2022-07-31-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 2022

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) CONTENTS Page Reference and administrative details of the company. it5 Trustees and advisers Trustees, report 3-11 Independent auditor's report on the financial statements 12-15 Consolldated statement of financlal actlvltles 16 Consolidated balance sheet 17-18 Company balance sheet 19-20 Consolidated statemènt of cash flows 21 Notes to the flnanclal statements 22-55

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JUL Y2022 Trustees Mr Gerard Sutcliffe, Chairman Mr Howard Wright, Deputy Chairman Mr Timothy Adarns MBE Mr Timothy Lyle Mr James Hetherton Mr Jeffrey Enni5 The Honourable Oliver Greenall Ms Susannah Gill Ms Nicola Frampton Ms Sally Iggulden Dr Helen Mccarthy Mr Callum Helliwell lappointed 8 December 20211 Mr Francis Stephenson (appointed 8 June 20221 Mr N Brewster (resigned 18 November 20211 Ice Presidents Sir Robert Ogden CBE LLD (deceased 8 March 20221 Monsieur Didier Garnier Mr Roy Thwaites The Rt Hon Richard Caborn Ms Julie Krone Company re8lStered number 02266267 Charity registered number 7(XJ405 Registered office The Stables. Rossington Hall. Great North Road. Ooncaster. South Yorkshire. DNII OHN Patron Countess of Halifax Chief executive officer Mr Stephen Padgett OBE Independent auditor BHP LLP, 2 Rutland Park, Sheffield, SIO 2PD Page I

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Bankers Yorkshire Bank, 19 St Sepulchre Gate, Doncaster, DNI ITD Sollcltors Jordans, 4 Priory Place, Doncaster, DNI 18P Penslon Admlnlstrators South Yorkshire Pensions Authority, P O Box 37, Regent Street, Barnsley, S70 2PQ Page 2

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 JUL Y2022 The trustee5 present their report and the audited financial statements of the charitable group for the year ended 31 July 2022. 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 ISORPI "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 charitvs governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their actounts in accordance with the Financial Reporting Standard applicable IN the UK and Republic of Ireland published in October 2019. Overvlew While the consequences of the coronavirus pandemic will continue to be felt for year5 to come, this report is written in the confident expectation that the robust, timely and effective actions of the NHC'S leaders not only have protected the College from what could have been an existential threat but have positioned it to continue to succeed. In addition. Trustees wish to re-state their appreciation of the very supportive positions adopted by partners in the industry and the flexibility and resilience of the Colle8e'5 Staff. The operating deficit in the year was £77,439 on total income of £2.709,192. Objettives and tsrtivities a. Policie5 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 racin& equestrian, agricultural, horticultural and their allied areas. In 5ettin8 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 IPB21' b. Strategles for achlevlng oblectlves Provide accessible and inclusive training opportunities for people w3ntinE to work in the horse rating industrv. Ensure training 15 realistic and relevant but delivered progressively to develop learner5 to be ready for work. Provide a supportive, encouraging environment around that training enabling as many learners as possible to achieve their Eoals. Engage widely and collaboratively with employers across the industry to maximise learners, thances 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. Page 3

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Objedive5 and artivities lcontinuedl c. Activlties 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 ski115 training to intrease learners, resiliente, confidence and independence. Match learners with the rnost appropriate employment opportunities to optimise their chances of satisfaction and success. Provide ongoing support in the workplace to enable further learner development lapprenticeshipsl and aid worker retention. 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 work5trearns of Workforce and Community Investment contribute towards its objectives through providing a public benefit. The National Horseracing College INHCI 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 tourses designed to meet industry needs. It has a reputation for deliverin8 high quality staff, many of whom go on to have lon8 careers in a wide variety of roles in racing. Achlevements und Perfomiance a. Study Programme This year, there were 100 learners overall on Study Programme courses - these included 19 Traineeships, 53 on the Ll Residential Foundation Course IFC) and 28 on the non-residential, day attendance Doncaster Equine College IDECI 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 small number of 19+ learner5. Qualifications on the FC include Level I ILII Diploma in Racehorse Care and Riding, Ll Diploma in Work-8ased Horse Care, Entry 3 Award in Ba51t Knowledge of the Horseracing Industry, L3 Award Short journey in the transportation of Horses and Functional ski115. Achievement rates in the Ll Diploma were over 76Yo and in Trainee5hip5 were 84%. Overall, the Study Programme saw 145 achievers, up from 108 last year and 129 in 2019120. This has been a particularly challenging year due to COVID-19. Residential FC students were required to stay on site without access to visitors, sometime5 for the whole course, and this Caused emotional distre55 for Some student5. 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 90%, only two of the last 11 years were better. Page 4

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Achievements and Performance Iwntinuedl Icontinuedl Functional English results overall have returned to a level more in line with normality at 71Yo compared to last yearfs extraordinary rate of 90% while mathematics continue to be high at 82% overall. Functional skills results still are extraordinarily good considering the starting points of learners. There is a clear correlation that the starting points of learners impacts on their retention and achievement rates. The table below show proportions of FC learner% declaring factors that can influente their progress.. Facltsr ThlsY*a stY•ar Received coun5elliD8 or had a 5UPPOrt worker 42% 36% 28% Self-stated mental hea￿h problem Did not complete school. Education, Health & Care Plan IEHCPI, FaSte￿d11n tareladopted 32% 26% 20% 5% 1% 4% 16% From dlsadvantaged area 43% 32% While the proportion of learners Starting with these challenges has increased, almost acros5 the board corrpared to last vear, The NHC'S dedicated staff continue to drive up achievements and progressions to very positive effect. For example. it is outstanding also that learners with learninÉ difficulties or disabilities ILLDDI are more successful180.8%1 compare to those without LLDD178.9%1. 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 manaeement skills and pieparation for functional 5ki115 at different leve15. There 15 a range of other additional accredit3tion opportunities such a5 safeguarding, ernergency first aid, Racin82Learn rrodules e.g. health and wellbein& LGBT+ awareness. There are also sessions delivered by external speakers from NARS, Racing Welfare, Galahad Idrug awareness) and a nutrition expert. Parent or guardian feedback 15 very positive about the personal development and irnproved behaviour of their children. Of those who graduated from the residential FC 84% went into work placement land then apprenticeship 53%) and 60% of those who graduated were deemed to go to a positive destination. Page 5

