ntra annual report to the membershipntra annual report to the membership | 2012-2013 2012 Horse of...

1

ntr a a n n ua l r eport to the m embership

| 2012 -2013

2012 Horse of the Year Wise Dan by ©Horsephotos.com

org a n i z at ion s t ruc t u r e

ntra safety & integrity alliance

Launched in 1998, the National Thoroughbred Racing Association (NTRA) is a not-for-profit, membership-based trade association for the Thoroughbred racing and breeding industry. NTRA membership is broadly defined and consists of leading Thoroughbred racetracks, owners, breeders, trainers, horseplayers, veterinarians, jockeys, wagering service providers, and affiliated horse racing associations. The NTRA is charged with increasing the popularity of horse racing and improving the economic conditions for industry participants.

The NTRA is served by a Board of Directors that is comprised of representatives from member racetracks and horsemen, including owners and breeders. The NTRA operates three subsidiaries:

ntra safety and integrity alliance Establishes standards and practices to promote safety and integrity in horse racing and secures their implementation.

ntra charities, inc. Promotes and supports charities in or related to the Thoroughbred industry.

ntra advantage Delivers cost reductions and efficiencies to NTRA members and associated member organizations through group purchasing.

ntra advantage

national thoroughbred racing association, inc.

ntra charities

1

ta b l e o f c o n t e n t s

o r g a n i z a t i o n s t r u c t u r e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i n s i d e f r o n t c o v e r

m e s s a g e f r o m t h e n t r a p r e s i d e n t a n d c e o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 0 1 2 b o a r d o f d i r e c t o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

m e m b e r o r g a n i z a t i o n s , a c c r e d i t e d r a c e t r a c k s a n d a f f i l i a t e s . . . . . . . . 5

f i n a n c i a l o v e r v i e w . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

n t r a s a f e t y a n d i n t e g r i t y a l l i a n c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

g o v e r n m e n t a f f a i r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

e c l i p s e a w a r d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0

n a t i o n a l h a n d i c a p p i n g c h a m p i o n s h i p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2

n t r a c o m m u n i c a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3

n t r a c h a r i t i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5

n t r a a d va n t a g e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6

a f i n a l w o r d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8

f i n a n c i a l s t a t e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9

i n d u s t r y p r o g r a m s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i n s i d e b a c k c o v e r

Photos: ©Horsephotos.com, unless otherwise noted

June 2013

After several years of challenging economic circumstances, 2012 will likely be remembered as the year when the Thoroughbred breeding and racing industry began to slowly emerge from

the negative effects of a lengthy world-wide economic recession. Increases in a number of important economic indicators – including pari-mutuel handle, purses and sales market results – have continued to trend in a positive direction in early 2013. The past year also proved to be a positive one for the NTRA including a number of important industry programs and initiatives overseen by the organization.

Safety and integrity issues continued to be a major area of focus for the industry and the NTRA in 2012. The year concluded with the accreditation of 24 racetracks by the NTRA Safety and Integrity Alliance. Through its industry-created Code of Standards and a professional accreditation process, the Alliance implements standards in the following areas: (1) injury reporting and prevention; (2) safety equipment and a safer racing environment; (3) medication and testing; (4) health and safety of jockeys; (5) aftercare and second careers for retired equine athletes; and (6) wagering security. Each year, the Code of Standards is updated with new standards and protocols, thereby providing a mechanism for continuously raising the bar for racing that is safe and fair at Alliance-accredited racetracks. I invite you to learn more about the Alliance,

which has proven to be the industry’s best and most timely response to calls for the implementation of safety and integrity reforms.

Working in a highly-polarized environment in Washington, DC in 2012, the NTRA’s federal legislative advocacy team continued to address issues that have a direct and material effect on Thoroughbred industry participants and their business activities, whether those activities relate to racing, breeding or pari-mutuel wagering. Key areas of focus on our agenda for the current 113th Congress include issues relating to tax reform, immigration, internet gaming and medication reform.

Two programs support the NTRA’s work on Capitol Hill. The Legislative Action Campaign sustains the NTRA’s government relations and lobbying efforts. Sellers and buyers at public auction, sales companies, farms and horseplayers contribute to this critical program. NTRA’s political action committee, Horse PAC, supports specific candidates for re-election. Horse PAC contributions come from individual NTRA members across the country. I encourage you to contact me to learn more about how you can support our efforts in Washington, DC.

The NTRA’s most popular promotion is the Daily Racing

Form/NTRA National Handicapping Championship presented by Sovereign Stable and Treasure Island Las Vegas (NHC) – the richest and most prestigious handicapping championship in the world with total cash and prizes of nearly $2 million. The 2013 NHC winner, Jim Benes from Illinois, collected $750,000 and an Eclipse Award as the Handicapper of the Year. The NHC is the culmination of a year-long series of NTRA-sanctioned

2

m e s s ag e f r o m t h e n t r a pr e s i de n t a n d c e o

3

local tournaments conducted by racetracks, casino race books, off-track betting facilities and horse racing and handicapping websites, each of which sends its top qualifiers to the national finals.

In collaboration with The Jockey Club, the NTRA has expanded NTRA Communications and rebranded its website. NTRA.com now focuses on industry initiatives while a new site, www.followhorseracing.com, features the new brand initiative “American’s Best Racing” and places an emphasis on social media and fan engagement. With weekly media teleconferences featuring the sport’s top personalities and a public relations team pitching stories to mainstream media outlets, NTRA Communications continues to generate coverage for hundreds of racing events and our sport’s headline-makers each year.

Purchases by NTRA members through the Advantage group purchasing program surpassed $45 million in 2012. Advantage is a win-win for the industry and the NTRA, providing millions of dollars in savings to members while generating robust revenue for the NTRA to support important programs and initiatives. We thank our partners John Deere, Valvoline, Sherwin-Williams and OfficeMax as well as the individuals, organizations and equine affiliates that support Advantage.

