**COMPANY REGISTRATION NUMBER: 02266267**
**CHARITY REGISTRATION NUMBER: 700405**
**National Horseracing College Limited Company Limited by Guarantee Trustees Report and Financial Statements 31 July 2023**
## **S UTTON MCGRATH HARTLEY**
Chartered accountants & statutory auditor Queensgate House 23 North Park Road Harrogate North Yorkshire HG1 5PD
**National Horseracing College**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 July 2023**
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**National Horseracing College**
**Company Limited by Guarantee**
## **Trustees’ Annual Report**
## **Year ended 31 July 2023**
## **Reference and administrative details of the company, its Trustees and advisers**
|**Registered charity name**|National Horseracing College||
|---|---|---|
|**Charity registration number**|700405||
|**Company registration number**|02266267||
|**Principal office and registered**|The Stables||
|**office**|Rossington Hall||
||Great North Road||
||Doncaster||
||South Yorkshire||
||DN11 0HN||
|**The trustees**|Mr Gerard Sutcliffe, Chairman||
||Mr Howard Wright, Deputy Chairman||
||Mr Timothy Adams MBE|(Resigned 19 May 2023)|
||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||
||Mr Francis Stephenson||
||Mr Callum Helliwell||
|**Vice Presidents**|The Rt Hon Richard Caborn||
||Ms Julie Krone||
|**Patron**|Countess of Halifax||
|**Chief Executive Officer**|Mr Stephen Padgett OBE||
|**Independent Auditor**|Sutton McGrath Hartley||
||Chartered accountants & statutory auditor||
||Queensgate House||
||23 North Park Road||
||Harrogate||
||North Yorkshire||
||HG1 5PD||
|**Bankers**|Virgin Money||
||19 Sepulchre Gate, Doncaster, DN1 1TD||
|**Solicitors**|Jordans||
||4 Priory Place, Doncaster, DN1 1BP||
|**Pension Administrators**|South Yorkshire Pensions Authority||
||Oakwell House, 2 Beevor Court, Pontefract Road, Barnsley, S71||
||1HG||
**1**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
The trustees present their report and the audited financial statements of the charitable group for the year ended 31 July 2023. 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**
Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 July 2023.
Provision - The academic year covered by this report has been extremely successful. More recruits have started initial training and, as retention rates have remained very high, more have completed training and graduated. Meanwhile, the numbers of apprentices in training are as high as ever and Distinctions achieved at end point assessment are way ahead of National averages. The reputation of and, as a consequence, demand for the College’s specialist training provision is better than ever it has been.
Finances – The success of perennial efforts to ensure operations are lean and efficient, meant recent inflation has hit hard. Costs were driven up while the NHC’s four sources of revenue (DfE/ESFA, BHA, commercial, fundraising) did not keep pace. As a result, already modest reserves were depleted, and applications were made to the racing industry for increased payments to be made for what was delivered. Reassuringly, racing recognises how vital is the NHC’s provision, not least in delivering everything it does at a huge discount to the industry, and Trustees are confident that will be reflected in ongoing financial arrangements.
The operating deficit for the year was £177,408 on total income of £3,094,701.
## _**Objectives and activities**_
## **a. Policies and objectives**
The objects of the charity are to advance education, particularly among young persons, and to relieve the need of unemployed persons by the provision of vocational and academic training connected with the horse racing, equestrian, agricultural, horticultural and their allied areas.
In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'
## **b. Strategies for achieving objectives**
- Provide accessible and inclusive training opportunities for people wanting to work in the horse racing industry.
- Ensure training is realistic and relevant but delivered progressively to develop learners to be ready for work.
**2**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
- Provide a supportive, encouraging environment around that training enabling as many learners as possible to achieve their goals.
- Engage widely and collaboratively with employers across the industry to maximise learners' chances of gaining and keeping paid employment.
- Promote constructive behaviours and positive attitudes in all that we do.
- Make the very best of resources available to optimise the College's contribution to public benefit.
## **c. Activities undertaken to achieve objectives**
- Recruit widely and remove as many barriers as possible that could deter potential learners.
- Provide bursaries and other practical support to ensure those with limited resources can access training opportunities.
- Provide intensive residential Foundation Courses covering a comprehensive syllabus that prepares them for the jobs that are available.
- Deliver life skills training to increase learners' resilience, confidence and independence.
- Match learners with the most appropriate employment opportunities to optimise their chances of satisfaction and success.
- Provide ongoing support in the workplace to enable further learner development (apprenticeships) and aid worker retention.
## **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.
## _**Priorities**_
The highest single priority at the tactical level is around safeguarding and duty of care to learners on the College’s training programmes, in the workplace and to staff.
At the strategic level, however, the priority has continued to be ensuring the viability of the business. Despite careful planning, control of outgoings and relentless pursuit of alternative income sources (commercial and fundraising activities), the College’s modest reserves have dwindled due to fixed costs rising faster than payments under its two contracts. The NHC has no power to dictate what it is paid for what it delivers but is told what it will receive, both by ESFA and the racing industry. For years, the NHC has delivered its outputs to the racing industry at a 60% discount. By the early months of 2023, forecasts showed that this could not be sustained and a case was made, in conjunction with its sister school the BRS, which was digging deep into its reserves also, for additional resources to sustain operational activity into 2024 when a new Industry Strategy is due to develop a long-term plan for people training in racing.
**3**
## **National Horseracing College**
## **Company Limited by Guarantee**
**Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
## **CONTEXT**
## **Overheads**
The effects of war in Europe and other factors have driven up the costs of providing training. Some of the areas that have seen the most significant rise in costs affect directly the format of the practical and residential training demanded by racing e.g. food, fodder, accommodation and fuel.
Unsurprisingly, the biggest single element of the NHC’s overhead is people, despite a very lean organisational structure. Although salaries paid have not kept pace with inflation, the overall cost of staff has risen as success in terms of more learners trained required more staff to deliver and functions such as catering have been brought inhouse to increase efficiency.
It is well reported that there are few job vacancies in the UK and the competition for workers is high. Although various entities within racing contribute to marketing and recruiting (Careers In Racing, Racing to School), the NHC has to deploy additional resources and innovative, up-to-date methods and styles in marketing and recruiting to compete with other industries as it strives to meet racing’s staffing needs.
Although the College was sensibly and comprehensively insured, the huge fire of July 2022 (caused entirely by a third party) had and continues to have significant consequences. Some of the costs have been recovered, some will be but only after extensive legal wrangling and some costs never are covered by any insurance policy e.g. time and effort spent dealing with the inconveniences of a disaster, administering claims, etc.
