongoing support in the workplace to enable further learner development (apprenticeships) and aid worker retention.

Page 3

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Objectives and activities (continued)

d. Main activities undertaken to further the company's purposes for the public benefit

The Trustees confirm they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing its aim and objectives and in planning our future activities. In particular, the Trustees consider its investment into its chosen workstreams of Workforce and Community Investment contribute towards its objectives through providing a public benefit.

The National Horseracing College (NHC) is the only specialist training provider to the horse racing industry in the north of England and one of only two in the United Kingdom. The College offers a variety of training courses designed to meet industry needs. It has a reputation for delivering high quality staff, many of whom go on to have long careers in a wide variety of roles in racing.

Achievements and performance

a. Review of activities

In accordance with its plans and as reported in last year’s report, the College changed its title to The National Horseracing College (NHC) with effect from 1 August 2019. This new title describes much more appropriately the College’s status, its customer base and its perspective. The change was implemented 35 years after the College’s founding under its first title as The South Yorkshire Apprentice Racing Training School.

This report covers an extraordinary period for the College, the racing industry, our Nation and the world due to the severe effects of the COVID-19 coronavirus pandemic. Through the first part of this reporting period, the optimism, growth and general progress that characterised the years since 2015 continued. Indicators of success included continued improvements in the College’s financial position, investment in its equipment and facilities and the fact that, in the calendar year 2019, it delivered over 20,000 person training days, more than in any year since it opened in 1984. Justifiable optimism underpinned the College’s view of its future and its decision making.

In March 2020, everything changed when the UK Government imposed a National lockdown to limit the damage of COVID-19. While the consequences of the coronavirus pandemic will continue to be felt for years to come, this report is written in the confident expectation that the robust, timely and effective actions of the NHC’s leaders have not only protected the College from what could have been an existential threat but have positioned it to continue to succeed through and beyond these extraordinary and deeply challenging times. In addition, Trustees wish to register their appreciation for the very supportive positions adopted by partners in the industry, the flexibility and resilience of the College’s staff and the patient stoicism of learners.

Study Programmes

The NHC study programmes fall into the categories of the horseracing industry Foundation Courses (FC) and general equine Doncaster Equine College (DEC) Programme.

The residential Foundation Course programme of 12 weeks duration is followed by a 6 week work placement planned with an employer. The significant majority of learners this year were 16-18 year olds but a small number of 19+ learners attended also. Learners follow an intensive curriculum to prepare them for the world of work that includes social development skills covering employability, cooking, resilience, self-belief, time management skills and preparation for functional skills at different levels. They learn a range of other additional skills such as transportation of horses and emergency first aid.

A total of 76 learners celebrated their success at graduation ceremonies, latterly these had to take place over Zoom to

Page 4

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Achievements and performance (continued)

allow parents, friends and carers to be involved. Parent/carer feedback about the personal development and improved behaviour of their children is extraordinarily positive. While it is intended that as many as possible of those who graduate from the Foundation Course go into work placement and then apprenticeship, there was a slight and anticipated decline in learners moving to positive destinations during this reporting period due to the disruption caused by the pandemic.

Qualifications include L1 Diploma in Racehorse Care and Riding, L1 Diploma in Work-Based Horse Care, Entry 3 Award in Basic Knowledge of the Horseracing Industry for the FC and L1, 2 & 3 Horse Care Certificates and Diplomas for DEC. Functional skills are included – also GCSEs for some learners. This has been a particularly challenging year due to COVID19 and several cohorts were put on hold for a short period. Residential students were required to stay on site without access to visitors for certain periods and this caused a degree emotional distress for some students.

Functional English (72.9%) and Mathematics (81.0%) results are good considering the starting points of learners. GCSE achievement rates are English (100%) and Mathematics (60%) albeit with very small numbers.

A means of establishing the starting points of learners in more depth has shown a clear correlation between those starting points and retention and achievement rates. The challenges for 2019/2020 cohorts are illustrated by the following statistics:

• 40% have received counselling or had a support worker

• 30% have a self-stated learning difficulty

• 27% consider they have a mental health problem

• 13% did not complete school

• 12% have an EHCP (Education, Health & Care Plan)

• 9% were fostered/in care/adopted

• 7% have a self-stated physical health problem

• 5% have a self-stated disability

The extent of disadvantage among learners entering the College has increased but dedicated staff continue to enable students to improve achievements and progressions. Despite other difficulties, the College’s approach this year led to the retention rate for all age groups on the Foundation Course reaching an extraordinarily impressive 93%, the highest for at least a decade.

Apprenticeships

The curriculum offer in 2019/2020 comprised Level 2 and Level 3 apprenticeships in racehorse care and management. There were 113 learners in learning overall, a reduction on the previous year. Additional non-racing apprenticeships continue to be offered.

Achievement levels have declined on previous years due to COVID-19 and the difficulties around arranging end point assessments (EPA) in 2020. Overall achievement in 2019/2020 was 75% compared to the previous year of 91%. Although a notable drop, results still are 10% higher than the national average. Level 3 apprentices achieved at 86% whilst Level 2 apprentices achieve at 69%.

In the transition from Apprenticeship Frameworks to new Standards, NHC challenged the awarding organisation to enable flexible end-point assessments as a result of the COVID-19 restrictions. Impressively, 100% of apprentices who transitioned to the new Apprenticeship Standards and completed EPA achieved the qualification standard and two achieved distinctions.

The transition to new Standards for the racing industry has seen additional qualifications offered to Equine Groom Apprentices including emergency first aid, transporting horses by road on short/long journeys and level 2 functional skills. Learners and their supervisors are encouraged to take the BHA accredited industry specific safeguarding learning

Page 5

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Achievements and performance (continued)

programme.

The support for learners transitioning from FC to their work placements has increased, with consequent improvement in progressions to apprenticeships. Every effort is made to ensure learners are matched successfully to employers and this is paying dividends in terms of retention. Learners on apprenticeships are employed in line with a national wage scale sanctioned by the British Horseracing Authority, which exceeds Apprenticeship wage requirements. Most learners are on apprenticeships for up to 18 months. Not every placement will be totally satisfactory and if learners really do need a different environment, NHC works hard to help find alternatives and maintains close contact to retain the learner in learning.