Finally, we are deighted to report positive net revenue of $66,750 during our most recently ended fiscal year. This is great news after several years of reporting losses. And we are encouraged by early financial results indicating that we are on course to generate positive net revenue during the current fiscal year as well.

The NTRA is a unique industry asset. It is the only national organization which reaches virtually every segment of the horse racing and breeding industry through not only membership but also participation in some or all of the programs outlined above. We reach racetracks and pari-mutuel operators as well as horseplayers, breeders, owners, trainers, veterinarians and even state regulators. Despite the diversity of interests represented by these individuals and organizations, the NTRA still stands for the proposition that we all share a common interest in a healthy and vibrant Thoroughbred industry.

I hope you will take a few minutes to review the Annual Report. Please contact me if you have any questions or comments, and, as always, thank you for your support of the NTRA.

Sincerely,

Alexander M. Waldrop

President and CEO

In 2012, the NTRA Board of Directors consisted of the NTRA CEO and representatives for racetracks and for horsemen, owners and breeders.

Track director seats included independent representatives and two major track companies: Keeneland Association and the New York Racing Association.

Horsemen director seats included representatives from The Jockey Club, Thoroughbred Horsemen’s Association, Thoroughbred Owners and Breeders Association and Thoroughbred Owners of California. Breeders’ Cup Limited has two director seats.

T R AC K R E P R E S E N TAT I V E S

independent seats

dennis drazin Monmouth ParkEastern Region

racetrack company seats

ellen mcclainNew York Racing Association

nick nicholsonKeeneland Association

OW N E R / B R E E D E R / H O R S E M E N

R E pR E S E N TAT I v E S

craig FravelBreeders’ Cup Limited

reynolds bellThoroughbred Owners and Breeders Association

robert clayThe Jockey Club

alan ForemanThoroughbred Horsemen’s Association

satish sananBreeders’ Cup Limited

pablo suarezThoroughbred Owners of California

N T R A C O R P O R AT E O f f I C E R S

alexander m. WaldropPresident and CEO

robert WattSecretary

amber FlorenceTreasurer

4

2 01 2 b oa r d of di r e c t or s

5

2 01 2 m e m b e r org a n i z at ion s , ac c r e di t e d r ac e t r ac k s a n d a F F i l i at e s

Map Key NTRA Member Track

NTRA Member Horsemen’s Association

NTRA Member Off-Track Betting Association

NTRA Affiliate

$ National Handicapping Championship Qualifying Site

$

$$

$

$

$

$

$$

$

$

$

$

$

$ $$

$$ $

$

Founding members

Breeders’ Cup Limited $Keeneland Association $National Thoroughbred AssociationOak Tree Racing AssociationThe Jockey ClubThoroughbred Owners and Breeders Association

horsemen’sassociations

Kentucky Thoroughbred Association National THA • Delaware THA • Illinois THA • Maryland THA • New Jersey THA • New York THA • pennsylvania THAThoroughbred Owners of California $

affiliatesAmerican Association of Equine practitioners

American Driving SocietyAmerican farriers AssociationAmerican Horse CouncilAmerican Quarter Horse AssociationAppaloosa Horse ClubDaily Racing FormEquine CanadaFarriers & Hoofcare Resource CentersHarness Tracks of AmericaNational Steeplechase AssociationNational Walking Horse AssociationRocky Mountain Horse AssociationSovereign StableTwinspires.com $United States Equestrian FederationUnited States polo AssociationUnited States RiderUnited States Trotting AssociationXpressbet.com $

memberscaliForniaDel Mar* $fairplex Park* $Golden Gate fields*Betfair Hollywood Park* $Santa Anita Park* $Surfside Race place $ Television Games Network $

canada Woodbine Entertainment Group* $

connecticutFoxwoods Resort & Casino $

FloridaCalder Race Course*Gulfstream Park* $Isle Casino at Pompano Park $

illinoisArlington Park*Hawthorne $

kentuckYChurchill Downs* $ Ellis park $ Keeneland* $Kentucky Downs* $Turfway Park* $

louisianafair Grounds* $

marYlandLaurel Park*Pimlico Race Course*

massachusettsSuffolk Downs* $

minnesotaCanterbury Park* $

neVadaTreasure Island $Wynn $

neW JerseYMonmouth Park* $

neW meXicoSunland Park*

neW YorkAqueduct* $ Belmont Park* $Capitol OTBfinger Lakes*Saratoga* $

ohioBeulah park $Thistledown $

oklahomaRemington Park

south dakotaSouth Dakota OTB

teXasLone Star park $

WashingtonEmerald Downs $

West VirginiaMountaineer Park

*Safety and Integrity Alliance Accredited facility

6

F Y 2 014 F i n a n c i a l oV e rV i e W

The NTRA’s four primary areas of focus are:

1. marketing- Reaches new and existing fans, horseplayers and industry stakeholders by utilizing a combination of media

platforms to promote horse racing.

2. ntra advantage- Delivers cost savings on products and services to NTRA members and affiliated members.

3. legislative- Lobbies for federal legislation on behalf of the Thoroughbred industry and supports congressional educational

programs through government relations.

4. safety & integrity alliance- Establishes and secures implementation of safety and integrity standards and practices at the racetrack level

through the Alliance Code of Standards and accreditation process.

highlights of FY 2014 net income and expenses by program area

revenues: Programs $5,961,555 Member Dues 1,751,648 Legislative Action Campaign 455,795

Total revenues $8,168,998

expenses: Marketing and Promotions $2,900,283 Advantage 1,963,316 Legislative 703,729 Communications 594,289 Safety & Integrity Alliance 329,858 General and Administrative 1,376,119 Retained Earnings 301,404

Total expenses $8,168,998

7

F Y 2 014 F i n a n c i a l oV e rV i e W

6%

21%

73%

Sources of Funds - $8.2 Million

Legislative Action Campaign (6%)

Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%

Uses of Funds - $8.2 Million

Legislative Advocacy (9%)

Retained Earnings (4%)

General and Administrative (17%)

Safety & Integrity Alliance (4%)

