NS

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GH

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AC

IN

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A N N U A L R E P O R T

ContentsContents

2 Chairman's Report

4 Chief Executive's Report

6 Human Resources

7 Administration & Financial Structure

8 Integrity Assurance Committee & RIPAC

9 Information Technology

10 Stakes Payment System

11 Race Dates and Programming

13 BOBS

14 Appeals

16 Industry Training

19 Licensing

20 Stipendiary Stewards

22 Handicapping

23 Public Relations and Media

24 Australian Racing Forensic Laboratory

25 Veterinary

27 Insurance

29 Registration Department

30 Finance Department, Corporate Affairs

and Racing Services

31 Financial Statements

Mission Statement"To provide independent, strong and united leadership in the development and

enhancement of the NSW thoroughbred racing industry, which will lead to the maintenance

and confidence in the integrity of the industry, in its competitive position and increased

financial returns to constituent stakeholders."

Functions of the BoardUnder section 14(1) of the Thoroughbred Racing Board Act 1996, the Boardhas the following function:(a) all the functions of the principal club for New South Wales and

commitee of the Principal Club for New South Wales under theAustralian Rules of Racing,

(b) to control, supervise and regulate horse racing in the state,(c) to initiate, develop and implement policies considered conducive to

the promotion, strategic developement and welfare of the horseracing industry in the State and the protection of the public interestas it relates to the horse racing industry,

(d) functions with respect to the insuring of participants in the horseracing industry, being functions of the kind exercised by the AJC on thecommencement of this section, and such other functions with respectto insurance in the horse racing industry as may be prescribed by theregulations,

(e) such functions as may be conferred or imposed on the Board by or underthe Australian Rules of Racing or any other Act,

(f) such functions with respect to horse racing in New South Wales as may beprescribed by the regulations.

A G Hartnell AM (Tony)

CHAIRMANAppointed 12 June 2000 for 4 yearsAttended 11 meetings

D E Hopkins (Don)VICE CHAIRMANNSW COUNTRY RACING COUNCIL NOMINEEAppointed 13 March 2000 for 4 yearsAttended 12 meetings

J B Costigan (John)LICENSED PERSONS NOMINEEAppointed 13 March 2000 for 2 yearsRe-appointed 12 March 2002 for 4 yearsAttended 10 meetings

R M Lapointe (Bob)OWNERS AND BREEDERS NOMINEEAppointed 13 March 2000 for 2 yearsRe-appointed 12 March 2002 for 4 yearsAttended 12 meetings

G F Pash (Graeme)

SYDNEY TURF CLUB NOMINEEAppointed 1 August 2003 for 4 yearsAttended 11 meetings

D P R Esplin (Phillip)

AUSTRALIAN JOCKEY CLUB NOMINEEAppointed 18 March 2002 for 4 yearsAttended 11 meetings

B J Reardon (Brian)

PROVINCIAL ASSOCIATION OF NSW NOMINEEAppointed 18 March 2002 for 4 yearsAttended 12 meetings

M J Hill (Merv)

RACING NSW CHIEF EXECUTIVEAppointed October 1999Attended 12 meetings

Members of the Board 1 July 2002 – 30 June 2003

Member’s DeputiesDavid Hall

Australian Jockey Club Member’s DeputyAttended 1 meeting on behalf of Mr Esplin

2

1 October, 2003

The Hon Grant McBride MPMinister for Gaming and RacingLevel 1355 Hunter StreetSydney NSW 2000

Dear Minister,

In accordance with Section 29 ofthe Thoroughbred Racing BoardAct 1996 as amended, I submitto you the seventh AnnualReport of the NSWThoroughbred Racing Board(TRB), covering the period from1 July 2002 to 30 June 2003.

During the past 12 months theNew South Wales racingindustry has witnessed a year ofexcellence with some notablehighlights – two of whichimmediately come to mind arethe outstanding deeds oflocally-bred champion Lonhro,and Newcastle sprinter Choisir.The dashing chestnut did NSWproud by claiming two Stakesraces in England and with thestallion now retiring to theHunter Valley, Choisir willfurther strengthen our State’sbreeding ranks.

Betting turnover in all sectorscontinues to rise and across theState prizemoney offeredincreased by $2.6million.

In the last financial year, NSWthoroughbred racing offered atotal of $91.9million in

prizemoney and staged 42% ofthe top 50 races (by value) inAustralia. With the exception ofthe Melbourne Cup, NSW ishome to the next three richestraces in the nation – the AAMIGolden Slipper Stakes, the SanMiguel Doncaster Handicap andthe San Miguel AJC AustralianDerby.

I would like to congratulateboth metropolitan clubs whoreached new heights with theirworld-class racing carnivals. Ofcourse, I must also commendthe Provincial Association ofNSW and the Country RacingCouncil on some excellentracing throughout the season,with a total of 866 racemeetings being staged acrossthe State.

Insurance costs continue topose one of the major threats tothe racing industry, withpremiums going ‘through theroof’. In regard to the industry’spublic liability premiums, wehave now established a nationalcaptive fund which should keeppremiums lower and ensurefuture premiums remain morestable.

Turning to the industry’sworkers’ compensation fund;unfortunately due to a numberof issues such as falling equitymarkets, the collapse of HIH,and changes to legislation, wehave been forced to increaseworkers’ compensationpremiums charged to theindustry to cover past losses.

That said, we are now hopefulthat the worst is behind us andincreases to workers’ comppremiums will be minimal inthe next financial year -although that does depend on anumber of variables beyond ourcontrol such as returns oninvestments and claims.

A band of country trainers hasbeen extremely vocal thatinsurance costs will cripple theirlivelihood and, in effect, the restof the industry should subsidisethem. We resist that – the TRBwill not promote cross-subsidisation. We will try to getthe insurance costs down but,ultimately, we may have toconsider withdrawing from theinsurance business totallyshould we not make anyinroads.

Our IT sector is making rapidprogress in elevating RacingNSW to one of the industryleaders in technology, withseveral e-commerce initiativesclose to fruition. IT has longbeen one of our highestpriorities and our focus on thiskey area will ultimately result infurther cost savings tostakeholders and participants,and a streamlined system withrapid processing allowing animprovement in the flow ofinformation.

I am also pleased to see aconstant rise in the numbers ofvisitors to the Racing NSWwebsite. The site is a valuableasset to this State’s racingindustry and provides anexcellent service tostakeholders, participants andthe general public. In theautumn of this year the websitegained national recognitionwhen awarded the ‘BestWebsite’ in the racing industry,beating some 1200 other sites.

As I write, the Ratings-BasedHandicapping system – a jointinitiative of Racing NSW andRacing Victoria – is about to beintroduced. This new systemwill deliver transparency ofhandicapping, improve theturnaround time of the releaseof weights, provide consistency

Chairman’s Report

Tony Hartnell

3

and achieve internal processingefficiencies.

BOBS – our State’s incentivescheme – is now into its secondseason and has received greatsupport from breeders andracehorse owners. Some 120stallions were paid up for thescheme which is more thandouble the amount paid up forBOBS’ inaugural season. Withcountry racing now receivingbonuses, the scheme hasbecome more widely acceptedas it continues to gathermomentum.

An important industry issue issafety, and I am pleased to sayRacing NSW has a strong

commitment to OccupationalHealth and Safety and leads theway nationally (in racing) witheducation and training. RacingNSW recently completed theproject ‘Train the Trainer’ forRace Club employees, and alsocompleted a joint project withWorkcover for horse Trainers.

Finally, I would like to paytribute to the efforts of all TRBstaff. Our organisation is slowlycoming together and they haveall done a tremendous job,including Greg Purcell at NSWRacing. The TRB has madesubstantial gains from theinvestment in our Mascotheadquarters and the building

has been a great helpstrategically, fostering strongstaff morale.

I must also acknowledge thededication and commitmentfrom the staff and committeesof all NSW Race Clubs whichhas again resulted in a fantasticracing year.

A G HARTNELL AM

CHAIRMAN

The year ended 30 June 2003 was anextremely busy and successful yearfor Racing NSW, in what was asomewhat difficult year for theracing industry generally.

Looking beyond the administrativeside of racing, this was a successfulracing year for most of the clubs,with metropolitan racing at carnivaltimes generating a level of interestthat has not been seen for a while.

In the country, the economiccircumstances have been tough,due mainly to the drought, butthere are the consequences ofpopulation shift impacting on theregional areas, and whilst the majorregional carnivals and special eventclubs were also very successful,some significant strategic issuesneed to be addressed.

Racing NSW has generateddiscussion within the industrythrough meetings and the issue ofdiscussion papers. This processcontinues, and whilst change isinevitable, the plethora ofstakeholders and varying agendasmake it most likely that thechanges that will surely come willemerge somewhat slowly, and willbe evolution, not revolution.

On the national front, Racing NSWhas been at the forefront of anumber of major issues. Never inthe recent history of racing hasthere been a closer relationshipbetween the principal authorities inNSW and Victoria.

In conjunction with Racing VictoriaLtd, and in most cases all otherStates and the Territories, we havepursued a number of initiatives thatseek to capitalise on the combinedstrength of the industry, and togenerate cost savings andefficiencies. The initiatives pursued

include a joint RVL/RNSW systemof Ratings-Based Handicapping,which will be launched later in 2003and will include S.A., theestablishment of a CaptiveInsurance Fund between NSW, VICand QLD which has the potential tosave NSW alone between$1.5million and $2million eachyear, the establishment of anindependent company toencompass the operations of theRacing Services Bureau, TrainersService Centre, and the Registrar ofRacehorses – the establishment ofthat latter company will mean thatfor the first time NSW will have anequity interest in the operations ofmanaging its data, in conjunctionwith the other States and Territories.

Racing NSW was also representedon the inter-governmental CrossBorder Betting Task Force, andthrough the Australian RacingBoard had a deep involvement inthe review of the CommonwealthGovernments Interactive GamingAct, and in dealing with theoperations of betting exchanges.Both cross border betting andbetting exchanges pose very realthreats to the financial viability ofthe racing industry, and all ARBmembers share this concern, whichis not necessarily shared by allStates and Territory governments.

This year saw the implementationof the incentive scheme designedto enhance the attractiveness ofracing horses in NSW. Known asBOBS (Breeder Owner BonusScheme), the first version waslaunched after extensiveconsultations, and it wasacknowledged that this was afoundation on which to build.

Further consultation saw manyimprovements to the scheme for itssecond year of operation. Asalways the scheme has its critics,but after 5 years of debate it wastime to get a scheme going, andalready after one successful year, itis clear that the incentive scheme ishere to stay.

Racing NSW has on two occasionsin recent years engaged externalconsultants to provide an

independent assessment of thecost of its operations, and toidentify any potential cost savings.The year under review saw nofurther independent examination,the last review being current, butthe Board continued to closelymonitor expenditure.

The operations of Racing NSW arefurther explained through thisreport – Racing NSW is the onlybody that is charged with taking anindustry-wide perspective andresponsibility, and it is the onlybody that can gain the economiesof scale in such things as insurance,and it is the voice of NSW in thenational and international forumthrough the ARB.

Whilst Racing NSW continues tocarefully monitor its expenditure,services such as handicapping, drugtesting, stewards, licensing,Occupational Health and Safety,stakes payment, industry training,apprentice schemes, veterinary,industry insurance, TAB andgovernment liaison, andparticipation in the nationaldebate, come at a cost.

Again throughout the year, ourcolleagues at the Office of Gamingand Racing have used theirexperience to support racing and Ithank them for that. It has been ayear of constant dialogue withimportant and useful input comingfrom the clubs, associations andrepresentative bodies, and I alsothank those who have given theirtime and expertise.

For the staff, once again it has beena year of change as our policies andprocedures change to meet newchallenges, to meet the changes inour environment, and as we striveto maximise our cost effectiveness.

All that will continue and we lookforward to another successful yearfor both racing and administrationin 2003/04.

MERV HILL

CHIEF EXECUTIVE

Chief Executive’s Report

4

Merv Hill

5

6

“Our staff are committed and dedicatedto the industry. Performanceefficiencies, teamwork, innovation andmaximsing the potential of all staff, ie.the contribution our people make to thewell being of the industry, is the focusof our department.”

– Jeanette Brokman, RacingNSW’s Human Resources Manager

With more than 100 employees,Racing NSW offers a unique anddiverse cross-section of careeropportunities from forensic science,finance, media, and industrytraining to handicapping andstipendiary stewards.

Whilst the majority of staff arebased at our head office at Mascot,other staff are based at regionaloffices and work throughout thestate.

Our emphasis is on both ourlonger-term employees, manyhaving worked previously with theAustralian Jockey Club prior to theBoard’s inception in 1997, andattracting and retaining the nextgeneration by providing rewardingcareer opportunities andencouraging innovation.

Our people are constantly betteringthemselves through education,training, comprehensive inductionprograms, mentoring, internationalsecondments and work experience.

Through teamwork and a freshapproach in workplace andtechnological change, much hasbeen achieved in 2002-03.

The next step is to build themomentum and to set the pace fora new culture.

Our focus is to continue to examineour operations and performanceconcentrating on service and thecontribution Racing NSW can maketo the well-being of the industry –not only nationally, butinternationally.

The People behind Racing NSW

The NSW TRB and all NSW raceclubs are bound by variousagreements that determine theflow of financial distributionsfrom TAB Limited.

Racing DistributionAgreement (RDA)

The RDA outlines thecontractual relationshipbetween all codes of the NSWracing industry and TABLimited. For example, itdetermines the minimumamount of race meetings eachcode and sector must supply toTAB. It also sets out how feespayable to all codes of theracing industry by TAB are to becalculated.

Roles of each party

The roles of each party are:

• The NSW racing industrysupplies the “product” to TABLimited,

• TAB Limited “sells” theproduct through wageringoutlets,

• The racing industry receives ashare in the net wageringrevenue and profits of TAB,

• Each of the racing codes andsectors must co-operate inmatters such as programmingand race date allocation so asto fulfill the mutual objectivesof the racing industry and TAB.

Objectives of RDA

The mutual objectives of TABand the racing industry arebroadly to:

• Encourage public interestand attendance in racing inNSW,

• Promote the quality anddevelopment of the codes,

• Maximise Net WageringRevenue and WageringEarnings.

NSW Racing Pty Ltd. (NSWR)

The NSW TRB, Harness RacingNSW and Greyhound RacingAuthority of NSW are thecontrolling bodies of eachracing code in NSW. Together,they established the companyNSW Racing Limited (NSWR) torepresent them under theRacing Distribution Agreement(RDA).

NSWR is the interface betweenall codes of the racing industryand TAB Limited. Its function isto perform, as agent for eachrepresentative body severally,the terms of the RDA. Thefunds paid to all codes of theracing industry by TAB Limitedare received by NSWR.

The Board of NSWR comprises 4members from the thoroughbredcode, 2 members from theharness code and 2 membersfrom the greyhound code. Thecurrent thoroughbred codemembers are:

Mr. Tony Hartnell AM(Chairman)

Mr. Don Hopkins

Mr. Graeme Pash

Mr. Phillip Esplin

Inter-Code Agreement

The Inter-Code is an agreementbetween the thoroughbred,harness, and greyhound codes.It determines the basis uponwhich funds received by NSWRfrom TAB Limited aredistributed between the codes.It also outlines the terms underwhich NSW Racing Pty Ltd isoperated, controlled andfunded. The funds are allocatedprimarily on fixed portions.Since privatisation of the TAB,the allocation of funds has beenas follows:

Intra-Code Agreement

The Intra-Code Agreement setsout the distribution of moniesbetween the metropolitan,provincial and countrythoroughbred sectors. The first$115m of distributions are setat fixed percentages.