## **Efficiency**
Many years of delivering training to a high standard with very limited resources, including having to self-generate (grants, fundraising, charity, trading) upwards of 20% of revenue, mean that the College’s operations are lean and efficient. If savings are identified, they are taken. The opportunities to make further cuts are limited to non-existent without significantly affecting outputs in terms of numbers and standards.
## **Revenue**
Government Funding - The NHC’s ESFA contract has, for many years, accounted for around 40% of revenue and could be viewed as a valuable subsidy to industry training. A condition of funding is that the College is subject to inspections by OFSTED to ensure it meets rigorous standards, many of which are unrelated to the requirements of racing. The size and value of the contract are dictated by the ESFA without reference to the training needs of the industry, the capacity of the College or the costs of delivery. Most of the Government money supports only very young people (up to age 18), covers only partially the cost of the training delivered and has fallen in real terms on a per head basis.
Industry Contract - The NHC’s contract with the BHA also accounts for around 40% of revenue. Its value is not based on the costs of delivery, is varied on a year-by-year basis without the opportunity for longer term planning and, almost always, is not signed off until several months into the contract period. The industry, as customer, dictates what it wants to buy and what price it is willing to pay.
**4**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
Fundraising - In straitened times, the mismatch between the demands for and supply of donations/grants increases. Many causes are perceived to be more worthy of sympathy and support and to have more limited access to resources than racing schools, despite their extraordinary contributions to a variety of societal goods. In addition, grant-making bodies, within and external to racing, often are more willing to embrace and establish new initiatives and opportunities, assuming core business is or should be funded by routine revenue, but it is core funding that is needed, not new activities that add to overheads.
Commercial Opportunities - The NHC takes every opportunity to ‘sweat its assets’. Trading that will generate income is pursued wherever possible, such as by letting facilities, farming land and encouraging sponsors. However, these are peripheral to core business, continue to be impacted by changes to working norms post covid, and can deliver only marginally significant income.
## **Staffing in the Horseracing Industry**
The industry’s staff shortfall is well known, if not easily quantified. The debate about the resilience and commitment of staff, conditions of employment and the culture on racing yards aside, the fact is that significant vacancies exist, now and for the foreseeable future. Employers need and want every trained person the NHC can provide.
While the College is mandated to deliver recruits from its FC trained to Level 1, employers really would like to receive Level 2 staff/riders. The vast majority of racehorse training businesses could not provide initial training inhouse and whilst the long-term funding model for training may well include increases in direct funding from employers it is unrealistic to expect training business to be able to adjust to making a significant direct contribution in the short-term. In striving to meet employer needs and to enable the success of graduates, the NHC and its sister school the BRS make significant extra efforts to deliver people to work placement at a higher standard than their remit dictates. While that costs money, currently it is what has to happen to ensure young people entering the industry are hired and retained by employers.
The number of people who have experience of living in rural environments and of working with animals/horses is reducing while there are extensive opportunities for people to be paid to work in conditions that are not arduous. As a consequence, it is increasingly difficult to attract people into and retain them after they join the industry’s workforce.
Societal influences and learner needs have and continue to change at pace. The pandemic and responses to it were accelerants. The day-to-day experience of training staff is that fewer learners have benefited from the opportunities, support and education required to gain basic levels of fitness, good communication skills and an appreciation of the requirements of paid work. A great deal more time, patience and skill is required from leaders, instructors and support staff to instil the attitudes, standards and work-rates that will enable learners’ success in the industry’s work force.
While operating within its overall capacity, increasing the College output reduces the cost per learner. The FC operates with intake cohorts arriving every 4 weeks. These are at capacity for a significant proportion of each year, usually from July to around Christmas. Significant infrastructure investment would be required to increase capacity in any meaningful way. Reaching full capacity year-round is made more difficult as the availability of potential learners coming out of the ‘normal’ education system is dictated by the timing of the academic year.
**5**
## **National Horseracing College**
## **Company Limited by Guarantee**
**Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
## _**Activities and Achievements**_
## **Study Programme**
In 2022/23, there were 124 learners overall on Education Programme for Young People (EPYP) courses, up from 100 the year before. The 97 on the Residential Foundation Course (FC) included 24 on Traineeships and 73 on Level 1 (L1) Diploma. There were 27 on the non-residential, day attendance Doncaster Equine College (DEC) Programme.
The FC is 12 weeks duration followed by a 6-week work placement planned with an employer. It welcomes intakes of up to 15 learners every 4 weeks, most being 16–18-year-olds living away from home for the first time. Usually, each intake also includes a number of 19+ learners who are not ESFA funded – in 2022/23 this was 30 learners.
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. Training prepares non-employed young people for the world of work but also to become independent, capable members of society. Parent or guardian feedback is very positive about the personal development and improved behaviour of their young people. The range of additional training provided includes: safeguarding; understanding consent; autism awareness; diversity and inclusion; concussion awareness; pay and employee rights in the workplace; alcohol, drug and gambling awareness; welfare and healthy nutrition.
## **Achievements and Performance**
Qualifications on the FC include L1 Diploma in Racehorse Care and Riding, L1 Diploma in Work-Based Horse Care, Entry 3 Award in Basic Knowledge of the Horseracing Industry, L3 Award Short Journey in the Transportation of Horses, Functional Skills and Emergency 1st Aid. Achievement rates in the L1 Diploma improved on last year by 6% to 82% and Traineeships were down slightly at 78%. Overall, the Study Programme saw 136 achievers (105 FC achievers and 31 DEC achievers).
Functional Skills results were 85% for English and 91% for Maths with 99% of learners who completed the course achieving their main aim. Of those, 30% achieved a higher level than their initial aim. These are outstanding results considering the starting points of learners. The table below show proportions of FC learners declaring factors that can influence their progress:
|**Factor**|**2023**|**2022**|**2021**|
|---|---|---|---|
|Received counselling or had a support worker|40%|42%|36%|
|Self-stated learning difficulty|37%|28%||
|Self-stated mental health problem|36%|32%|26%|
|Did not complete school|20%|20%||
|Education, Health & Care Plan (EHCP)|14%|5%||
|Fostered/in care/adopted||1%|4%|
|Self-stated physical health problem||16%||
|Self-stated disability|6%|4%||
|From disadvantaged area|40%|43%|32%|
**6**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
Given that the FC is determinedly inclusive and non-selective, the retention rate for all age groups was impressive. At the end of the learning course, 95% of funded learners celebrated their success in a graduation ceremony. Of those who graduated from the FC, 89% (from 84% last year) went into work placement and of those 70% to an apprenticeship (from 53% last year). NHC has continued to drive up the numbers of learners moving into positive destinations **.**
## **a. 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 which suggests that 85% stay in the equine industry.
The curriculum offer 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.
