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2021-07-31-accounts

Registered number: 02266267 Charity number: 700405

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1 - 2
Trustees' report 3 - 11
Independent auditor's report on the financial statements 12 - 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 - 54

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021

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 Ms Susannah Gill Ms Nicola Frampton Ms Sally Iggulden Dr Helen McCarthy (appointed 2 June 2021) Mr Callum Helliwell (appointed 8 December 2021) Mr Christopher Mallinson (resigned 13 December 2020) Mr N Brewster (resigned 18 November 2021)

Vice Presidents

Mr Sandy Struthers Sir Robert Ogden CBE LLD (deceased 8 March 2022) Monsieur Didier Garnier Mr Roy Thwaites The Rt Hon Richard Caborn Ms Julie Krone

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

Page 1

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

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

Pension Administrators

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

Page 2

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

The trustees present their report and the audited financial statements of the charitable group for the year ended 31 July 2021. The Annual report serves the purposes of both a trustees' report and a directors' report under company law. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charitable group.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Overview

During the second half of the last audit period, the College’s learners, staff and leaders had developed and adopted ways of operating and managing in order to continue the training needed by the racing industry despite the global COVID-19 pandemic. Throughout this reporting period, although the pandemic continued to be a dominating factor, the new ways of working were validated, proving sufficiently effective to allow on-site delivery of training to continue virtually uninterrupted. The diligence and commitment of staff at all levels played a crucial role in enabling this and lead to the College finding itself in a stronger position than was feared.

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 re-state their appreciation of 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.

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

Page 3

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

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. Study Programme

In 2020/21, there were 104 learners overall on Study Programme courses – these included 34 Traineeships, 53 on the L1 Residential Foundation Course (FC) and 17 on the non-residential, day attendance Doncaster Equine College (DEC) Programme. The residential programme is 12 weeks duration followed by a 6-week work placement planned with an employer. While most learners are 16-18 year olds living away from home for the first time, each intake usually includes a small number of 19+ learners.

Qualifications on the FC include Level 1 (L1) Diploma in Racehorse Care and Riding, L1 Diploma in Work-Based Horse Care, Entry 3 Award in Basic Knowledge of the Horseracing Industry, L3 Award Short journey in the transportation of Horses and Functional skills. L1 Diploma rates have improved to 87.9%. Traineeship achievement rates are high at 87.6% and Study Programme overall success rates have improved to 88.1% from 75.6% in 2019/20.

This has been a particularly challenging year due to COVID-19. Residential FC students were required to stay on site without access to visitors, sometimes for the whole course, and this caused emotional distress for some students. Despite other difficulties, the College’s approach this year led to the retention rate for all age groups on the FC reaching an extraordinarily impressive 92%, one of the two highest rates (93% last year) of the last decade.

Page 4

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Achievements and Performance (continued)

(continued)

Functional English results overall have improved radically (90%) and mathematics results overall (90.6%) are outstanding considering the starting points of learners. There is a clear correlation that the starting points of learners impacts on their retention and achievement rates. Of the FC cohorts in 2020/21: 36% have received counselling or had a support worker, 25% have a self-stated learning difficulty, 26% consider they have a mental health problem, 10% did not complete school, 4% have an Education, Health & Care Plan (EHCP), 5% were fostered/in care/adopted, 12% have a self-stated physical health problem, 5% have a self-stated disability. While the proportion of disadvantaged learners has increased, NHC’s dedicated staff continue to drive up achievements and progressions to very positive effect. It is outstanding that 91.6% of learners with learning difficulties or disabilities (LLDD) achieve better than the rest of their main group of peers.

The NHC prepares non-employed young people for the world of work. Learners follow an intensive curriculum that includes social development skills covering employability, cooking, resilience, self-belief, time management skills and preparation for functional skills at different levels. There is a range of other additional accreditation opportunities such as safeguarding, emergency first aid, Racing2Learn modules e.g. health & wellbeing, LGBT+ awareness. There are also sessions delivered by external speakers from NARS, Racing Welfare, Galahad (drug awareness) and a nutrition expert.