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Achievements and Performance Iwntinuedl Icontinuedl b. Apprentlceshlps The College's staff work hard to match learners to employers to determine the best placement ftsr them. The frequency of support for learners on transition to apprenticeships ha5 increased, with consequent improvement in progre55ion5. Once on apprenticeships, learners are employed in line with a national wage scale sanctioned by the British Horseracing Authority IBHAI, which exceeds Apprenticeship wage requirements. Learners are on apprenticeships for up to 18 months nd move between employers where netessary and appropriate. Where learners express a justified desire to move, NHC work5 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 trackinE of its early leavers which suggests that 85% stay in the equine industrv. The curriculum offer comprised L2 and L3 apprenticeships in equine groom and senior equine groom including diplorna5. Additional qualifications are offered to learner5 including emergency first aid, safeguarding, transporting horses by road on longjourneys and L2 functional skills. Achievement levels improved ON previous years,. 100% passed their end point assessment IEPAI and 50% achieved distinction compared to 30% last year. c. Prlorltles, Actlvltles and Achlevements The highest single priority is around safeguarding and oui duty of tare to learners on residential tourses, learneis in the workplace and to slaff. The efforts that had been rnade to develop and adopt effective COVID safety protoco15 specific to the situation at the NHC proved more successful than anyone could have hoped. A very high priority also continued to be ensuring the viability of the business. Careful planning, control of outgoings, scheduling of works and optimal use of Government schemes combine to sustain the College in a good position. Flexible working practices, adopted initially to reduce the risks of COVID transmission, continue to be utili5ed where productivity can be maintained or enhanced and benefits can accrue in quality of life terms. d. Marketlng and Recrultlng Additional resources put into this area over recent years are increasing expressions of interest, increasing engagement through social media and increasing applications to the FC. These efforts continue apace as the racing industry continues to bear the consequences of staff shortfalls. e. Fundralslng and Commerclal Actlvltles Although these activities have not recovered to pre-pandemic levels, both the NHCS well-established charity race day events (Pontefract and Doncaster) made important contributions. The charity has not carried out any significant fundraising activities. Page 6

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Achievements and Performance Iwntinuedl Icontinuedl f. Infrastructure and Equlpment 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 Ito 20951, which 15 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. Flnanclol revlew a. Golng con￿rn The charity, for some years, has been unable to comply with its policy to hold free reserves of between l 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 recognisiN8 the significant irnpact 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 tentral government, ltscal authtsrities and the racing industry already have helped to support the College's own efforts to 5UStain 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 Marth 2024 whith shows that they have sufficient cash to be able to continue for the foreseeable future. The trustee5 therefore continue to adopt the going concern basis of preparation for these financial statements. Page 7

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 b. Reserves policy The NHC has been fortunate to be supported by continued regular contract payments from the racing industry and maintains its contract with the ESFA. Management decisions preserve liquidity in the business. 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. However, small surpluses IN unrestricted funds IN recent years and particularly careful husbandry of resources have put the NHC in a relatively good position in this respect. Net current liabilities at 31 July 2022 are £60,562 tsf which £247,029 are represented by restricted funds, leaving unrestricted net current liabilities of £307,591 lof 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. c. Financial pèrformante The operating105s for the year was £77,43912021'. Surplus of £209,252) with an actuarial gain for UK accounting purposes, which does not affect cash, of £1,537,00012021'. £243,000) due to periodic revaluation of pension liabilities, leading to a net surplus for the year of £1.459,56112021.' £452,252). The total funds carried forward at the year end are £2,740,07012021.. £1,280,509) of which £2,493,04112021.. £1,033,746) are unrestricted and £247,02912021: £246,7631 are restricted. d. Penslon Ilablllty 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 £1,510,000 from £1,674,000 million to £164,000. This liability is, of course, a statement of the theoretical pension liability of the Charity at the balance sheet date based upon current a55UrnPtions of future discount rate5,' 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

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 e. Principal risk5 and un¢ertaintie5 While the NHC'S leaders view the monitoring, assessment and mitigation of risks to be an ongoing process, risk management policies are subject to periodic review. Risks are cateEorised low. medium or high in terms of likelihood and seriousness. Modifying attions 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 ptstentially most serious consequences.. lrywdi LOW T￿EAT t￿tt￿.1141￿1 TREAT Ti4kn VJG TKAT CEO Efxu (EO le￿¢￿ T￿￿T <EO <EO THEAT 470 T￿T Structure and Govemunce . Constitution National Hor5eracin8 College registered as a charitable company limited by guarantee and wa5 set up by a Memorandum of Association on 19 February 1988 and is a registered charity number 700405. b. Methods of appolntment or electlon of Trustees The management of the cornpany and th8 group 15 the responsibility of the trustee5 who are elected and co-opted under the terms of the Articles of Assoclation. Trustees are recruited through sector networks and approached to discuss taking on a trustee role. c. Organlsatlonal structure and detlslon-maklng pollcles The Board meet5 qu3rterly. Its busine55 always include5 a cornprehensive update from the Chief Executive. Business decisions that have strate8lC Sl8nificance are made at Board level. Page 9

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Structure and Governance Icontinuedl 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 Operatitsns Direttor and the Support Services Manager. All major finantial decisions are recommended to the Main Boèrd where decision making occur5. Task and Finish Groups are established for specific purposes e.g. Nominations Committee to identify a new Chairman or a selection panel to selett a new Chief Executive. All trustees, including the Chair, have fixed terms of office. d. PolScles adopted for the Inductlon and tralnlng of Trustees New trustees are provided with a tompiehensive induction, led by the Chief Executive and involving other staff, to ensure they are provided with a comprehensive view of what the NHC doe5 and how it doe5 It. All trustees are informed of trustee training opportunities organised by external bodies and enctsuraEed 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 pollcy for key management personnel Trustees and senior leaders continue to recognise that the orEanisation's success is reliant on its team of dedicated staff. Salaries were increased in line with the prevailing rate of inflation and a rnodest loyalty bonus was paid. This bonus was based on length of service and unrelated to rates of pay. On principle, the CEO chooses not to accept any bonus. Plans for future perlods The continued success of the College is linked inextricably to the health and success of racing as a whole. Trustees appreciate greatly therefore, efforts being made by the BHA and other5 to develop an industry strategy that will inform important and much-needed decisions to shape the future for employees, participants, attendees and supporting or related activities. Trustees expect the College's leadership to engage with and contribute to the industry's planning for the future. In the rneèntime, they believe that the company has adequate resources to continue as a healthy going concern and they look forward to the future with justifiable optirnism. IFurther details regarding the adoption of the going concern basis can be found in the Note 2.3- Accounting Policies.) Page 10