Advantage (24%)

Membership Communications and Promotions (35%)

Media Communications (7%)

6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



*fY 2014 budget

6%

21%

73%



Member Dues (21%)

Programs (73%)

9% 4%

17%

4%

24%

35%

7%






Advantage (24%)



8

n t r a s a F e t Y a n d i n t e g r i t Y a l l i a n c e

aqueduct racetrack

arlington park

belmont park

betfair hollywood park

calder casino and race course

canterbury park

churchill downs

del mar thoroughbred club

Fair grounds race course & slots

Fairplex park

Finger lakes casino and racetrack

golden gate Fields

gulfstream park

keeneland

kentucky downs

laurel park

monmouth park

pimlico race course

santa anita park

saratoga race course

suffolk downs

sunland park

turfway park

Woodbine

accredited racetracks

9

g oV e r n m e n t a F Fa i r s

The NTRA, the only national organization solely representing Thoroughbred racing and breeding interests in Washington, D.C., engages in federal legislative advocacy to address issues that have a direct and material effect on Thoroughbred industry participants and their business activities, whether those activities relate to racing, breeding or pari-mutuel wagering.

Along with other horse industry stakeholder groups in and outside of racing, the NTRA also supports Congressional education programs on matters like agriculture and immigration which affect all breeds and equine disciplines.

The NTRA’s government relations team has secured

passage of legislation to legalize online pari-mutuel wagering under the Interstate Horseracing Act and a farm Bill provision authorizing accelerated depreciation for young racehorses. Current legislative targets include horseplayer tax equity, immigration and issues relating to Internet gaming.

Two programs support the NTRA’s work on Capitol Hill. The Legislative Action Campaign (LAC) sustains the NTRA’s government relations and lobbying. NTRA’s political action committee, Horse PAC, supports specific candidates for re-election. Sellers and buyers at public auction, sales companies, farms and horseplayers contribute to LAC. Horse PAC contributions come from individual NTRA members.

Who participated in the 1/4% check-off program last Year? Hundreds of industry members from around the globe contributed to the ¼% Check-off Program when buying

and selling at over 30 sales hosted by our partners in 2012.

42 states Large, medium and

boutique-sized operations from coast to coast and border to

border contributed.

10 countries Residents of the United States,

Canada, Japan, Ireland, Australia, Qatar, etc

participated.

6 sale companies The NTRA gathers support from buyers

and sellers at sales nationwide.

NTRA honors Thoroughbred racing’s Champions at the annual Eclipse Awards, presented by Daily Racing Form, the Breeders’ Cup and The Stronach Group. The awards are voted on and presented by more than 250 representatives of the NTRA, Daily Racing Form, and National Turf Writers and Broadcasters (NTWAB).

Eclipse Awards recognize equine and human athletic performance in 18 categories. Additional 2012 honorees included Nich Nickolson, recipient of the Eclipse of Award of Merit.

Media Eclipse Awards are presented in the categories of photography, audio and multi-media Internet, news/commentary writing, feature/enterprise writing, local television, national television—feature and national

television—live racing programming to recognize members of the media for outstanding coverage of Thoroughbred racing.

HRTv and Racetrack Television Network broadcast the 42nd annual event from the Sport of Kings Theatre at Gulfstream Park Racetrack and Casino in Hallandale Beach, fL. It marked the first time the Eclipse Awards was held at a racetrack and capped a week of charitable events benefitting The Race for Education, The Grayson-Jockey Club Research foundation, the Gulfstream Park Thoroughbred Aftercare Alliance and the Permanently Disabled Jockeys fund. In all, more than $120,000 was raised for charity.

10

e c l i p s e aWa r d s

“Throughout my career, the opportunity to work in the Thoroughbred industry has been its own reward. I want to thank my wife and children (Susan, Nick Jr. and Trish) and all the kind

and talented people with whom I have had the pleasure of working. This prestigious honor belongs as much to them as it does to me.”

– Nick Nicholson, recipient of the Eclipse Award of Merit

2012 Eclipse Award of Merit recipient Nick Nicholson (left) with his son and presenter,

Nick Nicholson, Jr.

Eclipse Awards week events raised a total of $120,000 for four industry charities. pictured are jockey Johnny velazquez (left), representing the Permanently Disabled Jockeys’ fund; Elisabeth Jensen, president and Executive Director of The Race for Education; Ed Bowen, president of the Grayson-

Jockey Club Research foundation; and Stacie Clark, Manager of the Gulfstream Park Thoroughbred Aftercare Program.

11

Two-Year-Old Male: Shanghai BobbyHorse of the Year, Older Male & Male Turf Horse: Wise Dan

Male Sprinter: Trinniberg Steeplechase Horse: pierrot Lunaire

Two-Year-Old filly: Beholder

female Turf Horse: Zagora (fR)female Sprinter: Groupie Doll

Outstanding Apprentice Jockey: Jose Montano

Handicapper of the Year: Michael Beychok

Outstanding Trainer: Dale Romans

Outstanding Owner/Breeder: Godolphin Racing, Darley

Three-Year-Old filly: Questing (GB)

Three-Year-Old Male: I’ll Have Another

Older female: Royal Delta

Champions of 2012

Outstanding Jockey: Ramon Dominguez

1 2

n at ion a l h a n dic a ppi ng c h a m pion s h i p

“My mother passed away a few years ago. Her name was Mary, and when they were coming down the stretch of that last race and I heard a horse

named Hail Mary on the lead, I wasn’t sure whether it was my mom trying to tell me ‘I’m here for you’ or ‘You should have bet on me!’ The only other thing I have been able to think of since then is my 9-year-old daughter. She’s going

to be really happy and really proud of me when I get home.” – Jim Benes, 2013 National Handicapper of the Year

Jim Benes of Countryside, Ill., won $750,000 and an Eclipse Award as Handicapper of the Year at the 2013 Daily Racing Form/NTRA National Handicapping Championship. Benes qualified for the NHC at Hawthorne Race Course.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

Grand Prize

Total Prize

201320122011201020092008200720062005200420032002200120001999

NHC Prize Money 1999-2013

Jim Benes of Countryside, Ill., topped a field of 455 participants to win the $750,000 first-place prize and an Eclipse Award as 2013 Handicapper of the Year at the 14th annual Daily Racing Form/NTRA National Handicapping Championship (NHC) Presented by Treasure Island and Sovereign Stable.