Parent or guardian feedback is very positive about the personal development and improved behaviour of their children. Of those who graduated from the residential FC 86% went into work placement (and then apprenticeship 52%) and 72% of those who graduated had a positive destination. There was a decline in learners moving into positive destinations, mostly due to the disruption caused by the pandemic.

b. Apprenticeships

The College’s staff work hard to match learners to employers to determine the best placement for them. The frequency of support for learners on transition to apprenticeships has increased, with consequent improvement in progressions. Once on apprenticeships, learners are employed in line with a national wage scale sanctioned by the British Horseracing Authority (BHA), which exceeds Apprenticeship wage requirements. Learners are on apprenticeships for up to 18 months and move between employers where necessary and appropriate. Where learners express a justified desire to move, NHC works hard to find alternative racing yards, maintaining close contact to retain the learner in learning. The industry is renowned for its high turnover of staff and NHC works hard to keep apprentices on programme until completion. It has instigated more thorough tracking of its early leavers and it is now known that 85% stay in the equine industry.

The curriculum offer in 2020/21 comprised L2 and L3 apprenticeships in equine groom and senior equine groom including diplomas. Additional qualifications are offered to learners including emergency first aid, safeguarding, transporting horses by road on long journeys and L2 functional skills.

There were 153 learners in learning overall, this was an increase of around 20% in numbers on the previous year. Achievement levels declined on previous years – in the main due to COVID-19 and the challenge of sitting End Point Assessments (EPA) in 2020. Overall achievement in 2020/21 was 73.6% against 75% the previous year but both years were slightly above the provider group and national averages. The College encouraged and worked with its awarding organisation to enable flexible EPA in light of COVID-19 restrictions. Almost all apprentices getting to EPA achieved a pass and 30% achieved a distinction.

Page 5

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Achievements and Performance (continued)

(continued)

c. 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 continued risks posed by COVID-19 during this year. The efforts that had been made to develop and adopt effective COVID safety protocols specific to the situation at the NHC proved more successful than anyone could have hoped. Clearly, a very high priority also had to continue to be devoted to ensuring the viability of the business. Well-informed, timely decision-making by the Levy Board and Racing Foundation helped to support the NHC as part of the wider racing industry through the crisis. Internally, careful planning, control of outgoings, re-scheduling of works and optimal use of Government schemes combined to put the College in a good position despite the extraordinary challenges of the pandemic. One of the unexpected positive consequences of new working protocols was the successful implementation of flexible working practices which, though designed initially to reduce the risks of COVID transmission, have proved already to be facilitating increased productivity and improved quality of life in some respects.

d. Marketing and Recruiting

Additional resources put into this area over recent years seem to be delivering benefits in terms of increased expressions of interest, increased engagement through social media and increased applications for attendance on the Foundation Course. 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.

e. Fundraising and Commercial Activities

These activities continued to be affected adversely this year as COVID-19 put paid to many of the plans and otherwise reasonable expectations for letting of facilities, grant making bodies shifted many of their priorities for donations and opportunities to engage the public virtually ceased.

The charity has not carried out any significant fundraising activities.

f. Infrastructure and Equipment

The NHC continued to invest in these areas as part of its strategy to enhance the offer to learners and the attraction of commercial users. The increased capabilities and capacity of the NHC’s own maintenance staff continued to allow improvements to be made to facilities at modest cost even when the effects of the pandemic limited the availability of tradesmen elsewhere.

The sale of the land the College holds on a 99 year lease (to 2095), which is approximately half of the area occupied by the College but upon which the majority of its built infrastructure is sited, has had little impact on the operations or ambitions of the NHC. 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 continue to hope it might present opportunities in the future.

Page 6

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Achievements and Performance (continued)

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. Group 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. Uncertainties around the pandemic still 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 31 March 2023 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

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 has already or will be felt due to cohorts of learners not entering the training pipeline. However, the global pandemic highlighted starkly the need for all businesses to maintain a reserve. Management decisions have sought, very determinedly, to preserve liquidity in the business to allow it to weather successfully the storm whose impact will continue to be felt. For many years the College was unable to fulfil its ambition to hold free reserves of between one and two months of the resources expended. This corresponds to between £210,000 and £420,000 when calculated based on expenditure in 2021. However, small surpluses in unrestricted funds in recent years and particularly careful husbandry of resources this year have put the NHC in a relatively good position in this respect at the time of reporting. Due to the historical way the College has been funded the trustees manage the finances at net current asset level rather than taking into account bank loans due in more than one year which are being repaid out of future surpluses.