Priorities, Activities and Achievements

Constant priorities around safeguarding and our duty of care to learners on residential courses, learners in the workplace and to staff took a new twist with the emergence of the COVID-19 threat during this year. Significant efforts were made to learn rapidly about available, effective COVID safety measures, adapting protocols shown to be successful in other environments to the specific situation at the NHC. Clearly, a very high priority also was to ensure the viability of the business. Urgent, complex and comprehensive financial modelling informed vitally important, time-sensitive decisions. Detailed analysis and forecasting also allowed the impact of the pandemic to be assessed and then described clearly to inform decision-making by external entities looking for most appropriate ways to support the racing industry through the crisis. Management decisions around operational activities were successful in preserving cash in the business by, for example, reducing outgoings, re-scheduling works and making optimal use of the Government’s job retention (furlough) scheme. Meanwhile, managers and all staff whose duties allowed, transitioned swiftly and remarkably successfully to remote working to reduce the risks to residential learners and to those staff who had to be on site to do their jobs.

Marketing and Recruiting

Additional resources put into this area over recent years seem to be reaping benefits in terms of increased expressions of interest, increased engagement through social media and increased applications for attendance on the FC. It is too early to tell if the consequences for the wider national economy of the pandemic or even the consequences of Brexit may affect numbers seeking jobs in the racing industry or the number of jobs on offer. However, marketing and recruiting efforts continue apace as the industry as a whole had a significant shortfall of staff pre-pandemic and, even if some contraction occurs, there was plenty of ground to make up and the NHC has to support that effort.

Fundraising and Commercial Activities

These activities had been continuing on a steadily improving track this year, with fundraising doing notably well. However, COVID-19 put paid to many of the plans and otherwise reasonable expectations for the second half of the year. Facilities could not be let, grant making bodies shifted many of their targets for donations elsewhere and opportunities to engage the public virtually ceased. Innovative ideas are being developed for the future but had not had meaningful impact in the financial year to which this report applies.

Infrastructure and Equipment

The early months of this period saw continued progress towards addressing identified infrastructure shortcomings. The onset of the pandemic and the urgent requirement for adaptations to residential accommodation and other infrastructure saw a variety of rapid transformations. Much of the work to turn twin rooms into singles, to change the use of other rooms into bedrooms and increase classrooms to allow social distancing during classes was carried out by the NHC’s own maintenance team, at remarkably low cost and with great success.

Page 6

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Achievements and performance (continued)

Early in 2020, the NHC’s landlord announced that the land the College holds on a 99 year lease (to 2095), which is approximately half of the area occupied by the NHC but upon which the majority of its built infrastructure is sited, was to be offered for sale at an asking price of £1.5m. Efforts by the College to identify the means by which the College might become the owner of its freehold were unsuccessful. It is unclear what will be the outcome of the sale but Trustees are entirely confident in the security of the College’s lease and do not foresee the transfer of ownership posing any meaningful threat to the enterprise but hope it might present opportunities for future improvements.

Financial review

a. Going concern

The charity, for some years, has been unable to comply with its policy to hold free reserves of between 1 and 2 months operational expenditure. Small surpluses in unrestricted funds in recent years had allowed the College to work towards adherence of the policy, however the onset of the global pandemic brought increased risk to the charity’s finances.

The NHC has been fortunate to be supported by continued regular contract payments from the racing industry and some additional support recognising the significant impact that will result over the coming year to two years due to cohorts of learners which could not enter the training pipeline.

Steps taken by central government, local authorities and the racing industry already have helped to support the College’s own efforts to sustain its staff and learners through this period of global adversity. While the pandemic is not yet over, uncertainties remain, but the business has taken decisive and effective measures to preserve cash flow and increase its resilience.

The Trustees have prepared forecasts of income and expenditure and cash flow for the period to 28 February 2022 which shows that they have sufficient cash to be able to continue for the foreseeable future.

The Trustees therefore continue to adopt the going concern basis of preparation for these financial statements.

b. Reserves policy

For some years, the College has been unable to comply with its policy to hold free reserves of between one and two months of the resources expended. However, small surpluses in unrestricted funds in recent years had allowed the College at least to begin to work towards adherence which continues to be its aspiration (£200k to £400k in 2019/20). The onset of the global pandemic highlighted the need for any business to maintain a reserve. The NHC has been fortunate to be supported by continued regular contract payments from the racing industry and some additional support recognising the significant impact that will result over the coming year to two years due to cohorts of learners which could not enter the training pipeline. Management decisions have, very determinedly, sought to preserve liquidity in the business to allow it successfully to weather a storm that has yet to impact fully but which most certainly will over the next one or two financial years.

Page 7

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

c. Financial performance

The College’s financial circumstances have continued to improve from the positions in which it found itself in 2015 and 2016. Justifiable optimism has continued therefore, to underpin the College’s view of its future and its decision making.

The racing industry’s commitment to the vital role played by the College have continued to be manifest in the payments it has made for the training it has provided. Both the BHA and the Horserace Betting Levy Board (HBLB) have declared their determined desire to continue to commit similar resources to people training and development in the industry despite expectations of somewhat reduced revenue to the industry overall.

The NHC’s own revenue generation efforts have continued to develop and add important resources to support its outputs. Meanwhile, there has been no let-up in our determination to maintain or even improve the leanness and efficiency of operations to make the best of what we have.

Government funding continues to be an important source of income despite reductions described in previous years’ reports. Income shortfalls due to changes in the apprenticeship system have not turned out to be as bad as we feared. The College continues to draw down every bit of Government money that is available legitimately to offset the cost of training activities to the industry. Ongoing strenuous efforts have been made to help the industry understand the situation have led to increasing acceptance that, to sustain the vital contribution of its training providers, racing has to fill the gap between Government subsidies and the cost of provision.

The operating surplus for the year was £274,803 (2019: £29,819) but has to show an actuarial loss for UK accounting purposes, which doesn’t affect cash, of £498,000 (2019: £484,000) due to periodic revaluation of pension liabilities leading to a net deficit for the year of £223,197 (2019: £454,181).