In its 14th year, the Daily Racing Form/NTRA National Handicapping Championship is the most important tournament of the year for horseplayers. There are no

“buy-in” entries at the NHC. It is the culmination of a year-long series of NTRA-sanctioned local tournaments conducted by racetracks, casino racebooks, off-track betting facilities and horse racing and handicapping websites, each of which sends its top qualifiers to the national finals.

More than 100,000 horseplayers have participated in local tournaments leading up to the NHC. Treasure Island will once again host an estimated 500 players at the 15th NHC in January 2014.

13

n t r a c om m u n ic at ion s

NTRA Communications continued to collaborate with The Jockey Club on new fan engagement in 2012, with much of the focus on digital platforms and target fan development away from the racetrack through platforms that are part of The Jockey Club’s America’s Best Racing (ABR) initiative.

ABR is a multimedia, new fan development and awareness-building platform designed to increase the profile and visibility of America’s best Thoroughbred racing events, with a primary focus on the sport’s lifestyle and competition.

A new website, followhorseracing.com, launched in 2012 and featured news, photos, video vignettes, profiles,

celebrity blogs, statistics and interactive elements

On the social media front, ABR’s facebook and Twitter following grew significantly, while Pinterest and Instagram pages also were added to the mix to help boost interest and fan engagement around the sport’s biggest races.

A 45-foot-long tour bus, dubbed the “ABRV,” began traveling the country in 2013 to promote Thoroughbred racing in high-traffic areas and strategic locations within each destination city.

The America’s Best Racing “ABRV” debuted in 2013. The ABRv will crisscross the United States before ending its tour

in California at the Breeders’ Cup World Championships.

The America’s Best Racing website, followhorseracing.com, targets new fans through an emphasis on the

sport’s lifestyle and competition.

14

n t r a c om m u n ic at ion s

Meanwhile, the NTRA Communications team also implemented a public and media relations strategy designed to highlight and profile an array of diverse storylines emerging in 2012.

National teleconferences were held in advance of the Triple Crown and Breeders’ Cup, featuring many of the sport’s top personalities. Headliners in 2012 included the connection’s of Triple Crown hopeful I’ll Have Another, leading jockey Rosie Napravnik, who became the first female jockey to win the Kentucky Oaks, as well as Michael Beychok, a political consultant from Louisiana, who became the first handicapper to win $1 million at the Daily Racing

form/NTRA National Handicapping Championship, presented by Sovereign Stable and Treasure Island, Las vegas.

The NTRA Top 3-Year-Old and Top Thoroughbred polls featured expanded transparency and participation in 2012 and were published weekly by the Associated press and major newspapers, including USA Today.

NTRA Communications also continued in its longtime roll as the media’s primary information resource for all matters pertaining to Thoroughbred racing.

As the regular rider aboard 2012 Kentucky Oaks winner, Believe You Can (above left), and 2012 Eclipse Award

Champion Two-Year-Old Male, Shanghai Bobby (below left), Rosie Napravnik was one of the sport’s top newsmakers.

Her achievements on the racetrack and life story were featured on 60 Minutes (above).

© H

orse

phot

os.c

om©

Hor

seph

otos

.com

15

n t r a c h a r i t i e s

Gretchen and Roy Jackson’s hope that Barbaro’s memory would lead to advances in equine medical research became a reality in 2012.

Research funded by the NTRA Charities Barbaro Fund for Equine Health and Safety Research and supported by the Grayson-Jockey Club Research Foundation proved helpful in the successful treatment of Grade I winner paynter. Winner of the 2012 Haskell Invitational Stakes, Paynter spent nearly a year away from the racetrack while he battled a host of ailments, including a near-fatal bout with laminitis. Paynter made a triumphant return to the races in June of 2013, and his successful recovery was voted by racing fans as the 2012 NTRA Moment of the Year.

formed in 1999 as a subsidiary of the National Thoroughbred Racing Association (NTRA), NTRA Charities is a non-profit 501(c)(3) public charity whose mission is to promote and support charities in or related to the Thoroughbred industry.

NTRA Charities’ industry partners include the Grayson-Jockey Club Research Foundation, The Jockey Club Foundation, Race for Education, Racetrack

Chaplaincy of America, Rerun, Thoroughbred Charities of America, Thoroughbred Retirement foundation and Tranquility farm.

Through its Barbaro Fund, NTRA Charities supports scientific conferences and research projects to promote racehorse health and safety. The fund is the primary fundraising arm for research under the NTRA Safety and Integrity Alliance.

NTRA Charities coordinates with the Grayson-Jockey Club Research Foundation to identify and fund research projects. Through its Research Advisory Committee, the Grayson foundation communicates with memberships of the American Association of Equine Practitioners, American College of Veterinary Surgeons, American College of Veterinary Internal Medicine, the British Equine Veterinary Association and the deans of 79 research institutions to encourage project proposals. The Barbaro fund has contributed more than $450,000 to educational seminars and to laminitis research projects recommended by the committee.

“Gretchen and I hope Barbaro’s memory can be carried on through advances in medical research, including a cure for laminitis.”

– Roy Jackson

16

n t r a a dVa n tag e

NTRA Advantage facilitates the sale of products and services to more than one million eligible horse industry participants at prices well below market rate. Since its inception in 2002, NTRA Advantage has generated more than $630 million in sales for its nationally branded corporate partners.

NTRA Advantage partners include:

John deere – worldwide supplier of agricultural,construction and turf equipment.

sherwin-Williams – global leader in the manufacture,development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers.