The remainder of funds above$115m is split 50% on the fixedportions and 50% on marketshare of TAB sales. Sinceprivatisation of the TAB, theallocation of funds has been asfollows:

Administrative and Financial Structure

7

17

.3

1

8.5

9

5.8

13

1.6

22

.1

24

.1

12

1.7

16

7.9

22

.6

24

.1

1

24

.7

1

72

23

.9

2

6.3

1

32

.5

1

82

.7

2

5.8

2

8.6

14

2.1

1

96

.5

2

6.1

2

8.8

14

3.6

1

98

.5

GRA ($M)

HRNSW ($M)

TRB ($M)

Total Inter-Code ($M)

1998 1999 2000 2001 2002 2003

4

9.4

1

4.1

25

.3

8

8.8

6

3.6

1

9.2

12

1.7

3

0.6

22

.6

1

13

.4

1

24

.7

65

.4

19

.9

31

.5

11

6.8

1

82

2

5.8

68

.6

21

.0

1

42

.1

3

3.1

1

96

.5

1

22

.7

2

8.8

72

.0

1

43

2

2.2

3

4.9

1

29

.1

74

.0

2

2.7

35

.6

13

2.2

Metropolitan ($M)

Provincial ($M)

Country ($M)

Total Intra-Code ($M)

1998 1999 2000 2001 2002 2003

27%

17%

56%

Country Metropolitan

Provincial

Purpose

The Integrity Assurance Committeeis to have primary oversight ofthose aspects of the Board'sfunctions which relate to racestewards, drug testing and control,licensing, handicapping and horseracing appeals.

The IAC is to advise the Board onmatters of integrity which arise inthis area.

MembersMr D E HopkinsCHAIRMAN

The Hon J C J Matthews

Mr A K Davidson AM MBE

Mr M Cummings

Meetings held in 2002/03• Friday, 11 October 2002

RACING INDUSTRYPARTICIPANTS ADVISORYCOMMITTEE

The Racing Industry ParticipantsAdvisory Committee (RIPAC) wasestablished under theThoroughbred Racing Board Act1996 as the vehicle by whichindustry representation is made toRacing NSW (NSW TRB).

MembersMr Mark DanielsTRAINERS

Mr Paul InnesJOCKEYS

Mr Benedict ChanOWNERS

Mr Les YoungBREEDERS

Mr Jack AshmanBOOKMAKERS

Mr Matthew ThistlewaiteINDUSTRY EMPLOYEES

Mr Peter MairCONSUMERS

Under section 35 of the Act, thefunctions of RIPAC include:

• Advise the TRB on industrypolicy and strategic direction,

• Serve as a communicationchannel between industrystakeholders and the TRB,

• Provide a forum to discussissues of concern and makerecommendations to the TRB,

• Nominate members, at therequest of the TRB, to serve onTRB sub-committees or workinggroups.

The Board gratefully acknowledgesthe time, effort and expertise thatRIPAC members contribute to theracing industry.

Major items addressed

HANDICAPPING: Mr MarkWebbey

• Manager Handicapping to advisestatus of automated handicappingsystem at next IAC review,

• Further information required as towhether current staff levels enabletasks to be completed on time,

• The presence of a handicapperin a regional area has had somebenefit to industry participants.

REGISTRATION: Dianne Green/Keith Bulloch

• Checking of specimen signatures– Keith Bulloch to review TRBlegal liability in this area.Question raised is Liability vs.protection to industry,

• A review to be conducted onwhether the TRB should collectspecimen signatures and also onthe current transfers system/procedures.

LICENSING: Gary Rudge/Keith Bulloch

• TRB vs. Timbery case noted byCommittee,

• IT conversion noted,• Broad rules, re: Corporate

bookmakers were noted byCommittee.

AUSTRALIAN RACING FORENSICLABORATORY: Allen Stenhouse

• Official Analyst to makecomment on pre-race testing,

• The issue of the growth innumber and variety of peptidehormone drugs becomingavailable and the difficulty indetecting them has beenreferred to the ARB.

STEWARDS: Mr. Ray Murrihy

• Issue of setting up a nationaldatabase of information on legalproceedings has again beenraised with ARB,

• Upgrading of stewards towersunderway,

• Quality of video footage(HNWRA) following an appeal.CRC to be advised that IACconsider this unsatisfactoryquality,

• IAC recommend the issue of pre-race testing be again raised withTRB Board,

IAC supports proposal to ARB, re: raceday treatment.

Integrity Assurance Committee

8

RIPAC

Integrity Assurance Committee

L-R: Alan Davidson, Don Hopkins,John Matthews.

“The IT department is rapidly becomingone of the industry leaders intechnology. Our e-commerce is close tofruition showing that the hard workput in by all IT members will paydividends to all stakeholders andparticipants, giving them easy andefficient access to a range of services.”

– Clinton Gaddes, Racing NSW’sIT Operations Manager

Department members

Clinton Gaddes IT OPERATIONS MANAGER

Scott PithersIT SUPPORT HELPDESK

David Parsa IT SUPPORT

Alex BlokhANALYSTS PROGRAMMER

A year in racing is a long time –likewise a year in the field ofInformation Technology. Given thediverse nature of the RacingIndustry, it can certainly be statedthat every day over the last year hasposed a challenge at every turn.

Over the past 12 months, RacingNSW has undergone substantialchanges with commissioning andimplementing the HORSES RacingSystem. This system provides theindustry with a contemporarytechnology platform that will allowthe integration of the internet togenerate various benefits to theindustry. In the near future we willsee the introduction for the systemto provide on-line Stakes paymentaccount inquiries, licensing accountinquires and updates.

The role of the informationtechnology department within

Racing NSW encompasses thefollowing:

• General support to internal andexternal Racing NSW end users,

• Report generation and dataanalysts,

• System development andmaintenance of the HORSESRacing System,

• System development andmaintenance of the ROR System,

• Asset management andprocurement,

• Project co-ordination,• Rationalisation of expenditure

and Total Cost of Ownership.

Objectives achieved

• Introduction and design of thenew BOBS bonus Scheme withinthe HORSES Racing System,

• Enhancements to the HORSESRacing System including theintroduction of new businessrules to cater to the ever-changing need of the racingindustry,

• Enhancements to the nationalROR System,

• Horse name lookup functionprovided on-www.racingnsw.com.au to allowusers to view possible names fortheir unnamed horses,

• Stakes Payment upgrade tofacility e-commerce projects duefor release in the near future.

RISA (Racing Information ServicesAustralia) has been incorporated asa national company with a view toholding IT resources between theStates, where each State holdsequity in the company. The firstbenefit of this is the utilisation ofthe Trainers Service Centre whichwent live in September 2002. This isthe first step of many which will seeeconomies of scale achieved in ITdevelopments across the country.

Racing NSW has continued itscommitment to RISA - the firstcommercial venture that allAustralian racing jurisdictions haveparticipated in.

This special purpose company isbeing formed to:

• Protect industry data and IP,• Reduce IT and administration

costs through aligning businesssystems and processes betweenstates.

IT

9

Clinton Gaddes

Department Members

Paul BittarCommercial ManagerFelicia GibsonStakes Payment System AccountantJohn PattonStakes Payment OfficerMaria RyanStakes Payment OfficerSue HutchisonCustomer Service, Stakes Payment

• Stakes Payments System• Trainers Service Centre• E-commerce

Stakes Payments System

The Racing NSW Stakes PaymentsSystem has been in operation forthree years, catering for all facets ofprizemoney distribution and theprocessing of workers’ compensationand industry charges. Importantly,the system ensures GST compliancefor all GST registered participantsby providing tax invoices for alltransactions, and assists Trainers inparticular by issuing monthlystatements to enable efficient billingof charges.

Statistics for the 2003 financial yearshow Racing NSW Stakes Payments:• Processed over 1million

transactions for all NSW racemeetings and barrier trials,

• Distributed approximately$100million in prizemoney andbonuses to over 30,000 payees,

• Maintained accounts for over12,000 Owners and 5,000Licensees.

Additionally, focus continued onmaking payments by EFT. Themove to EFT is designed to reducethe administration costs associatedwith cheque processing. For theyear ended:• Almost 100% of Licensee

payments were made by EFT,• 72% of Owner payments were EFT,

representing an increase of 12%.

Continuing development of thesystem incorporating e-commercefunctions (refer e-commercetimetable) will continue to deliverefficiencies and focus on reducingcosts.

Trainers Service Centre

Overview

September 2002 brought about asignificant change for NSW racingin the processing of all racinginformation. The introduction of theTrainers Service Centre (TSC) inMelbourne for use by NSW Trainersprovided a ‘one-stop shop’ for alltheir racing informationrequirements. The TSC isaccessible for Trainers on a freecall1800 number and is responsible forprocessing all:

Nominations, Acceptances, Riders,Scratchings, Gear changes, Stable Returns.

The TSC efficiently and effectivelyprovides this service for not onlyNSW, but also Victoria and SouthAustralia. Ultimately, the TSC willdeliver significant cost savings toNSW racing through the efficientprocessing of this information.Additionally, Trainers are no longerrequired to contact each race clubindividually for their racing requir-ements – it can all be done throughthe TSC.

TSC Performance

Racing NSW has in place a ServiceLevel Agreement with the TSC toensure an efficient deliver of servicefor NSW participants. The callstatistics below show the effectiv-eness of the TSC since NSW ‘cameon-board’ in September 2002.

Monthly Total calls No. of calls % of callsanswered in answered inunder under30seconds 30seconds

202,478 184,290 91.02%

Well over 1 million transactionswere processed by the TSC duringthe period from September 2002 toJune 2003.

Stable Assist

The coming year will see theintroduction of ‘Stable Assist’ forNSW Trainers.

‘Stable Assist’ provides Trainers withan easy-to-use system to nominateand accept horses, and manage theirstable via the Internet and will beavailable for use in October 2003(refer e-commerce timetable). Theadvantage for Trainers will be toenable the management of theirracing transactions at a timeconvenient to them.

E-Commerce

Racing NSW is committed totechnology solutions that delivercost efficiencies in administrationas well as delivering benefits toparticipants. The past year saw anumber of e-commerce functionsdeveloped and implemented,including:• On-line notification of race

extensions (via Racing NSWwebsite),

• E-mail distribution ofNominations, Weights &Acceptances,

• Download of Forms availablefrom Website,

• On-line access to Race Clubinformation (e.g. contact detailsand special events).

Additionally, the coming year sees anumber of new projects planned forimplementation, including:

• On-line access to SPS account &

transaction information,

• On-line access to past statements & tax

invoices,

• Rollout of “Stable Assist”,

• Distribution of statements by e-mail,

• On-line account payment facilities,

• On-line update of Contact details,

• On-line Lodgement of Forms,

• On-line Licensing & Registration

processes,

• On-line facility to enable download of

monthly accounts,

• On-line submission of Race Programs.

Commercial Report

10

“Stakes Payment is a core part of RacingNSW, handling more than 1milliontransactions per year. The system ‘keeps thebooks’ of many industry participants, and thecoming e-commerce will further dissipateaccountant keeping hassles.”

– Paul Bittar, Racing NSW’sCommercial Manager

11

“The programming of races is crucial tothe balancing of racing in this State.Much work and consultation goes intothe structure and many positiveinitiatives have resulted in the pastfinancial year.”

– Paul Bloodworth, RacingNSW’s Racing Co-ordinator

The Racing Review Panel meetsmonthly and aims to improve thequality of racing in NSW and tomaximise TAB sales. The role of theReview Panel is to advise andrecommend to the Board race datesand programming initiatives.

Some of the recommendationsfrom the Panel adopted by theBoard over the last 12 monthsinclude:

• Formation of the ProgrammingWorking Party,

• Balancing metropolitanprograms with restricted andopen class racing,

• Re-introduction of class fiveraces,

• Abolition of money bars onOpen Handicaps in the Country,

• Nine race Metropolitan Saturday trials,

• Introduction of set-weightmaidens,

• Formation of cross-sectorracedates group,

• Strategic movement of racedaysto compliment district andsector initiatives.

Racing Review Panel

John CostiganBoard Member - Racing NSW

Keith BullochGeneral Manager Racing Services -Racing NSW

Paul Bloodworth(Secretary) Racing Co-ordinator -Racing NSW

Mark WebbeyChief Handicapper - Racing NSW

John NicholsonGeneral Manager Racing andWagering - Sydney Turf Club

Colin TuckRacing Manager - AustralianJockey Club

Shane MeaneyRacing Manager - NSW CountryRacing Council

James MurphyExecutive Officer - ProvincialAssociation of NSW

*Canberra Racing Club Deputy ChiefExecutive - Mr Peter Stubbs, is copied allmeeting correspondence for comment onbehalf of that Club.

Programming Review

The Review Panel completed athorough review of the currentprogramming policy in March 2003.Submissions were received fromRacing NSW, the ProvincialAssociation NSW and the CountryRacing Council.

The Panel, whilst being pleased bythe statistics emanating from thereview in relation to average fieldsizes, recommended to the Board

the re-introduction of class fiveraces and the elimination of moneybars on Country open handicaps.

These recommendations were madespecifically to achieve the objectiveof ‘maximising participation ratesat all levels of NSW racing’.

Programming Working Party(PWP)

The PWP meets quarterly to discussthe formation of metropolitan,provincial and country raceprograms.

During its inaugural year, the PWPmade an important step inimproving programming strategy inNSW. By assisting the provincialand country sectors with statisticalevidence, the two sectors havemoved to a model of programmingraces in line with the availablehorse population.

Specifically this will result in lowerclass races (maiden to class 2)being programmed in amountscommensurate with the horseseligible for each level. In NSW,approximately 70% of raced horsesare of Class 2 or lower level, andtherefore approximately thatamount of races should beprogrammed at provincial andcountry venues.

Race Dates and Programming

Paul Bloodworth

10500

11000

11500

12000

12500

13000

13500

200320022001200019991998199719961995199419931992

50000

60000

70000

80000

200320022001200019991998199719961995199419931992

Total number of starters

8.6

8.8

9

9.2

9.4

9.6

9.8

10

10.2

10.4

200320022001200019991998199719961995199419931992

Average number of starters per race

700

800

900

1000

1100

200320022001200019991998199719961995199419931992

Number of race meetings

60

70

80

90

100

200320022001200019991998199719961995199419931992

Number of TAB meetings v. Non TAB meetings

200

300

400

500

600

700

200320022001200019991998199719961995199419931992

Prizemoney, bonuses and starters rebates ($M)

Individual horses that started

RA

CE

DA

TE

S &

PR

OG

RA

MM

ING

Number of TAB meetings

Number of Non-TAB meetings (including Picnic)

12

“Whilst racehorse owners receive thelion’s share of the bonuses under theBOBS scheme, breeders also benefit inseveral ways, as do trainers and jockeys.”

– Les Young, representative ofRIPAC.

For more than a decade, breedersand owners have been demanding abonus scheme to rival that of someof those interstate.

Last year the Board of Racing NSWput in place BOBS (Breeder OwnerBonus Scheme).

Whilst many were quick tocondemn the initiative, the Boardfirmly believed in ‘getting thescheme out there’ and moulding itinto shape with regularconsultation with industrystakeholders.

Now, with the initial BOBS schemefinishing in August 2003, BOBS hasbeen significantly revampedfollowing further consultation. Theend result is the inclusion of two-year-olds, and the country nowhaving been added to the scheme(TAB races).

Other alterations include theaddition of a 12.5% stallionnominator bonus, staggeredpayments to avoid cash flowimplications, alignment withconception season, and aManagement Committee includingbreeders and owners.

In the coming season BOBS isgeared to pay bonuses totalling$4million with bonuses availableon over 4,000 NSW city, provincialand country races.

These bonuses are $5,000, $10,000or $20,000 on each win at any NSWTAB meeting. For a horse to beeligible, its sire must have stood inNSW and have paid its SireContribution to the scheme.

BOBS is designed to encouragepeople that race in NSW to breedand race the progeny of NSWstallions. It is also designed toencourage NSW owners to raceNSW-bred horses in preference tothose bred interstate.

The scheme distributed$1.96million during the period 1 August 2002 to 30 June 2003.

Broodmare owners and buyersracing in NSW can’t afford not to bein BOBS. Why would anyone racefor less?

BOBS

13

“The Appeals System is laid out toensure any aggrieved person(s) has fullopportunity to have his or her casegiven a fair and proper hearing for thesake of justice.”