Net current assets at 31 July 2021 are £373,202 of which £246,763 are represented by restricted funds, leaving unrestricted net current assets of £126,439 (of which £56,335 are held as designated funds). Whilst this is below the minimum free reserves level of £210,000 it is clear that the College is moving in the right direction and expects to meet the target levels by the generation of surpluses in future years.

Page 7

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

c. Financial performance

The operating surplus for the year was £209,252 (2020: £274,803) with an actuarial gain for UK accounting purposes, which does not affect cash, of £243,000 (2020: £498,000 actuarial loss) due to periodic revaluation of pension liabilities, leading to a net surplus for the year of £452,252 (2020: £223,197 net deficit).

The total funds carried forward at the year end are £1,280,509 (2020: £828,257) of which £1,033,746 (2020: £565,087) are unrestricted and £246,763 (2020: £263,170) are restricted.

d. Pension liability

The Accounting for Pensions regulations have had an impact on the net assets position of the Charity once again. The latest actuarial valuation of the Scheme resulted in a decrease in the liability on the defined benefit pension scheme of £209k from £1.883 million to £1.674 million.

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. The scheme has been closed to new NHC employees since before 2015.

Page 8

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

e. Principal risks and uncertainties

While the NHC’s leaders view the monitoring, assessment and mitigation of risks to be an ongoing process, risk management policies are subject routinely to periodic review. Risks are categorised low, medium or high in terms of likelihood and seriousness. Modifying actions in response will transfer, treat, tolerate or terminate each risk. Every risk has a designated owner and a timeframe for actions to be taken.

The table below illustrates some of the risk areas with potentially the most serious consequences:

Structure and Governance

a. Constitution

National Horseracing 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. Trustees are recruited through sector networks and approached to discuss taking on a trustee role.

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.

Page 9

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

Structure and Governance (continued)

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 the College 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, no employee is paid less than the UK’s National Living Wage. For the calendar year 2020, salaries for all staff were increased in line with inflation. Adjustments to the salaries of the College’s senior leaders are made on the same basis as other employees.

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 uncertainties remain, 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 future with justifiable optimism. Further details regarding the adoption of the going concern basis can be found in the Note 2 – Accounting Policies.

Page 10

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

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 including the Strategic 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:

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:

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:

gerard sutcliffe

gerard sutcliffe (Mar 16, 2022 08:39 GMT) ................................................ Mr Gerard Sutcliffe

Date: Mar 16, 2022

Page 11

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE

Opinion

We have audited the financial statements of National Horseracing College (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 July 2021 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:

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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 12

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

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

Other information

The other information comprises the information included in the trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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:

Page 13

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING 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

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 14

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

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

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 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 the charitable company's 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

(A company limited by guarantee)

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

Jane Marshall (Mar 16, 2022 14:58 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 16, 2022

Page 16

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 JULY 2021

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 gains/(losses) on defined benefit
pension schemes
29
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
16,600
1,075,813
135,320
13,522
1,241,255
103,522
83,274
868,040
20,760
1,075,596
165,659
60,000
225,659
243,000
468,659
565,087
468,659
1,033,746		 Restricted
funds
2021
£
-
1,526,988
-
-
1,526,988
-
-
1,483,395
-
1,483,395
43,593
(60,000)
(16,407)
-
(16,407)
263,170
(16,407)
246,763		 Total
funds
2021
£
16,600
2,602,801
135,320
13,522
2,768,243
103,522
83,274
2,351,435
20,760
2,558,991
209,252
-
209,252
243,000
452,252
828,257
452,252
1,280,509		 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

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

Page 17

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

REGISTERED NUMBER: 02266267

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2021

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
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
29
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		 31,492
176,816
591,481
799,789
(426,587)
56,335
2,651,411
2,707,746
(1,674,000)		 2021
£
2,894,369
2,894,369
373,202
3,267,571
(313,062)
2,954,509
(1,674,000)
1,280,509
246,763
1,033,746
1,280,509		 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

Page 18

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

REGISTERED NUMBER: 02266267

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 JULY 2021

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:

gerard sutcliffe

gerard sutcliffe (Mar 16, 2022 08:39 GMT) ................................................