Valvoline – leading , worldwide producer and distributor of premium-branded automotive, commercial and industrial lubricants; operates and franchises quick lubes.

officemax – leading provider of office supplies, officefurniture and office technology.

ups – a global leader in logistics including the shipment ofpackages and freight.

NTRA Advantage covers the United States and Canada with a team of six sales representatives who attend 70 equine events throughout the year with and for the partners listed above. NTRA Advantage has saved industry members over $100 million. Purchases by NTRA members through the Advantage program average $50 million annually.

“The NTRA has assembled a large group of Agricultural interests that interests valvoline. We’re excited about the future and sharing our

Valvoline products with NTRA members.” – John C. Noal, VP Commercial & Industrial, Valvoline

Valvoline – newest parter

17

n t r a a dVa n tag e

The horse industry surpassed $100 million in total savings through NTRA Advantage programs in 2012.

NTRA Advantage has contributed more than $46 million toward NTRA membership programs and services.

NTRA Advantage sales since 2002 have exceeded $636 million.

$0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$ in Millions

$14.2

2002

$29.5

2003

$70.2

2004

$75.0

2005

$83.6

2006

$117.9

2007

$56.7

2008

$48.4

2009

$49.6

2010

$46.4

2011

$45.3

2012

$0$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0$20.0

$ in Millions

$2.4

2002

$4.2

2003

$9.4

2004

$10.4

2005

$12.0

2006

$17.4

2007

$10.5

2008

$8.9 $9.4

2009

$8.9

20102011

$8.6

2012

$0$1.0

$.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$ in Millions

$1.2

2002

$4.9

2003

$7.8

2004

$6.7

2005

$6.0

2006

$7.3

2007

$3.6

2008

$2.1

2009

$2.1

20102011

$2.1

2012

$2.2*

sales

savings to members

revenue to ntra

*fY 2013

18

a F i n a l Wor d

The strength of the NTRA lies in a diverse membership representing all facets of the horse racing industry.

Time and again—whether it be through programs like legislative advocacy in Washington, D.C., purchasing discounts achieved through NTRA Advantage, reforms enacted by the Safety & Integrity Alliance, or unparalleled growth of the Daily Racing Form/NTRA National Handicapping Championship—we have proven that there is

much we can achieve when the industry works together in a cohesive, consensus-driven manner.

The NTRA’s mission and goals remain the same as they were in 1998—to strengthen the popularity of the sport and improve the economics for industry participants. With your help and continued support, we will continue to pursue those goals in 2013 and beyond.

1 9

ta b l e o f c o n t e n t s

r e p o r t o f i n d e p e n d e n t a u d i t o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0

c o n s o l i d a t e d s t a t e m e n t s o f f i n a n c i a l p o s i t i o n

a s o f j a n u a r y 3 1 , 2 0 1 3 a n d j a n u a r y 3 1 , 2 0 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1

c o n s o l i d a t e d s t a t e m e n t s o f a c t i v i t i e s a n d c h a n g e s i n n e t a s s e t s

f o r t h e f i s c a l y e a r e n d e d j a n u a r y 3 1 , 2 0 1 3 a n d t h e t h i r t e e n m o n t h p e r i o d e n d e d j a n u a r y 3 1 , 2 0 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . 2 2

c o n s o l i d a t e d s t a t e m e n t s o f c a s h f l o w s

f o r t h e f i s c a l y e a r e n d e d j a n u a r y 3 1 , 2 0 1 3 a n d t h e t h i r t e e n m o n t h p e r i o d e n d e d j a n u a r y 3 1 , 2 0 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . 2 3

n o t e s t o c o n s o l i d a t e d s t a t e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4

n a t i o n a l t h o r o u g h b r e d r a c i n g a s s o c i a t i o n , i n c . a n d s u b s i d i a r i e s

c on s ol i dat e d F i n a n c i a l s tat e m e n t sf o r t h e f i s c a l y e a r e n d e d j a n u a r y 3 1 , 2 01 3

a n d t h i r t e e n m o n t h p e r i o d e n d e d j a n u a r y 3 1 , 2 01 2

2 0

To the Board of DirectorsNational Thoroughbred Racing Association

We have audited the accompanying consolidated financial statements of National Thoroughbred Racing Associa-tion, Inc. and Subsidiaries (the “Association”) which comprise the consolidated statements of financial position as of January 31, 2013 and 2012, and the related consolidated statements of activities and cash flows for the year ended January 31, 2013 and thirteen-month period ended January 31, 2012, and the related notes to the consoli-dated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the con-solidated financial statements. The procedures selected depend on the auditors’ judgment, including the assess-ment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Association’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropri-ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Association as of January 31, 2013 and 2012, and the changes in its net as-sets and its cash flows for the year ended January 31, 2013 and the thirteen-month period ended January 31, 2012, in accordance with accounting principles generally accepted in the United States of America.

Louisville, KentuckyMay 10, 2013


r e p or t of i n de pe n de n t au di t or s

21

JANUARY 31 JANUARY 31

2013 2012

assets

Cash and cash equivalents $ 506,960 $ 346,657

Investments, at fair value 1,483,632 1,411,842

Accounts receivable, net 1,258,353 1,264,192

Prepaid expenses 164,679 276,300

Other assets 54,588 48,994

Property and equipment, net 34,040 98,422

Total assets $ 3,502,252 $ 3,446,407

liabilities and net assets

Accounts payable and accrued liabilities $ 1,177,772 $ 1,280,713

Deferred revenue 493,165 411,416

Other long-term liabilities 50,138 39,952

Total liabilities 1,721,075 1,732,081

Net assets

Unrestricted net assets 1,781,177 1,714,326

Total net assets 1,781,177 1,714,326

Total liabilities and net assets $ 3,502,252 $ 3,446,407

See accompanying notes.


c on s ol i dat e d s tat e m e n t s of F i n a n c i a l p o s i t iona s o f j a n u a r y 3 1 , 2 01 2 a n d j a n u a r y 3 1 , 2 01 3