– Kathy Reece,Appeals Co-ordinator

In NSW, an independent two-tiersystem of appeal exists for personsaggrieved by penalties ordisabilities imposed by a racingauthority.

Appeal Panel Members

Mr T E F Hughes AO QC(Principal Member)

Mr Martin Einfeld QC

Mr Darcy Leo

Ms Margaret Crawley

Mr John Hiatt

Mr Rodney Wicks

Mr Robert Monnox

Mr Dominic Beirne

Mr Ray Nolan

Mr John Vandenberg

Mr John Fletcher

Mr Peter Norrgard

Mr David Campbell SC

Mr Neville Begg

Mr Donald Storey

Mr Peter Capelin QC

Mr Jack Hickman

Mr Cliff Clare

Mr Peter Capelin QCwas the only new memberappointed to the Appeal Panelduring 2002-2003.

Department Members

Mr M J Hill, Secretary Racing Appeals Tribunal

Ms K Reece, Appeals Co-ordinator

Avenue of Appeal

At the first level of appeal, anyperson considering themselvesaggrieved by a decision of a racingauthority has the choice ofappealing to either one, but notboth, of the following AppealBodies:

• The Appeal Panel, constitutedunder the Thoroughbred RacingBoard Act 1996 (Section 45), or

• In limited circumstances, theRacing Association in the regionwhere the decision was made.

The second and final avenue ofappeal, the Racing AppealsTribunal, is constituted under itsown Act and can hear appeals oncertain matters from personsaggrieved by decisions of the Panelor racing authorities.

Appeal Panel

The Sydney based Appeal Panel saton 21 occasions during 2002-2003.

The Hon T E F Hughes AO QCchaired 25 Appeals and Mr MEinfeld QC chaired 2 Appeals.Within those 21 sittings there were27 appeals heard on 34 individualcharges. Appeals on 12 of thosecharges were withdrawn either priorto or at the time of hearing. Themajority of these appeals wereagainst conviction and penalty. APanel of five members heard mostappeals.

Racing Association Appeals

In addition to appeals heard by theSydney-based Appeal Panel, theCommittees of the NSW RacingAssociations heard certain appealsin their own districts.

Appeals

14

Kathy Reece

John Vandenberg Rodney Wicks Tom Hughes Neville Begg Cliff Clare

DECISION ON CHARGES

Area Upheld Dismissed Withdrawn $200 TotalRefunded Charges

Appeal Panel 5 17 12 2 34

Racing Associations - 1 - - 1

* Appellants are required to lodge a $200 deposit, which may be refunded at thediscretion of the Panel.

Tom Hughes

AO QC

15

Summary of Charges Applicable to Appeal Cases

Rule Description Amount

AR83(a) Every jockey or apprentice may be punished – if hemisconduct himself in any way 2

AR135(b) The rider of every horse shall take all reasonable and permissible measures throughout the race to ensure that his horse is given full opportunity to win or to obtain the best possible place in the field 2

AR137(a) Any rider may be punished if, in the opinion of the Stewards, he is guilty of careless, improper, incompetent or foul riding 14

AR175(h)(ii) The Committee of any Club or the Stewards may punish any person who administers, or causes to be administered, to ahorse any prohibited substance which is detected in anysample taken from such horse prior to or following therunning of any race. 2

AR175(n) The Committee of any Club or the Stewards may punish;any person who in their opinion commits or commissions an act of cruelty upon a horse 2

AR175(q) The Committee of any Club or the Stewards may punish;any person who in their opinion is guilty of any misconduct, improper conduct or unseemly behaviour. 9

AR178 When any horse that has been brought to a racecourse for the purpose of engaging in a race and a prohibited substance is detected in any sample taken from it prior to or following its running in any race, the trainer and any other person who was in charge of such horse at any relevant time may be punished 3

Total 34

Representation Table

Dismissed UpheldRepresented by Solicitor 5 3Represented Self 12 2Totals 17 5

The Board gratefully acknowledgesthe time, effort and expertise thatAppeal Panel members give towardsthis important part of the RacingIndustry.

Racing Appeal Tribunal

4 Appeals were lodged with theRacing Appeals Tribunal and heardby His Honour Mr B R Thorley. TheTribunal dismissed all appeals andvaried one penalty.

The Appeals were under the followingAustralian Rules of Racing:

LR91(q)Every bookmaker must enteraccordingly all book bets in arecognisable name of the personwith whom they are made and nonebut legitimate wagers must be soentered.

AR175(g)The Committee of any Club or the

Stewards may punish any personwho gives at any inquiry or appealany evidence which in their opinionis false or misleading in anyparticular.

AR178When any horse that has beenbrought to a racecourse for thepurpose of engaging in a race and aprohibited substance is detected inany sample taken from it prior to orfollowing its running in any race,the trainer and any other personwho was in charge of such horse atany relevant time may be punished.

Legislative Amendments

The Racing Appeals Tribunal hasheld the view that there should bean avenue of appeal to the Tribunalopen to the TRB.

Representations have been made togovernment, and it is anticipatedthat legislative changes will beenacted to allow for this.

Further legislative changes areunder consideration as a result of ajudgment in the Supreme Courtwhich commented on the lack ofclarity in the current legislation,and the manner in which the twolevels of appeal (Appeal Panel andTribunal) interact.

"Investing in training is no longer justan option for people in business.Implementing training programsmakes sound economic sense -Trainers, as business managers, arerequired to be compliant with so manydifferent types of legislation and thisdirectly relates to the ongoing success oftheir businesses. Industry Training -by securing funding from a number ofgovernment sources again this year -has also demonstrated to the generalcommunity that the racing industryvalues young employees entering theindustry for the first time.”- –Marianne Chaffe, Manager RacingNSW Industry Training Dept.

Racing NSW’s Industry Trainingdepartment encourages peopleto enter the racing industry,identifies appropriate career pathsand manages relevant training fornew and existing industry workers.

Objectives:

• Increase apprentice jockey andtrackwork riders numbers,

• Increase apprentice jockey raceriding opportunities,

• Manage the Racing NSWApprentice School inconjunction with WesternInstitute of TAFE NSW,

• Manage the Talent Identificationprograms at the SydneyInternational Equestrian Centrein conjunction with WesternInstitute of TAFE,

• Manage the ‘Rising Star’Apprentice Race Series inconjunction with DET NAC,

• Encourage greater participationof young people in the racingindustry,

• Assist people entering theindustry to find their mostsuitable career path,

• Provide ongoing industry-credible mentoring to apprenticejockey, trackwork rider, strapperand stablehand trainees,

• Ensure participants are informedabout changes to the nationalRacing Industry Training Package,

• Provide equitable training forracing industry participantsthroughout the country,provincial and metropolitanregions,

• Participate on state trainingadvisory body, Racing TrainingNSW,

• Liaise with national trainingadvisory body Racing TrainingAustralia to ensure consistencyin training and assessment ismaintained,

• Expand the scope of trainingthroughout the industry,

• Strategic promotion of careers inthe racing industry to schoolstudents.

RACING NSW APPRENTICESCHOOL

As a means of quality control,Industry Training identified theneed for a review of ApprenticeSchool training during 2002.Interviews were conducted withstudents, TAFE teachers, apprenticejockey mentors and employersresulting in an agreement withTAFE NSW that one centre, WesternInstitute of TAFE, work with RacingNSW in the co-ordination, deliveryand assessment of apprenticejockey training.

TAFE NSW has agreed that theadministration of NSW racingindustry training will be conductedby Western Institute of TAFE withregional TAFE centres continuing todeliver and assess training ofexisting apprentices.

Apprentice Schools for existingapprentices (2nd, 3rd and 4th year)continues to operate on afortnightly basis in all regionsthroughout the state.

• Central Districts RacingAssociation – Dubbo and Orange,

• Hunter and North West RacingAssociation – Tamworth,

• Northern Rivers RacingAssociation (NRRA) and Mid –North Coast Racing Association– Coffs Harbour,

• South East Racing Association –Canberra,

• Southern Districts RacingAssociation – via Canberra,

• Metropolitan – Canterbury,• Provincial – Newcastle and

Kembla.

Western Institute of TAFE employsformer and current jockeys as part-time teachers to assist inmentoring and coaching ofapprentices.

Apprentice mentors are involved inboth theoretical and practicaltuition. They are ‘role models’ whocommunicate the benefit of theirexperience to apprentices bycontributing to Apprentice Schoolclasses as well as ‘on-the-job’training.

• Metropolitan and Provincial –Lee Ann Olsen and Stephen Parr,

• CDRA – Tracey Bartley and PaulWearne,

• HNWRA – Stephen Parr andWayne Weate,

• MNCRA and NRRA – MichaelFlick,

• SERA and SDRA – GarryBuchanan.

Industry Training

16

Marianne Chaffe

17

Training Support Officer MalcolmFitzgerald works closely with theapprentice school teachers and co-ordinates their apprentice jockeyon-the-job assessment activities.

Talent Identification program

Industry Training, working withWestern Institute of TAFE, Orange,began the apprentice jockey andtrackwork rider Talent Identificationtraining program in March 2003 atthe Sydney International EquestrianCentre (SIEC). From 15 youngriders, 12 completed the first phaseof training over a three-weekperiod, with 11 securingemployment. Two riders werereferred to Richmond TAFE Collegefor further trackwork rider training.

The program consists of three weeksintensive training, including up tofour hours riding tuition each day,before prospective apprentices areplaced in employment with trainers.Training is ongoing for the durationof the four-year apprentice jockeyindenture and students are requiredto return for block training on aregular basis at prescribed times.

Training Support Officer MalcolmFitzgerald plays an integral role inthe interviewing, teaching,mentoring and placement ofpotential apprentice jockeys inconjunction with StipendiarySteward James Walshe.

Apprentice Jockey Training andthe NSW Institute of Sport

Racing NSW has purchased aspecialised psychological andmotivation training program forapprentice jockeys from the NSWInstitute of Sport. SportPsychologist Dr Mark Gribbleconducted introductory and returntraining sessions for the first andsecond intake of prospectiveapprentice jockeys at SIEC.

Promotions and Recruitment

� Schools Career Markets

Industry Training’s MalcolmFitzgerald and Gail Vitale attendedthe following schools careermarkets days to promote the racing

industry, and specifically apprenticejockey careers.

• Tamworth Careers Market,• Illawarra Careers Expo,• Hunter and Coalfields Schools

Careers Markets,• Newcastle and Lake Macquarie

Careers Expo,• Cumberland Rotary Markets,

Parklea,• Central Coast Career Expo,• Career Search 2003 Bankstown,• Nepean Schools Expo,• Taree Careers Markets,• Liverpool Career Search Market,• Marcarthur Area Careers

Markets, Cambelltown,• Canberra Careers Markets.

Each of the careers markets attractbetween 2,000 and 7,000 localstudents.

Barrier Attendants Training

Industry Training held OccupationalHealth & Safety awareness trainingsessions for metropolitan andprovincial race starters and barrierattendants. The training sessionsallowed participants to completethe first module from the TRBOH&S Formguide. IndustryTraining and Country RacingCouncil have held discussionsregarding the delivery of awarenesstraining for country race startersand barrier attendants.

DET NAC ‘RISING STAR’APPRENTICE RACESERIES

The 2002 ‘Rising Star’ ApprenticeRace Series concluded at Randwick

on Monday, 5 August 2002, withmetropolitan apprentice ConKarakatsanis taking out the titleahead of Jay Ford and CodyMorgan. There were 45 apprenticesfrom around NSW who competed inthe Series and gained valuable andpractical on-the-job training.

The Series began again in February2002 at Broadmeadow with otherheats conducted at Canterbury(night meeting), Dubbo, Taree,Mudgee, Goulburn, Gosford,Armidale, Port Macquarie,Hawkesbury and Canberra - withthe final scheduled for Randwick onMonday, 5 August 2003. Thenumber of heats in the Series hasincreased from 10 to 12. TrainingSupport Officer Malcolm Fitzgeraldattended each of the races to mentorand support apprentice jockeys.

Mr Lou Deutshcer and Mr JoeDwyer from DET NAC worked withthe Industry Training department inco-ordination of the series and theBoard gratefully acknowledges theircontribution.

The ‘Rising Star’ logo isembroidered on the winners’jackets and appears in racebooksand other promotional material.

The Industry Training departmentpresented prizes to the BestPresented Strapper at each of thevenues of the Rising Star heats.

Apprentice Race RidingOpportunities

During the 2002 – 2003 season,apprentice race riding opportunities

Gail Vitale, Marianne Chaffe and Malcolm Fitzgerald

18

increased by 3.56% to nearly 23%which is the highest figure sincerecords have been kept. From 1997to the close of the 2003 season, theoverall increase in apprentice raceriding opportunities is 10%.

TOTAL APPRENTICE %APPRENTICE

SEASON STARTERS RIDES RIDES

1997 –1998 60,580 7,704 12.71%

1998 – 1999 60,154 8,718 14.49%

1999 – 2000 61,186 11,246 18.38%

2000 – 2001 57,120 11,872 20.78%

2001 – 2002 58,012 11,216 19.33%

2002 – 2003 56,773 12,996 22.89%

Completion of Funded Projects

Industry Training completed threeGovernment-funded trainingprojects in January 2003.

1) NSW Department of Educationand Training Industry SkillsTraining Program: InductionPackage for ‘New Workers to theRacing Industry’, comprisingprint based resources and video.

2) NSW Department of Educationand Training Industry SkillsTraining Program: ResourcesDevelopment Project –Certificate IV Racing. Theresources comprise learner andtrainer guides for three modulesof the Certificate IV andDiploma Racing Administration– Stewards – courses.

3) NSW Department of Educationand Training (via AustralianNational Training Authority):On-Line Learning Project ‘RacingTowards Flexible Learning’.

Launch of ‘Off and Racing –Induction Package for NewWorkers’

Some 75 guests, including RacingNSW Chairman Mr Tony Hartnell,and Board members Mr BrianReardon and Mr Merv Hill, alongwith Racing NSW departmentmanagers, attended the InductionPackage launch at Canterbury Parkraces on Thursday, 24 October 2003.The Induction Package for NewWorkers in the Racing Industryincludes an assessment kit,information, booklet and 14 minutevideo. The package was developedwith $28,000 funding assistance fromthe NSW DET Industry Skills Program.

New Funded projects for 2003

The Industry Training departmentwas advised by NSW Learnscopethat project application, RacingTowards Flexible Delivery – 2003 wassuccessful and that a contribution of$19,800 towards the total budgetwill be made to Racing NSW.

The project builds on thefoundation outcomes achieved inthe Learnscope 2002 Project withobjectives focusing on:

� Further identification anddevelopment of skills required tofacilitate/teach on-line learning,

� Establishing standards ofpractice protocols for on-linefacilitators/teachers,

� Understanding learner needs,� Increasing knowledge of Racing

On-Line to be able to conducttraining using this resource.

The project is sponsored by RacingNSW and includes representativesfrom NSW Country Racing Council,Provincial Racing Association ofNSW, Australian Trainers Association(NSW Branch), NSW JockeysAssociation, Illawarra Institute andWestern Institute of TAFE.

Racing Training New South Wales

In NSW, changes or extensions toindustry training programs aredetermined by a body called RacingTraining NSW (RTNSW) which is thelink between industry andGovernment. RTNSW meets onceevery six weeks and comprisesrepresentatives from the threeracing codes, NSW department ofGaming and Racing, TAB Limited,and an independent representative.

The racing industry’s nationaltraining advisory body, RacingTraining Australia (RTA), reportsdirectly to the Federal Governmenton development of trainingprograms. RTA meets regularly andRacing NSW Industry TrainingManager, Marianne Chaffe, representsNSW at each of these meetings.

At the sixth AGM, RTNSWCommittee of Management electedoffice bearers as follows:

Marianne Chaffe ~ PresidentRacing NSW

John Baker ~ Vice-PresidentHarness Racing NSW

Tony Mullins ~ SecretaryHarness Racing NSW

Brent Hogan ~ TreasurerGreyhound Racing Authority

Stewards Training

Industry Training has worked withDeputy Chairman of Stewards, GregRudolph, in the co-ordination ofCertificate IV Workplace Trainer andAssessor training for metropolitanand regional stewards.