Achievement levels improved on previous years; 100% passed their end point assessment (EPA) and 50% achieved distinction compared to 30% last year.
## **b.Marketing and Recruiting**
Additional resources put into this area over recent years continue to deliver results in terms of increasing expressions of interest, increasing engagement through social media and increasing applications to the FC and DEC Programmes.
## **c. Fundraising and Commercial Activities**
Although these activities have not recovered to pre-pandemic levels, both the NHC’s well-established charity race day events (Pontefract and Doncaster) made important contributions. In addition, applications to The Racing Foundation and to the Sir Peter O’Sullevan Charitable Trust had some success in obtaining grants which were received with gratitude.
## **d. Infrastructure and Equipment**
The NHC continued to invest in these areas as part of its strategy to enhance the offer to learners and to attract 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.
**7**
## **National Horseracing College**
## **Company Limited by Guarantee**
**Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
## _**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.
Steps taken by central government, local authorities and the racing industry have already helped to support the College's own efforts to sustain its staff and learners through the pandemic period, but coupled with increasing cost pressures, uncertainties remain about the long-term funding of the industry pending the publication of a new people strategy. However, 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 December 2024 which show 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 was unable to keep two month’s operating costs in reserve.
Net current liabilities at 31 July 2023 are £338,695 of which £303,381 are represented by restricted funds, leaving unrestricted net current liabilities of £35,314 (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.
## **c.Financial performance**
The operating loss for the year was £177,408 (2022: deficit of £77,439) with an actuarial gain for UK accounting purposes, which does not affect cash, of £643,000 (2022: £1,537,000) due to periodic revaluation of pension asset / liabilities, leading to a net surplus for the year of £465,592 (2022: £1,459,561).
The total funds carried forward at the year end are £3,205,662 (2022: £2,740,070) of which £2,902,281 (2022: £2,493,041) are unrestricted and £303,381 (2022: £247,029) are restricted.
## **d.Pension fund**
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 movement in the balance on the defined benefit pension scheme of £605,000 from £164,000 liability to £441,000 asset.
This is, of course, a statement of the theoretical pension asset of the Charity at the balance sheet date based upon current assumptions of future discount rates; future salary and pension increases and inflation. The asset 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
**8**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees’ Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
closed to new NHC employees since before 2015.
## **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 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 most serious consequences:
|**Risk**|**Likelihood**|**Seriousness**|**Modifying Actions**|**Owner**|
|---|---|---|---|---|
|Safeguarding failure –
learner|**MEDIUM**|**HIGH**|TREAT
Training,supervision.|Ops Dir (Safeguarding
Lead)|
|Fixed costs exceeding
ESFA & BHA contract
payments|**MEDIUM**|**HIGH**|TREAT
Demonstrate:
Value of NHC’s outputs.
Efficiencyof operation.|CEO|
|Major IT breach|**MEDIUM**|**HIGH**|TREAT
Retain comprehensive IT specialist support,
backup protocols, protective measures,
training.|CEO|
|Reduction in Industry
resources from Levy|**MEDIUM**|**HIGH**|TOLERATE
Exert influence, demonstrate social value
added.|CEO|
|Actual or Reputational
damage
due
to
vexatious complaints|**MEDIUM**|**MEDIUM**|TREAT
Ensure policies & procedures are justified,
current,followed and actions recorded.|CEO|
|Human
disease
preventing
delivery/receipt
of
training|**LOW**|**HIGH**|TREAT
Awareness, preparation, training, discipline.|CEO|
|Safeguarding failure –
staff|**LOW**|**HIGH**|TREAT
DBS checks,training,supervision.|CEO|
|Catastrophic fire/flood|**LOW**|**HIGH**|TREAT
Dispersal of assets, backup protocols,
protective
measures,
training,
comprehensive and up-to-date insurance
cover.|CEO|
|Loss of ESFA contract|**LOW**|**HIGH**|TREAT
Maintain or enhance quality of provision
(OFSTED 1 or 2) while fulfilling/over-
performingagainst contract.|CEO|
|Loss of BHA contract|**LOW**|**HIGH**|TREAT
Continue to subsidize cost to industry,
fulfil/over-perform against BHA contract,
respond to industryneeds.|CEO|
|Equine
disease
preventing delivery of
training|**LOW**|**HIGH**|TREAT
Maintain situational awareness, contingency
planning,training.|Training Manager|
**9**
## **National Horseracing College**
## **Company Limited by Guarantee**
**Trustees' Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
## _**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.
There is a single standing sub-committee, the Finance Committee which is chaired by the Chairman of trustees. Attendees include 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.
**10**
**National Horseracing College**
## **Company Limited by Guarantee**
**Trustees' Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
## **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. Although it was not possible to increase salaries, a modest loyalty bonus based purely on length of service was paid.
## **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, efforts being made by the BHA and others 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 meantime, they are extremely proud of the performance of the College which, in terms of its delivery for racing and for its learners, has never achieved more than in the year covered by this report.
They believe that the company has adequate resources to continue as a 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 1 – Accounting Policies.)
## **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 . Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the company and enable them to
**11**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 July 2023**
ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
## **Auditor**
The auditor, Sutton McGrath Hartley, 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:
## **Mr Gerard Sutcliffe**
Date: Mar 6, 2024
**12**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Independent Auditor’s Report to the Members of National Horseracing College**
## **Year ended 31 July 2023**
## **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 2023 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 July 2023 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
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.