Total funds carried forward at the year end are £828,257 (2019: £1,051,454) of which £565,087 (2019: £893,435) are unrestricted and £263,170 (2019: £158,019) are restricted.

d. Pension liability

The Accounting for Pensions regulations have once again had a significant impact on the net assets position of the charity. The latest actuarial valuation of the scheme resulted in an increase in the liability of the defined benefit pension scheme of £538k, from £1.345 million to £1.883 million. There was a similar charge (£545k) in the 2019 accounts resulting in the net funds of NHC reducing by £1,083k in the past two years as a consequence of these pension valuations.

This liability is, of course, a statement of the theoretical pension liability of the charity at the balance sheet date based upon current assumptions of future discount rates; future salary and pension increases and inflation. The liability only crystallises when members retire or in the event of the winding up of the scheme, which is highly unlikely given that it is the multi-employer South Yorkshire Local Government Scheme. No new NHC employees have been added to the Pension Scheme since before 2015.

Page 8

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

e. Principal risks and uncertainties

The College’s assessment and mitigation of risk include very careful attention to all aspects of safeguarding. All other risk management policies are subject to periodic review. The Trustees give very careful attention to risk management. Details of the risks which have a potentially significant impact on the college and how these are managed by the trustees are set out below.

Destruction of facilities - Trustees ensure that all necessary insurance cover is in place.

Loss of major contracts - Trustees ensure that constant attention and effort are given to sustaining the excellence of NHC’s training/education provision and its responsiveness to the requirements of Government and the needs of the industry so that high demand for training is sustained.

OFSTED - The most recent Ofsted inspection in 2016 resulted in a Grade 2 with Grade 1 elements. Trustees ensure and some participate in the College’s annual, formal, externally facilitated self-assessment (SAR). It identifies further improvement opportunities and any emerging shortcomings in order that standards are maintained at the very least and enhanced if possible.

Significant safeguarding problems - Trustees are aware that the racing industry as a whole and the NHC within it have moved forward proactively and successfully to reduce both the likelihood of safeguarding problems, their frequency and to deal effectively and very promptly with them when they do occur. Every member of staff, whether employed or volunteer, full or part time, undergoes thorough DBS checks, ongoing safeguarding training is mandatory and systems are in place to reduce to the lowest possible level the scope for problems. The confidential alert and helpline introduced in 2017, utilising a sophisticated but totally accessible SMS platform, is available to all learners at College or in their places of work around the industry.

Significant outbreak of equine disease - Trustees are confident that contagion control measures exist and have been rehearsed. However, if disease were to break out, Trustees are confident that operations would continue but scaled back to allow affected animals to be segregated until the disease was eliminated.

Departure of key staff members - Trustees are confident that, in an operation of this modest scale key staff have visibility of others’ roles and responsibilities making the business resilient to temporary gaps.

All other risks - Trustees are briefed where necessary on other risks and are confident that all are managed through routine processes below Board level.

Structure, governance and management

a. Constitution

National Horseracing College (Formerly Northern Racing College) registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 19 February 1988 and is a registered charity number 700405.

b. Methods of appointment or election of Trustees

The management of the company and the group is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Page 9

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

The Board meets quarterly. Its business always includes a comprehensive update from the Chief Executive. Business decisions that have strategic significance are made at Board level.

There is a single standing sub-committee, the Finance Committee which is chaired by a Trustee who is a very experienced accountant and business person. Attendees include the Board Chairman, the Chief Executive, the Finance Director, the Operations Director and the Support Services Manager. All major financial decisions are recommended to the Main Board where decision making occurs.

Task and Finish Groups are established for specific purposes e.g. Nominations Committee to identify a new Chairman or a selection panel to select a new Chief Executive.

All Trustees, including the Chair, have fixed terms of office.

d. Policies adopted for the induction and training of Trustees

New Trustees are provided with a comprehensive induction, led by the Chief Executive and involving other staff, to ensure they are provided with a comprehensive view of what the NHC does and how it does it.

All Trustees are informed of Trustee training opportunities organised by external bodies and encouraged to attend ones that will be valuable to them.

Informal visits by Trustees are encouraged at any time to allow them to get to know it well.

e. Pay policy for key management personnel

Trustees and senior leaders continue to recognise that the organisation’s success is reliant on its team of dedicated staff. While it is College policy to pay employees at rates consistent with the wider Industry market where possible, the UK’s National Living Wage is the lowest level at which any employee is paid. In late December 2019, salaries for all staff were increased in line with inflation and a small bonus was paid, linked directly to length of service and without regard to appointment or salary but with a cap and collar applied. Adjustments to the salaries of the College’s senior leaders are made on exactly the same basis as all other employees..

The College’s senior leadership team comprises the Chief Executive; Operations Director; Support Services Manager; Work Based Learning Manager; Foundation Course Manager and Fundraising Manager.

Page 10

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Plans for future periods

The continued success of the College is linked inextricably to the health and success of racing as a whole. Trustees appreciate greatly therefore, the efforts made by the BHA, other entities and many individuals across the racing industry that have allowed racing to continue, although with limitations, despite the COVID-19 pandemic. Steps taken by central government, local authorities and the racing industry already have helped to support the College’s own efforts to sustain its staff and learners through this period of global adversity. While the pandemic is not yet over, uncertainties remain but the business has taken decisive and effective measures to preserve cash flow and increase its resilience. Therefore, Trustees believe that the company has adequate resources to continue as a healthy going concern and they look forward to the post-COVID future, delivering its core objectives, with justifiable optimism.

Statement of Trustees' responsibilities

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

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.

Page 11

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Auditor

The auditor, BHP LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Gerry Sutcliffe (Mar 9, 2021 15:54 GMT) ................................................ Mr Gerard Sutcliffe (Chair of Trustees)

Date: Mar 9, 2021

Page 12

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

Opinion

We have audited the financial statements of National Horseracing College (Formerly Northern Racing College) (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 July 2020 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 July 2020 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 13

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE) (CONTINUED)

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' Report (incorporating the Directors' Report) for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company's financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Page 14

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE) (CONTINUED)

Responsibilities of trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the 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 the 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.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body,in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and its trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Page 15

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE) (CONTINUED)

Jane Marshall (Mar 9, 2021 16:27 GMT)

Jane Marshall (Senior statutory auditor)

for and on behalf of BHP LLP Chartered Accountants Statutory Auditor 2 Rutland Park