Racing NSW Occupational Healthand Safety Seminars

Industry Training Manager, MarianneChaffe, and Insurance Manager,Michael Thompson, were jointproject managers of the NSW TRBForm Guide (Occupational Health &Safety) Training Program for raceclub managers which ran fromDecember 2002 until March 2003.The Industry Training departmentadministration officer Ms Gail Vitalemaintains databases regardingattendees, assessment records, andsafe work method statements.

“The Licensing function is necessary tomaintain the integrity of horse racingand to ensure that racing maintainsthe highest standards - it is vital thatthe participants in our industry possessthe required experience and expertise toperform competently in their role. Asracing is largely dependant onwagering, it is also important that thepublic has confidence that licensees areof suitable character.”

– Gary Rudge, Racing NSWLicensing Supervisor

The TRB Licensing Department isresponsible for the issuing oflicences to applicants from personsresiding in the Metropolitan andProvincial sectors.

The Country Racing Councilregional offices are responsible forthe issuing of licences in theirdesignated Association area ofCountry NSW.

The Licensing Committee met on6 occasions during 2002/2003. Therole of the licensing committee isto set licensing policy andprocedure for the TRB. Applicantsfor licences may be furtherinterviewed at these meetings, anddecisions or recommendationsforwarded to the Board forapproval.

The meetings are also attended bymembers of the TRB IntegrityAssurance Committee. The Boardgratefully acknowledges thecontribution of IAC members forthe licensing function.

TRB Licensing Committee

Mr Don Hopkins (Chairman)

Mr John Costigan

Integrity Assurance Committee

Mr D E Hopkins (Chairman)

Mr M G Cummings

Mr A K Davidson AM, MBE

The Hon J C J Matthews

Department Members

Gary RudgeLicensing Supervisor

Nick GreenLicensing Assistant

Bookmaker Companies

Following the introduction oflegislation that catered for theintroduction of BookmakerCompanies in NSW, the necessaryamendments to the Local Rules ofRacing were made to facilitate theconsideration of BookmakerCompany licences.

Licensing Database

The transfer of licensee data to thenew Horses system was completedin November. This databasepossesses the required technologyto provide for initiatives such ason-line licensing to be introducedin the near future.

Personnel changes

Nick Green who commenced withthis department as a trainee inJanuary, accepted an offer of full-time employment in July. Nick, whohopes for a long and successfulcareer in the racing industry, is alsoundertaking training in theHandicapping department.

Licensing

19

Gary Rudge

No of NSW Licensees

Type Metropolitan Provincial Country Total

02/03 (01/02) 02/03 (01/02) 02/03 (01/02) 02/03 (01/02)

Trainers 133 (145) 243 (250) 1040 (1095) 1416 (1490)

Jockeys 80 (76) 25 (40) 174 (207) 279 (323)

Apprent. 17 (13) 15 (11) 82 (85) 114 (109)

Approv Rid. 0 (0) 0 (0) 34 (70) 34 (70)

Bmkrs 57 (54) 12 (13) 154 (163) 223 (230)

Bkmks Cl. 412 (409) 56 (62) 421 (442) 889 (913)

S/Hand 1049 (1022) 605 (561) 1398 (1422) 3052 (3005)

Foreman 58 (63) 30 (31) 144 (143) 232 (237)

Rider Agent 17 (13) 6 (6) 8 (8) 31 (27)

Total 1823 (1795) 992 (974) 3455 (3635) 6270 (6404)

“Integrity can never be compromised.Stewards form a highly-skilled, well-organised front line in assuringconfidence of the public in NSW racing.”

– Ray Murrihy, Racing NSW’sChairman of Stewards

Function

The activities of the StipendiaryStewards include:

• Ensuring the welfare of theracehorse,

• Officiating at all race meetingsand official trials in NSW,

• Attending and supervisingtrackwork,

• Conducting track and stableinspections,

• Administering drug testingoperation,

• Addressing rider, track and horsesafety issues,

• Conducting inquiries into racerides & conduct of licensedpersons,

• Investigating wagering activities,• Investigating the use of

prohibited substances.

Personnel Changes

Former Deputy Chairman Kim Kellyon 1 August 2002 took up aposition as Deputy Chairman onthe Hong Kong Jockey ClubStewards Panel with StipendiarySteward Greg Rudolph beingappointed to fill Kim Kelly's role.Senior Steward Philip Dingwall inMay 2003 became Chief Stewardwith the Malaysian RacingAssociation. Long-serving StewardLarry Morrison announced hisretirement in February 2003. JimWalshe (SERA) and RaymondLivingstone (CWRO) rejoined themetropolitan panel. Geoffrey

Hausfeld (H&NWRA) took up theappointment of Chief StewardCRWO following James Perry'sappointment as Manager, StewardsDivision, NSW Greyhound Racing.Drew Smith (CWRO) and ToddSmith (SERA) took up Deputy ChiefSteward positions, and traineesAndrew Ray (Southern DistrictsRacing Association) and CraigPringle (CWRO) were appointed tocountry panels. During the yeartrainee/cadet Stewards MarkHolloway, Jamie Dart, Brett Scellyand Andrew Hayles joined themetropolitan ranks.

Visiting officials

W. Delantey (WATC), M. Santoro(AA), D. Durant and R. de Kok(Jockey Club of South Africa) W.Nunneley and Phillip Tucker (UKJockey Club) plus officials fromIreland, Malaysia and Korea.

Industry Training

A number of younger panelmembers have commenced theNSW TRB Diploma of RacingAdministration course. At the StateStewards conference panelmembers heard addresses fromDet. Sgts Greg Berry and Matt Rileyon evidence gathering and appealpresentation. Ms Nicky Vance,Program Manager to the 2000Sydney Olympic Games, spoke onsample collection and drug controlprograms. Mark Van Gestel spent afew weeks in June in Japan attendingan Asian Racing Federation StudyProgram.

Conferences & Tribunals

Chairman Ray Murrihy during theyear represented the NSW TRBStewards at the National Chairmenof Stewards Advisory Groupconference in Adelaide and, inaddition, represented that group onthe National Equine and IntegrityWelfare Advisory Group and theAustralian Rules Review AdvisoryGroup. Ray Murrihy also gave anaddress at the Australasian RacingAppeals Conference.

Deputy Chairman Mr Greg Rudolphrepresented the TRB on the ARBWorking Party for the Welfare ofJockeys. In addition, he gave an

address at the Conference of RacingTraining Australia.

New Developments

• Out-of-competition testing – atall major centres,

• Non-raceday medication rule,• Riders Advisory Panel – to assist

in the development ofapprentices,

• Horses – development ofWindows-based computerisedhorse and licensee data records,

• Website – display of all Stewardsreports around the State,

• Patrol videos – introduction ofdigital technology and upgradeof towers at Royal Randwick andWyong.

Liaisons

Industry matters continued to beaddressed through liaison with anumber of bodies including:

• NSW Racehorse Owners'Association,

• Keeper of the Stud Book,• ICC Anti-Corruption Unit,• ARB,• NSW Jockeys Association,• Australian Trainers Association

(NSW Branch),• NSW Bookmakers Co-Operative

Ltd,• Australian Equine Veterinary

Association,• RSPCA,• TRB Integrity Assurance

Committee,• National Equine Integrity &

Welfare Advisory Group,• Combined Racing Codes

Committee,• Licensing Enforcement Agency.

Stipendiary Stewards

20

Ray Murrihy

21

Department Members

Ray MurrihyCHAIRMAN OF STEWARDS

Greg RudolphDEPUTY CHAIRMAN OFSTEWARDS

Karen HuntEXECUTIVE REPORTER

Pat HartmannSENIOR STEWARD

Marc Van GestelSTEWARD

Cameron GeorgeSTEWARD

Steve CarvossoSTEWARD

Jim WalsheSTEWARD

Ray LivingstoneSTEWARD

Terry GriffinBETTING STEWARD

Mark HollowayCADET STEWARD

Jamie DartTRAINEE

Andrew HaylesTRAINEE

Brett ScellyTRAINEE

Bill FanningCHIEF STEWARD,NORTHERN RIVERS

Michael ZarbSTEWARD, NORTHERN RIVERS

Bevan TurnerCHIEF STEWARD,MID-NORTH COAST

Shane CullenCHIEF STEWARD,HUNTER & NORTH WEST

Jason WhybrowDEPUTY CHIEF STEWARD,HUNTER & NORTH WEST

Geoff HausfeldCHIEF STEWARD, CENTRAL & WESTERN

Drew SmithDEPUTY CHIEF STEWARD,CENTRAL & WESTERN

Craig PringleCADET STEWARD, CENTRAL & WESTERN

Kevin WilliamsCHIEF STEWARD, SOUTHERN DISTRICTS

Darryl McLeanSTEWARD, SOUTHERN DISTRICTS

Craig YeoCHIEF STEWARD, SOUTH EAST

Todd SmithDEPUTY CHIEF STEWARD, SOUTH EAST

Bob NicholsonRACECOURSE DETECTIVE

“Fair and equitable handicapping isvital to the transparency of racing.Handicapping involves many hours ofstudy and revision to create the rightformula for a race.”

– Mark Webbey, Racing NSW’sSenior Handicapper

Department Members

Mark WebbeySenior Handicapper

Colin DensonHandicapper

Craig LeetHandicapper

Greg PearsonHandicapper

Debbie WinterHandicapper

James RossCadet Handicapper

Functions

The Handicapping panel isresponsible for the handicapping ofall meetings conducted throughoutNew South Wales and the ACT.During the last racing season thepanel issued a total of 84,998handicap ratings for the 846 racemeetings conducted. Importantlythe department has developedpractices to allow for a smoothtransition towards revised startingweights, across the board setweight maidens and ratings-basedhandicapping in the first half ofnext season.

Staff

The past year has seen severalmembers of staff transfer to otherpositions within the industry.Former Deputy Chief HandicapperPaul Bloodworth transferred to therole of NSW Racing Co-Ordinator

and James Ross accepted a positionwith the Australian Racing Board asResearch Officer. The panelwelcomed back Deborah Winterfollowing a stint with the SydneyTurf Club, Deborah shares dualroles within both the Handicappingand Registration Departments.

Research and Development

Ratings-Based Handicapping –considerable progress has beenmade on the Ratings-BasedHandicapping project to facilitateits introduction in October 2003. Alarge amount of this work has beenconducted in conjunction with theRacing Victoria Handicapping andIT departments to develop a modelthat applies to both states.

The panel continued to develop thecurrent ratings-assistedhandicapping system as a platformfor the introduction of Ratings-Based Handicapping. With allhorses that have raced within NSWsince the 1st February 2003 nowallocated ratings figures, thedepartment established ratingstemplates and revised track scalesto allow for the final system changesto take place and testing to begin.

Technological Developments - Thisyear saw significant changes to theIRIS computer applications used forentering and generating weights.Ongoing co-operation with RacingVictoria has resulted in thedevelopment of an application thatnow allows for a horse’s rating tobe adjusted shortly after it races.This will have important flow on.

International Horse Ratings -Classifications

It was an important year forAustralian Horse Classifications withthe success of the Newcastle-trainedChoisir at Royal Ascot. Australianhorses have become moreprominent on the internationalstage over the last decade howeverthe win of Choisir has createdgreater recognition of our racing andrespect for our ratings. This successhas also put Australia in a muchbetter position for futurediscussions on the alignment of

International classifications. At thenational level, Northerly at a ratingof 124 is the top rated within the 4-year-old & above category ahead ofDefier and Lonhro. Choisir, followinghis international performances, is thetop rated 3-year-old and Hasna thehighest rated 2-year-old of the season.

Racing Conferences

The handicapping manager attendedthe Asian Racing Conference inAuckland in March. A number ofimportant issues were identified anddiscussed at this conference such asfurther development of theintercontinental thoroughbredclassifications and their continuedalignment with the northernhemisphere ratings.

In addition, the handicappingmanager attended both theDecember and July meetings of TheAustralian Group and ListedAdvisory Group. Importantfoundations were developed atthese meetings for a number ofenhancements to the listings in thefuture to ensure more accurate raceclassifications and greater benefitsto industry stakeholders

Handicapping

22

Mark Webbey

“PR & Media has the responsibility ofkeeping stakeholders and the generalpublic informed with up-to-the-minutenews via the media and, as aconsequence, maintains confidence inthe industry. Our website has playeda vital part in displaying thisinformation which is underlined by therapid rise in website visitors.”– Mark Brassel, Racing NSWPublic Relations & Media Manager

Department Members

Mark BrasselPUBLIC RELATIONS AND MEDIAMANAGERBev Ritzau‘RACINGNSW MAGAZINE’CO-ORDINATORJoan DemusSUBSCRIPTIONS / DATA ENTRY

The Public Relations and MediaDepartment maintains constantcommunication with the media,providing news and informationconcerning Racing NSW and theracing industry.

The department is conduit betweenthe Board and the media. It providesthe media with information includingBoard policy and announcements,racing inquiries and appeals, andcurrent affairs. The departmentseeks to enhance the profile ofthoroughbred racing and to presenta positive image of both RacingNSW and the racing industry.Radio and TV interviews are alsoco-ordinated by the department.

PR & Media also answers or redirectspublic e-mails which come throughthe 'Contact Us' section of thewebsite, sending replies ASAP. Thedepartment also sources quotes,compiles, edits, proofs and sendsto print the Annual Report (which isnow also loaded onto the websitefor viewing).

Radio scripts and advertorials arewritten for BOBS promotions, aswell as for 'Messages on Hold' (9different scripts) for the messagesone hears when placed on hold bythe switchboard. Regular articlesare also written for Turf Monthly,Racetrack and ThoroughbredExpress.

PR & Media also provides up-to-the-minute maintenance of the'award-winning' Racing NSWwebsite www.racingnsw.com.au ,adding stories and news items tothe site as they happen with apurposely-built 'On-Line UpdateSystem'. The Board sees theindustry website as being a majorpromotional tool into the future, inaddition to its potential to facilitatee-commerce type transactionswithin the industry. As the sitedevelops, promotionalopportunities for the industry as awhole will be taken. Just some ofthe initiatives put onto the websiteinclude:

• Ad Rotators – Specialadvertisement-type rotators(seen at the top right-hand sideof the home page) whichalternate every 5 seconds andwhen clicked on, go to either therace club's website or specialwritten advertisements,

• NSW Jockey Suspensions –Updated suspension terms fromright around the state,

• BOBS (Breeder Owner BonusScheme) Section – BOBSScoreboard (now automated),Final Stallions List, Latest BOBSnews, Frequently AskedQuestions & Answers, Terms &Conditions, Nomination Forms,etc.,

• NSW Race Dates – for theentire racing season,

• Honour Roll – Jockey, Trainer &Apprentice winners and runner-up dating back to the 1935/36season,

• Metropolitan PremiershipTables & ApprenticeAllowances,

• Full Results and StewardsReports,

• Reasons for Decision –comprehensive details onAppeal Panel (and RacingAppeal Tribunal) decisions,

• Working in Racing – newsection which details any jobopportunities, generalinformation and OH&S manuals,etc.,

• Racebooks – for all NSW racemeetings (including communitymeetings),

• Feature Articles – regularlydisplays tributes and articlesfrom other racing sources suchas issues from Australian RacingBoard meetings.

• Stewards – late gear changesand important notices to trainersand/or the general public.

Racing NSW Magazine

Racing NSW’s official racingcalendar is the ‘RacingNSWMagazine’ - an award-winningmagazine which is published eachmonth. The primary purpose of themagazine is to publish officialinformation such as:

• Programmes,• Licensee details,• Rule amendments, • Dates of race meetings and

barrier trials,• Official notices.

Information relating to Clubs andAssociations

The magazine also includesupdates regarding industrydevelopments, feature stories,advertisements and practicalinformation relevant to all sectorsof the NSW racing industry such asStud Talk and Horse Health. Itincludes contributions from thefollowing parties:

• NSW Racehorse Owners’Association,

• NSW Trainers Association (NSWBranch),

• Thoroughbred Breeders NSWLtd.,

• Australian Jockey Club,• Sydney Turf Club,• Country Racing Council,• Provincial Association of NSW.*Note: Many featured articles fromeach month’s magazine (includingthe CEO’s monthly message) nowappear on thewww.racingnsw.com.au websiteunder the pop-up menu‘Departments’ and then ‘Magazine’.