Mr Gerard Sutcliffe (Chair of Trustees) Date: Mar 16, 2022

The notes on pages 23 to 54 form part of these financial statements.

Page 19

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

REGISTERED NUMBER: 02266267

COMPANY BALANCE SHEET

AS AT 31 JULY 2021

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
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
29
Total net assets		 22,060
297,501
461,706
781,267
(408,063)		 2021
£
2,857,065
2
2,857,067
373,204
3,230,271
(313,062)
2,917,209
(1,674,000)
1,243,209		 24,412
157,530
463,325
645,267
(369,358)		 2020
£
2,813,642
2
2,813,644
275,909
3,089,553
(438,753)
2,650,800
(1,883,000)
767,800

Page 20

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 JULY 2021

Note
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		 56,335
2,614,111
2,670,446
(1,674,000)		 2021
£
246,763
996,446
1,243,209		 56,335
2,331,295
2,387,630
(1,883,000)		 2020
£
263,170
504,630
767,800

The company's net movement in funds for the year was £475,409 (2020 - £(240,216)).

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:

gerard sutcliffe

gerard sutcliffe (Mar 16, 2022 08:39 GMT)

Mr Gerard Sutcliffe

(Chair of Trustees) Date: Mar 16, 2022

The notes on pages 23 to 54 form part of these financial statements.

Page 21

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2021

Note
Cash flows from operating activities
Net cash provided 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		 2021
£
318,849
-
(134,734)
(134,734)
-
(123,622)
(20,760)
(144,382)
39,733
551,748
591,481		 2020
£
406,358
30,142
(75,760)
(45,618)
50,000
(74,050)
(23,098)
(47,148)
313,592
238,156
551,748

The notes on pages 23 to 54 form part of these financial statements

Page 22

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

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 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.

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. Group 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. Uncertainties around the pandemic still 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 31 March 2023 which shows that they have sufficient cash to be able to continue for the foreseeable future.

Page 23

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.3 Going concern (continued)

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

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.

Page 24

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.5 Expenditure (continued)

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.

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, menage and indoor riding - 5% on cost, 1% reducing balance
school
Assets under construction - Not depreciated
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.

Page 25

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

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.

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.

Page 26

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

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.

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

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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.

Page 27

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

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.

The present value of the SY defined benefit pension liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net costs or income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the liability.

Page 28

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

4. Income from donations and legacies

Donations
Pontefract race day income
Leger Legends income
Total 2020		 Unrestricted
funds
2021
£
1,600
15,000
16,600
45,000		 Total
funds
2021
£
1,600
15,000
16,600
45,000		 Total
funds
2020
£
-
45,000
45,000

5. Income from charitable activities

Operation of educational and training college
ESFA
Other activity related income
Grants (see detailed breakdown below)
Total 2020		 Unrestricted
funds
2021
£
10,965
997,595
23,970
43,283
1,075,813
939,355		 Restricted
funds
2021
£
1,258,163
-
-
268,825
1,526,988
1,488,598		 Total
funds
2021
£
1,269,128
997,595
23,970
312,108
2,602,801
2,427,953		 Total
funds
2020
£
1,223,615
665,427
51,878
487,033
2,427,953

Page 29

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

Grants
Big Lottery
Regional training grant
Stalls refurbishment
Commercial assistance
Racing welfare
Immersive technology
Accomodation review
The Racing Foundation
IT equipment
Racing simulator
Horsebox grant
Total restricted grants
Racing welfare
BHA COVID-19 support
Regional training support
14-16 year old programme
Total unrestricted grants
Total		 2021
£
57,825
50,000
-
-
-
-
-
101,000
30,000
30,000
-
268,825
16,283
-
12,000
15,000
43,283
312,108		 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

Page 30

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

6. Income from other trading activities

Income from non charitable trading activities

NHC Trading Limited
Total 2020		 Unrestricted
funds
2021
£
135,320
122,435		 Total
funds
2021
£
135,320
122,435		 Total
funds
2020
£
122,435