Sheffield S10 2PD

Date: Mar 9, 2021

Page 16

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2020

Note Income from: Donations and legacies 4 Charitable activities 5 Other trading activities 6 Other income 7 Total income Expenditure on: Raising funds: 8 Voluntary income Other trading Charitable activities 9 Other expenditure 11 Total expenditure Net income Transfers between funds 22 Net movement in funds before other recognised gains/(losses) Other recognised gains/(losses): Actuarial (losses)/gains on defined benefit pension schemes 28 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2020 £ 45,000 939,355 122,435 143,385 1,250,175 74,453 78,791 918,041 23,098 1,094,383 155,792 13,860 169,652 (498,000) (328,348) 893,435 (328,348) 565,087	Restricted funds 2020 £ - 1,488,598 - - 1,488,598 - - 1,369,587 - 1,369,587 119,011 (13,860) 105,151 - 105,151 158,019 105,151 263,170	Total funds 2020 £ 45,000 2,427,953 122,435 143,385 2,738,773 74,453 78,791 2,287,628 23,098 2,463,970 274,803 - 274,803 (498,000) (223,197) 1,051,454 (223,197) 828,257	Total funds 2019 £ 65,150 2,154,681 149,783 - 2,369,614 56,143 84,795 2,173,363 25,494 2,339,795 29,819 - 29,819 (484,000) (454,181) 1,505,635 (454,181) 1,051,454

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

Page 17

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee) REGISTERED NUMBER: 02266267

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020

Note Fixed assets Tangible assets 16 Current assets Stocks 18 Debtors 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets / liabilites Total assets less current liabilities Creditors: amounts falling due after more than one year 21 Net assets excluding pension liability Defined benefit pension scheme liability 28 Total net assets Charity funds Restricted funds 22 Unrestricted funds Designated funds 22 General funds 22 Unrestricted funds excluding pension liability 22 Pension reserve 22 Total unrestricted funds 22 Total funds	35,438 85,353 551,748 672,539 (380,272) 56,335 2,391,752 2,448,087 (1,883,000)	2020 £ 2,857,743 2,857,743 292,267 3,150,010 (438,753) 2,711,257 (1,883,000) 828,257 263,170 565,087 828,257	31,403 35,522 238,156 305,081 (337,015) - 2,238,435 2,238,435 (1,345,000)	2019 £ 2,899,789 2,899,789 (31,934) 2,867,855 (471,401) 2,396,454 (1,345,000) 1,051,454 158,019 893,435 1,051,454

Page 18

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

• (A company limited by guarantee)

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 JULY 2020

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Gerry Sutcliffe (Mar 9, 2021 15:54 GMT) ................................................

Mr Gerard Sutcliffe (Chair of Trustees) Date: Mar 9, 2021

The notes on pages 23 to 55 form part of these financial statements.

Page 19

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee) REGISTERED NUMBER: 02266267

COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2020

Note Fixed assets Tangible assets 16 Investments 17 Current assets Stocks 18 Debtors 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets / liabilites Total assets less current liabilities Creditors: amounts falling due after more than one year 21 Net assets excluding pension liability Defined benefit pension scheme liability 28 Total net assets Charity funds Restricted funds 22 Unrestricted funds Designated funds 22 General funds 22 Unrestricted funds excluding pension liability 22 Pension reserve 22 Total unrestricted funds 22 Total funds	24,412 157,530 463,325 645,267 (369,358) 56,335 2,331,295 2,387,630 (1,883,000)	2020 £ 2,813,642 2 2,813,644 275,909 3,089,553 (438,753) 2,650,800 (1,883,000) 767,800 263,170 504,630 767,800	20,341 87,211 183,297 290,849 (326,750) - 2,194,997 2,194,997 (1,345,000)	2019 £ 2,860,316 2 2,860,318 (35,901) 2,824,417 (471,401) 2,353,016 (1,345,000) 1,008,016 158,019 849,997 1,008,016

Page 20

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 JULY 2020

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees on _______ Mar 9, 2021 and signed on their behalf by:

Gerry Sutcliffe (Mar 9, 2021 15:54 GMT) Mr Gerard Sutcliffe (Chair of Trustees)

The notes on pages 23 to 55 form part of these financial statements.

Page 21

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020

Note Cash flows from operating activities Net cash generated by operating activities 25 Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Interest paid Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 26	2020 £ 406,358 30,142 (75,760) (45,618) 50,000 (74,050) (23,098) (47,148) 313,592 238,156 551,748	2019 £ 210,378 150 (73,320) (73,170) - (69,786) (25,494) (95,280) 41,928 196,228 238,156

The notes on pages 23 to 55 form part of these financial statements

Page 22

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. General information

The charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Its registered office is The Stables, Rossington Hall, Great North Road, Doncaster, South Yorkshire, DN11 0HN.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 issued October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

National Horseracing College (Formerly Northern Racing College) 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.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Page 23

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.3 Going concern

The charity, for some years, has been unable to comply with its policy to hold free reserves of between 1 and 2 months operational expenditure. Small surpluses in unrestricted funds in recent years had allowed the College to work towards adherence of the policy, however the onset of the global pandemic brought increased risk to the charity’s finances.

The NHC has been fortunate to be supported by continued regular contract payments from the racing industry and some additional support recognising the significant impact that will result over the coming year to two years due to cohorts of learners which could not enter the training pipeline.

Steps taken by central government, local authorities and the racing industry already have helped to support the College’s own efforts to sustain its staff and learners through this period of global adversity. While the pandemic is not yet over, uncertainties remain, but the business has taken decisive and effective measures to preserve cash flow and increase its resilience.

The Trustees have prepared forecasts of income and expenditure and cash flow for the period to 28 February 2022 which shows that they have sufficient cash to be able to continue for the foreseeable future.

The Trustees therefore continue to adopt the going concern basis of preparation for these financial statements.

Page 24

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.4 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the company's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Included in other income is CJRS income which is recognised in the period for which the claim was made.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Page 25

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.5 Expenditure (continued)

All expenditure is inclusive of irrecoverable VAT.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £200 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Visitor centre - Variable between 1% - 20% on a reducing balance basis Building refurbishment - Over the term of the lease Leasehold land & buildings - Over the term of the lease Stable block - 1% reducing balance - Plant, equipment and motor 10% reducing balance, 20% on cost vehicles - Gallop, manege and indoor riding 5% on cost, 1% reducing balance school Computer equipment - 20 - 33% on cost

2.7 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.9 Debtors

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

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 26

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.11 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

2.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.14 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.15 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

The group operates a defined benefit plan for the benefit of its employees. A liability for the charity’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

Page 27

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.17 Taxation

As a charity, National Horseracing College is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

2.18 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

3. Critical accounting estimates and areas of judgment

Estimates and judgments 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 circumstances.