Public Relations & Media

23

Mark Brassel

“The integrity of racing is a costlyexercise – but one well worth it. NSWhas one of the most stringent andwell-respected drug testing proceduresto be found anywhere in the world.And we are all very proud of that!”

– Allen Stenhouse, ARFL’s Official Analyst

The Australian Racing ForensicLaboratory, is a nationally andinternationally recognised centre ofexcellence that undertakessurveillance on samples collectedpre and post-race from greyhounds,standardbred and thoroughbredhorses racing in New South Walesand other states in Australia. Pre-race blood testing is conducted atselected Sydney Metropolitan andProvincial thoroughbred meetings.The Australian Racing ForensicLaboratory is an Accredited RacingLaboratory and undertakesconfirmatory analyses on samplessent from Melbourne, Queensland,Perth, England, France, Hong Kong,New Zealand, Macau, Mauritius andSingapore. The Laboratory is alsothe nominated Australasian RefereeLaboratory for any confirmatorysamples from the FederationEquestrian Internationale. Thelaboratory also assisted StewardInquiries into alleged contraventionof the Rules of Racing.

Non-Raceday Samples are analysedfor nominated therapeutic drugswhen trainers wish to ensure that ahorse under their care is free of thenominated drug/s, prior to racing.The laboratory also analysesunlabelled medications, syringesand feed preparations at therequest of Stewards departments.

The Laboratory’s commitment toresearch and developmentcontinued with considerableattention given to peptidehormones, anabolic steroidmetabolism in the horse and thedevelopment of broad-basedautomated screening techniques. Astaff exchange for a period of onemonth occurred this year with theHorseracing Forensic Laboratory inNewmarket, England. Theexchange was undertaken toadvance both laboratories researchinto peptide hormones and to allowcomparisons of the routine drugscreening procedures.

Quality Assurance is an integralpart of laboratory operations andincludes inter-laboratory and intra-laboratory samples processed, aspart of the Asian Quality AssuranceProgram, which embraces thelaboratories of the Asian RacingConference.

During 2003, the laboratorycommenced out of competition andto date has screened over 90samples. The laboratory alsoidentified 89 equine and caninesamples containing prohibitedsubstances during the year. Inaddition, the jockey and ridersamples yielded 52 samplescontaining prohibited substances.

Department Members

Allen StenhouseOfficial AnalystAndrew VadaszManagerJohn KeledjianOperations ManagerCary MurphyQuality Assurance ManagerAndrew McKinneySenior Scientific OfficerNick BasgallopSenior Scientific OfficerBen TurcoScientific OfficerChris WongScientific OfficerSteve MulleyScientific OfficerAarati Rana-FoleyScientific OfficerTony DunstanTechnical OfficerCorrine SmartTechnical OfficerLauren AshurstTechnical OfficerTom MillerLaboratory AssistantDonna JohnsonSection Co-ordinator,Central ServicesSharon HainingAdministration AssistantPerico AlcaineBottle Relocation Engineer

Australian Racing Forensic Laboratory - ARFL

24

Sector/Code Post Race Plasma TCO2 Pre Race Total Prohibited susbtance/s detectedUrine/Blood Bloods Blood

NSW Metropolitan Thoroughbreds 2965 990 3955 10NSW Provincial Thoroughbreds 1094 766 1860 0NSW Country Thoroughbreds 4052 153 4205 10Other Thoroughbreds 2362 56 2418 5Harness Racing NSW 1519 1854 3373 12Pre Race Testing 1083 1083 0FEI & other amateur groups 203 203 4Greyhound Racing Authority NSW 3016 3016 47NSAID Testing for Hong Kong Exports 100 100 1Out of Competition Testing 145 145 0TOTALS 15211 4064 1083 20358 89

Human Samples Urine Total Prohibited susbtance/s detectedNSW Metropolitan 114 114 22NSW Provincial 53 53 13NSW Country 116 116 15Other Thoroughbreds 15 15 2Quality Assurance Program Human 36 36TOTALS 334 334 52

Other Samples AnalysedConfirmatory Analysis for other labroatories 73Non-Raceday/Elective Testing 30Quality Assurance 96Asian QA Program 31Steward’s Request for A’s & B’s 433Internal QA Program Equine/Canine 186TOTAL 849

“Our department plays an importantrole in maintaining the integrity ofthoroughbred racing and ensuring thewelfare of the horses that are thelifeblood of the industry. Thedepartment supervises veterinaryservices at racetracks, oversees thecollection of samples for drug analysisand through its research program,supports the Australian Racing ForensicLaboratory in its quest for better, moreefficient drug detection methods - throughthese initiatives, the betting public canbe assured that fit and healthy horsesare competing on their merits.”

– Dr Craig Suann, Racing NSWSenior Official Veterinarian.

Department members

Dr Craig SuannSenior Official Veterinarian

Dr Mark CavesOfficial Veterinarian

Ms Susan CliffordResearch Assistant/AnimalAttendant

Assisting veterinary officials

Racing NSW acknowledges theassistance of part-time veterinaryofficials:

Dr David Hutchins OAMDr Peter KnightDr Meg BrownlowDr Timothy CrispDr Michael KiddDr Mark Schembri

Objectives

• Safeguard the health and welfareof horses involved inthoroughbred racing in NSW,

• Provide and supervise veterinaryservices at metropolitan andprovincial racetracks and tosupervise veterinary activities atNSW country tracks,

• Provide advice to Racing NSWand industry on veterinary andequine welfare matters, and onissues relating to prohibitedsubstances and their detection,

• Assist the Australian RacingForensic Laboratory indeveloping drug detectionmethods and generating drugdetection times,

• Represent Racing NSW onvarious groups and committeeson veterinary and equine welfarematters,

• Provide expert advice toStewards and to Appeals andother hearings.

Programs

The ongoing monitoring andauditing of the Quality AssuranceProgram for veterinary services atNSW country race meetingscontinues.

The “Sample Collection ProcessQuality Management System” hasbeen developed to ensure theproper collection and transport ofsamples for drug testing to theARFL. Integral to this program is asystem of formally approvingsample collection officials,including their being subject to

probity checks. The veterinarydepartment acts as the auditor ofthe system. Doctors, Suann andCaves also co-ordinated teams ofveterinarians for theimplementation of out-of-competition testing as directed bythe Stewards.

A Post-Mortem Program facilitatesthe autopsy examination at theUniversity Veterinary Centre,Camden, of horses that die or areeuthanised at Metropolitan andProvincial races and barrier trials.This program provides valuableinformation on the causes ofinjuries and sudden death, andwhich will lead to the developmentof measures to reduce theirincidence.

Dr Suann is a member of theResearch Advisory Committee ofthe Rural Industries Research andDevelopment Corporation (RIRDC)Equine Research Program and isthe International Group ofSpecialist Racing Veterinarians(IGSRV) representative on theScientific Advisory Council of theInternational Federation ofHorseracing Authorities.

Veterinary

25

Craig Suann

26

Administration trials

Administration trials involvingboldenone, detomidine,dextromethorphan, medetomidine,theobromine, triamcinoloneacetonide, trometamol and xylazinewere conducted. The purpose ofthese trials was to develop andmonitor the detection methods forthese drugs, and in the case ofsome legitimate equinetherapeutics, devise suitable“detection periods”. Furtherstudies involving the collection ofblood, urine and mane hair wereconducted as part of a RIRDCfunded trial project examining theuse of carbon isotope ratio massspectrometry for confirming theadministration of sodiumbicarbonate. All of these trials weremonitored and supervised byRacing NSW’s Animal Care andEthics Committee.

Meetings and conferences

Dr Suann attended in Adelaidemeetings of the Association ofOfficial Racing Veterinarians(AORV), the Australian RacingLaboratories and the AustralianRacing Board’s National EquineIntegrity & Welfare Advisory Group(NEIWAG), called to discuss anumber of veterinary regulatory,drug testing and equine welfareissues. He also attended meetingsof NEIWAG in Melbourne andSydney, and represented NEIWAGat a number of meetings of theAustralian Racing Board throughoutthe year. There was ongoingconsultation by the veterinarydepartment with the AustralianEquine Veterinary Association(AEVA) on a number of relevantequine veterinary and welfarematters.

ANIMAL CARE AND ETHICSCOMMITTEE (ACEC)

Racing NSW’s Animal Care andEthics Committee (ACEC) wasestablished under the auspices ofthe NSW Animal Research Act 1985to monitor and supervise RacingNSW’s team of research horsesused for drug administration trials

conducted in association with theAustralian Racing ForensicLaboratory (ARFL).

Racing NSW’s ACEC comprises thefollowing members:

Mr M J Hill (TRB CEO)Chairman

Dr Craig SuannCategory A Member

Mr Allen StenhouseCategory B Member

Mr A GregoryCategory C Member

Mr J L MuirCategory D Member

Mrs S CliffordRacing NSWAnimalAttendant/Research Assistant

Four meetings of the Committeewere convened during the year.ACEC members also conductedinspections of the research horsesand stabling facilities after eachmeeting. The operations of RacingNSW as an animal researchestablishment and its ACEC werethe subject of a routine inspectionby the NSW Animal ResearchReview Panel on 11 June 2003.

Applications for research

The following research applicationswere approved by the ACEC duringthe year:

Ongoing Studies into the Detection ofDrugs in Racehorses (2003): This studyfacilitates the process of constantlymonitoring new and existing drugsthat may have a legitimate use inhorses. This permits the ARFL’sobligation to the racing industry torapidly respond to problemsrelating to the detection of thesedrugs. Any proposed trialsundertaken as part of this proposalare discussed at a formal meetingbefore being conducted. ACECmembers are provided withinformation on dosages and routesof administration, thepharmacology of the drug/s, andany potential adverse effects.

Evaluation of an independentconfirmatory test for total plasma carbondioxide: This study was part of a

more extensive research proposalfunded by RIRDC and which wascommenced by Mr Stenhouse whilehe was at the Queensland RacingScience Centre and involvedcollaboration with the CSIRO.

An epidemiological investigation of theprevalence of EHV-1 and EHV-4 inracing Thoroughbreds: This was anexternal project submitted by MsCaroline Foote, a post-doctoralresearch student at the Departmentof Biological Sciences, MacquarieUniversity, with Dr Suann a co-investigator. The project involvedthe assay of blood samplesroutinely collected as part of RacingNSW’s raceday pre-and post-racetesting program. Ms Foote wouldbe co-ordinating the collection,transport and assay of the bloodsamples collected for thispopulation survey.

Studies into the detection of theobromineand its metabolites in horses: Thisproject was designed to determinethe metabolites of theobromineand related substances followingthe administration of puretheobromine and chocolate tohorses. Such a detailed study hadnot been previously reported.

Studies into the detection of theantihypertensive drug candesartan and itsmetabolites in horses: This was part of acollaborative project with theHorseracing Forensic Laboratory,UK, designed to study the detectionof a number of antihypertensivedrugs in racehorses.

“The insurance department operates afund which acts as a non-profit workers'compensation insurer for the racingindustry's Clubs and Trainers. Thedepartment also facilitates the purchasingof a wide-range of insurance covers forthe racing industry - taking advantageof the industry's bulk buying power.In recent times the department hasbeen instrumental in the establishmentof a public liability arrangement whichhas produced substantial savings inpremiums for NSW, Queensland, theACT and Victorian Race Clubs.”

Michael Thompson, InsuranceManager.

Department Members:

Michael ThompsonManager

Hesna WhitbreadSenior Claims Officer

Kay StivactasClaims Officer

Geetanjali SharmaClaims Assistant

As at 30 June 2000 the administration

of the department has been subject

to an outsourcing arrangement with

ASWIG, the aim being to improve

resources, training and service.

Objectives

• Manage the TRB Workers’

Compensation Insurance Fund,

• Monitor the Workers’

Compensation Insurance

Scheme, co-ordinate renewals,

• Initiate and facilitate a general

insurance scheme that provides

cost savings for participants by

taking advantage of industry

buying power,

• Investigate initiatives aimed at

reducing the cost of delivering a

Workers’ Compensation policy

and claims service to the

industry,

• Promote sound Occupational

Health and Safety (OH&S)

practices and improve awareness

about OH&S issues.

Workers’ Compensation Claims

During 2002-2003 - 327 workers’

compensation claims were received.

This is trending down again

following last year, which was the

highest number in over 10 years.

The number of current claims as at

the 30 June 2003 was 244.

During the 2002 calendar year,substantial changes to the NSWWorkers' Compensation system andlegislation took place. Thespeculation and uncertainty arisingfrom these amendments resulted inincreased litigation. The InsuranceFund was able to favourably settlemost of these actions within theyear. This resulted in a containedbut unexpected increase in claimscost for the year, which is notexpected to flow on to the 2003-2004 year.

In general:

• Case estimates have gone down,• Severity of claims is lower,• Return to work times are

improving,• Litigation is decreasing,• Employers are participating in

injury management,• Loses due to HIH collapse are

being mitigated.

These are all positive indicatorsand assist in counteracting thenegative effects of increase claimspayments brought on by legislativechanges in 2003, loss of reinsurancerecoveries (HIH), and poor returnon investments.

Insurance

27

Michael Thompson

28

Premiums

Substantial increases in general(Public Liability etc.) insurancepremiums have been the subject ofmuch publicity this year and thethoroughbred racing industry hasnot escaped in regards to eitherincreased premiums or publicity.

Some increase in workers’compensation premiums has beennecessary for 2003/2004, butcertainly not on the scale of generalinsurance.

The result has been a move awayfrom the wage-based method ofcalculating premium to system thatfeatures:

• Pay as you go,• Activity and location-based

charges,• Based/minimum fee at the start

of the year,• Claims rating fee at the end of

the year.

OCCUPATIONAL HEALTH &SAFETY (OH&S)

Over the past four years the NSWThoroughbred Racing Board(NSWTRB) has been a leader in theAustralasian region in thedevelopment of Occupational Health& Safety (OH&S) programs andprocedures for the racing industry.

In this regard the NSWTRBdeveloped:1. “Occupational Health & Safety

Form Guide” - a video trainingpackage for the industry,

2. “A Systems Approach to OH&S”- provides documentationnecessary to introduce a firstclass OH&S program into anybusiness in the industry.Available to all on the RacingNSW website.

The NSWTRB has also beeninstrumental in incorporating safetyissues into many facets of racing inNSW, such as industry training andrules of racing.

During the year the NSWTRBconducted a 'Train the Trainer' typecourse for all Clubs in NSW - thiscourse has accredited individualsas presenters of the trainingpackage. It is stronglyrecommended that Clubs should

take full advantage of thisopportunity to ensure that theirorganisation is compliant withOH&S legislation introduced in2000.

Progressing to the next stage,funding has been obtained by theNSWTRB from WorkCover to assistin delivering the OH&S training tohorse trainer operations in NSWover the coming year.

The NSWTRB has investedconsiderable time and resources indeveloping and delivering industry-based OH&S training andmanagement tools to assistindustry employers to meet theirlegislative requirements.

The NSWTRB’s efforts in this areahave been aimed at saving industryemployers the not insubstantialtime, money and effort they wouldhave been required to invest, hadthey attempted this individually.

Employers in the industry shouldnot need to be reminded that thelegal responsibility for developingand implementing appropriateOH&S systems and training restswith them. The task ahead is toencourage individuals andorganisations in the industry toembrace and run with OH&Sconcepts.

INJURY MANAGEMENT

Employers and employees wouldhave noticed the increased attentionbeing focused on participation inthe injury management process,which is aimed at achieving earlyintervention, improved medicalmanagement and early return towork.

There has been substantialimprovement in early notification ofinjuries, which greatly assist in theearly intervention and medicalmanagement. There has also beenan improvement in the willingnessof employers to provide suitableduties to injured employees, whichassists in the early return to work.