**13**
## **National Horseracing College**
## **Company Limited by Guarantee**
**Independent Auditor’s Report to the Members of National Horseracing College** _**(continued)**_
## **Year ended 31 July 2023**
## **Other information**
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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report (incorporating the directors' report) for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the directors' report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' 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 small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
**14**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Independent Auditor’s Report to the Members of National Horseracing College**
_**(continued)**_
## **Year ended 31 July 2023**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **The extent to which the audit was considered capable of detecting irregularities, including fraud**
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:
The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group and parent company operates in and how the group and parent company are complying with the legal and regulatory framework;
**15**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Independent Auditor’s Report to the Members of National Horseracing College**
_**(continued)**_
## **Year ended 31 July 2023**
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
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 charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
**Howard Matthews (Senior statutory auditor) for and on behalf of Sutton McGrath Hartley Queensgate House 23 North Park Road Harrogate HG1 5PD Date: 6 March 2024**
**16**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Consolidated Statement of Financial Activities (Incorporating Income and Expenditure Account)**
## **Year ended 31 July 2023**
|**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 (expenditure)/income**
Transfers between funds
22
**Net movement in funds before other**
**recognised gains**
**Other recognised gains:**
Actuarial gains/(losses) on defined benefit
pension schemes
28
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2023**
£
**31,136**
**1,225,548**
**141,857**
**89,060**
**1,487,601**
**128,868**
**78,436**
**1,512,805**
**9,297**
**1,729,406**
**(241,805)**
8,045
**(233,760)**
**643,000**
**409,240**
**2,493,041**
**409,240**
**2,902,281**|**Restricted**
**funds**
**2023**
£
**-**
**1,607,100**
**-**
**-**
**1,607,100**
**-**
**-**
**1,542,703**
**-**
**1.542,703**
**64,397**
(8,045)
**56,352**
**-**
**56,352**
**247,029**
**56,352**
**303,381**|**Total**
**funds**
**2023**
£
**31,136**
**2,832,648**
**141,857**
**89,060**
**3,094,701**
**128,868**
**78,436**
**3,055,508**
**9,297**
**3,272,109**
**(177,408)**
-
**(177,408)**
**643,000**
**465,592**
**2,740,070**
**465,592**
**3,205,662**|Total
funds
2022
£
41.500
2,549,647
125,271
-
2,716,418
128,631
68,887
2,580,470
15,869
2,793,857
(77,439)
-
(77,439)
1,537,000
1,459,561
1,280.509
1,459,561
2,740,070|
|---|---|---|---|---|
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.
**17**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Consolidated Statement of Financial Position**
## **Year ended 31 July 2023**
|**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 liabilities**
**Total assets less current liabilities**
Creditors: amounts falling due after more than
one year
21
**Net assets excluding pension asset/(liability)**
Defined benefit pension scheme asset/(liability)
28
**Total net assets**
**Charity funds**
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Unrestricted funds excluding pension asset/(
liability)
22
Pension asset/(liability)
22
Total unrestricted funds
22
**Total funds**|**52,260**
**44,251**
**97,917**
**194,428**
**(533,123)**
**56,335**
**2,404,946**
**2,461,281**
**441,000**|**2023**
£
**3,133,376**
**3,133,376**
**(338,695)**
**2,794,681**
**(30,019)**
**2,764,662**
**441,000**
**3,205,662**
**303,381**
**2,902,281**
**3,205,662**|19,235
97,018
245,714
361,967
(422,529)
56,335
2,600,706
2,657,041
(164,000)|2022
£
3,062,162
3,062,162
(60,562)
3,001,600
(97,530)
2,904,070
(164,000)
2,740,070
247,029
2,493,041
2,740,070|
|---|---|---|---|---|
**18**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Consolidated Statement of Financial Position** _**(Continued)**_
## **Year ended 31 July 2023**
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 Sutcliffe**
(Chair of Trustees) Date: Mar 7, 2024
The notes on pages 24 to 55 form part of these financial statements.
**19**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Company Statement of Financial Position**
## **Year ended 31 July 2023**
||||**2023**||2022|
|---|---|---|---|---|---|
||**Note**||£||£|
|**Fixed assets**||||||
|Tangible assets|16||**3,104,894**||3,030,470|
|Investments|17||**2**||2|
||||**3,104,896**||3,030,472|
|**Current assets**||||||
|Stocks|18|**40,266**||9,539||
|Debtors|19|**55,062**||192,782||
|Cash at bank and in hand||**71,893**||132,367||
|||**167,221**||334,688||
|Creditors: amounts falling due within one year|20|**(515,956)**||(402,080)||
|**Net current liabilities**|||**(348,735)**||(67,392)|
|**Total assets less current liabilities**|||**2,756,161**||2,963,080|
|Creditors: amounts falling due after more than||||||
|one year|21||**(30,019)**||(97,530)|
|**Net assets excluding pension asset/(liability)**|||**2,726,142**||2,865,550|
|Defined benefit pension scheme asset/(liability)|28||**441,000**||(164,000)|
|**Total net assets**|||**3,167,142**||2,701,550|
**20**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Company Statement of Financial Position** _**(Continued)**_
## **Year ended 31 July 2023**
|**Note**
**Charity funds**
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Unrestricted funds excluding pension
asset/(liability)
22
Pension asset / (liability)
22
Total unrestricted funds
22
**Total funds**|**56,335**
**2,366,426**
**2,422,761**
**441,000**|**2023**
£
**303,381**
**2,863,761**
**3,167,142**|2022
£
247,029
56,335
2,562,186
2,618,521
(164,000)
2,454,521
2,701,550|
|---|---|---|---|
The company has taken advantage of the exemption allowed under s408 of the Companies 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 £465,592 (2022 - £1,459,561).
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 Sutcliffe**
(Chair of Trustees)
Date: Mar 6 2024 '
The notes on pages 22 to 55 form part of these financial statements.
**21**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Consolidated Statement of Cash Flows**
## **Year ended 31 July 2023**
|**Note**
**Cash flows from operating activities**
Net cash provided by operating activities
25
**Cash flows from investing activities**
Purchase of tangible fixed assets
Proceeds from disposal of fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
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|**2023**
£
**110,439**
**(188,871)**
**-**
**(188,871)**
**(60,068)**
**(9,297)**
**(69,365)**
**(147,797)**
**245,714**
**97,917**|2022
£
170,010|
|---|---|---|
|||(303,472)
7,041|
|||(296,431)|
|||(203,477)
(15,869)|
|||(219,346)|
|||(345,767)
591,481|
|||245,714|
**22**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements**
## **Year ended 31 July 2023**
## **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, DNll 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.
Steps taken by central government, local authorities and the racing industry have already helped to support the College's own efforts to sustain its staff and learners through the pandemic period, but coupled with increasing cost pressures, uncertainties remain about the long-term funding of the industry pending the publication of a new people strategy. However, 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 December 2024 which shows that they have sufficient cash to be able to continue for the foreseeable future.