2 2


2013 2012

operating reVenues

Marketing and promotions $ 2,976,407 $ 4,261,001

Membership dues 2,584,163 3,568,106

Advantage 2,166,103 2,318,851

Safety and Integrity Alliance 110,833 346,500

Contributions 307,627 61,712

Other revenues 18,324 36,575

Total operating revenues 8,163,457 10,592,745

operating eXpenses

Advertising, marketing and promotions $ 3,055,194 $ 5,059,269

Advantage 1,917,844 2,269,930

Legislative and regulatory programs 703,096 1,051,946

Safety and Integrity Alliance 271,557 423,189

Communications 326,189 306,865

Contributions 322,235 34,128

General and administrative 1,603,176 2,097,408

Depreciation and amortization 67,022 94,635

Total operating expenses 8,266,313 11,337,370

Excess of operating revenues under

operating expenses (102,856) (744,625)

non-operating income (eXpense)

Interest income 72,707 20,698

Other income 97,000 125,000

Total non-operating income 169,707 145,698

Change in undesignated net assets (deficit) 66,851 (598,927)

Undesignated net assets at beginning of year 1,714,326 2,313,253

Total net assets at end of year $ 1,781,177 $ 1,714,326



c on s ol i dat e d s tat e m e n t s of ac t i V i t i e s a n d c h a ng e s i n n e t a s s e t s

f o r t h e f i s c a l y e a r e n d e d j a n u a r y 3 1 , 2 01 3 a n d t h e t h i r t e e n m o n t h p e r i o d e n d e d j a n u a r y 3 1 , 2 01 2

2 3


2013 2012

cash FloWs From operating actiVities

Excess of revenues over (under) expenses $ 66,851 $ (598,927)

Adjustments to reconcile excess of revenue over (under)

expenses to net cash provided by (used in) operating activities:

Gain on sale of investments (10,115) (5,109)

Unrealized (gain) loss on investments (13,036) 14,672

Depreciation 67,022 94,635

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable, net 5,839 (256,149)

Decrease (increase) in prepaid expenses 111,621 (6,851)

(Increase) decrease in other assets (5,594) 149

(Decrease) increase in accounts payable and accrued liabilities (102,941) 438,843

Increase (decrease) in deferred revenue 81,749 (797,351)

Increase in other long-term liabilities 10,186 9,588

Net cash provided by (used in) operating activities 211,582 (1,106,500)

cash FloWs From inVesting actiVities

(Increase) decrease in investments (48,639) 651,780

Purchase of property and equipment (2,640) (38,237)

Net cash (used in) provided by investing activities (51,279) 613,543

Net increase (decrease) in cash and cash equivalents 160,303 (492,957)

Cash and cash equivalents at beginning of year 346,657 839,614

Cash and cash equivalents at end of year $ 506,960 $ 346,657

supplemental disclosure

Cash paid for interest $ 794 $ 155



c on s ol i dat e d s tat e m e n t s of c a s h F l oW sf o r t h e f i s c a l y e a r e n d e d j a n u a r y 3 1 , 2 01 3 a n d

t h e t h i r t e e n m o n t h p e r i o d e n d e d j a n u a r y 3 1 , 2 01 2

2 4

A] natur e of busin ess and orga nization

The National Thoroughbred Racing Association, Inc. (the “NTRA” or the “Association”), is a not-for-profit mem-bership organization incorporated in December 1997. The purpose of the NTRA is to strengthen the Thoroughbred racing industry by increasing public awareness, creating a centralized national structure, implementing compre-hensive marketing strategies, enhancing the industry’s economic condition, establishing and securing implemen-tation of standards and practices to promote safety and integrity in horse racing, and achieving significant revenue increases and cost reductions for its membership. NTRA, Inc., as reported on the consolidated statements of financial position and the consolidated statements of activities and changes in net assets, includes NTRA, Inc. and its wholly owned subsidiaries, NTRA Charities, Inc. (“NTRA Chari-ties”) EquiSource, LLC (dba, NTRA Advantage, previ-ously dba NTRA Purchasing) and NTRA Investments, LLC (“NTRA Investments”).

NTRA Charities is a not-for-profit, tax-exempt chari-table organization whose purpose is to promote and sup-port charities in or related to the Thoroughbred industry. funds raised by NTRA Charities must be used for these purposes. Unspent net assets of NTRA Charities at Janu-ary 31, 2013 and 2012 were approximately $114,000 and $130,000, respectively.

NTRA Advantage, created in January 2002, is a for-profit, limited liability company whose purpose is to deliver cost savings and value-added services to NTRA members through contracts with major national suppliers.

NTRA Investments LLC is a for-profit limited liability company that is the 100 percent owner of NTRA Produc-tions LLC, an entity created in 1999 to enter into a televi-sion contract with Winnercomm, Inc. This contract was terminated in April 2009 and neither of these entities have had any significant activity since then.

Collectively, these consolidated entities are referred to as the “Association” within these consolidated financial statements.

B] sum m a rY of signiFicant accounting policies

PR I N C I P L E S O f C O N S O L I DAT I O N

The consolidated financial statements include the accounts of the NTRA and its subsidiaries. All significant intercompany balances and transactions have been elimi-nated in consolidation.

O P E R AT I N G R E V E N U E S a n d E x p E N S E S

Transactions that are considered by management to be ongoing and central to the strategic purpose of the Asso-ciation are reported as operating revenues and operating expenses. Other peripheral transactions are reported as non-operating income (expense) on the consolidated state-ments of activities and changes in net assets.

R I S K S a n d U N C E R TA I N T I E S

A significant portion of the Association’s revenue is dependent on the overall economy of the Thoroughbred industry. The consolidated financial statements and accompanying notes have been prepared in conformity with accounting principles generally accepted in the United States, which require management to make esti-mates and assumptions that affect the amounts reported. Actual results could vary from these estimates.

C H A N G E I N Y E A R - E N D

On September 23, 2011, the Board of Directors approved changing the Association’s year end from December 31 to January 31. The Association has sig-nificant activity in January each year, specifically the National Handicapping Championship and the Eclipse Awards. The change in year-end has allowed manage-ment to more effectively monitor operations and better match revenues and expenses.