Employers’ understanding of theirinvolvement in the process of injurymanagement has improved, to theextent that some employers aretaking the initiative in considering

management options before beingapproached by the TRB insurancedepartment.

Further development in this area iscertainly warranted but theimprovement is encouraging.

GENERAL INSURANCEPROGRAM

The Insurance Fund facilitates thepurchase of general insurance coverfor Race Clubs in NSW.

The general state of the insurancemarket has meant that fewerinsurers are available to take on therisk (both real and imaginary)associated with our industry. Thosethat are available are being moreselective, imposing previouslyunheard of conditions andconsiderable increases inpremiums.

Insurance industry advisers do notnecessarily see that there will be arelief in this area next year and thata return to previous premium levelis extremely unlikely.

The NSWTRB in conjunction withthe Australian Racing Board,Queensland Racing and RacingVictoria Ltd., has entered into aninsurance arrangement withEmployer Mutual Limited. Thisarrangement will see a pooling ofPublic Liability premiums for RaceClubs. The nature of this mutualarrangement will see lower andmore consistent premiums.

“The integrity, service, and a speedyturnaround time of all our services, aretogether our number one priority. Thisyear various changes to work practicesand other initiatives have resulted insavings across the department. Thiswill provide available funds for futuredevelopment of on-line facilities on ourwebsite and enhancements to the ITplatform, which will be of benefit to allowners. Our objective is to continue toreduce costs and increase productivitywhile maintaining an excellent standardof service to all industry participants.”

- Dianne Green, Supervisor,Registration Department

Department Functions

National: Racing NSW administersthe Registrar of Racehorses onbehalf of all states. The departmentis one of the busiest units withinthe racing industry and isresponsible for the naming of allhorses that race or go to studwithin Australia. This year therewere a total of 14,376 horsesregistered including importedhorses that come here to race.

NSW: In addition to these nationalresponsibilities, the head office atRacing NSW also records NSWtransfers, leases, syndicates,approved promoters and racingcolours. We also identify ex-racehorses by their brands andwhite markings through our codingsystem which owners use forshowing purposes and also toidentify potential broodmares. Thisyear we have received 420 enquiresof which the majority werepositively identified.

Other states: Each interstatePrincipal Racing Authority has a

deputy registrar whoseresponsibilities include therecording of transfers of ownership,leases, syndicate renewals andapproved promoters within theirstate.

NSW: There have been majorchanges in the RegistrationDepartment throughout the yearwhich include the introduction of anew IT platform, new team structureand improved work practices. Allstaff are now multi-skilled whichhas streamlined procedures, cutturnaround time for registering ahorse dramatically, and enhancedcustomer service. The procedure toregister named imported horsesfrom NZ has also been streamlinedby eliminating the need to gothrough the Australian Stud Bookprocess of importation and re-blood typing, which saves time andmoney for the owner.

Website: There has been aconcentrated effort to improve andenhance the registration section onthe Racing NSW websitewww.racingnsw.com.au (pop-upmenu - Departments then click onRegistration). General informationis in expanded format andsupported by the availability of allforms for downloading.An initiative introduced this year isthe 'Horse Name Search'which enables owners tocheck the availability of aname before submitting itfor registration. This hasproved very popular andrecords a high number ofhits. Innovations such asthis will continue to beresearched for thecustomer’s benefit.

Contribution to EquineResearch

The Registrar ofRacehorses contributesmoney each year to equineresearch which isadministered by the RuralIndustries ResearchDevelopment Corporation.

This year a total of $287,620 wasdonated which is derived from alevy of $20 of the total registrationof $100.

Registration Statistics FinancialYear

Number of Horses registered14,376

NSW Transfers of Ownership1,756

NSW Leases849

NSW Syndicates114

Department members

Dianne GreenSupervisorPam GaynorTeam Leader Beverley LawlessRegistration OfficerCarole PattersonRegistration OfficerJudy StevensonRegistration OfficerCathie HughesRegistration OfficerMelissa BoxRegistration OfficerKim WatkinsRegistration OfficerDebbie WinterRegistration Officer

Registration Department

29

Dianne Green

30

“Racing Services regulates and overseesfive key areas of NSW racing – thesedepartments, which are listed below, arevital to the integrity and goodwill of horseracing in this State. Racing Servicesreports directly to the Board aboutcurrent issues such as OH&S or theMicrochipping of horses.”

- Keith Bulloch, Racing NSWGeneral Manager of Racing Services

Reporting to the Chief Executive,the General Manager of RacingServices groups together five racingsections within the organisation.

These areas are; Industry Training,Licensing, Handicapping,Registration and Racing Co-ordinator.

The GM Racing Services has asupervisory role in regard to thesedepartments, including SeniorManagement, reporting to theBoard and implementation ofBoard policy.

Areas such as Race Programming,Race Results and Calendar (magazine)integrity sections are also included.

Specific projects 2002-03 included:• Occupational Health and Safety -

Training program for race club nominees - completed June 2003,

• Handicapping work practices - formatting for introduction of ratings-based handicapping, a joint project with Racing Victoria Ltd, horse ratings displayed on website, weights derived by updating results –first stage to be implemented 1 October 2003,

• Registration department work practices - new IT platform, streamlining of methods, multiskilling of staff, horse name search on website - completed February 2003,

• Registration department future focus - new business initiatives, customer focus, e-commerce, on-line applications,

• Licensing department - review of renewal process, on-line applications, e-commerce.

Finance, Corporate Affairs & Racing Services

Corporate Affairs

Keith Bulloch

accurate information to the Board andinterested parties within the industryon financial performance.

Finance Department MembersMichael BeithGeneral Manager Finance &Administration

Julie HelyFinancial Controller

Helen DalakiarisPayroll Co-ordinator

Darela KurtovicPayroll Co-ordinator

Andrew MartinAccounts Payable Clerk

Glenn PaineAssistant Accountant (until 21 February 2003)

TRB Operational Plan

The Board put in place anOperational Plan for the year. Theobjectives set out in theOperational Plan were largelyachieved and are set out in thedepartment reports.

Industry Strategic Plan

During the year, the Boardcommenced the process ofdeveloping an industry strategicplan. The consultation process withstakeholders has been extensivegiven that there is a finite amount ofresources to be distributed amongstthe competing interests. The keyissues identified include:

1. Measuring performance of raceclubs, benchmarking andstandardised financial reporting,

“Racing NSW is the only body in thestate representing all stakeholders. Itsrole includes overseeing and examiningthe health and direction of the industryas a whole. Corporate Affairs hasresponsibility for major policydevelopment in areas including industryand operational planning.”

- Stephen Ferguson, Racing NSW’s General Managerof Corporate Affairs

2. Race date allocation, distributionschemes and complementaryprogramming,

3. Administrative structure ofracing including roles,responsibilities and layers ofadministration,

4. Ownership and training ofracehorses in NSW,

5. Information technology,

6. National and State roles andissues (including cross-borderbetting and national informationsystems),

7. Additional revenue streams.

Michael Beith

Julie Hely

Stephen Ferguson

Racing Services

“Finance forms an integral part of RacingNSW and ensures the integrity of thefinancial statements and also ensures theBoard understands where money is beingspent. It allows the Board to determine thecosts of providing various programs to theindustry in NSW. Precise financefunction is integral to the receipt anddistribution of all TAB monies from TABLtd to the industry stakeholders - clubs,owners, trainers and jockeys.”

– Michael Beith, Racing NSW G.Mgr Finance & Administration

The aim of the Finance division ofRacing NSW is to provide timely and

Finance

Financial StatementsFinancial Statements

Statement of Financial Performance 32

Statement of Financial Position 33

Statement of Cash Flows 34

Notes 35

Declaration by Members of the Board 44

Audit Report 45

NSW Thoroughbred Racing Board

For the year ended 30 June 2003

31

32

FOR THE YEAR ENDED 30 June, 2003

Note 2003 2002$ $

REVENUERevenue from Operating ActivitiesSale of Goods - Publications 6(i) 838,192 873,616Sale of Services 6(ii) 12,883,617 11,118,927First Charge 6(iii) 11,122,202 10,153,766

24,844,011 22,146,309Revenue from Non Operating ActivitiesProceeds Disposal of Assets 6(iv) 141,154 84,426Movement in net market value of Land and Buildings integral to insurance activities 871,020 –Interest other parties 6(v) 350,497 315,289

1,362,671 399,715

REVENUE FROM ORDINARY ACTIVITES 26,206,682 22,546,024

EXPENSESAdministration 6(vi) 5,077,625 5,107,232Licensing 6(vii) 208,187 267,146Provincial Associations 6(viii) 118,902 111,896Race Results 6(ix) 90,366 102,433Cost of Goods Sold - Publications 6(x) 800,701 986,824Laboratory 6(xi) 2,304,470 2,184,456Handicapping 6(xii) 427,863 535,404Stewards 6(xiii) 2,884,600 2,662,801Veterinary 6(xiv) 712,433 647,605Syndicates 6(xv) 186,155 177,596Media 6(xvi) 207,299 272,830Industry Training 6(xvii) 421,700 342,398Stakes Payments 6(xviii) 455,156 403,211Information Technology 6(xix) 1,573,077 1,298,544Racing Office 6(xx) 205,601 –Insurance 6(xxi) 7,767,093 10,466,843Movement in net market value of investments integral to insurance activities 201,712 528,281Borrowing Costs 6(xxii) 199,704 158,591

EXPENSES FROM ORDINARY ACTIVITIES 23,842,644 26,254,091

Share of net losses of partnership accounted for using the equity method 3,854 93,483

PROFIT/(LOSS) FROM ORDINARY ACTIVITIESBEFORE INCOME TAX EXPENSE 6(xxiii) 2,360,184 (3,801,550)

INCOME TAX EXPENSE RELATING TO ORDINARY ACTIVITIES – –

PROFIT/(LOSS) FROM ORDINARY ACTIVITIES AFTER INCOME TAX 2,360,184 (3,801,550)

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS 20 2,360,184 (3,801,550)

The accompanying notes form part of these Financial Statements.

Statement of Financial PerformanceNSW THOROUGHBRED RACING BOARD ABN 86 281 604 417

33

AS AT 30 June, 2003

Note 2003 2002$ $

CURRENT ASSETS

Cash Assets 8 4,687,761 2,876,973Receivables 9 6,924,067 8,254,515Other 10 158,906 149,252TOTAL CURRENT ASSETS 11,770,734 11,280,740

NON-CURRENT ASSETSInvestment accounted for using the equity method 11 – –Other Financial Assets 12 10,690,179 10,891,891Investment in land and buildings 13 3,733,500 2,862,480Plant and Equipment 14 3,629,748 3,896,956TOTAL NON-CURRENT ASSETS 18,053,427 17,651,327

TOTAL ASSETS 29,824,161 28,932,067

CURRENT LIABILITIESPayables 15 6,269,893 8,987,089Breeders and Owners Bonus Scheme 16 1,885,215 –Interest Bearing Liabilities 17 – 952,501Provisions 18 6,505,339 7,263,507Other 19 1,473,900 670,765TOTAL CURRENT LIABILITIES 16,134,347 17,873,863

NON-CURRENT LIABILITIES

Provisions 18 16,254,763 15,983,339TOTAL NON-CURRENT LIABILITIES 16,254,763 15,983,339

TOTAL LIABILITIES 32,389,110 33,857,202

NET LIABILITIES (2,564,949) (4,925,135)

EQUITYAccumulated Losses 20 (2,564,949) (4,925,133)

TOTAL EQUITY (2,564,949) (4,925,133)

The accompanying notes form part of these Financial Statements.

Statement of Financial PositionNSW THOROUGHBRED RACING BOARD ABN 86 281 604 417

34

FOR THE YEAR ENDED 30 June, 2003

Note 2003 2002$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers 27,920,872 28,455,132Payments to suppliers and employees (25,621,649) (27,005,136)Interest and Investment earnings received 350,497 315,289Borrowing costs (199,704) (158,591)

NET CASH PROVIDED BY/ (USED IN) OPERATING ACTIVITIES 7(b) 2,450,016 1,606,694

CASH FLOW FROM INVESTING ACTIVITIESPayments for property, plant and equipment (1,002,810) (5,858,802)Proceeds from sale of plant and equipment 141,154 84,426Loans from related parties 1,174,930 1,194,919

NET CASH PROVIDED BY/ (USED IN) INVESTING ACTIVITIES 313,274 (4,579,457)

CASH FLOW FROM FINANCING ACTIVITIES

Repayment of loan from Australian Jockey Club – (550,000)

NET CASH USED IN FINANCING ACTIVITIES – (550,000)

NET INCREASE/(DECREASE) IN CASH 2,763,290 (3,522,763)

Cash at beginning of the financial year 1,924,471 5,447,234

CASH AT THE END OF THE FINANCIAL YEAR 7(a) 4,687,761 1,924,471

The accompanying notes form part of these Financial Statements.

Statement of Cash FlowsNSW THOROUGHBRED RACING BOARD ABN 86 281 604 417

NOTE 1: STATEMENT OF SIGNIFICANTACCOUNTING POLICIES

The financial report is a generalpurpose financial report that hasbeen prepared in accordance withAccounting Standards, Urgent IssuesGroup Consensus Views, and otherauthoritative pronouncements of theAustralian Accounting StandardsBoard .

The financial report covers theNSW Thoroughbred Racing Board(“The Board”).

The financial report has beenprepared on an accruals basis and isbased on historical costs and doesnot take into account changingmoney values or, except wherestated, current valuations of non-current assets. Cost is based on thefair values of the consideration givenin exchange for assets.

The following is a summary of thematerial accounting policies adoptedby the Board in the preparation ofthe financial report. The accountingpolicies have been consistentlyapplied, unless otherwise stated.

a) Property, plant and equipmentare measured on the cost basis.The carrying amount of property,plant and equipment is reviewedannually by directors to ensure itis not in excess of the recoverableamount from those assets. Therecoverable amount is assessedon the basis of the expected netcash flows which will be receivedfrom the assets employment andsubsequent disposal. Theexpected net cash flows have notbeen discounted to presentvalues in determining recoverableamounts.

b) The depreciable amount of allfixed assets including buildingsand capitalised leased assets, butexcluding freehold land, aredepreciated on a straight linebasis over their estimated usefullives to the economic entitycommencing from the time theasset is held ready for use.Properties held for investmentpurposes are not subject todepreciation. Leaseholdimprovements are depreciated

over the shorter of either theunexpired period of the lease orthe estimated useful lives of theimprovements.

The depreciation rates used foreach class of asset are:Class of Asset Depreciation Rate

Plant and Equipment 5 - 40%

Land and Buildings 2.5%

c) Leases: Leases of fixed assets,where substantially all the risksand benefits incidental to theownership of the asset, but notthe legal ownership, aretransferred to the Board areclassified as finance leases.Finance leases are capitalised,recording an asset and a liabilityequal to the present value of theminimum lease payments,including any guaranteed residualvalues. Leased assets aredepreciated on a straight linebasis over their estimated usefullives where it is likely that theBoard will obtain ownership ofthe asset or over the term of thelease. Lease payments areallocated between the reductionof the lease liability and the leaseinterest expense for theperiod.Lease payments foroperating leases, wheresubstantially all the risks andbenefits remain with the lessor,are charged as expenses in theperiods in which they areincurred.

d) Investments: Non-currentinvestments are measured on thecost basis. The carrying amountof non-current investments isreviewed annually by the Membersof the Board to ensure it is not inexcess of the recoverable amountof these investments. Therecoverable amount is assessedfrom the quoted market value forlisted investments or theunderlying net assets for othernon-listed investments. Theexpected net cash flows frominvestments have not beendiscounted to their present valuein determining the recoverableamounts.Investments integral to theBoard’s insurance activities,including investments in land andbuildings are measured at net

market values at the reportingdate. Changes in net market valueof such investments arerecognised as revenues orexpenses in the financial year inwhich the changes occur.

e) Receivables: All trade debtors arerecognised at the amountsreceivable and are due forsettlement no more than 30 daysfrom the date of recognition.Collectibility of trade debtors isreviewed on an ongoing basis.Debts which are known to beuncollectible are written off. Aprovision for doubtful debts israised when some doubt as tocollection exists.

f) Investments in Associates:Investments in associates arerecognised in the financialstatements by applying the equitymethod of accounting.

g) Foreign Currency Transactionsand Balances: Foreign currencytransactions during the year areconverted to Australian currencyat the rates of exchange applicableat the dates of transactions.Amounts receivable and payablein foreign currencies at balancedate are converted at the rates ofexchange ruling at that date. Thegains and losses from conversionof assets and liabilities, whetherrealised or unrealised, areincluded in profit or loss fromordinary activities as they arise.Exchange differences arising onhedged transactions undertakento hedge foreign currencyexposures, other than those forthe purchase and sale of goodsand services, are brought toaccount in the profit fromordinary activities over the livesof the hedges. Costs or gains arising at the timeof entering hedged transactionsfor the purchase and sale ofgoods and services, and exchangedifferences that occur up to thedate of purchase or sale, aredeferred and included in themeasurement of the purchase orsale. Gains and losses fromspeculative foreign currencytransactions are brought toaccount in the profit fromordinary activities when theexchange rate changes.