The charity has a wholly owned trading subsidiary, 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
Total 2020		 Unrestricted
funds
2021
£
-
13,522
13,522
143,385		 Total
funds
2021
£
-
13,522
13,522
143,385		 Total
funds
2020
£
56,335
87,050
143,385

Page 31

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

8. Expenditure on raising funds

Costs of raising voluntary income

Fundraising and publicity
Voluntary income staff costs
Total 2020
Other trading expenses
Cost of sales
Administration expenses
Depreciation
Total 2021
Total 2020		 Unrestricted
funds
2021
£
(100)
103,622
103,522
74,453
Unrestricted
funds
2021
£
68,051
8,426
6,797
83,274
78,791		 Total
funds
2021
£
(100)
103,622
103,522
74,453
Total
funds
2021
£
68,051
8,426
6,797
83,274
78,791		 Total
funds
2020
£
(27)
74,480
74,453
Total
funds
2020
£
64,706
10,404
3,681
78,791

Page 32

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

9. Analysis of expenditure on charitable activities

Summary by fund type

Operation of educational and training college
Total 2021
Total 2020		 Unrestricted
funds
2021
£
868,040
868,040
918,041		 Restricted
funds
2021
£
1,483,395
1,483,395
1,369,587		 Total
funds
2021
£
2,351,435
2,351,435
2,287,628		 Total
funds
2020
£
2,287,628
2,287,628

Page 33

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

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 12)
Overall Total		 2021
£
128,581
419,765
148,219
694,801
97,786
103,235
29,000
91,312
1,712,699
268,664
182,341
451,005
58,975
58,975
128,756
2,351,435		 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

Page 34

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

11. Other expenditure

Bank and other interest
Total 2020
12.
Governance costs		 Unrestricted
funds
2021
£
20,760
23,098		 Total
funds
2021
£
20,760
23,098		 Total
funds
2020
£
23,098
Unrestricted
funds		 Restricted
funds		 Total
funds		 Total
funds
2021 2021 2021 2020
£ £ £ £
Auditor's remuneration 9,435 - 9,435 9,860
Trustees' expenses 533 - 533 1,344
Legal andprofessional 16,299 - 16,299 57,859
Salaries and related charges 102,489 - 102,489 115,028
Total 2021 128,756 - 128,756 184,091
Total 2020 142,341 41,750 184,091

13. Net income/(expenditure)

This is stated after charging:

Depreciation of tangible fixed assets owned by the group
Depreciation of tangible fixed assets held under finance leases
Auditor's remuneration- audit
Total		 2021
£
92,832
5,276
9,435
107,543		 2020
£
76,835
12,107
9,860
98,802

Page 35

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

14. Staff costs

Wages and salaries
Social security costs
Pension costs
Operating costs of defined benefit pension
schemes		 Group
2021
£
1,078,253
97,786
103,235
5,000
1,284,274		 Group
2020
£
1,085,387
80,852
87,836
10,000
1,264,075		 Company
2021
£
1,078,253
97,786
103,235
5,000
1,284,274		 Company
2020
£
1,085,387
80,852
87,836
10,000
1,264,075

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

Group Group
2021 2020
No. No.
48 46

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

Group Group
2021 2020
No. No.
In the band £80,001 - £90,000 - 1
In the band £90,001 - £100,000 1 -

The total remuneration and benefits received by key management personnel including employer's NI and pension was £352,774 (2020: £287,623). 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 (2020 - £NIL).

During the year ended 31 July 2021, expenses totalling £533 were reimbursed or paid directly to 3 Trustees (2020 - £1,344 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

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

16. Tangible fixed assets

Group

Cost or valuation
At 1 August 2020
Additions
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Visitor centre
£
816,681
-
816,681
219,505
13,169
232,674
584,007
597,176		 Building
refurbishment
£
463,619
-
463,619
252,094
3,401
255,495
208,124
211,525		 Leasehold Land
& Buildings
£
1,239,582
-
1,239,582
296,943
10,314
307,257
932,325
942,639		 Stable Block
£
652,271
-
652,271
164,123
6,492
170,615
481,656
488,148		 Gallop, Menage &
Indoor Riding School
£
833,164
4,770
837,934
465,892
12,249
478,141
359,793
367,272		 Plant, Equipment &
Motor Vehicles
£
515,580
49,397
564,977
275,860
38,215
314,075
250,902
239,720		 Computer
equipment
£
60,013
34,837
94,850
48,750
14,268
63,018
31,832
11,263		 Assets under
construction
£
-
45,730
45,730
-
-
-
45,730
-		 Total
£
4,580,910
134,734
4,715,644
1,723,167
98,108
1,821,275
2,894,369
2,857,743