**23**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **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.
**24**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **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 £1,000 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
Building
refurbishment
Leasehold land & buildings
Stable block
Plant,
equipment
and
motor vehicles|- Variable between 2% - 33% on a reducing balance
- Variable between 1% - 20% on a reducing balance
- Variable between 1% - 20% on a reducing balance
- 1% reducing balance
- Variable between 5% - 20% on a reducing balance|
|---|---|
|Gallop, menage and indoor riding - Variable between 1% - 10% on a reducing balance||
|school||
|Assets under construction|- Not depreciated|
|Computer equipment|- Variable between 20% - 33% on a reducing balance|
## _**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.
**25**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **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.
**26**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **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.
**27**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## _**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 South Yorkshire (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.
## **4. Income from donations and legacies**
|**_Donations_**
Pontefract race day income and Leger Legends
income
Total 2022|**Unrestricted**
**funds**
**2023**
£
31,136
31,136
41,500|**Total**
**funds**
**2023**
£
**31,136**
**31,136**
41,500|Tota
funds
2022
£
41,500|
|---|---|---|---|
||||41,500|
|||||
**28**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **5. Income from charitable activities**
|Operation of educational and training college
ESFA
Other activity related income
Grants (see detailed breakdown below)
Total 2022
**Grants**
Regional training grant
BHA
NARS - refurbishment of recreation room
Peter O’Sullevan - furlong rails replacement
Racing welfare
Racing Foundation - racing simulator
RF Lunge Pen repayment
Totalrestrictedgrants
Regional training support
Total unrestricted grants
Total|**Unrestricted**
**funds**
**2023**
£
7,340
1,191,840
26,368
-
1,225,548
1,079,117|**Restricted**
**funds**
**2023**
£
1,314,726
-
-
292,374
1,607,100
1,470,530
|**Restricted**
**funds**
**2023**
£
1,314,726
-
-
292,374
1,607,100
1,470,530
|**Total**
**funds**
**2023**
£
**1,322,066**
**1,191,840**
**26,368**
**292,374**|Total
funds
2022
£
1,253,591
993,508
45,649
256,899
2,549,647
2022
£
41,399
159,000
-
-
14,500
-
30,000|
|---|---|---|---|---|---|
|||||**2,832,648**||
|||||||
|||||2,549,647||
|||||**2023**
£
**-**
**159,000**
**18,894**
**19,980**
**14,500**
**90,000**
**(10,000)**
**292,374**
**-**
**-**
**292,374**||
||||||244,899
12,000
12,000
256,899|
|||||||
|||||||
|||||||
|||||||
**29**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **6. Income from other trading activities**
## **Income from non charitable trading activities**
|NHC Trading Limited
Total 2022|**Unrestricted**
**funds**
**2023**
£
141,857
125,271|**Total**
**fund**
**s**
**2023**
£
**141,857**
125,271|Tota
funds
2022
£
125,271|
|---|---|---|---|
|||||
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. Unaudited accounts are filed with Companies House.
## **7. Other incoming resources**
|**Unrestricted**|**Total**|Total|
|---|---|---|
|**funds**|**funds**|funds|
|**2023**|**2023**|2022|
|£|£|£|
Insurance receipts 89,060 89,060 -
**30**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **8. Expenditure on raising funds**
## _**Costs of raising voluntary income**_
|Fundraising and publicity
Voluntaryincomestaff costs
Total 2022|**Unrestricted**
**funds**
**2023**
£
250
128,618
128,868
101,767|**Restricted**
**funds**
**202**
**3**
£
-
-
26,864|**Total**
**funds**
**202**
**3**
£
**250**
**128,618**
**128,868**
128,631|Total
funds
2022
£
1,561
127,070|
|---|---|---|---|---|
|||||128,631|
||||||
## _**Other trading expenses**_
|Cost of sales
Administration expenses
Depreciation
**_Total 2023_**
Total 2022|**Unrestricted**
**funds**
**2023**
£
65,451
6,078
6,907
78,436
68,887|**Total**
**funds**
**2023**
£
**65,451**
**6,078**
**6,907**
**78,436**
68,887|Total
funds
2022
£
57,628
5,647
5,612|
|---|---|---|---|
||||68,887|
|||||
**31**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **9. Analysis of expenditure on charitable activities**
## _**Summary by fund type**_
|Operation of educational and training college
**_Total 2023_**
Total 2022|**Unrestricted**
**funds**
**2023**
£
1,512,805
1,512,805
1,188,336|**Restricted**
**funds**
**2023**
£
1,542,703
1,542,703
1,392,134|**Total**
**2023**
£
**3,055,508**
**3,055,508**
2,580,470|Total
2022
£
2,580,470|
|---|---|---|---|---|
|||||2,580,470|
||||||
**32**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **10. Summary by expenditure category**
|Training costs
Accommodation
Stable yard
Staff costs
Pension 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_**|**2023**
£
**259,593**
**311,593**
**203,389**
**1,253,864**
**38,000**
**110,750**
**2,177,189**
**333,585**
**341,338**
**674,923**
**70,773**
**70,773**
**132,623**
**3,055,508**|2022
£
140,236
455,781
182,443
988,691
26,000
113,068
1,906,219
272,555
223,760
496,315
59,829
59,829
118,107
2,580,470|
|---|---|---|
**33**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **11. Other expenditure**
|Bank and other interest
Total 2022
**12.**
**Governance costs**
Auditor's remuneration
Trustees' expenses
Legal and professional
Salaries and related charges
**Total 2023**
Total 2022
**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
Loss on disposal|**Unrestricted**
**funds**
**2023**
£
9,297
15,869
**Unrestricted**
**funds**
**2023**
£
10,292
1,043
15,859
105,429
132,623|**Total**
**funds**
**2023**
£
**9,297**
15,869
**Total**
**funds**
**2023**
£
**10,292**
**1,043**
**15,859**
**105,429**
**132,623**
118,107
**2023**
£
**117,657**
**5,226**
**10,292**
**-**|Total
funds
2022
£
15,869
Total
funds
2022
£
8,911
520
11,703
96,973
118,107
2022
£
118,680
5,226
8,911
6,261|
|---|---|---|---|
||118,107|||
**34**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **14. Staff costs**
|Wages and salaries
Social security costs
Pension costs
Operating costs of defined benefit pension schemes|**Group**
**2023**
£
Group
202
2
£
**Company**
**202**
**3**
£
Company
2022
£
**1,549,193**
1,271,317
**1,549,193**
1,271,317
**131,698**
112,116
**131,698**
112,116
**59,514**
52,061
**59,514**
52,061
**26,604**
1,000
**26,604**
1,000
**1,767,009**
1,436,494
**1,767,009**
1,436,494|
|---|---|
The average number of persons employed by the company during the year was as follows:
|**Group**|Group|
|---|---|
|**2023**|2022|
|**No.**|No.|
|**59**|51|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|Group|
|---|---|---|---|
|||**2023**|2022|
|||**No.**|No.|
|In the band £120,000|- £130,000|1
|1|
The total remuneration and benefits received by key management personnel including employer's NI and pension was £283,767 (2022: £346,977). 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 Head of Instructors and the Fundraising Manager.