Notes

35

to the Financial Statements for the year ended 30 June, 2003

NOTE 1: STATEMENT OF SIGNIFICANTACCOUNTING POLICIES (CONT.)

h) Employee Benefits: Provision ismade for the Board’s liability foremployee benefits arising fromservices rendered by employeesto balance date. Employeebenefits expected to be settledwithin one year together withentitlements arising from wagesand salaries, annual leave andsick leave which will be settledafter one year, have beenmeasured at the amountsexpected to be paid when theliability is settled, plus relatedon-costs. Other employeebenefits payable later than oneyear have been measured at thepresent value of the estimatedfuture cash outflows to be madefor those benefits.Contributions are made by theBoard to an employeesuperannuation fund and arecharged as expenses whenincurred.

i) Cash: For the purposes of thestatement of cash flows, cashincludes deposits at call withfinancial institutions and otherhighly liquid investments withshort periods to maturity whichare readily convertible to cash onhand and are subject to aninsignificant risk of changes invalue, net of outstanding bankoverdrafts.

j) Revenue: Revenue from the saleof goods is recognised upon thedelivery of goods to customers.Interest revenue is recognised ona proportional basis taking intoaccount the interest ratesapplicable to the financial assets.Revenue from the rendering of aservice is recognised upon thedelivery of the service to thecustomers.All revenue is stated net of theamount of goods and services tax(GST).

k) Trade, Stakes payments andother creditors: These amountsrepresent liabilities for goods andservices provided to the Boardprior to the end of the financial

year and which are unpaid. Theamounts are unsecured and areusually paid within 30 days ofrecognition.

l) Breeders and Owners BonusScheme: The NSW ThoroughbredRacing Board created theBreeders and Owners BonusScheme which is administered bythe Board through it’s appointedsub committee. The scheme is anincentive scheme to encouragethe use by breeders of stallionsbased in New South Wales.Nomination fees are collectedfrom stallions and their eligibleprogeny. A contribution is madeby the industry via the TABDistribution. Prize money is thenpaid out of these funds to eligibleracehorse and stallion ownersaccording to published criteria.The expenses of managing thescheme are also deducted via amanagement fee. Scheme surplusesat year end are rolled over into thefollowing year for payment in futureperiods. Any scheme deficit is to befunded by a further deduction fromindustry funds through the TABdistributions.

m) Insurance: Premiums received arerecognised from the attachmentdate and are measured over theperiod of insurance in a pattern inaccordance with the incidence ofrisk.Liabilities for outstanding claimsare recognised for direct andinwards reinsurance business andmeasured as the present value ofexpected future payments.

n) Goods and Services Tax (GST):Revenues and expenses andassets are recognised net of theamount of GST, except where theamount of GST incurred is notrecoverable from the AustralianTaxation Office. In thesecircumstances the GST isrecognised as part of the costs ofthe acquisition of the asset or aspart of an item of the expense.Receivables and payables in thestatement of financial positionare shown inclusive of GST.

o) Comparative Figures: Whererequired by AccountingsStandards comparative figureshave been adjusted to conform

with changes in presentation forthe current financial year.

p) Non-Current Assets: The carryingamounts of non-current assetsvalued on the cost basis arereviewed to determine whetherthey are in excess of theirrecoverable amount at balancedate. If the carrying amount of anon-current asset exceeds itsrecoverable amount, the asset iswritten down to the loweramount. The recoverable amountis assessed on the basis theexpected net cash flows whichwill be received from the assetsemployment and subsequentdisposal. The expected net cashflows have not been discountedto present values in determiningrecoverable amounts. The write-down is recognised in thestatement of financial performancein the reporting period in which itoccurs.

q) Going Concern: The financialstatements have been preparedon a going concern basis, whichcontemplates continuity ofnormal activities and therealisation of assets andsettlement of liabilities in thenormal course of business.At 30 June 2003, the Board has anet asset deficiency of $2,564,949.The improvement in the assetdeficiency was impacted by thereduction in the estimated claimsliability by $758,554 and apositive revaluation on land andbuildings of $871,020 based onthe net market value of the asset.The provision for the prudentialmargin remains at 25% ofestimated claims liability.

The Members of the Board are ofthe opinion that the Board willcontinue to be able to pay itsdebts as and when they fall dueon the basis that the Intra-codeAgreement allows the Board tolevy an administration charge onwagering receipts received fromTAB Limited

NOTE 2: CONSOLIDATED OPERATIONS

The NSW TRB - Administrationincludes the administrative functionsof the Board in accordance with theThoroughbred Racing Board Act 1996.

Notes

36

to the Financial Statements for the year ended 30 June, 2003

NOTE 2: CONSOLIDATED OPERATIONS(CONT.)

The Board provides the independentintegrity functions of the NSWThoroughbred Racing Industryincluding Licensing, Stewards,Veterinary and Laboratory. Inaddition it provides the co-ordination of the NSW ThoroughbredRacing Industry including raceprogramming, stakes payments andindustry training. Also included areRacing Colours, Registration, NSWRacing Magazine, Syndicates, Leasesand Transfers and the NSW TRBInsurance Fund separately. Theconsolidated results encompass alldivisions noted above.

NOTE 3: INCOME TAX

The Board being a non-profitorganisation established for thepromotion of thoroughbred racing isexempt from Income Tax pursuant tothe provisions of Section 50-45 ofthe Income Tax Assessment Act(1997), as amended.

NOTE 4: ECONOMIC DEPENDENCY TheBoard received 42.77% (2002 :46.12% ) of its income via a FirstCharge on the distribution ofwagering receipts to theThoroughbred Racing Industry. Thisdistribution is governed by the NSWRacing Distribution Agreement asentered into by NSW Racing PtyLimited and TAB Limited.Consequently, the NSWThoroughbred Racing Board iseconomically dependent on TABLimited.

NOTE 5:EVENTS SUBSEQUENT TOBALANCE DATE

No matters or circumstances havearisen since the end of the financialyear which will significantly affectthe operations of the company, theresults of those operations, or thestate of affairs of the company infuture financial years.

NOTE 6: STATEMENT OF FINANCIALPERFORMANCE

(i) Sale of Goods - Publicationsincome is derived from the sale

of advertising space in theBreeding and Racing and NSWRacing magazines as well assubscriptions by industryparticipants to these.

(ii) Sale of Services - representsincome derived from the sale ofservices to the racing industry -including stewards,handicapping, laboratory,veterinary, race results,syndicates and stakespayments.

(iii) First Charge represents acharge to the industry based onthe budgeted expenditure forthe year.

(iv) Proceeds on Disposal of Assetsrepresents amounts receivedon sale or trade in of assets.

(v) Interest - represents earningsand interest income.

(vi) Administration expensesrepresent the cost of theadministrative areas of theBoard including executive,finance, property, humanresources, appeals, andconsultants.

(vii) Licensing expenditurerepresents staff and office costsassociated with the derivationof this income stream.

(viii) Provincial Association costsrepresent the staffing andadministrative costs associatedwith the Provincial Officer andthe representation of theinterests of ProvincialAssociation members.

(ix) Race Results Expenditurerepresents staff, consultantsand office costs associated withthe deriving of income for theprovision of race resultinformation.

(x) Publications expenditureincludes staff and office costsas well as all production andselling costs.

(xi) Laboratory expenditure includesstaffing, depreciation of capitalexpenditure, consumables andoccupancy costs.

(xii) Handicapping expenditureincludes staff and office costs.

(xiii) Stewards expenditure includesstaffing costs, shorthandwriters, office costs as well asthe costs associated with theBroadmeadow office.

(xiv) Veterinary expenditure includesstaff, research horses,consumables and office costs.

(xv) Syndicates expenditureincludes staffing and officecosts.

(xvi) Media costs include staff,participation in nationaladvertising, promotionalactivities and monitoring ofmedia.

(xvii) Industry Training expenditurerepresent staffing costs as wellas educational costsassociated with the training ofapprentice jockeys.

(xviii) Stakes Payments costs includestaffing, consultants, systemdevelopment, bank chargesand office costs.

(xix) Information Technologyrepresents the cost of providingan IT platform to the board andsupporting staff costs.

(xx) Racing Office performs the theadminsitrative functionassociated with the Boardsdetermination of race dateallocations and the servicing,through the trainers servicecentre of nominations,scratchings and acceptances.The cost of the serviceprovided by the trainersservice centre was $184,735.

(xxi) Workers CompensationInsurance Fund. This Fund isdesigned to provide workerscompensation insurance coverfor employees of NSW RacingClubs, Associations, ownersand trainers of racehorsesagainst liability relating toinjury, loss or damage eithersustained or caused byjockeys, apprentices, stablehands, workers, servants,employees or agents in theiremployment or acting on theirbehalf pursuant to NSWWorkcover legislation. In July2000 the Board signed aservice contract with ASWIGPty Limited. This contactspecified that ASWIG are toprovide to the Boardmanagement services inrelation to the insurance fund.

(xxii) Borrowing costs includeinterest expense, bank chargesand bank guarantee fees.

Notes

37

to the Financial Statements for the year ended 30 June, 2003

38

Notesto the Financial Statements for the year ended 30 June, 2003

NOTE 6: STATEMENT OF FINANCIAL PERFORMANCE (CONT.)2003 2002

(xxiii) Profit/Loss from Ordinary Activities. $ $The result from ordinary activities has been determined after:Borrowing Costs– Other parties 199,704 158,591Total Borrowing Costs 199,704 158,591

Depreciation of non-current assets– Plant and Equipment 1,150,547 623,916Total Depreciation 1,150,547 623,916

Amortisation of non-current assets– Goodwill – 435,728Total Amortisation – 435,728

Bad and Doubtful Debts– Trade Debtors 30,000 49,307Total Bad and Doubtful Debts 30,000 49,307

Rental Expense on Operating Lease 199,661 263,346 Contingent Rental on Cessation of Lease – 42,400

199,661 305,746

Total (Gain)/Loss on disposal of non-current assets:– Property, Plant and Equipment (21,683) 7,269Total (Gain)/Loss on disposal of non-current assets (21,683) 7,269

Remuneration of Auditor – audit 82,844 65,700 – other services 16,790 74,976Total Remuneration of Auditor 99,634 140,676

(xv) Individually Significant Items:Increase/(Decrease) in Provision relating to Insurance Claims Liabilityas recommended by the Actuary (758,554) 1,911,700

NOTE 7: STATEMENT OF CASH FLOWSa) Reconciliation of CashCash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the balance sheet as follows: -

Cash 4,687,761 2,876,973Less: Bank Overdraft – 952,501Cash 4,687,761 1,924,472

b) Reconciliation of Cash Flow from Operating Activities

Operating profit/(loss) after tax 2,360,184 (3,801,550)

(Profit)/loss on Sale of Assests (21,683) 7,269Amortisation – 435,728Reduction in Success Fee Reserve (314,406) (550,000)Increase in Leave Provisions 271,811 (61,895)Depreciation 1,150,547 623,916Unrealised loss on investment 201,712 528,281Gain on revaluation of Land and Buildings (871,020) –

2,777,145 (2,818,251)

39

Notesto and forming part of the Financial Statements for the year ended 30 June, 2003

NOTE 7: STATEMENT OF CASH FLOWS (CONT.)2003 2002

$ $(Increase)/decrease in trade debtors 153,803 165,480(Increase)/decrease in prepayments (9,654) (55,685)(Increase)/decrease in Stakes Payment debtors 1,335,890 72,775(Increase)/decrease in other debtors (1,334,177) 3,745,091Increase/(decrease) in trade creditors (3,734) (3,099,801)Increase/(decrease) in Stakes Payments 675,192 851,000Increase/(decrease) in sundry creditors and accruals (385,896) 834,381Increase/(decrease) in Insurance Claims Provision (758,554) 1,911,704

(327,129) 4,424,945Cash Flows from operating activities 2,450,016 1,606,694

NOTE 8: CASHCash at Bank 1,262,526 2,100 Deposits at Call 3,425,235 2,874,873Total Cash 4,687,761 2,876,973

The deposits bear floating interest rates between 3.8% and 4.73% (2002: 3.5% and 3.8%). Cash at bank bears interest at3.45%. The deposits at call are pledged as security for the ANZ Bank Guarantee to Workcover (Note 18).

NOTE 9: RECEIVABLES

Trade Debtors 542,861 675,551Provision for Doubtful Debts (51,113) (30,000)Sundry Debtors 1,384,534 131,525 Amounts receivable from associated entities– NSW Country Racing Council Limited 2,107,754 2,721,030– Registrar of Racehorses 340,948 181,427– NSW Racing Pty Ltd 295,744 1,016,921– Australian Racing Board 148,274 (502)– Stakes Payment Debtors 2,104,331 3,440,221– Other Racing Clubs – 69,319Bank Guarantee 50,734 49,023Total Receivables 6,924,067 8,254,515

The NSW TRB undertakes accounting support for the NSW Country Racing Council Limited , Registrar of Racehorses, NSW TRBInsurance Fund, NSW TRB Group Training Company Limited, NSW Racing Pty Limited and the Australian Racing Board. Amountsdisclosed above as receivable from other entities are payable to the NSW TRB by these entities for expenses paid on their behalf.These are summarised as follows:

Expenses Paid

on behalf of entity Receipts from

– NSW Country Racing Council Limited 54,570,914 55,184,190– Registrar of Racehorses 1,657,310 1,497,789– NSW Racing Pty Ltd 8,073,674 8,794,852– Australian Racing Board 1,944,057 1,795,282

NOTE 10: OTHER CURRENT ASSETSPrepayments 158,906 149,252

158,906 149,252

NOTE 11: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHODInterest in joint venture partnership;(a) Name of Entity Principal Activity Balance Date Ownership Interest

2003 2002Registrar of Racehorses Registration of Racehorses in Australia 30/06/2003 42% 42%

Movements in carrying amounts 2003 2002

$ $

At beginning of financial year – –Investment during year 3,854 93,483Share of operating loss after income tax (3,854) (93,483)At end of financial year – –

40

Notesto the Financial Statements for the year ended 30 June, 2003

2003 2002NOTE 12: OTHER FINANCIAL ASSETS $ $ANZ Wholesale Investment Trust 10,690,179 10,891,891

10,690,179 10,891,891The ANZ Wholesale Investment Trust is mortgaged to the ANZ Bank and acts as security for the ANZ Bank Guarantee to Workcover. (Note 18)

NOTE 13: INVESTMENT IN LAND AND BUILDINGSLand and Buildings at net market value 3,733,500 2,862,480Total Land and Buildings 3,733,500 2,862,480

The Baxter Road property is mortgaged to the ANZ Bank and acts as security for the ANZ Bank Guarantee to Workcover(Note 18). The valuation was prepared on the basis of Net Market Value as defined by the Australian Property Institute in areport dated 16 July 2003. The 2003 valuations at net market value were based on an independent assessment by ColliersInternational, a member of the Australian Property Institute.