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Statement of Trustees, responsibilities The trustees (who are also the directors of the company for the purposes of company lawl 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 trustee5 to prepare financial staternent5 for each finaNci31 . 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 nd expenditure, for that period. In preparing these financial statement5, the trustees are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles of the Charities SORP IFRS 1021.. make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material depèrtures 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 bu5ine55. 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 re5pon5ible for 5afegu3rding the as5et5 of the Group and the company and hence for taking reasonable step5 for the prevention and detection of fraud and other irregularities. Dlsclosure of Informatlon to audltor Each of the persons who are trustees at the time when this Trustees. report is approved has confirmed that.. so far a5 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 a5 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. Audltor 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 trustee5. Approved by order of the members of the board of trustees and signed on their behalf bv.. Mr Gerard Sutcllffe Date= Mar 8, 2023 Page 11

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE Opinion We have audited the financial statements of National Horseracing College Ithe 'parent charitable company'l and its subsidiaries (the 'group'l for the year ended 31 July 2022 which comprise the consolidated statement of financial artivitie5, the con501idated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related note5, including a 5urnmary of significant accountin8 policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting standard 102 'The Financial Reportin8 Standard applicable in the UK and Republic of Ireland, Iunited Kinedom Generally Accepted Accounting Practieel. In our opinion the financial statements.. eive a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 July 2022 and of the group's incoming resources and application of resources, including its income and expenditure for the vear 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 Charitie5 Art 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial staternent5 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 appropriète. 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

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE ICONTINUEDI Other Informatlon The other information comprises the information included in the Annual 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 ènd. in doing so, consider whether the other information is materially inconslstent with the financial statements or our knowledge obtained in the course of the audit, or othenNise appear5 to be materially misstated. If we identify such material incon5iStencies 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. OplnSons on other matters prescrlbed by the Companles 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 have been prepared in accordance with applicable legal requirements. Mattèrs on which we arè rèquired to report by exception In the light of our knowledge and understanding of the group and parent charitable company and it5 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 directors. 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 sm311 companies regime and take advantage of the small companies, exemptions in preparing the direetor%' report and from the requirem8nt to prepare a strategic report. Page 13

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF NATIONAL HORSERACING COLLEGE ICONTINUEDI Responslbllltles of trustees As explained more fully in the trustees. responsibilities statement. the trustees Iwho are also the directors of the charitable company for the purposes of company lawl 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 re5pon5ible 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 statement5 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 IUKI will always detect a material mi5Statement when it exist5. Misstatement5 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. Irreeularities, including fraud, are instances of non-compliance with laws and regulations. We desiÈn procedures in line with our responsibilitie5, Outlined above, to detect rnaterial rnis5taternent5 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 identifyinE and assessing the risks of material misstatement in respect of irreÉularities. includine fraud and non-compliance with law5 and regulations, wa5 a5 follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.. we identified the laws and regulations applicable to the Èroup and parent charitable company through discussions with directors and other management, and from our commercial knowledge and experience of the charitie5 sector,. we focused on specific laws and regulation5 which we considered rnay have a direct material effect on the financial statements or the operations of the group and parent charitable company, including the Charities Act 2011, Companies Act 2006, quality assurance of courses, safeeuarding, horse welfare, data protection, employment and health and safety legi51ation,' we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence,. and we identified laws and regulations were communicated within the audit team reeularly and the team remained alert to in5tance5 of non-compliance throughout the audit. We assessed the susceptibility of the group and parent charitable companls financial statements to material misstatement. including obtaining an understanding of how fraud might occur. by.. making enquiries of management as to where they considered there wa5 susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 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:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance; and

• enquiring of management as to actual and potential litigation and claims.

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: 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 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.

Jane Marshall (Senior statutory auditor) for and on behalf of

BHP LLP Chartered Accountants Statutory Auditor 2 Rutland Park Sheffield Sl0 2PD

Date: 10 March 2023

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NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 JUL Y2022 Unrestricted fun(Is 2022 Restricted funds 2022 Total fun(Is 2022 Total funds 2021 Note Income from: Donations and legacie5 Charitable activities 41,500 1.079,117 125,271 41,SOO 2.549,647 125,271 16,600 2,602.801 135,320 13.522 1.470,530 Other trading activities Other income Total Income 1.245,888 1.470,530 2.716,418 2,768.243 Expènditure on: Raising funds.. Voluntary income Other trading Charitable activities 101,767 68,887 1,188,336 15,869 26,864 128,631 68,887 2,580,470 15,869 103.522 83,274 2,351,435 1,392,134 Other expenditure li 20,760 Total expenditure 1.374,859 1.418,998 2.793,857 2,558,991 Net lexpenditurellincome Transfers between funds 1128,9711 51,266 51,532 151,2661 177,4391 209,252 22 Net movement in funds before other retognlsed galns 177,7051 266 177,4391 209.252 Other recognlsed galns: Actuarial 8ains/llossesl on defined benefit pension schemes 29 1.537,000 1.537,000 243,000 Net movement in funds 1.459,295 266 1.459,561 452,252 Reconclllatlon of funds.. Total funds brought forward Net movement in funds 1,033,746 1.459,295 246,763 266 1,280,509 1.459,561 828,257 452.252 Total funds carrled forward 2.493,041 247,029 2.740,070 1,280,509 The Consolidated Statement of Financial Activities complies with the requirements for an income and expenditure account under Companies Act 2006 and includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. Page 16