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 28

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

4. Income from donations and legacies

Donations Pontefract race day income Leger Legends income Total 2019	Unrestricted funds 2020 £ - 45,000 45,000 65,150	Total funds 2020 £ - 45,000 45,000 65,150	Total funds 2019 £ 10,150 55,000
			65,150

5. Income from charitable activities

Operation of educational and training college ESFA Other activity related income Grants (see detailed breakdown below) Total 2019	Unrestricted funds 2020 £ 19,950 665,427 51,878 202,100 939,355 953,235	Restricted funds 2020 £ 1,203,665 - - 284,933 1,488,598 1,201,446	Total funds 2020 £ 1,223,615 665,427 51,878 487,033 2,427,953 2,154,681	Total funds 2019 £ 1,107,390 772,609 55,033 219,649
				2,154,681

Page 29

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Grants Big Lottery Regional training grant Stalls refurbishment Funding expert contribution Commercial assistance Racing welfare Immersive technology Accomodation review Peter O'Sullivan Trust- Lunge pen The Racing Foundation- Lunge pen Peter O'Sullivan Trust- Fitness facility Horsebox grant Total restricted grants BHA COVID-19 support Princes Trust / BHA Regional training support 14-16 year old programme Total unrestricted grants Total	2020 £ 57,825 79,858 15,000 - 50,000 7,250 10,000 40,000 - - - 25,000 284,933 175,100 - 12,000 15,000 202,100 487,033	2019 £ - 52,853 - 8,843 - 14,500 - 10,000 50,000 10,000 14,000 -
		160,196
		- 32,000 12,453 15,000
		59,453
		219,649

Page 30

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

6. Income from other trading activities

Income from non charitable trading activities

NHC Trading Limited Total 2019	Unrestricted funds 2020 £ 122,435 149,783	Total funds 2020 £ 122,435 149,783	Total funds 2019 £ 149,783

The charity has a wholly owned trading subsiduary, NHC Trading Limited (company number 03538751). The company was incorporated on 1 April 1998 and has issued share capital of two ordinary shares. The company gifts its taxable profits to National Horseracing College. Audited accounts are filed with Companies House.

7. Other incoming resources

Insurance receipt CJRS income	Unrestricted funds 2020 £ 56,335 87,050 143,385	Total funds 2020 £ 56,335 87,050 143,385	Total funds 2019 £ - -
			-

Page 31

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

8. Expenditure on raising funds

Costs of raising voluntary income

Fundraising and publicity Voluntary income staff costs Total 2019 Other trading expenses Cost of sales Administration expenses Depreciation Total 2020 Total 2019 In 2019 all expenditure related to unrestricted funds.	Unrestricted funds 2020 £ (27) 74,480 74,453 56,143 Unrestricted funds 2020 £ 64,706 10,404 3,681 78,791 84,795	Total funds 2020 £ (27) 74,480 74,453 56,143 Total funds 2020 £ 64,706 10,404 3,681 78,791 84,795	Total funds 2019 £ 1,783 54,360
			56,143
			Total funds 2019 £ 65,214 11,481 8,100
			84,795

Page 32

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

9. Analysis of expenditure on charitable activities

Summary by fund type

Operation of educational and training college Total 2020 Total 2019	Unrestricted funds 2020 £ 918,041 918,041 898,081	Restricted funds 2020 £ 1,369,587 1,369,587 1,275,282	Total funds 2020 £ 2,287,628 2,287,628 2,173,363	Total funds 2019 £ 2,173,363
				2,173,363

Page 33

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

10. Summary by expenditure category

Training costs Accommodation Stable yard Staff costs National Insurance Pension costs FRS 17 finance costs Depreciation Total direct costs Administration costs Staff costs Total management and administration Support administration costs Total support costs Governance costs (see note 11) Overall Total	2020 £ 107,498 356,637 169,898 773,412 80,852 87,836 30,000 85,261 1,691,394 229,334 132,467 361,801 50,342 50,342 184,091 2,287,628	2019 £ 73,128 384,509 156,777 691,628 77,136 89,493 21,000 86,018
		1,579,689
		220,901 142,229
		363,130
		48,490
		48,490
		182,054
		2,173,363

Page 34

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

11. Other expenditure

Bank and other interest Total 2019	Unrestricted funds 2020 £ 23,098 2,105	Restricted funds 2020 £ - 23,389	Total funds 2020 £ 23,098 25,494	Total funds 2019 £ 25,494

12. Governance costs Auditor's remuneration Trustees' expenses Legal and professional Salaries and related charges Overall Total	Unrestricted funds 2020 £ 9,860 1,344 17,909 113,228 142,341	Restricted funds 2020 £ - - 39,950 1,800 41,750	Total funds 2020 £ 9,860 1,344 57,859 115,028 184,091	Total funds 2019 £ 9,370 2,434 58,269 111,981
				182,054

In 2019 £13,902 of governance costs related to restricted expenditure and £168,152 related to unrestricted expenditure.

13. Net income/(expenditure)

This is stated after charging:

Depreciation of tangible fixed assets owned by the charitable company Depreciation of tangible fixed assets held under finance leases Auditor's remuneration- audit Total	2020 £ 76,835 12,107 9,860 98,802	2019 £ 85,473 8,645 9,370
		103,488

Page 35

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. Staff costs

Wages and salaries Social security costs Pension costs Operating costs of defined benefit pension schemes	Group 2020 £ 1,085,387 80,852 87,836 10,000 1,264,075	Group 2019 £ 960,198 77,136 89,493 40,000 1,166,827	Company 2020 £ 1,085,387 80,852 87,836 10,000 1,264,075	Company 2019 £ 960,198 77,136 89,493 40,000
				1,166,827

The average number of persons employed by the company during the year was as follows:

Group	Group
2020	2019
No.	No.
46	43

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

In the band £80,001 - £90,000

Group	Group
2020	2019
No.	No.
1	1

The total remuneration and benefits received by key management personnel was £287,623 (2019: £320,017). The trustees consider senior management personnel to be the Chief Executive Officer, the Operations Director, the Support Services Manager, the Work Based Learning Manager, the Foundation Course Manager, the Head of Instructors and the Fundraising Manager.