## **15. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2022: £nil).
During the year ended 31 July 2023, expenses totalling £1,043 were reimbursed or paid directly to 4 Trustees (2022 - £520 to 3 Trustees). These expenses relate to the reimbursement of travel expenses incurred by the Trustees when attending National Horseracing College Trustee meetings and events
**35**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **16. Tangible fixed assets**
## **Group**
|**_Costor valuation_**
At1August 2022
Additions
At 31July2023
**_Depreciation_**
At1August 2022
Charge for the year
At 31July2023|**Visitor centre**
£
**816,681**
-|**Building**
**refurbishment**
£
**472,103**
**6,022**|**Leasehold**
**Land &**
**Buildings**
£
**1,244,177**
-|**StableBlock**
£
**652,271**
**76,524**|**Gallop,**
**Menage&**
**Indoor Riding**
**School**
£
**958,828**
**26,449**|**Plant,**
**Equipment &**
**Motor**
**Vehicles**
£
**753,781**
**33,065**
**786,846**
**362,352**
**36,200**
**398,552**|**Computer**
**equipment**
£
**94,850**
**46,812**
**141,662**
**69,644**
**14,567**
**84,211**|**Total**
£
**4,992,691**
**188,872**|
|---|---|---|---|---|---|---|---|---|
||**816,681**|**478,125**|**1,244,177**|**728,795**|**985,277**|||**5,181,563**|
||**245,362**
**30,848**|**262,932**
**4,128**|**318,490**
**10,817**|**177,021**
**6,321**|**494,728**
**14,776**|||**1,930,529**
**117,657**|
||**276,210**|**267,060**|**329,307**|**183,342**|**509,504**|||**2,048,185**|
**36**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
|16.|Tangiblefixedassets|||||||||
|---|---|---|---|---|---|---|---|---|---|
||(continued)|||||||||
||Group (continued)|||||||||
|||||||Gallop,|Plant,|||
|||||||Menage &|Equipment &|||
||||Building|Leasehold Land||Indoor Riding|Motor|Computer||
|||**Visitorcentre**|refurbishment|& Buildings|Stable Block|School|Vehicles|equipment
|Total|
|||£|£|£|£|£|£|£|£|
||_Net bookvalue_|||||||||
||At 31July2023|**540,471**|**211,065**|**914,870**|**545,453**|**475,773**|**388,294**|**57,450**|**3,133,376**|
||At 31 July 2022|571,319|209,171|925,687|475,250|464,100|391,429|25,206|3,062,162|
**37**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
**16. Tangible fixed assets (continued) Company**
|**_Costor valuation_**
At1August 2022
Additions
At 31July2023
**_Depreciation_**
At1August 2022
Charge for the year
At 31July2023|**Visitor centre**
£
**816,681**
-|**Building**
**refurbishment**
£
**472,103**
**6,022**|**Leasehold**
**Land &**
**Buildings**
£
**1,240,036**
-|**StableBlock**
£
**652,271**
**76,524**|**Gallop,**
**Menage&**
**Indoor Riding**
**School**
£
**958,828**
**26,449**|**Plant,**
**Equipment &**
**Motor**
**Vehicles**
£
**632,446**
**29,367**
**661,813**
**269,642**
**29,376**
**299,018**|**Computer**
**equipment**
£
**94,850**
**46,812**
**141,662**
**69,644**
**14,567**
**84,211**|**Total**
£
**4,867,215**
**185,174**|
|---|---|---|---|---|---|---|---|---|
||**816,681**|**478,125**|**1,240,036**|**728,795**|**985,277**|||**5,052,389**|
||**245,362**
**30,848**|**262,932**
**4,128**|**317,416**
**10,734**|**177,021**
**6,321**|**494,728**
**14,776**|||**1,836,745**
**110,750**|
||**276,210**|**267,060**|**328,150**|**183,342**|**509,504**|||**1,947,495**|
**38**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
|16.|Tangiblefixedassets (continued)|||||||||
|---|---|---|---|---|---|---|---|---|---|
||Company (continued)|||||||||
|||||||Gallop,|Plant,|||
|||||||Menage &|Equipment &|||
||||Building|Leasehold Land||Indoor Riding|Motor|Computer||
|||**Visitorcentre**|refurbishment|& Buildings|Stable Block|School|Vehicles|equipment
|Total|
|||£|£|£|£|£|£|£|£|
||_Net bookvalue_|||||||||
||At 31July2023|**540,471**|**211,065**|**911,886**|**545,453**|**475,773**|**362,795**|**57,450**|**3,104,894**|
||At 31 July 2022|571,319|209,171|922,620|475,250|464,100|362,804|25,206|3,030,470|
**39**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
|**17.**
**Fixed asset investments**
**_Company_**
**_Cost or valuation_**
At 1 August 2022
At 31 July 2023
**_Net book value_**
At 31 July 2023
At 31 July 2022|**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.