R E C L A S S I f I C AT I O N S

Certain amounts in the 2012 financial statements have been reclassified for comparative purposes to con-form to the presentation in the 2013 financial statements, such reclassifications had no effect on net income.

n o t e s t o c o n s o l i d a t e d F i n a n c i a l s t a t e m e n t s

n a t ion a l t h orou g h b r e d r ac i n g a s s o c i a t ion , i n c . a n d s u b s i d i a r i e s


2 5

R E V E N U E R E C O G N I T I O N

In fiscal years 2013 and 2012, the Association derived a significant portion of its revenue from mem-bership dues and NTRA Advantage fees.

Racetrack and horsemen’s association dues are recognized in the year to which the membership relates. Contributions from public auction sales companies, and horse sellers and buyers participating in designated public auctions, are recognized in the year during which the sale is conducted. Other membership dues are rec-ognized as revenue when earned according to contract terms.

Promotion, sponsorship and NTRA Advantage rev-enues are earned based upon the satisfaction of contrac-tual terms. All cash received in the year ended January 31, 2013 and the thirteen-month period ending January 31, 2012 related to events occurring in fiscal years 2014 and 2013, respectively, is recorded in deferred revenue on the consolidated statements of financial position.

All unrestricted, unconditional charitable contribu-tions are recorded as revenue when received. All con-tributions are considered available for unrestricted use unless specifically restricted by the donor. Restricted contributions received and expended for their restricted purpose within the same fiscal year are reported as unrestricted contributions.

C A S H a n d C A S H E Q U I VA L E N T S

The Association considers all highly liquid invest-ments purchased with an original maturity date of three months or less to be cash equivalents.

I N V E S T M E N T S

Investments in debt securities are reported at their fair values in the consolidated statements of financial position. Unrealized gains and losses are included in the consolidated statements of activities and changes in net assets.

AC C O U N T S R E C E I VA B L E

Accounts receivable are recorded net of an allowance for doubtful accounts of approximately $52,000 and $51,000 as of January 31, 2013 and January 31, 2012, respectively. Changes in the allowance are reflected against membership dues on the consolidated statements of activities and changes in net assets.

PRO P E R T Y a n d E Q U I PM E N T

Property and equipment are recorded at cost, if pur-chased, or fair market value at the date of gift if donated. The Association capitalizes asset purchases exceeding $2,000 with a useful life greater than one year. property and equipment are stated at cost less accumulated depre-ciation. Property and equipment are depreciated using the straight-line method over their estimated useful lives, which range from two to seven years. Leasehold improvements are stated at cost and amortized using the straight-line method over the lease term. Depreciation expense is approximately $67,000 and $95,000 for the year and thirteen-month period ended January 31, 2013 and 2012, respectively.

AC C O U N T I N G f O R U N C E R TA I N TA X PROV I S I O N S

Accounting standards prescribe a comprehensive model for how an entity should measure, recognize, present, and disclose in its financial statements uncertain tax positions that the Association has taken or expects to take on a tax return. The Association recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recog-nized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ulti-mate settlement. It is the Association’s policy to expense any interest and penalties associated with uncertain income tax positions in the year that the tax position is taken on the tax return. Interest is reported as interest expense and penalties are reported as other expenses.




2 6

The Association’s open audit periods are 2009 through 2011. In evaluating the Association’s tax sta-tus and potential liabilities, interpretations and tax strategies are considered. The Association believes its estimates are appropriate based on current facts and circumstances.

for the year and thirteen-month period ended Janu-ary 31, 2013 and 2012, the Association determined it did not have any uncertain tax provisions and the Associa-tion did not incur or accrue any associated interest or penalties related to those positions.

U S E O f E S T I M AT E S

The preparation of financial statements in confor-mity with generally accepted accounting principles requires management to make estimates and assump-tions that affect reported amounts of assets and liabili-ties and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in nets assets during the reporting period. Actual results could differ from those estimates.

S U B S E Q U E N T E V E N T S

In preparing these financial statements, the Associa-tion has evaluated events and transactions for potential recognition or disclosure through May 10, 2013, the date the consolidated financial statements were available to be issued.

C] inVestments

Investments are reported at fair value in the accom-panying consolidated statements of financial position.

Quoted Prices in Active Markets Fair Value (Level I)

January 31, 2013 Corporate Bonds $ 1,483,632 $ 1,483,632

$ 1,483,632 $ 1,483,632

January 31, 2012 Mutual Funds $ 30,433 $ 30,433Corporate Bonds 478,664 478,664

U. S. Treasury Bonds 526,592 526,592

Agency Bonds 376,153 376,153

$ 1,411,842 $ 1,411,842

The fair value measurement accounting literature establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels:

Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, Level 2 inputs consist of observable inputs and other than quoted prices for identical assets, and Level 3 inputs are unobservable and have the lowest priority. The Association uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the Association measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs were only used when Level 1 or Level 2 inputs were not available.

Level 1 Fair Value Measurements–The fair value of corporate bonds, mutual funds, agency bonds, and U.S. Government Debt Securities is based on quoted net asset values of the stocks and bonds held by the Associa-tion at year-end.




2 7

D] propertY and equipment

Property and equipment consist of the following:

January 31, January 31, 2013 2012

Computer software $ 1,142,454 $ 1,139,814 and equipment

Furniture and fixtures 158,542 158,542

Leasehold improvements 11,200 11,200

Other equipment 239,612 239,612

1,551,808 1,549,168Less accumulated depreciation and amortization (1,517,768) (1,450,746)

$ 34,040 $ 98,422

E] debt

NTRA has a line of credit with a bank for amounts available up to $250,000. It bears the prime rate of interest not to decrease below a fixed minimum rate of 4.25%, and expires November 21, 2013. This agree-ment requires a balance of $750,000 in unrestricted net assets be maintained. NTRA was in compliance with this requirement. As of January 31, 2013 and 2012, the NTRA had no outstanding borrowings.