Page 37

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

16. Tangible fixed assets (continued)

Company

Cost or valuation
At 1 August 2020
Additions
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Visitor centre
£
816,681
-
816,681
219,505
13,169
232,674
584,007
597,176		 Building
refurbishment
£
463,619
-
463,619
252,094
3,401
255,495
208,124
211,525		 Leasehold Land
& Buildings
£
1,235,441
-
1,235,441
296,035
10,231
306,266
929,175
939,406		 Stable Block
£
652,271
-
652,271
164,123
6,492
170,615
481,656
488,148		 Gallop, Menage &
Indoor Riding School
£
833,164
4,770
837,934
465,892
12,249
478,141
359,793
367,272		 Plant, Equipment &
Motor Vehicles
£
394,245
49,397
443,642
195,393
31,501
226,894
216,748
198,852		 Computer
equipment
£
60,013
34,837
94,850
48,750
14,268
63,018
31,832
11,263		 Assets under
construction
£
-
45,730
45,730
-
-
-
45,730
-		 Total
£
4,455,434
134,734
4,590,168
1,641,792
91,311
1,733,103
2,857,065
2,813,642

Page 38

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

17. Fixed asset investments

Company
Cost or valuation
At 1 August 2020
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Investments in
subsidiary
companies
£
2
2
2
2

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

Page 39

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

17. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the company:

Name Company Registered office or principal place Class of Holding
number of business shares
NHC Trading Limited 03538751 The Stables, Rossington Hall, Great Ordinary 100%
North Road, Doncaster, DH11 0HN

The financial results of the subsidiary for the year were:

Name
Income
£
Expenditure
£
Profit for the
year
£
NHC Trading Limited
135,320
(133,189)
2,131
18.
Stocks
Group
Group
Company
2021
2020
2021
£
£
£
Finished goods
31,492
35,438
22,060
19.
Debtors		 Net assets
£
37,302
Company
2020
£
24,412
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
108,016
-
877
67,923
176,816		 Group
2020
£
54,197
-
4,729
26,427
85,353		 Company
2021
£
93,980
134,721
877
67,923
297,501		 Company
2020
£
49,909
76,465
4,729
26,427
157,530

Page 40

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

20. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Obligations under finance lease and hire purchase
contracts
Other creditors		 Group
2021
£
64,268
154,846
40,012
8,695
158,766
426,587		 Group
2020
£
61,440
69,971
29,867
9,454
209,540
380,272		 Company
2021
£
64,268
142,449
34,914
8,695
157,737
408,063		 Company
2020
£
61,440
63,210
26,744
9,454
208,510
369,358

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

Page 41

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

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

Bank loans
Net obligations under finance lease and hire
purchase contracts		 Group
2021
£
311,963
1,099
313,062		 Group
2020
£
432,257
6,496
438,753		 Company
2021
£
311,963
1,099
313,062		 Company
2020
£
432,257
6,496
438,753

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
2021
£
165,000
165,000		 Group
2020
£
181,026
181,026		 Company
2021
£
165,000
165,000		 Company
2020
£
181,026
181,026

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.