**40**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **17. Fixed asset investments**
## **(continued) Principal subsidiaries**
The following was a subsidiary undertaking of the company:
|**NameCompany**
**number**
NHC Trading Limited
03538751
**Registered office or Class**
**principal Place of business**
**share**
The Stables, Rossington Hall, Ordinary
Great North Road,
Doncaster, DH11 0HN
The financialresultsof the subsidiary for the year were:
**Name**
Income
£
Expenditure
£
Profit for the
year
£
NHC Trading Limited
**141,857**
**(128,436)**
**-**
**18.**
**Stocks**
**Group**
Group**Company**
**2023**
2022
**2023**
£
£
£
Finished goods
**52,260**
19,235**40,266**
**19.**
**Debtors**
**Group**
Group
**Company**
**2023**
2022
**2023**
£
£
£
Trade debtors
**42,239**
49,197
**35,450**
Amounts owed by group undertakings
**-**
-
**17,601**
Other debtors
**2,012**
24,444
**2,012**
Prepayments and accrued income
**-**
23,377
**-**
**44,251**
97,018
**55,062**|**Holding**
100%
**Net assets**
£
**38,520**
Company
2022
£
9,539
Company
2022
£
46,872
98,089
24,444
23,377
192,782|
|---|---|
**41**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **20. Creditors: Amounts falling due within one year**
|Bank loans
Trade creditors
Other taxation and social security
Net obligations under finance lease and hire
purchase contracts
Other creditors|**Group**
Group
**Company**
Company
**2023**
2022
**2023**
2022
**£**
£
**£**
£
**72,438**
68,292
**72,438**
68,292
**130,004**
160,354
**119,160**
150,041
**49,957**
50,177
**44,634**
46,041
**20,023**
16,726
**20,023**
16,726
**260,701**
126,980
**259,701**
120,980
**533,123**
422,529
**515,956**
402,080|
|---|---|
## **21. Creditors: Amounts falling due after more than one year**
|Bank loans
Net obligations under finance lease and hire
purchase contracts|**Group**
**2023**
**£**
**6,233**
**23,786**
**30,019**|Group
**Company**
Company
2022
**2023**
202
£
**£**
£
78,671
**6,233**
78,671
18,859
**23,786**
18,859
97,530
**30,019**
97,530|
|---|---|---|
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.
**42**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **22. Statement of funds**
**Statement of funds** - **current year**
|Balance at
1 August 2022
£
**_Unrestricted_**
**_funds_**
**_Designated funds_**
College
improvements
56,335
**_General funds_**
General funds Reserves held in
subsidiary Pension fund
**_Total Unrestricted_**
**_Funds_**2,493,041
**_Restricted funds_**
Horseracing grant
scheme
46,841
Regional training grant
135,831
Horsebox grant
8,187
Peter O’Sullevan Trust
48,125
Racing Foundation –
Lunge Pen
8,045
Racing welfare
-
NARS Rec room
refurbishment
-
POS Furlong
replacement
-
RF New simulator
vehicle
-
BHA & HBLB
programmes
-
2,562,186
38,520
(164,000)
2,436,70~~6~~|Income
£
-
1,487,601
-
159,000
-
(10,000)
-
14,500
18,894
19,980
90,000
1,314,726
1,345,744
141,857
-
1,487,601|Expenditure
£
-
(1,729,406)
-
(106,416)
-
-
-
(14,500)
(6,280)
(10,781)
(90,000)
(1,314,726)
(1,562,970)
(128,436)
(38,000)
(1,729,40~~6~~)|Transfers
in/out
£
-
8,045
-
-
-
-
-
-
-
-
-
-
21,466
(13,421)
-
8,045|Transfers
in/out
£
-
8,045
-
-
-
-
-
-
-
-
-
-
21,466
(13,421)
-
8,045|Gains/
(Losses)
£
-
643,000
-
-
-
-
(8,045)
-
-
-
-
-
-
-
643,000
643,000|Balance at
31July 2023
£
56,335
2,902,281
46,841
188,415
8,187
38,125
-
-
12,614
9,199
-
-
2,366,426
38,520
441,000
2,845,94~~6~~|
|---|---|---|---|---|---|---|
||||21,466
(13,421)||||
||||-
8045||||
|||||
|||
||||8,045
,||||
||||-
-
-
-
-
-
-
-
-
-||||
**43**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
|**_Total restricted_**
**_Funds_**
**_Total_** **_Funds_**|247,029
2,740,070|1,607,100
3,094,702|(1,542,703)
(3,272,110)|(8,045)
-|-
643,000|303,381|
|---|---|---|---|---|---|---|
|||||||3,205,662|
**44**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **22. Statement of funds (continued)**
**Statement of funds** - **prior year**
|Balance at
1 August 2021
£
**_Unrestricted_**
**_funds_**
**_Designated funds_**
College
improvements
56,335
**_General funds_**
General funds Reserves held in
subsidiary Pension fund
**_Total Unrestricted_**
**_Funds_**1,033,746
**_Restricted funds_**
Horseracing grant
scheme
58,000
Regional training grant
78,681
Horsebox grant
25,000
Peter O’Sullevan Trust
48,125
Racing Foundation -
Lunge Pen
8,045
Big Lottery funding
28,912
Peter O’Sullevan –
simulator
-
BHA & HBLB
programmes
-
2,614,111
37,300
(1,674,000)
977,41~~1~~|Income
£
-
1,245,888
-
200,399
-
-
-
-
30,000
1,240,131
1,120,617
125,271
-
1,245,88~~8~~|Expenditure
£
-
(1,374,859)
(3,904)
(143,249)
(2,802)
-
-
(28,912)
-
(1,240,131)
(1,228,972)
(118,887)
(27,000)
(1,374,85~~9~~)|Transfers
in/out
£
-|
|Gains/
(Losses)
£
-
1,537,000
-
-
-
-
-
-
-
-
-
-
1,537,000
1,537,000|Balance at
31July 2022
£
56,335
2,493,041
46,841
135,831
8,187
48,125
8,045
-
-
-
2,562,186
38,520
(164,000)
2,436,70~~6~~|
|---|---|---|---|---|---|---|
||||56,430
(5,164)||||
||||-
51266||||
|||||
|||
||||51,266
,
- -||||
||||(7,255)
-
(14,011)
-
-
-
(30,000)
-||||
**45**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **22. Statement of funds (continued)**
_**Statement of funds**_ - _**prior year (continued)**_
|**_Total restricted_**
**_Funds_**
**_Total_** **_Funds_**|Balance at
1 August 2021
£
246,763
1,280,509|Income
£
1,470,530
2,716,418|Expenditure
£
(1,418,998)
(2,793,857)|Transfers
in/out
£
(51,266)
-|Gains/
(Losses)
£
-
1,537,000|Balance at
31July 2022
£
247,029
2,740,070|
|---|---|---|---|---|---|---|
**46**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **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 improving the capacity of residential accommodation.
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.