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) REGISTERED NUMBER.. 02266267 CONSOLIDATED BALANCE SHEET ASA T31JULY2022 2022 2021 Note Fixed assets Tangible assets 16 3.062,162 2,894.369 3.062,162 2,894,369 Currènt assets Stocks 18 19.235 97,018 245.714 31,492 176,816 591.481 Debtor5 19 Cash at bank and in hand 361.967 799,789 Creditors.. amount5 falling due within one year 20 1422.5291 1426,5871 Net turrènt Iliabilitièsl l assets 160,5621 373.202 Total assets less current Ilabllltles 3.001,600 3,267.571 Creditors.. amounts falling due after more than one year 21 197,5301 1313.0621 Net assets excluding pension liability 2.904,070 2,954,509 Defined benefit pension scheme liability 29 1164,0001 11,674,000) Total nèt assets 2,740,070 1,280,509 Charlty funds Restricted funds 22 247,029 246,763 Unrestricted funds Designated funds General funds 22 56.335 2,600,706 56,335 2,651,411 22 Unrestricted funds excluding pension liabilitv Pension reserve 22 2,657.041 1164,0001 2,707,746 11,674,000) 22 Total unrestricted funds 22 2.493,041 1,033.746 Total funds 2.740,070 1,280,509 Page 17

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) REGISTERED NUMBER.. 02266267 CONSOLIDATED BALANCE SHEET ICONTINUEDI ASA T31JULY2022 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.. Mr Gerard Sutcllffe Ichair of Trustees) Date: Mar8,2023 The notes on pages 22 to 55 form part of these financial statements. Page 18

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) REGISTERED NUMBER.. 02266267 COMPANY BALANCE SHEET ASA T31JULY2022 2022 2021 Note Fixed assets Tangible assets Investrnent5 16 3.030,470 2,857.065 17 3,030,472 2,857.067 Current assets Stocks 18 9,539 192.782 22,060 297.501 Debtors 19 C35h at bank and in hand 132.367 461,706 334,688 781,267 Creditors.. amounts falling due within one year 20 1402.0801 1408.0631 Net current liabilities / assets 167,3921 373,204 Total asset5 le55 current liabilities 2.963,080 3,230,271 Creditors.. amounts falling due after more than one year 21 197,5301 1313,0621 Net assets excluding pènsion liability 2,865,550 2,917.209 Defined benefit pension scheme liability 29 1164,0001 11,674.0001 Total net assets 2.701,550 1,243,209 Page 19

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) COMPANY BALANCE SHEET ICONTINUEDI ASAT31JULY2022 2022 2021 Note Charlty funds Restricted funds 22 247,029 246,763 Unrestricted funds Designated funds General funds 22 56.335 2,562.186 56,335 2.614,111 22 Unrestricted funds excluding pension liabilitv Pension reserve 22 2,618.521 2.670,446 22 1164.OC￿l 11,674,000) Total unrestricted fund5 22 2,454,521 996,446 Total funds 2,701,550 1,243.209 The company has taken advantage of the exemption allowed under s408 of the Cornpanies Act 2006 and has not presented its own statement of financial activities in these financial statements. The company's net movement in funds for the year was £1.458,34112021- £475,409). The Trustee5 acknowledge their responsibilitie5 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 Trustee5 and Signed on their behalf bv.. Mr Gerard Sutcliffe Ichair of Trustees) Date.. Mar8,2023 The notes on pages 22 to 55 form part of these financial statements. Page 20

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JUL Y2022 2022 2021 Note Cash flows from operatlng actlvltles Net cash provided by operating activities 25 170.010 318,849 Cash flows from investing activities Purchase of tangible fixed 3s5ets Proceeds from disposal of fixed assets 1303,4721 7.041 1134,7341 Net cash used in investin8 artivities 1296.4311 1134,7341 Cash flows from financing activities Repayrnent5 of borrowing Interest paid 1203,4771 115.8691 1123,6221 120,7601 Net cash used in financing activities 1219.3461 1144,3821 Change in cash and cash equivalents in the year 1345.7671 39,733 Cash and cash equivalent5 at the beginning of the year 591,481 551,748 Cash and tash equlvalents at the end of the year 26 245.714 591.481 Page21

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 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, DNII DHN. Accounting policies 2.1 Basis of preporgtion oAfinqnci915tgtement5 The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 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 155ued October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 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 ISOFAI 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 ha5 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 Compony status The company is a company limited by guarantee. The members of the company are the Trustees named on page l. In the event of the company being wound up, the liability in respect of the 8uarantee is limited to £1 per member of the company. 2.3 Golng concern The charity, for some years, has been unable to comply with its policy to hold free reserves of between l and 2 months operational expenditure. Group 5urplu5es 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 2024 which shows that they have sufficient cash to be able to continue for the foreseeable future. Page 22

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Accountin8 policies Icontinuedl 2.3 Golng concern fcontlnuedj 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. Grant5 are included in the consolidated statement of financial activities on a receivable basis. The balance of income received for specific purpose5 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 aecrued. 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 ease the c05t of the item to the donor should be used. The gain is recogni5ed a5 income from donation5 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 facilitie5 of equivalent economic benefit on the open market,. a corre5pondin8 amount 15 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 recogni5ed 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 QRS 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 c05t5, including 5UPPOrt 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 b3si5 of time spent, and depreciation charge5 allocated on the portion of the asset's use. Page 23

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Accountin8 policies Icontinuedl 2.5 Expendlture (contlnued) Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and include5 C05ts of all fundraising attivities events and non-charitable trading. Expenditure on charitable artivitie5 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 Tangiblefixed ossets Gnd depretiation Tangible fixed assets C05tin8 £1,000 or more are capitalised and reco8nised when future economic benefits are probable and the cost or value of the asset can be measured reliablv. Tangible fixed assets are initially recognised at cost. After recognition. under the cost model. tangible fixed as5et5 are measured at cost les5 accumulated depreciation and any accurnulated 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 ba5es'. Visitor centre Buildine refurbishment Leasehold land & buildings Stable block Plant, equipment and motor vehicles Gallop, rnenage and indoor riding school Assets under construction Computer equipment Variable between 2%- 33Yo on a reducing balance Variable between IYo- 20Yo on a reducin8 balance Variable between 1%- 20% on a reducing balance 1% reducing balance Variable between 5%- 20Yo on a reducing balance Variable between l%- IO% on a reducing balance Not depreciated Variable between 20Yo- 33% on a reducing balance 2.7 Investments Investments in subsidiarie5 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 24