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 July 2020, expenses totalling £1,344 were reimbursed or paid directly to 6 Trustees (2019 - £2,434 to 6 Trustees). These expenses relate to the reimbursement of travel expenses incurred by the Trustees when attending National Horseracing College Trustee meetings and events.

Page 36

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

16. Tangible fixed assets

Group

Cost or valuation At 1 August 2019 Additions Disposals At 31 July 2020 Depreciation At 1 August 2019 Charge for the year On disposals At 31 July 2020	Visitors centre £ 816,681 - - 816,681 213,300 6,205 - 219,505	Building refurbishment £ 463,619 - - 463,619 248,635 3,459 - 252,094	Leasehold Land & Buildings £ 1,239,582 - - 1,239,582 286,193 10,750 - 296,943	Stable Block £ 652,271 - - 652,271 157,543 6,580 - 164,123	Gallop, Menage & Indoor Riding School £ 837,165 - (4,001) 833,164 453,343 12,549 - 465,892	Plant, Equipment & Motor Vehicles £ 495,195 63,399 (43,014) 515,580 250,161 43,850 (18,151) 275,860	Computer equipment £ 47,652 12,361 - 60,013 43,201 5,549 - 48,750	Total £ 4,552,165 75,760 (47,015) 4,580,910 1,652,376 88,942 (18,151) 1,723,167

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NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

16. Tangible fixed assets (continued)

Group (continued)

Net book value At 31 July 2020 At 31 July 2019 Company Cost or valuation At 1 August 2019 Additions Disposals At 31 July 2020	Visitors centre £ 597,176 603,381 Visitors centre £ 816,681 - - 816,681	Building refurbishment £ 211,525 214,984 Building refurbishment £ 463,619 - - 463,619	Leasehold Land & Buildings £ 942,639 953,389 Leasehold Land & Buildings £ 1,235,441 - - 1,235,441	Stable Block £ 488,148 494,728 Stable Block £ 652,271 - - 652,271	Gallop, Menage & Indoor Riding School £ 367,272 383,822 Gallop, Menage & Indoor Riding School £ 837,165 - (4,001) 833,164	Plant, Equipment & Motor Vehicles £ 239,720 245,034 Plant, Equipment & Motor Vehicles £ 382,169 55,090 (43,014) 394,245	Computer equipment £ 11,263 4,451 Computer equipment £ 47,652 12,361 - 60,013	Total £ 2,857,743 2,899,789 Total £ 4,434,998 67,451 (47,015) 4,455,434

Page 38

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

16. Tangible fixed assets (continued)

Company (continued)

Depreciation At 1 August 2019 Charge for the year On disposals At 31 July 2020 Net book value At 31 July 2020 At 31 July 2019	Visitors centre £ 213,300 6,205 - 219,505 597,176 603,381	Building refurbishment £ 248,635 3,459 - 252,094 211,525 214,984	Leasehold Land & Buildings £ 285,368 10,667 - 296,035 939,406 950,073	Stable Block £ 157,543 6,580 - 164,123 488,148 494,728	Gallop, Menage & Indoor Riding School £ 453,343 12,549 - 465,892 367,272 383,822	Plant, Equipment & Motor Vehicles £ 173,292 40,252 (18,151) 195,393 198,852 208,877	Computer equipment £ 43,201 5,549 - 48,750 11,263 4,451	Total £ 1,574,682 85,261 (18,151) 1,641,792 2,813,642 2,860,316

Page 39

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

17. Fixed asset investments company Cost or valuation At 1 August 2019 At 31 July 2020 Net book value At 31 July 2020 At 31 July 2019	Investments in subsidiary companies £ 2
	2
	2
	2

National Horseracing College owns 100% of the ordinary share capital of its trading subsiduary, NHC Trading Limited, a company incorporated in England and Wales.

Page 40

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

17. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the company:

Name Company number Registered office or principal place of business Class of shares NHC Trading Limited 03538751 The Stables, Rossington Hall, Great North Road, Doncaster, DH11 0HN Ordinary The financial results of the subsidiary for the year were: Name Income £ Expenditure £ Profit for the year £ NHC Trading Limited 122,435 (87,928) 34,507 18. Stocks Group Group Company 2020 2019 2020 £ £ £ Finished goods 35,438 31,403 24,412 19. Debtors Group Group Company 2020 2019 2020 £ £ £ Trade debtors 54,197 28,065 49,909 Amounts owed by group undertakings - - 76,465 Other debtors 4,729 617 4,729 Prepayments and accrued income 26,427 6,840 26,427 85,353 35,522 157,530	Holding 100% Net assets £ 60,459 Company 2019 £ 20,341
	Company 2019 £ 21,777 57,977 617 6,840
	87,211

Page 41

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

20. Creditors: Amounts falling due within one year

Bank overdrafts Bank loans Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contracts Other creditors	Group 2020 £ - 61,440 69,971 29,867 9,454 209,540 380,272	Group 2019 £ 3 52,157 111,904 37,127 4,228 131,596 337,015	Company 2020 £ - 61,440 63,210 26,744 9,454 208,510 369,358	Company 2019 £ 3 52,157 107,106 32,660 4,228 130,596
				326,750

The hire purchase contract is secured against the asset to which it relates.

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(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

21. Creditors: Amounts falling due after more than one year

Bank loans Net obligations under finance lease and hire purchase contracts	Group 2020 £ 432,257 6,496 438,753	Group 2019 £ 465,590 5,811 471,401	Company 2020 £ 432,257 6,496 438,753	Company 2019 £ 465,590 5,811
				471,401

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Repayable by instalments	Group 2020 £ 181,026 181,026	Group 2019 £ 188,842 188,842	Company 2020 £ 181,026 181,026	Company 2019 £ 188,842
				188,842

Bank loans and overdrafts are secured by way of a first legal charge over the assets and undertakings of the charity, including the Residential Centre, Rossington Hall, Great North Road, Doncaster.

Bank loans are repaid monthly over the term of the loan. Interest is payable at a fixed rate of 5.955%. Interest on any bank overdrafts is payable at 5.55% above base rate.