**47**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **23. Summary of funds**
**Summary of funds** - **current year**
|**Balance at 1**
**August 2022**
**£**
Designated funds
**56,335**
General funds
**2,436,706**
Restricted funds
**247,029**
**2,740,070**
**Summary of funds**-**prior year**
Balance at
1 August 2021
£
Designated funds
56,335
General funds
977,411
Restricted funds
246,763
1,280,509|**Income**
**£**
-
**1,502,102**
**1,592,600**
**3,094,702**
Income
£
-
1,245,888
1,470,530
2,716,418|**Expenditure**
**£**
-
**(1,743,907)**
**(1,528,203)**
**(3,272,110) **
Expenditure
£
-
(1,374,859)
(1,418,998)
(2,793,857)|**Transfers**
**in/out**
**£**
**-**
**8,045**
**(8,045)**
**-**
Transfers
in/out
£
-
51,266
(51,266)
-|**Gains/**
**(Losses)**
**£**
**-**
**643,000**
**-**
**643,000**
Gains/
(Losses)
£
-
1,537,000
-
1,537,000|**Balance at 31**
**July 2023**
**£**
**56,335**
**2845,946**
**303,381**|
|---|---|---|---|---|---|
||||||**3,205,662**|
||||||Balance at
31July 2022
£
56,335
2,436,706
247,029
2,740,070|
## **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**
**2023**
£
3,133,376
(108,953)
(533,123)
(30,019)
441,000
2,902,281|**Restricted**
**Total**
**funds**
**2023**
**funds**
**2023**
£
£
-
**3,133,376**
303,381
**194,428**
-
**(533,123)**
-
**(30,019)**
-
**441,000**
303,381
**3,205,662**|
|---|---|---|
## _**Total**_
**48**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **24. Analysis of net assets between funds (continued)**
**Analysis of net assets between funds** - **prior year**
|Unrestricted
funds
2022
£
Tangible fixed assets
3,062,162
Current assets
114,938
Creditors due within one year
(422,529)
Creditors due in more than one year
(97,530)
Provisions for liabilities and charges
(164,000)
**_Total_**
2,493,041
**Reconciliation of net movement in funds to net cash flow from operating**
**activities**
Net (expenditure)/ income for the year (as per statement of financial activities)
**_Adjustments for:_**
Depreciation charges
Loss on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
(Decrease)/ increase in creditors
Interest paid
Defined benefit pension adjustment
**_Net cash provided by operating activities_**|Restricted
funds
2022
£
-
247,029
-
-
-
247,029
**Group**
**2023**
£
**(177,408)**
**117,657**
**-**
**(33,025)**
**52,767**
**103,151**
**9,297**
**38,000**
**110,439**|Tota
funds
2022
£
**3,062,162**
**361,967**
**(422,529)**
**(97,530)**
**(164,000)**|
|---|---|---|
|||**2,740,070**|
|||Group
2022
£
(77,439)|
|||118,680
9,95
8
12,257
79,798
(16,113)
15,869
27,000|
|||170,010|
**25. Reconciliation of net movement in funds to net cash flow from operating activities**
**49**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **26. Analysis of cash and cash equivalents**
|Cash in hand
**_Total cash and cash equivalents_**|**Group**
Group
**2023**
2022
£
£
**97,917**
245,714
**97,917**
245,714|
|---|---|
## **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**
**2022**
£
**245,714**
**(68,292) **
**(78,671)**
**(35,585)**
**63,166**|**Cash flows**
£
**(147,797)**
**(4,146)**
**72,438**
**(8,224)**
**(87,729)**|**At 31 July**
**2023**
£
**97,917**
**(72,438)**
**(6,233)**
**(43,809)**
**(24,563)**|
|---|---|---|---|
**50**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **28. Pension commitments**
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge includes contributions payable by the company to the fund and amounted to £59,514 (2022: £52,061). Contributions totalling £6,977 (2022: £6,047) 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 the 31 July 2023 specifically for the college by Hymans Robertson LLP.
The contributions made for the year ended 31 July 2023 were £52,000 (2022: £53,000).
At the balance sheet date there were outstanding contributions payable of £4,522(2022:
£5,001). Principal actuarial assumptions at the balance sheet date (expressed as weighted
averages):
|Discount rate
Future salary increases
Future pension increases
Mortality rates (in 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|**At 31 July**
**2023**
%
**5.05**
**3.60**
**3.00**|At 31 July
2022
%
3.50
3.75
2.75|
|---|---|---|
**51**
**National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **28. Pension commitments (continued)**
The group's share of the assets in the scheme was:
|Equities
Government bonds
Property
Cash and other liquid assets
**_Total fair value of assets_**|**At 31 July**
**2023**
£
**2,348,070**
**748,660**
**272,240**
**34,030**
**3,403,000**|At 31 July
2022
£
2,322,880
751,520
307,440
34,160
3,416,000|
|---|---|---|
The actual return on scheme assets was negative £58,000 (2022 - £143,000).
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_**|**2023**
£
**32,000**
**(119,000)**
**125,000**
**38,000**|2022
£
54,000
(53,000)
79,000
80,000|
|---|---|---|
**52**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **28. 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 (gains)/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
**_Closing fair value of scheme assets_**|**2023**
£
**3,580,000**
**32,000**
**125,000**
**9,000**
**(707,000)**
**(77,000)**|
|---|---|
||**2,962,000**|
||**2023**
£
**3,416,000**
**119,000**
**(116,000)**
**52,000**
**9,000**
**(77,000)**|
||**3,403,000**|
Amounts for the current and previous period for the defined benefit pension schemes are as follows:
|Defined benefit obligation
Scheme assets
Surplus/(Deficit)
Experience adjustments on scheme liabilities
Experience adjustment on scheme assets|**2023**
£
**(2,962,000)**
**3,403,000**
**441,000**
**707,000**
**(116,000)**|2022
£
(3,580,000
3,416,000|
|---|---|---|
|||(164,000|
|||1,450,000
87,000|
**53**
## **National Horseracing College**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(Continued)**_
## **Year ended 31 July 2023**
## **29. Operating lease commitments**
At 31 July 2023 the group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**Group**
**2023**
£
**69,274**
**2,650**
**69,274**|Group
**Company**
Company
2022
**2023**
2022
£
£
£
2,547
**69,274**
2,547
238
**2,650**
238
2,785
**69,274**
2,785|
|---|---|---|
The following lease payments have been recognised as an expense in the Statement of financial activities:
||**Group**|Group|**Company**|Company|
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||£|£|£|£|
|Operating lease rentals|**86,885**|5,258|**86,885**|5,258|
## **30. Related party transactions**
During the year purchases were made from NHC Trading Limited (a wholly owned trading subsidiary) totalling £4,754 (2022: £7,120). Management charges of £50,000 were made in the year to NHC Trading Limited (2022: £50,000). At the year-end £17,601 (2022: £98,089) was due from NHC Trading Limited.
## **31. Controlling party**
The Trust is a charity limited by guarantee and is therefore ultimately controlled by the Trustees.
**54**