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Accountin8 policies Icontinuedl 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 ¢7t bank ond 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 Liabilitie5 and provisions are recognised when there 15 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 reliablv. Liabilities are recognised at the amount that the company anticipate5 It will pay to settle the debt or the amount it has received as advanced payment5 for the 8ood5 or service5 It must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. 2.12 Flnunclal Instruments The group only has financial a55ets and financial liabilities of a kind that qualify as basic financial in5trurnents. Basic financial instruments are initially recognised at transaction value and subsequently rneasured 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 leuses ond hire purthose A55ets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed a55ets. 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 5ub5tantially all of the benefits and risk5 of ownership are assumed by the group. Obligations under such agreement5 are included in creditors, net of the finance charge allocated to future period5. 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 obliEation Outstanding in each period. 2.14 Opernting leoses Rentals paid under operating leases are charged to the consolidated statement of financial activities on a straight line basis over the lease term. Page 25

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Accountin8 policies Icontinuedl 2.15 Penslons 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 operate5 a defined benefit plan for the benefit of it5 ernployees. A liability for the charl￿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 obligatlon 15 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 occountlng General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objective5 of the group and whith have not been designated for other purpose5. 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 c05t5 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 note5 to the financial statements. 2.17 Tuxatk)n The company is considered to Pas5 the test5 Set out in Sch. 6, para. l of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purpose5. 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 gain5 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 ftsr that service. Page 26

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Crltlcal accountlng estimates and areas of lud8ment Estimates and jud8ments 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 accountin8 estimate5 and as5umptions'. 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 adju5trnent to the carrying amount5 of assets and liabilities within the next financial year. The present value of the south Yorkshire Isyi defined benefit pension liability depends on a number of factors that are determined on an actuarial basi5 Using a variety of assumption5. The a5sumptlOnS Used in determining the net 0Sts or income for pensions include the discount rate. Any chan8e5 in these assumption5 will impact the carrying amount of the liability. Page 27

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Income from donatlons and legacles Unrestricted funds 2022 Total funds 2022 Total funds 2021 Donations Pontefract rate day income Leger Legends income 6,500 35,000 6,5CNJ 35.OiXI 1,600 15,000 41,500 41.500 16,600 Total 2021 16.600 16,600 Income from charltable artlvltles Unrestrirted funds 2022 Restricted funds 2022 Total funds 2022 Total funds 2021 Operation of educational and training college ESFA 13,460 1,240.131 1,253.591 1,269.128 993,508 30,649 41,500 993.508 30.649 997,595 23.970 312,108 other activity related income Grants Isee detailed breakdown below) 230,399 271.899 1,079,117 1,470,530 2,549.647 2,602,801 Total 2021 1,075,813 1,526,988 2,602,801 Page 28

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Grants 2022 2021 Big Lottery Regional training erant BHA IT equipment Racing simulator 57,825 50.000 ioi,000 30,000 30,000 41.399 159,0 30.000 Total restricted grants 230.399 268,825 Racing welfare Regional training support 14-16 year old programme I4.5C￿l 12.000 I5.0￿] 16,283 12,000 15.000 Total unrestricted grants 41.500 43,283 Total 271.899 312.108 Page 29

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Income from other tradlng artlvltles Income from non charitable trading artivities Unrestrlcted funds 2022 Total funds 2022 Total funds 2021 NHC Trading Limited 125,271 125,271 135,320 Total 2021 135,320 135,320 The charity has a wholly owned trading subsidiary, NHC Trading Limited Itompany number 035387511. The ompany was incorporated ON l April 1998 and has issued share capital of two ordinary shares. The company gifts its taxable profits to National Horseracing College. Unaudited accounts are filed with Companies House. Other incomin8 resources UnrestrScted funds 2022 Total funds 2022 Total funds 2021 CJRS income 13,522 Total 2021 13,522 13,522 Page 30

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Expendlture on ralslng funds Costs ofraising voluntary intome Unrestrlcted funds 2022 Restrlcted funds 2022 Total funds 2022 Total funds 2021 Fundraising and publicity Voluntary income staff costs 1,561 100,206 1,561 127.070 iiooi 103,622 26,864 101,767 26,864 128.631 103,522 Total 2021 103.522 103.522 Other tmding expenses Unrèstrieted funds 2022 Total funds 2022 Total funds 2021 Cost of sales 57,628 5,647 57.628 5,647 5.612 68,051 8,426 Administration expenses Depreciation 5,612 6,797 Toto12022 68,887 68.887 83,274 Total 2021 83,274 83,274 Page31

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Analysls of expendlture on charftable actlvltSes Summary byfund type Unrestrlcted funds 2022 Restrlcted funds 2022 Total 2022 Total 2021 Operation of educational and training tollege 1,188,336 1,392,134 2,580,470 2,351,435 Tota12022 1,188,336 1,392,134 2,580,470 2,351,435 Total 2021 868,040 1,483,395 2,351,435 Page 32

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 10. Summary by expendlture category 2022 2021 Training costs Accommodation Stable yard Staff costs National Insurance Pension tost5 Pension finance costs Depreciation 140.236 455,781 182.443 824.514 112.116 52,061 26.0(Xl 113.068 128.581 419,765 148,219 750,801 97.786 47,235 29,000 91,312 Totul dirert Costs 1,906.219 1,712,699 Administration costs Staff costs 272.555 223.760 268,664 182.341 Total management und admlnlstr(rtlon 496.315 451,005 Support administration costs 59.829 58,975 Tot¢71 support costs 59.829 58,975 Governance cost515ee note 121 118,107 128,756 Overqll Total 2,580,470 2,351,435 Page 33

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 ii. other expendlture Unrestricted funds 2022 Total funds 2022 Total funds 2021 Bank and other interest 15.869 15.869 20.760 Total 2021 20,760 20,760 12. Governance costs Unrèstricted funds 2022 Total funds 2022 Total funds 2021 Auditor's rernuneration 8,911 520 8.911 S20 9,435 533 Trustees, expenses Legal and professional Salaries and related charges 11.703 11,703 16,299 96.973 96,973 102,489 Total 2022 118,107 118.107 128,756 Total 2021 128,756 128,756 13. Net inctsme/lexpenditurel Thi5 is stated after charging.. 2022 2021 Depreciation of tangible fixed assets owned by the group Depreciation of tanÉible fixed assets held under finance leases Auditor's remuneration- audit L05s on disposal 113.454 5.226 8,911 6.261 92,832 5.276 9,435 Page 34