A Bounce Back Loan of £50,000 was drawn down during the year. Repayments commence July 2021 and there is no interest charged.

Page 43

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

22. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds College improvements General funds General funds Reserves held in subsidiary Pension reserve Total Unrestricted funds Restricted funds Horseracing grant scheme Regional training grant Immersive technology Stalls refurbishment Racing welfare Horsebox grant Commercial assistance Big Lottery funding Peter O'Sullivan Trust - Lunge pen	Balance at 1 August 2019 £ - 2,194,997 43,438 (1,345,000) 893,435 893,435 60,000 27,269 - - 580 - - - 48,125	Income £ 56,335 1,071,405 122,435 - 1,193,840 1,250,175 - 79,858 10,000 15,000 7,250 25,000 50,000 57,825 -	Expenditure £ - (966,455) (87,928) (40,000) (1,094,383) (1,094,383) - (42,952) (10,000) (15,000) (7,830) - (50,000) - -	Transfers in/out £ - 31,348 (17,488) - 13,860 13,860 - - - - - - - - -	Gains/ (Losses) £ - - - (498,000) (498,000) (498,000) - - - - - - - - -	Balance at 31 July 2020 £ 56,335 2,331,295 60,457 (1,883,000) 508,752 565,087 60,000 64,175 - - - 25,000 - 57,825 48,125

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NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

22. Statement of funds (continued)

Statement of funds	- current year (continued) Balance at 1 August 2019 £ Income £ 8,045 - - 40,000 14,000 - - 1,203,665 158,019 1,488,598 1,051,454 2,738,773	Expenditure £ - (40,000) (140) (1,203,665) (1,369,587) (2,463,970)	Transfers in/out £ - - (13,860) - (13,860) -	Gains/ (Losses) £ - - - - - (498,000)	Balance at 31 July 2020 £ 8,045 - - -
The Racing Foundation- Lunge pen Accomodation review Peter O'Sullivan Trust - Fitness facility BHA & HBLB programmes Total of funds	Balance at 1 August 2019 £ 8,045 - 14,000 - 158,019 1,051,454
					263,170
					828,257

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NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

22. Statement of funds (continued) Statement of funds - prior year Balance at 1 August 2018 £ Unrestricted funds General funds 2,123,313 Reserves held in subsidiary 28,761 Pension reserve (800,000) 1,352,074 Restricted funds Horseracing grant scheme 60,000 Regional training grant 15,785 Immersive technology 17,800 Stalls refurbishment 3,587 Racing welfare 2,880 Horsebox grant 5,482 Commercial assistance 48,027 Big Lottery funding - Peter O'Sullivan Trust - Lunge pen - The Racing Foundation- Lunge pen - Accomodation review -	Income £ 1,018,385 149,783 - 1,168,168 - 52,853 - - 14,500 - - 8,843 50,000 10,000 10,000	Expenditure £ (947,011) (134,796) (61,000) (1,142,807) - (41,369) (17,800) (3,587) (16,800) (5,482) (48,027) (8,843) (1,875) (1,955) (10,000)	Transfers in/out £ 310 (310) - - - - - - - - - - - - -	Gains/ (Losses) £ - - (484,000) (484,000) - - - - - - - - - - -	Balance at 31 July 2019 £ 2,194,997 43,438 (1,345,000) 893,435 60,000 27,269 - - 580 - - - 48,125 8,045 -

Page 46

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

22. Statement of funds (continued) Statement of funds - prior year (continued) Balance at 1 August 2018 £ Income £ Peter O'Sullivan Trust - Fitness facility - 14,000 BHA & HBLB programmes - 1,041,250 153,561 1,201,446 Total of funds 1,505,635 2,369,614	Expenditure £ - (1,041,250) (1,196,988) (2,339,795)	Transfers in/out £ - - - -	Gains/ (Losses) £ - - - (484,000)	Balance at 31 July 2019 £ 14,000 -
				158,019
				1,051,454

Page 47

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Restricted Funds

The funds of the charity include restricted funds comprising the following unexpended balances of grants and donations held on trust to be applied for specific purposes:

The Horseracing grant scheme represents a contribution from the British Horseracing Authority towards the costs of the construction of the ground floor of what will become the College’s proposed new accommodation block, the construction of this has not begun.

The regional training grant represents grants received from the Racing Foundation under its ‘People Development’ initiative to provide Rider coaching sessions, simulator training and theoretical coaching for the racing Community.

Racing to school is to fund a two year programme to develop a new website and to purchase 40 grooming kits.

Racing welfare fund the life skills programme which seeks to provide skills to learners to help them become resillient and effective communicators who are equipped for independent living.

Commercial assistance is in relation to a three year project to fund the recruitment and employment of a Business Development Manager to assist in the generation of additional commercial revenues.

Big Lottery - Youth engagement support - grant to provide additional support to disadvantaged learners.

The lunge pen grant are two grants, one from The Peter O'Sullivan Trust and one from The Racing Foundation to create a new lunge pen for the horses, included in the building of the lunge pen is a new racehorse simulator.

The accomodation review grant was a grant in order to fund someone to come in and review the residential facilities at the college in order to prioritise what areas needed improvement and where savings can be made whilst improving the accomodation facilities.

The Fitness facility grant is monies received in order to upgrade the fitness facilities at the the college in order to help the aspiring jockeys obtain the physical performance they need.

The BHA & HBLB programmes fund is money received from the British Horseracing Association in order for the college to deliver it's courses and help with the day to day running of the facility.

Immersive technology - for new technology purchases

Stalls refurbishment - to fund refurbishment to the stalls

Horsebox grant - to fund a new horsebox

Government funding expert (contract co-ordinator) is for the part funding of a Government Funding expert on a three year project to assist in keeping abreast of complex government policy on education funding.

Transfer between funds

A transfer has been made from restricted funds to unrestricted funds for capital expenditure where the conditions of the funding have been fulfilled.