F] income taXes

The NTRA is exempt from federal income tax under section 501 (c)(6) of the Internal Revenue Code. How-ever, certain activities of NTRA are subject to tax as unrelated business income. There were no proxy taxes due for the year and thirteen-month period ended Janu-ary 31, 2013 and 2012. Additionally, for-profit subsid-iaries of NTRA are subject to tax on taxable income, if any. NTRA has generated net tax operating loss carry forwards of $16,875,552 and $16,927,750 (expiring from 2022 through 2030) for 2013 and 2012, respectively, available to offset future taxable income, if any. This results in a deferred tax asset which is fully offset by an allowance since management cannot predict when, if ever, such an asset would be realized.

G] commitments and contingencies

Rent expense, which includes rent for office space, storage and various equipment in Lexington, Kentucky and Rye Brook, New York, amounted to approximately $277,000 and $320,000 for the year and thirteen-month period ended January 31, 2013 and 2012 respectively.

Approximate future minimum lease payments under existing non-cancellable operating lease agreements as of January 31, 2013 are as follows:

2014 $ 81,000

2015 67,000

2016 64,000

2017 10,000

Total $ 222,000

H] related parties

The Association continues to conduct numerous transactions with a variety of industry organizations beyond the scope of the membership. The Association has formed alliances with leading industry news and information organizations, including The Blood-Horse, Inc. and Daily Racing Form LLC (Official Sponsors of the Association), Equibase Company (Official Supplier of Racing Information and Statistics to the Associa-tion) and The Jockey Club Information Systems, Inc. (Official Supplier of Breeding and Sales Information for the Thoroughbred industry to the Association). These partnerships provide the Association with promotional and advertising vehicles and enable the Association to provide timely information and statistics via the Internet and other media to both new and existing fans, as well as non-industry publications wishing to cover Thorough-bred racing.

There are leasing/rental transactions with Daily Rac-ing Form LLC and Breeders’ Cup Limited whereby the Association provides equipment or office space. Income from these transactions was $7,000 and $13,795 for the year and thirteen-month period ended January 31, 2013 and 2012, respectively. Beginning July 2012, the Associ-




2 8

ation paid the Breeders’ Cup Limited for use of common areas and certain equipment for a total of $7,800.

I] retirement plans

The National Thoroughbred Racing Association 401(k) Safe Harbor Retirement Plan (“Retirement Plan”) covers all full-time employees over the age of 21 upon three months of service. Benefits vest immediately as is customary for all safe harbor plans. The NTRA may contribute a discretionary amount of a covered employee’s salary. No discretionary amount was paid for the year and thirteen month period ended January 31, 2013 and 2012. Additionally, NTRA’s contribution amounted to three percent of each employee’s salary. The Retirement Plan’s contribution expense approximated $61,922 and $76,091 for the year and thirteen-month period ended January 31, 2013 and 2012, respectively.

The National Thoroughbred Racing Association Deferred Compensation Plan follows in form the Retire-ment Plan and covers full-time eligible employees whose annual compensation exceeds the 401 (k) ERISA sal-ary limits. It exists in accordance with Section 457 of the Internal Revenue Code. Under this plan, employee benefits vest at the earlier date of retirement age or the completion of ten years of service (as defined in the plan document). The Deferred Compensation Plan’s contri-bution expense approximated $1,000 and $1,938 for the year and thirteen-month period ended January 31, 2013 and 2012, respectively.

J] concentration of credit risk

The Association’s cash and investment accounts used in operations are maintained at a financial institution. The cash and cash equivalents are secured by the Fed-eral Deposit Insurance Corporation (“fDIC”) up to $250,000 as of January 31, 2013. The bank balance of the Association exceeded its FDIC insurance by approx-imately $130,000 as of January 31, 2013. The Associa-tion also has cash equivalent and investment accounts

covered by the Securities Investor protection Corpora-tion (“SIPC”) up to $500,000. At January 31, 2013 and 2012, the Association had cash equivalents and invest-ments in excess of the SIPC coverage of approximately $1,000,000 and $900,000, respectively.




i n du s t rY pro g r a m s

The NTRA participates in a wide range of industry programs and initiatives. The association is a stakeholder in the following industry organizations and initiatives:

The Racing Medication and Testing Consortium, whose mission is to develop, promote and coordinate, at the national level, policies, research and educational programs that seek to ensure the fairness and integrity of racing and the health and welfare of racehorses and participants, and to protect the interests of the racing public;

The American Horse Council, which serves to promote and protect all horse breeds, disciplines and interests by communicating with Congress, federal agencies, the media and the horse industry as a whole;

The Unwanted Horse Coalition, whose goal is to reduce the number of unwanted horses and to improve their welfare;

The International federation of Horseracing Authorities, whose purpose is to promote good regulation and best practices on international matters pertaining to pari-mutuel horse racing;

The Racing Officials Accrediation Program, which strives to enhance integrity in the pari-mutuel racing industry by accrediting and providing continuing education for stewards, judges and racing officials; and

The Thoroughbred Aftercare Alliance, which serves as both the accrediting body for aftercare facilities that care for Thoroughbreds following the conclusion of their racing careers and a fundraising body to support these approved facilities.

Thoroughbred Aftercare Alliance

3 0

Kentucky Office2525 Harrodsburg Road, Suite 510, Lexington, Kentucky 40504

Phone: (859) 245-NTRA Fax: (859) 422-1230

New York Office40 E 52nd St # 15th Floor, New York, NY 10022-5911

Phone: (212) 371-5970 Fax: (212) 371-6123

(800) 792-NTRAE-mail: [email protected] Internet: www.NTRA.com

Fair Hill Training Center by ©Horsephotos.com

ntra annual report to the membershipntra annual report to the membership | 2012-2013 2012 Horse of...

Documents

Transcript of ntra annual report to the membershipntra annual report to the membership | 2012-2013 2012 Horse of...