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 14. staff costs Group 2022 Group 2021 Company 2022 Company 2021 Wages and salaries Social security costs Pension costs 1,271.317 112,116 52.061 1,134,253 97,786 47,235 1,271.317 112,116 52.061 1,134,253 97,786 47,235 Operating costs of defined benefit pension 5cheme5 i.oc 5,000 i.oc 5,000 1,436,494 1,284,274 1,436,494 1,284,274 The average number of persons employed by the company during the year was as follows.. Group 2022 No. Group 2021 No. 51 48 The number of empltsyee5 whose employee benefits (excluding employer pension eostsl exceeded £60,000 was.. Group 2022 No. Group 2021 In the band £90,001- £100,000 In the band £IIO,000- £120,000 The total remuneratlDn and benefits received by key management personnel including employer's Nl and pension was £346.97712021.. £352,774). 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 In5trurtor5 and the Fundraising Manager. 15. Trustees, remuneration and expensès During the year, no Trustees received any remuneration or other benefit512021.. £nill. During the year ended 31 july 2022. expenses totalling £520 were reimbursed or paid directly to 4 Trustees12021 £533 to 3 Trustees). These expenses relate to the reimbursement of travel expenses incurred by the Trustees when attending National Hor5eracing College Trustee meeting5 and event5. Page 35

NATIONAL HORSERACINGCOLLEGE (Acompany 15m￿ed byguaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEARENPF031 JUIY2022 16. Tangiblefixedass8ts Gr¢up Galop Menage L￿￿h0 land& BU1￿1n$S Equlpmefit & Ctsmputer A5SEt5undÈr V￿￿￿(•nIrn r•frJrb5shmeM st￿e￿O& Rklngscho h￿•5 Total c4stOrvoluotiO AI lAUg￿$t 2021 816,681 463,619 8084 1,239.582 4,595 652.271 837,934 9>.159 564,977 197.214 94,850 4S,730 4.715,644 303h72 126,4251 D&p￿al Tratssftrs between clèsses 27.735 17.995 145,7301 B16,6BI 471103 1,244,177 652.271 95B,828 753,781 94,850 4.991691 At IAugust 2021 Charsefortheyear On disp05als 231674 12*8# 255095 7437 307.257 1¥233 17tl.615 478,141 L6.587 314,075 57,703 19,4261 63,018 4626 1.82L275 118,680 At31 Jvly2022 245A62 262.932 3L8.490 177.02L 494.728 362.352 69,644 L930,529 Page 36

NATIONAL HORSERACINGCOLLEGE (Acompany 15m￿ed byguaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEARENPF031 JUIY2022 16. Tangiblefixedass8tslc0nti￿od) Gr¢upl¢ontlwedl Leasoho nd& Mollage Equlpmont& Sln Moloi 5tah1ÈB￿k ￿dI￿School VéhKI Cryrew A55e15wthr Total Pletboukvolue 571J19 209,171 925,687 475.2SO 464,If 391,429 2S,206 J,r￿lIs2 5S4,007 208.124 932.325 481.656 359,793 250,￿2 31,832 45,730 2.894.369 Page 37

NATIONAL HORSERACINGCOLLEGE (Acompany 15m￿ed byguaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEARENPF031 JUIY2022 16. Tangiblefixedass8tslc0nti￿od) Comynv lop. ¥fir. LÈa￿hts L¥fid & BuiWin8S Indooiwdlr Sih( Mcloi vÈh￿ CompU￿r A5selsunder ÈluipmÈrtt tottslruttN VtsitOrterttiÈ rÈfutbishthÈht staAÈBlts& Totsl Co5torvoluotion 816ffj81 463.619 1,235.441 4.595 651271 837.934 95,159 443,642 LY7,234 94850 4S,730 4.SW,168 303A72 126,4251 D￿p￿al$ TraTr5fersbetween clb55e5 27,735 17,995 145,73DI 816,6BI 472,103 1,240,D36 652.271 95B,828 632,446 94,850 4.867,215 231674 11688 255.495 7037 3(￿.16$ Il150 170.615 478.141 16,587 226,894 52,174 19,4261 63,018 4625 1.733,103 113,Q68 Chargefortheyear Ckn disposals 245A62 2￿932 317,416 i71,￿￿1 4¥728 265,642 69,6q4 ¥836,745 Page 38

NATIONAL HORSERACINGCOLLEGE (Acompany 15m￿ed byguaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEARENPF031 JUIY2022 16. Tangiblefixedass8tslc0nti￿od) Comynyl¢ontlwedl me￿￿8 EgL4pmeTht& (WR￿1￿8 S(hoDI Le￿Eh￿O(￿ Cryrei A55elswdei (onstru(¥on I￿t￿r￿*￿tYÈ Stabk VehklÈs Total Pletboukvolue 571J19 209,171 922,620 475.2SO 464,If 362,804 2S,206 3,030,470 5S4,007 208.124 929.175 481.656 359,793 216,748 31,832 45,730 2.857.065 Page 39

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 17. Fixed asset investments InVe￿MentS In subsidiary cornpHnie$ Company Cost or valut7tion At l August 2021 At 31 july 2022 Net book vulue At 31 July 2022 At 31 July 2021 National Horseracing College owns 100% of the ordinary share tapital of its trading subsidiary, NHC Trading Lirnited, a company incorporated in England and Wales. Page 40