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NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

23. Summary of funds

Summary of funds - current year

Designated funds General funds Restricted funds	Balance at 1 August 2019 £ - 893,435 158,019 1,051,454 - prior year Balance at 1 August 2018 £ 1,352,074 153,561 1,505,635	Income £ 56,335 1,193,840 1,488,598 2,738,773 Income £ 1,168,168 1,201,446 2,369,614	Expenditure £ - (1,094,383) (1,369,587) (2,463,970) Expenditure £ (1,142,807) (1,196,988) (2,339,795)	Transfers in/out £ - 13,860 (13,860) - Transfers in/out £ - - -	Gains/ (Losses) £ - (498,000) - (498,000) Gains/ (Losses) £ (484,000) - (484,000)	Balance at 31 July 2020 £ 56,335 508,752 263,170
						828,257
						Balance at 31 July 2019 £ 893,435 158,019
Summary of funds
General funds Restricted funds
						1,051,454

24. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total	Unrestricted funds 2020 £ 2,857,743 409,369 (380,272) (438,753) (1,883,000) 565,087	Restricted funds 2020 £ - 263,170 - - - 263,170	Total funds 2020 £ 2,857,743 672,539 (380,272) (438,753) (1,883,000)
			828,257

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NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

24. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total	Unrestricted funds 2019 £ 2,899,789 147,062 (337,015) (471,401) (1,345,000) 893,435	Restricted funds 2019 £ - 158,019 - - - 158,019	Total funds 2019 £ 2,899,789 305,081 (337,015) (471,401) (1,345,000) 1,051,454

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges (Increase)/decrease in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Interest paid Defined benefit pension adjustment Net cash provided by operating activities	Group 2020 £ 274,803 87,664 (4,035) (49,831) 34,659 23,098 40,000 406,358	Group 2019 £ 29,819 94,118 (13,657) 62,191 (48,587) 25,494 61,000 210,378

Page 50

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

26. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	Group 2020 £ 551,748 551,748	Group 2019 £ 238,156
		238,156

27. Analysis of changes in net debt

Cash at bank and in hand Bank overdrafts repayable on demand Debt due within 1 year Debt due after 1 year Finance leases	At 1 August 2019 £ 238,156 (3) (52,157) (465,590) (10,039) (289,633)	Cash flows £ 313,592 3 (9,283) 33,333 (5,911) 331,734	At 31 July 2020 £ 551,748 - (61,440) (432,257) (15,950)
			42,101

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(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

28. Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge includes contributions payable by the company to the fund and amounted to £19,515 (2019: £18,578). Contributions totalling £3,391 (2019: £1,555) were payable to the fund at the balance sheet date and are included in creditors.

The Group operates a defined benefit pension scheme.

National Horseracing College is a member of the South Yorkshire Pension scheme which is a multi-employer pension scheme providing benefits on final pensionable pay. The assets of the scheme are held separately from those of National Horseracing College. Contributions to the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with National Horseracing College. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method.

A full actuarial valuation was carried out as at 31 March 2019 and to the 31 July 2020 specifically for the college by Mercer Human Resource Consulting Limited.

The contributions made for the year ended 31 July 2020 were £59,000 and the contribution rates expected for the year ended 31 July 2021 are £63,000.

At the balance sheet date there were outstanding contributions payable of £2,700 (2019: £2,515).

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

	At 31 July	At 31 July
	2020	2019
	%	%
Discount rate	1.60	2.20
Future salary increases	3.55	3.45
Future pension increases	2.40	2.30
Inflation assumption	2.30	2.20

	At 31 July	At 31 July
	2020	2019
	Years	Years
Mortality rates (in years)
- for a male aged 65 now	22.4	23.1
- at 65 for a male aged 45 now	23.9	25.3
- for a female aged 65 now	25.2	25.9
- at 65 for a female aged 45 now	27.1	28.3

Page 52

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

28. Pension commitments (continued)

The Group's share of the assets in the scheme was:

Equities Government bonds Other bonds Property Cash and other liquid assets Other Total fair value of assets	At 31 July 2020 £ 1,322,000 446,000 254,000 240,000 117,000 480,000 2,859,000	At 31 July 2019 £ 1,560,000 426,000 218,000 259,000 95,000 423,000
		2,981,000

The actual return on scheme assets was £-33,000 (2019 - £217,000).

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

Current service cost (less contributions paid) Past service cost Interest cost Administrative expenses Total amount recognised in the Consolidated Statement of Financial Activities	2020 £ (65,000) (3,000) (30,000) (1,000) (99,000)	2019 £ (56,000) (43,000) (21,000) (1,000)
		(121,000)

Page 53

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

28. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation Interest cost Actuarial losses Benefits paid Current service costs Past service costs Contributions by scheme participants Closing defined benefit obligation Movements in the fair value of the Group's share of scheme assets were as follows: Opening fair value of scheme assets Interest on plan assets Actuarial (losses)/gains Administration expenses Contributions by employer Contirbutions by scheme participants Benefits paid Closing fair value of scheme assets

2020 £ 4,326,000 95,000 343,000 (101,000) 65,000 3,000 11,000 4,742,000 2020 £ 2,981,000 65,000 (155,000) (1,000) 59,000 11,000 (101,000) 2,859,000

Amounts for the current and previous period for the defined benefit pension schemes are as follows:

Defined benefit obligation Scheme assets Deficit Experience adjustments on scheme liabilities Experience adjustment on scheme assets	2020 £ (4,742,000) 2,859,000 (1,883,000) (343,000) (155,000)	2019 £ (4,326,000) 2,981,000 (1,345,000) (621,000) 137,000

Page 54

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE (FORMERLY NORTHERN RACING COLLEGE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

29. Operating lease commitments

At 31 July 2020 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

	Group	Group	Group	Company	Company
	2020	2019		2020	2019
	£	£		£	£
Not later than 1 year	3,051	15,353		3,051	15,353
Later than 1 year and not later than 5 years	2,930	5,981		2,930	5,981
	5,981	21,334		5,981	21,334
The following lease payments have been recognised	as an expense in the Statement			of financial activities:
	Group	Group		Company	Company
	2020	2019		2020	2019
	£	£		£	£
Operating lease rentals	15,353	-		15,353	-

30. Related party transactions

During the year purchases were made from NHC Trading Limited (a wholly owned trading subsidiary) totalling £6,663 (2019: £3,962). Management charges made in the year to NHC Trading Limited were £9,137 (2019: £50,000). At the year end £76,465 (2019: £57,977) was due from NHC Trading Limited.

31. Controlling party

The Trust is a charity limited by guarantee and is therefore ultimately controlled by the Trustees.

Page 55