NOTE 14: PLANT and EQUIPMENTPlant and Equipment - at cost 5,841,318 5,232,916 Less accumulated depreciation 2,211,570 1,335,960Total Plant and Equipment 3,629,748 3,896,956Movement in Carrying AmountsBalance at Beginning of Year 3,896,956 1,616,245 Additions 1,002,810 2,996,322Disposals (119,471) (91,695)Depreciation Expense (1,150,547) (623,916)Carrying Amount at the end of the year 3,629,748 3,896,956

NOTE 15: PAYABLESTrade Creditors 209,126 2,098,075Other Creditors and Accruals 559,736 1,739,500 Stakes Payment Creditors 5,078,581 4,403,389 Privatisation Success Fee – 314,406Benevolent Fund 422,450 431,719Total Creditors and Accruals 6,269,893 8,987,089

Stakes Payments Creditors represent balances on industry participant accounts that are due to be paid out. BenevolentFund is an amount held in trust to be applied to eligible industry participants under significant financial hardship.

NOTE 16: BREEDERS AND OWNERS BONUS SCHEMEBreeders and Owners Bonus Scheme 1,885,215 –

1,885,215 –NOTE 17: INTEREST BEARING LIABILITIESBank overdraft - unsecured – 952,501

The bank overdraft is unsecured and is subject to a floating interest rate of approximately 8.6% (2002: between 8.6% and 12.6%).

2003 2002NOTE 18: PROVISIONS $ $Current

Employee Benefits 18a 1,039,352 773,962Provision for Insurance Outstanding Claims 5,465,987 6,489,545Total Current 6,505,339 7,263,507

Non-CurrentEmployee Benefits 18a 406,800 400,379 Provision for Insurance Outstanding Claims 15,847,963 15,582,960Total Non-Current 16,254,763 15,983,339

18a) Aggregate Employee Benefit Liability 1,446,152 1,174,34118b) No of employees at balance date 84 93

41

Notesto the Financial Statements for the year ended 30 June, 2003

NOTE 18: PROVISIONS (CONT.)Provision for Insurance Outstanding Claims

An actuarial valuation of the Insurance Funds outstanding claims was performed by independent actuaries McMahonActuarial Services as at June 30 2003. The ANZ Bank have issued guarantees amounting to $21,193,000 in favour ofWorkcover Authority of NSW. As at 27 September 2002 the limit was increased to $21,200,000 as required under the termsof the Board’s insurance licence. In accordance with actuarial recommendations the Board has provided for a prudentialmargin of 25% (2002 - 25%) of the central estimate of liabilities in recognition of the uncertainty of future estimates and theinherent variability of conditions affecting future claim payments.

2003 2002NOTE 19: OTHER $ $Deferred Income 1,473,900 670,765

1,473,900 670,765

Monies received by the NSW TRB at the balance date for products or services not yet provided are classified as deferredincome. These items include subscriptions received for registration of racing colours, license fees, Workers CompensationInsurance premiums and subscriptions to NSW Racing magazine.

NOTE 20: ACCUMULATED LOSSESAccumulated losses at beginning of the financial year (4,925,133) (1,123,583)Net profit/(loss) from Ordinary Activities after income tax 2,360,184 (3,801,550)Accumulated losses at end of the financial year (2,564,949) (4,925,133)

NOTE 21: CAPITAL AND LEASING COMMITMENTSOperating lease Commitments

Non-cancellable operating lease contracted for but not capitalised in the Financial statementsPayable not later than 1 year 62,914 62,914 Payable later than 1 year and not later than 5 years 158,273 221,359

221,187 284,273

NOTE 22: CONTINGENT LIABILITIESThe Board are not aware of any material contingent liabilities which are required to be disclosed in these financialstatements, other than the guarantees provided by the ANZ Bank in favour of Workcover Authority of NSW amounting to$21,193,000 (2002 : $18,084,000) at balance date, against a facility of $21,200,000 (2002 $18,084,000). Unused facilities atbalance date amount to $7,000 (2002 : NIL).

Assets Pledged as Security

The carrying amounts of assets pledged as security for the financial guarantees issue by the ANZ bank in favour ofWorkcover are set out in notes 8,12 and 13.A registered mortgage debenture over all the assets of the Board is held by the ANZ bank. The deposits at call are pledged as security for the ANZ Bank Guarantee to Workcover.

NOTE 23: MEMBERSa) Names of Board Members who have held office during the financial year are• A.G Hartnell (Chairman)• Nominated by Australian Jockey Club – P Esplin• Nominated by Sydney Turf Club – G Pash (Appointed 01/08/2002)• Nominated by Sydney Turf Club – R W Lucas (Retired 31/07/2002)• Nominated by Provincial Association of NSW – B Reardon • Nominated by Board of Directors of NSW Country Racing Council – D E Hopkins (Deputy Chairman )• Nominated by eligible industry bodies to represent the interests of

Licensed Persons and Race club employees – J. Costigan• Nominated by eligible industry bodies to represent the interests of

Owners and Breeders of thoroughbred racehorses – R. M. Lapointe• M J Hill (Chief Executive)

b) Remuneration of Non-Executive Board Members 2003 2002

$ $Income paid or payable to all directors 434,036 476,813

42

Notesto the Financial Statements for the year ended 30 June, 2003

NOTE 23: MEMBERS (CONT.)

Number of Non-Executive Board Members whose income was within the following bands 2003 2002$0 - $9,999 1 2 $10,000 - $19,999 – 1$40,000 - $49,999 5 5 $70,000 - $79,999 1 –$90,000 - $99,999 – 1$110,000 - $119,999 1 –

NOTE 24: COMPANY DETAILSThe NSW Thoroughbred Racing Board was established as an entity under The Thoroughbred Racing Act 1996. As such it isan entity incorporated and domiciled in Australia.The registered office and principal place of business of the Board is: 81-83 Baxter Road, Mascot, NSW,2020.

NOTE 25: FINANCIAL INSTRUMENTSFloating Interest Rate Non Interest Bearing Total

Note 2003 2002 2003 2002 2003 2002

Financial Assets:Cash 8 4,687,761 2,876,973 – – 4,687,761 2,876,973Receivables 9 – – 6,924,067 8,254,515 6,924,067 8,254,515 Investments 11 10,690,179 10,891,891 – – 10,690,179 10,891,891 Total Financial Assets 15,377,940 13,768,864 6,924,067 8,254,515 22,302,007 22,023,379

Weighted average interest rate 1.23% 0.76%

Financial Liabilities:Bank Loans and Overdrafts 17 – 952,501 – – – 952,501Trade and sundry creditors – – 6,269,893 8,987,089 6,269,893 8,987,089Total Financial Liabilities – 952,501 6,269,893 8,987,089 6,269,893 9,939,590

Weighted average interest rate 8.60%

Net financial assets/(liabilities) 15,377,940 12,816,363 654,174 (732,575) 16,032,114 12,083,789

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognisedfinancial assets is the carrying amount, net of any provisions for doubtful debts of those assets, as disclosed in thestatement of financial position and notes to the financial statements. A significant proportion of receivables fromassociated entities include amounts receivable from NSW Country Racing Council Limited. The receivable as at 30 June2003 was $2,107,754 (2002 $2,721,030).The entity does not have any other material credit risk exposure to any single debtoror group of debtors under financial instruments entered into by the economic entity.

The net fair values of financial assets and liabilities approximate to the carrying amounts at balance date.

NOTE 26: SEGMENT REPORTING 2003 2002NSW NSW

Thoroughbred ThoroughbredRacing Board Insurance Total Racing Board Insurance Total

Primary Reporting - Business SegmentsRevenueExternal Sales 15,789,196 9,054,815 24,844,011 15,777,014 6,369,295 22,146,309Other Revenue 361,726 1,000,945 1,362,671 176,296 223,419 399,715Total Segment Revenue 16,150,922 10,055,760 26,206,682 15,953,310 6,592,714 22,546,024

Expenditure 14,629,320 8,062,777 22,692,097 14,019,971 11,060,203 25,080,175 Amortisation – – – 550,000 – 550,000 Depreciation 1,150,547 – 1,150,547 623,916 – 623,916Share of Loss of partnerships 3,854 –- 3,854 93,483 – 93,483Total Segment Expenditure 15,783,721 8,062,777 23,846,498 15,287,370 11,060,203 26,347,574

Segment Result 367,201 1,992,983 2,360,184 665,940 (4,467,489) (3,801,550)

43

Notesto the Financial Statements for the year ended 30 June, 2003

NOTE 26: SEGMENT REPORTING (CONT.)

AssetsSegment Assets 11,924,512 17,899,648 29,824,161 11,803,799 17,128,268 28,932,067Total Assets 11,924,512 17,899,648 29,824,161 11,803,799 17,128,268 28,932,067

LiabilitiesSegment Liabilities 10,253,966 22,135,141 32,389,110 11,494,273 22,362,929 33,857,202Total Liabilities 10,253,966 22,135,141 32,389,110 11,494,273 22,362,929 33,857,202

Net Liabilities 1,670,546 (4,235,493) (2,564,949) 309,526 (5,234,661) (4,925,135)

The primary business activity is the NSW Thoroughbred Racing Board provision of racing services to the industry. Thesecondary activity is the Workers Compensation Fund. All income and expenditure is incurred within the thoroughbredracing industry within the state of New South Wales, Australia.

NOTE 27: RELATED PARTIESAn amount of $15,380 (2002 : $57,186) was expended on legal fees to Atanaskovic Hartnell. A G Hartnell is both a partner in the firmof Atanaskovic Hartnell and Chairman of the NSW Thoroughbred Racing Board. These transactions are conducted at arms length.

Agistment fees for research horses of $6,359 (2002 : $5,784) were expended to Muskoka Farm. Muskoka Farm is owned by RM Lapointe, a Board member of the NSW Thoroughbred Racing Board. These transactions are conducted at arms length.

Mr A G Hartnell and Mr D E Hopkins, both board members of the NSW Thoroughbred Racing Board, are also directors ofNSW Racing Limited and each beneficially own one Class A1 share unit in NSW Racing Limited.

NOTE 28: INSURANCE ACTIVITIES 2003 2002

$ $

Premium revenue 7,234,257 5,679,305 Reinsurance recoveries and other recoveries revenue 617,598 74,150 Investment revenue 1,000,945 223,419 First Charge 621,818 450,000 Other Income 581,143 165,840

10,055,761 6,592,714

General and Administration 989,891 971,833Direct claims 6,151,174 9,001,089Outwards reinsurance 720,000 559,000 Investment expense write-down 201,712 528,281

8,062,777 11,060,203

Underwriting result for the financial year excluding investments revenue and expense 1,193,751 (4,162,627)

InvestmentsLand and buildings 3,733,500 2,862,480 ANZ Trust 10,690,179 10,891,891

14,423,679 13,754,372Operating AssetsBank 3,425,235 2,874,873 Other Debtors – 450,000 Bank guarantee 50,734 49,023 Reinsurance recoveries 1,706,679 2,842,000

5,182,648 6,215,896LiabilitiesOutstanding claims 23,020,629 24,914,504Unearned Premiums 821,191 290,425

23,841,820 25,204,929

2003 2002NSW NSW

Thoroughbred ThoroughbredRacing Board Insurance Total Racing Board Insurance Total

44

Notes & Declarationto the Financial Statements for the year ended 30 June, 2003

NOTE 28: INSURANCE ACTIVITIES (CONT.)2003 2002

a) Outstanding Claims $ $– –

Gross undiscounted claim liability 23,410,000 26,373,000 Discount to present value (3,680,000) (4,647,000)Third party recoveries (972,000) (1,226,000)Re-insurance recoveries (1,707,000) (2,842,000)

17,051,000 17,658,000Prudential margin 4,262,750 4,415,000

21,313,750 22,073,000

Current 5,466,250 6,490,000Non-current 15,847,500 15,583,000

21,313,750 22,073,000

The average weighted term to settlement of the outstanding liabilities is 3.1 years (2002: 3.4 years).The following average inflation rates and discount rates were used in measuring the liability for outstanding claims:

2003 2002Next Year Thereafter Next Year Thereafter

Inflation rate 4.00% 4.00% 4.00% 4.00%Discount Rate 5.00% 5.00% 6.00% 6.00%

b) Net claims incurred for current year and change in incurred for prior years.

2003 2002Current Year Reassess Prior Current Year Reassess Prior

Incurred Years Incurred Years$ $ $ $

Gross undiscounted incurred claims 6,223,000 (900,000) 7,080,000 (658,000)Undiscounted reinsurance & other recoveries (144,000) 923,000 (360,000) 2,321,000

Net undiscounted incurred claims 6,079,000 23,000 6,720,000 1,663,000

Discounting of incurred claims (765,000) 102,000 (869,000) 203,000Discounting recoveries 16,000 (105,000) 62,000 (403,000)

5,330,000 20,000 5,913,000 1,463,000

Gross discounted incurred claims 5,458,000 (798,000) 6,211,000 (455,000)Discounted reinsurance & other recoveries (128,000) 818,000 (298,000) 1,919,000Net discounted incurred claims 5,330,000 20,000 5,913,000 1,464,000

The claim cost incurred consists of paid to date plus estimate of outstanding liabilities plus administration expenses.

DECLARATION BY MEMBERS OF THE BOARDThe Members of the Board declare that:(1) the financial statements comprising the Statement of Financial Performance, Position and Cash Flows and

accompanying notes:(i) give a true and fair view of the financial position of the NSW Thoroughbred Racing Board as at 30 June 2003 and

its performance for the year ended on that date.(ii) are in accordance with the NSW Thoroughbred Racing Board Act 1996 and comply with the Accounting Standards

and other mandatory professional reporting requirements and(2) as at the date of this declaration there are reasonable grounds to believe that the NSW Thoroughbred Racing Board

will be able be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Members of the Board and is signed for and on behalf ofthe NSW Thoroughbred Racing Board.

Mr. A G HARTNELL Mr D HOPKINSChairman Deputy ChairmanDated at Sydney this 15th day of September, 2003.

Chartered Accountants & Advisers

Liability limited by the Accountants’ Scheme, approved under the Professional Standards Act 1994 (NSW)

Level 19, 2 Market St. Sydney NSW 2000 GPO Box 2551 Sydney NSW 2001 Tel (61 2) 9286 5555 Fax (61 2) 9286 5599 Email bdosyd@bdosyd.com.auwww.bdo.com.auABN 57 908 209 104

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF THE NSW THOROUGHBRED RACING BOARD

Matters Relating to the Electronic Presentation of the Audited Financial Report

This audit report relates to the financial report of the NSW Thoroughbred Racing Board ("the TRB") or the year ended 30 June 2003 included on the TRB's web site. The Members of the Board are responsible for the integrity of the TRB's web site. We have not been engaged to report on the integrity of the TRB's web site. The audit report refers only to the statements named below. It does not provide an opinion on any other information that may have been hyper linked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Scope

The Financial Report and Members of the Board's Responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements and the Declaration by the Members of the Board of the NSW Thoroughbred Racing Board, for the year ended 30 June 2003.

The Members of the Board are responsible for the preparation and true and fair presentation of the financial report in accordance with the Thoroughbred Racing Board Act 1996. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Audit Approach

We have conducted an independent audit in order to express an opinion to the Members of the Board of the TRB. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Thoroughbred Racing Board Act 1996, including compliance with Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the TRB's financial position, and of its performance as represented by the results of its operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and

assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the Members of the Board.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

Audit Opinion

In our opinion, the financial report of the NSW Thoroughbred Racing Board is in accordance with:

a) the Thoroughbred Racing Board Act 1996, including:

i) giving a true and fair view of the TRB's financial position as at 30 June 2003 and of its performance for the year ended on that date; and

ii) complying with Accounting Standards in Australia; and

b) other mandatory reporting requirements.

BDOChartered Accountants

D P GOMAN Partner

Signed at Sydney, this the 15th day of September 2003.

81-83 Baxter Road, Mascot NSW 2020

P.O. Box 528, Kensington, NSW 1465

Telephone: 02 9551 7500 Facsimile: 02 9551 7752 Website: www.racingnsw.com.au