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 17. Flxed asset Investments Icontlnuedl Prlnclpal subsldlarles The following wa5 a 5ub5idiary undertaking of the tompany-. Name Company number Re81Stered office or principal place Clas5 of of buslness shares Holding NHC Trading Limited 03538751 The Stables, Rossington Hall, Great Ordinarv North Rtsad, Doncaster, DHII OHN loo% The financial result5 of the subsidiary for the year were.. Name Income Expendlture Profltfor the Net assets year NHC Trading Limited 125,271 1118,8871 6,384 38,522 Stocks Group Group 2021 Company 2022 Company 2021 2022 Finished goods 19.235 31.492 9.539 22.060 19. Debtors Group 2022 Group 2021 Company 2022 Company 2021 Trade debtors 49.197 108.016 46.872 98.089 24.444 93.980 134,721 877 Amounts owed by 8roup undertakin85 Other debtors 24.444 23.377 877 Prepayments and accrued income 67,923 23.377 67,923 97,018 176,816 192,782 297,501 Page 41

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 20. Creditors.. Amounts falllng due wlthln one year Group 2022 Group 2021 Company 2022 Company 2021 Bank loans 68.292 160.354 64,268 154.846 68.292 150.041 64,268 142.449 Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contrart5 50.177 40,012 46.041 34,914 16,726 126.980 8,695 158,766 16,726 120.980 8,695 157,737 Other creditors 422.529 426,587 402.080 408,063 The hire purchase contract is secured aeainst the asset to which it relates. Page 42

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 21. Creditors.. Amounts falllng due after more than one year Group 2022 Group 2021 Company 2022 Company 2021 Bank loans 78.671 311,963 78.671 311,963 Net obligations under finance lease and hire purthase contratt5 18,859 1,099 18,859 1,099 97.530 313.062 97.530 313.062 The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: Group 2022 Group 2021 Company 2022 Company 2021 Repayable by instalrnents 165,000 165,000 165,000 165,000 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 terrn 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 43

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 22. Statement of funds Statement of funds- current year Balance at I August 2021 Transfers ./out fjainsl IL055esl 8alante at 31 July 2022 Incorne EXPendi￿re Unrestricted fvnds Designatedfunds College improvements 56.335 56,335 Generulfunds General funds 2,614,111 1,120,617 11,228,972) 56,430 2,562,186 Reserves held in subsidiary Pension reserve 37.3￿] 11,674.OiXII 125,271 1118.8871 127.OLXII 15,1641 38,520 1164,0001 1,537.OiXI 977.411 1.245,888 11,374.8591 51,266 I,537.OC￿7 2.436,706 Total Unrestricted funds 1,033.746 1.245,888 11,374.8591 51,266 1,537.000 2.493,041 Restrictedfvnds Horseracing grant Scheme 58.OLXI 13.9041 17,2551 46,841 Regional training grant 78,681 25.000 200,399 1143,2491 12.8021 135,831 8,187 Horsebox grant Big Lottery funding Peter O'sullivan Trust- Lunge pen The Racine Foundation- Lunge pen BHA & HBLB 114,0111 28.912 128.9121 48.125 48,125 8.045 8,045 prograrnrnes 1,240,131 11,240,131) Page 44

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 22. Statement of funds Icontinuedl Statement olfvnds- current yeur {contlnuedJ Balance at I August 2021 Transfers inlout Gainsl (Losses) 8alance at 31 July 2022 Income Expenditure Peter O'sullivan simulator 30,000 130,0001 246.763 1.470,530 11,418.9981 151,2661 247,029 Tot¢71 offunds 1,280.509 2.716,418 12,793.8571 1,537.000 2.740,070 Page 45

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 22. Statement of funds Icontinuedl statement of funds- prlor year Balance at l August 2020 Transfers in/out Gain5 Balance at (Losses) 31 July 2021 Income Expenditure Unrestricted fund5 De5igngtedfunds College improvements 56,335 56,335 GeneralAunds General funds 2,331,295 1,105,935 1908,4071 85,288 2,614,111 Reserve5 held in 5ub5idiary Pension reserve 60,457 11.883,0001 135,320 1133,1891 134,0001 125,2881 37,300 11.674.000) 243.000 508,752 1,241.255 11.075,5961 60.000 243.000 977.411 Totol Unrestricted fund5 565,087 1,241,2S5 11,075,596) 60,000 243,000 1,033,746 Restrlctedfunds Horseracing grant scheme 60,000 12,0001 58.000 Regional trainiN8 grant Horsebox Erant Big Lottery funding Peter O'sullivan Trust- Lunge pen 64,175 25,000 141,000 1126,4941 78,681 25.000 57,825 57.825 186,7381 28.912 48,125 48.125 The Racing Foundation- Lunge pen BHA & HBLB programmes 8,045 8.045 1,258,163 11,258,163) Page 46

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 22. Statement of funds Icontinuedl Statement olfvnds- prloryear fcontlnuedj Balance at l August 2020 Transfers in/out Gain5 Balance at (Losses) 31 July 2021 Income Expenditure Peter O'sullivan 5irnulator 30,(￿0 30,￿0 130,0001 130,0001 IT Grant MIS compliante manager i0,c￿0 iio,0001 263,170 1,526,988 11,483,395) 160,0001 246,763 Totul ofAunds 828,257 2,768.243 12.558,9911 243,000 1,280.509 Page 47

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Restrlcted Funds The fund5 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 Horseracine 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 regitsnal training grant represents grants received from the Racing Foundation under its 'People Development, initiative to provide Rider coaching se55ion%, 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 lunEe pen for the horses, included in the buildinE of the lunee pen is a new racehorse simulator. The BHA & HBLB prograrnme5 fund is money received from the British Horseracin8 Association in order for the college to deliver it's courses and help with the day to day running of the facilitv. Peter O'sullivan simulator 15 3 grant frorn the POS Charitable Trust to 35S1St 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 ifflprove both provision to Learner5 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. Transfer between fund5 A transfer has been made from restricted funds to unrestricted funds for capital expenditure where the conditions of the funding have been fulfilled. Page 48