Page 42

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

22. Statement of funds

Statement of funds
Statement of funds - current year
Balance at 1
August 2020
£
Unrestricted
funds
Designated funds
College
improvements
56,335
General funds
General funds
2,331,295
Reserves held in
subsidiary
60,457
Pension reserve
(1,883,000)
508,752
Total Unrestricted
funds
565,087
Restricted funds
Horseracing grant
scheme
60,000
Regional training
grant
64,175
Horsebox grant
25,000
Big Lottery
funding
57,825
Peter O'Sullivan
Trust - Lunge
pen
48,125
The Racing
Foundation-
Lunge pen
8,045
BHA & HBLB
programmes
-		 Income
£
-
1,105,935
135,320
-
1,241,255
1,241,255
-
141,000
-
57,825
-
-
1,258,163		 Expenditure
£
-
(908,407)
(133,189)
(34,000)
(1,075,596)
(1,075,596)
(2,000)
(126,494)
-
(86,738)
-
-
(1,258,163)		 Transfers
in/out
£
-
85,288
(25,288)
-
60,000
60,000
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
243,000
243,000
243,000
-
-
-
-
-
-
-		 Balance at 31
July 2021
£
56,335
2,614,111
37,300
(1,674,000)
977,411
1,033,746
58,000
78,681
25,000
28,912
48,125
8,045
-
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
Horsebox grant
Big Lottery
funding
Peter O'Sullivan
Trust - Lunge
pen
The Racing
Foundation-
Lunge pen
BHA & HBLB
programmes

Page 43

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

22. Statement of funds (continued)

Statement of funds - current year (continued)
Balance at 1
August 2020
£
Income
£
-
30,000
-
30,000
-
10,000
263,170
1,526,988
828,257
2,768,243		 Expenditure
£
-
-
(10,000)
(1,483,395)
(2,558,991)		 Transfers
in/out
£
(30,000)
(30,000)
-
(60,000)
-		 Gains/
(Losses)
£
-
-
-
-
243,000		 Balance at 31
July 2021
£
-
-
-
Peter O'Sullivan -
simulator
IT Grant
MIS compliance
manager
Total of funds		 Balance at 1
August 2020
£
-
-
-
263,170
828,257
246,763
1,280,509

Page 44

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

22. Statement of funds (continued)

Statement of funds - prior 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		 Balance at
1 August 2019
£
-
2,194,997
43,438
(1,345,000)
893,435
893,435
60,000
27,269
-
-
580
-
-
-		 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

Page 45

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

22. Statement of funds (continued)

Statement of funds - prior year (continued)

Peter O'Sullivan
Trust - Lunge
pen
The Racing
Foundation-
Lunge pen
Accomodation
review
Peter O'Sullivan
Trust - Fitness
facility
BHA & HBLB
programmes
Total of funds		 Balance at
1 August 2019
£
48,125
8,045
-
14,000
-
158,019
1,051,454		 Income
£
-
-
40,000
-
1,203,665
1,488,598
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
£
48,125
8,045
-
-
-
263,170
828,257

Page 46

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

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.

Horsebox grant - to fund a new horsebox.

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 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.

Peter O'Sullivan simulator is a grant from the POS Charitable Trust to assist the Charity to purchase a new Racing Simulator which is a significant upgrade to its existing provision.

IT Grant is a Grant from BHA to help NHC to finance a major upgrade to its IT infrastructure. The new facilities improve both provision to Learners and to the administration of the Charity.

MIS compliance manager is a grant from the Racing Foundation to contribute to the Salary of the Contract Coordinator to assist in ensuring the maximum subsidy from Government funds to the costs of the Charity.

Immersive technology - for new technology purchases.

Stalls refurbishment - to fund refurbishment to the stalls.

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.

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.

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.

Page 47

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

23. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
August 2020
£
56,335
508,752
263,170
828,257
- prior year
Balance at
1 August 2019
£
-
893,435
158,019
1,051,454		 Income
£
-
1,241,255
1,526,988
2,768,243
Income
£
56,335
1,193,840
1,488,598
2,738,773		 Expenditure
£
-
(1,075,596)
(1,483,395)
(2,558,991)
Expenditure
£
-
(1,094,383)
(1,369,587)
(2,463,970)		 Transfers
in/out
£
-
60,000
(60,000)
-
Transfers
in/out
£
-
13,860
(13,860)
-		 Gains/
(Losses)
£
-
243,000
-
243,000
Gains/
(Losses)
£
-
(498,000)
-
(498,000)		 Balance at 31
July 2021
£
56,335
977,411
246,763
1,280,509
Balance at
31 July 2020
£
56,335
508,752
263,170
Summary of funds
Designated funds
General funds
Restricted funds
828,257