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 23. Summary offunds Summary of funds- current year Balance at I August 2021 Transfers ./out fjainsl IL055esl 8alante at 31 July 2022 Incorne EXPendi￿re Desienated funds General funds 56.335 56,335 2.436,706 247,029 977.411 246.763 1.245,888 1.470,530 11,374.8591 11,418.9981 Sl,266 151,2661 1,537.OiXI Restricted funds 1,280.509 2,716,418 12,793.8571 1,537.OTrJ 2,740,070 Summary of funds- prior year Balance at l August 2020 Transfers inlout Gains/ (Losses) Balance at 31 July 2021 Income Expenditure Designated funds General funds 56,335 508,752 56.335 1,241,255 11,075,596) 11,483,395) 60,000 160.0001 243,000 977,411 Restricted funds 263,170 1,526.988 246.763 828,257 2,768,243 12.558,9911 243,000 1,280,509 24. Analysis of net assets between funds Analysis of net assets between funds- current year Unrestricted funds 2022 Restricted funds 2022 Total funds 2022 Tangible fixed assets Current assets 3,062,162 3.062,162 114,938 1422,5291 197,5301 1164.0001 247,029 361,967 1422,5291 197,5301 1164,0001 Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Tot¢71 2,493,041 247,029 2.740,070 Page 49

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Analysis of net assets between funds Icontinuedl Analysls of net assets between funds- prlor year Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Tangible fixed assets Current assets 2,894.369 2,894.369 553,026 1426.5871 1313,0621 11.674.000) 246,763 799,789 1426.5871 1313,0621 11.674.000) Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total 1,033.746 246.763 1,280.509 25. Recontiliation of net movement in funds to net tash flow from operating activities Group 2022 Group 2021 Net lexpenditurel/ income for the year las per statement of financial activities) 177.4391 209.252 Adjustments Jor.. Depreciation charges Loss on the sale of fixed assets 118,680 9.958 12,257 79.798 116,1131 15.869 98,108 Decrease in 5tock5 3,946 192.2231 4S,006 20.760 Decrease/lincreasel in debtors IDecrea5el/ increase in creditors Interest paid Defined benefit pension adjustment 27,0 34,000 Nettosh pmvidedbyoperoting activities 170.010 318.849 Page 50

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 26. Analysls of cash and cash equlvalents Group 2022 Group 2021 Cash in hand 245.714 591,481 Totol cosh ondtt7sh equivalents 245,714 591,481 27. Analysis of changes in net debt At l August 2021 At 31 July 2022 Cash flows Cash at bank and in hand 591,481 164,2681 1311,9631 19,7941 1345,7671 14.0241 233,292 125.7911 245,714 168,2921 178,6711 135,5851 Debt due within I year Debt due after l year Finance leases 205,456 I142.2￿) 63,166 Capital commitments Group Group 2021 2022 Contmcted Jor but not provlded In theseylnanclalstatements Acqui51tion of tangible fixed assets 38,000 Page51

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 29. Pension commitment5 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 £52,06112021.. £47,235). Contributions totalling £6,047 12021= £2,035) 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 5cherne providing benefits on final pensionable pay. The a55et5 of the 5cherne are held separately from those of National Hor5eracing 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 2022 specifically for the college by Hymans Robertson LLP. The contributions made for the year ended 31 July 2022 were £53,00012021.. £56,000). At the balance sheet date there were outstanding contributions payable of £5,00112021'. £4,497). Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): At 31 July 2022 At 31 July 2021 Discount rate 3.50 1.60 Future salary increases Future pension inerea5es 3.75 3.85 2.75 2.70 At 31 July 2022 Years At 31 July 2021 Years Mortality rates lin years) - for a male aged 65 now - at 65 for a male aged 45 now - for a female aged 65 now - at 65 for a female aged 45 now 22.6 22.5 24.0 25.4 25.3 27.3 27.2 Page 52

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 29. Pension commitment5 Icontinuedl The group's share of the assets in the scherne was.. At 31 July 2022 At 31 July 2021 Equities Government bonds 2,322,880 751.520 1,593,000 465,000 Other bond5 252,000 292,000 60,000 Propertv Cash and other liquid assets Other 307.440 34,160 657,000 Totolfvir value of ossets 3,416.OCKJ 3,319,000 The actual return on scheme assets was £143,00012021- £463,000). The amounts recognised in the Con501idated Statement of Financial Artivitie5 are as follows.. 2022 2021 Current service cost 54.0 60,000 155.0001 146,0001 75,000 Past service cost Interest income 153.OiXII 79,0 Interest cost Administrative expenses 1,000 Totol qmount recogni5edin the Consolidqtedstqtement oAFinqnciolActivitie5 80.000 35,000 Page 53

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 29. Pension commitment5 Icontinuedl Movements in the present value of the defined benefit obligation were as follows.. 2022 Opening defined benefit obligation Current service cost 4,993,000 54,000 79,000 Interest cost Contribution5 by scheme participant5 Actuarial Igainslllosses Benefits paid 8,000 IIA50,0001 1104,0001 Closing defined benefitobligution 3,580,000 Movements in the fair value of the group's share of scheme assets were as follows.. 2022 Opening fair value tsf scheme assets Expected return on assets Actuarial gains Contributions by employer Contributions by scheme participants Benefits paid 3,319,000 53,000 87,000 53,000 8,000 1104,0001 ClosingAqir volue of Scheme assets 3.416,000 Amounts for the current and previous period for the defined benefit pension schemes are as follows.. 2022 2021 Defined benefit obligation Scheme a55ets 13,580,000) 3,416.0(Xl 14,993,000) 3,319,000 Deficit I164.0(￿) 11,674,000) Experience adjustments on 5cherne liabilitle5 Experience adjustment on scheme assets 1,450,000 87.0(Kl 117S,0001 418,000 Page 54

NATIONAL HORSERACING COLLEGE IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2022 Operating lease commitments At 31 July 2022 the group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows: Group 2022 Group 2021 Company 2022 Company 2021 Not later than l year Later than l year and not later than 5 years 2.547 238 1,643 1.980 2.547 238 1,643 1.980 2.785 3,623 2.785 3,623 The following lease payment5 have been recogni5ed as an expense in the Statement of financial activities.. Group Group 2021 Company 2022 Company 2021 2022 Operating lease rentals 5,258 18,902 5,258 18,902 31. Related party transactlons During the year purchases were made from NHC Trading Limited la wholly owned trading subsidiary) totalling £7,12012021.. £2,896). Managerrent charge5 of £50,000 were made IN the year to NHC Tradin8 Limited12021.. £49,915>. At the year end £98,08912021- £134,7211 was due from NHC Trading Limited. 32. Controlllng party The Trust is a charity limited by guarantee and is therefore ultimately controlled by the Trustees. Page 55