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

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
2021
£
2,894,369
553,026
(426,587)
(313,062)
(1,674,000)
1,033,746		 Restricted
funds
2021
£
-
246,763
-
-
-
246,763		 Total
funds
2021
£
2,894,369
799,789
(426,587)
(313,062)
(1,674,000)
1,280,509

Page 48

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

24. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

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

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

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Increase)/decrease in stocks
Increase in debtors
Increase in creditors
Interest paid
Defined benefit pension adjustment
Net cash provided by operating activities		 Group
2021
£
209,252
98,108
3,946
(92,223)
45,006
20,760
34,000
318,849		 Group
2020
£
274,803
87,664
(4,035)
(49,831)
34,659
23,098
40,000
406,358

Page 49

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

26. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2021
£
591,481
591,481		 Group
2020
£
551,748
551,748

27. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
Finance leases		 At 1 August
2020
£
551,748
(61,440)
(432,257)
(15,950)
42,101		 Cash flows
£
39,733
(2,828)
120,294
6,156
163,355		 At 31 July
2021
£
591,481
(64,268)
(311,963)
(9,794)
205,456

28. Capital commitments

Group Group
2021 2020
£ £
Contracted for but not provided in these financial statements
Acquisition of tangible fixed assets 38,000 -

Page 50

(A company limited by guarantee)

NATIONAL HORSERACING COLLEGE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

29. 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 £47,235 (2020: £28,836). Contributions totalling £2,035 (2020: £3,391) 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 2021 specifically for the college by Mercer Human Resource Consulting Limited.

The contributions made for the year ended 31 July 2021 were £56,000 (2020: £59,000).

At the balance sheet date there were outstanding contributions payable of £4,497 (2020: £2,700).

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

At 31 July At 31 July
2021 2020
% %
Discount rate 1.60 1.60
Future salary increases 3.85 3.55
Future pension increases 2.70 2.40
Inflation assumption 2.60 2.30
At 31 July At 31 July
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 22.5 22.4
- at 65 for a male aged 45 now 24.0 23.9
- for a female aged 65 now 25.3 25.2
- at 65 for a female aged 45 now 27.2 27.1

Page 51

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

29. 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
2021
£
1,593,000
465,000
252,000
292,000
60,000
657,000
3,319,000		 At 31 July
2020
£
1,322,000
446,000
254,000
240,000
117,000
480,000
2,859,000

The actual return on scheme assets was £463,000 (2020 - £-33,000).

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

Current service cost
Past service cost
Interest income
Interest cost
Administrative expenses
Total amount recognised in the Consolidated Statement of Financial Activities		 2021
£
60,000
(55,000)
(46,000)
75,000
1,000
35,000		 2020
£
65,000
3,000
(65,000)
95,000
1,000
99,000

Page 52

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

29. Pension commitments (continued)

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

Opening defined benefit obligation
Current service cost
Interest cost
Contributions by scheme participants
Actuarial losses
Benefits paid
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
Expected return on assets
Actuarial gains/(losses)
Contributions by employer
Contributions by scheme participants
Benefits paid
Administration expenses
Closing fair value of scheme assets		 2021
£
4,742,000
60,000
75,000
10,000
175,000
(69,000)
4,993,000
2021
£
2,859,000
46,000
418,000
56,000
10,000
(69,000)
(1,000)
3,319,000

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		 2021
£
(4,993,000)
3,319,000
(1,674,000)
(175,000)
418,000		 2020
£
(4,742,000)
2,859,000
(1,883,000)
(343,000)
(155,000)

Page 53

NATIONAL HORSERACING COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

30. Operating lease commitments

At 31 July 2021 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Not later than 1 year 1,643 3,051 1,643 3,051
Later than 1 year and not later than 5 years 1,980 2,930 1,980 2,930
3,623 5,981 3,623 5,981
The following lease payments have been recognised as an expense in the Statement of financial activities:
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Operating lease rentals 18,902 15,353 18,902 15,353

31. Related party transactions

During the year purchases were made from NHC Trading Limited (a wholly owned trading subsidiary) totalling £2,896 (2020: £6,663). Management charges of £49,915 were made in the year to NHC Trading Limited (2020: £9,137). At the year end £134,721 (2020: £76,465) was due from NHC Trading Limited.

32. Controlling party

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

Page 54