NHRA 2012 TO PRESS (10 dec 2012).indd - The National Horse ...

Contents2 Notice of Meeting3 Objectives4 Core Values5 Committees9 National Board Directors10 Chairman’s Report20 Racing Control26 Laboratory30 Racing Administration34 Employment Equity and Human Resources35 Financial Statements66 Organisation Structure68 DirectoryVision StatementFor Thoroughbred Horseracing and Breeding in South Africa and Zimbabwe to be widelyrecognised as being regulated by The National Horseracing Authority to the higheststandards of professionalism and integrity.Mission StatementTo formulate and enforce Rules which maintain and promote, to the highest internationalstandards, the integrity of licensed horse racing and of thoroughbred horse breeding inSouth Africa and Zimbabwe.1

Notice of MeetingNotice is hereby given that the One Hundred and Thirty First Annual General Meetingof Members will be held at the ofices of The National Horseracing Authority, Turf ClubStreet, Turffontein, on Monday, 14 January 2013, at 14:30 to transact the followingbusiness:1. To consider and conirm the Minutes of the Annual General Meeting of Membersheld on Monday, 16 January 2012.2. To consider the Report of the Chairman of the National Board of Directors forthe year ended 31 July 2012.3. To receive and consider the audited Financial Statements of The NationalHorseracing Authority of Southern Africa and the Funds held in Trust for theperiod ended 31 July 2012.4. To appoint the Authority’s Auditors.5. To transact any business which may be transacted at an Annual GeneralMeeting.Rob de KockChief ExecutiveThe National Horseracing Authority of Southern AfricaTurf Club StreetTurffontein 21907 November 20122The National Horseracing Authority of Southern AfricaAnnual Report 2012

ObjectivesThe objectives of The National Horseracing Authority ofSouthern Africa are as follows:to promote and maintain honourable practice and to eliminate malpracticewhich may arise in horse racing in Southern Africa.to regulate the sport of horse racing in Southern Africa.to maintain and publish the General Stud Book.to encourage the promotion of horse racing in Southern Africa.to promote, encourage and improve the breed of the thoroughbred race horse.to promote and foster co-operation and goodwill with recognised racingauthorities, Governments and Provincial Governments.to render services of whatever nature to racing or other sporting authoritieswhether within Southern Africa or elsewhere and to render services to personsor bodies serving, associated or connected to such authorities.3

Core Valueshighly effectivecost eficientprofessionalcomplete integrityeven-handed, irm but fairservice orientatedstructured and staffed for the new South Africarespect for individualscontinuous improvementhigh employee satisfactionopen and reasonableinnovative4The National Horseracing Authority of Southern AfricaAnnual Report 2012

CommitteesAudit, Risk & Finance CommitteeMr J M Witts-HewinsonMr R D de KockMr W A du PlessisMr A MohamedMr V W Nsele(Chairman)(By invitation)The mandate of this Committee is set out in Clause 16.6.2 of the Constitution as follows:16.6.2 an Audit Committee is appointed to advise the NATIONAL BOARD on matters relatingto the audited accounts, the inancial controls, the risks facing the NATIONALHORSERACING AUTHORITY, the NATIONAL HORSERACING AUTHORITY’S budgetand such other matters as may be delegated and/or referred to it by the NATIONALBOARD.Graded Races Sub-CommitteeAdv. A P JoubertMr R L BrussMr C B HallMr R Smith(Chairman)This Committee, working within criteria and principles based on internationally acceptedstandards, evaluates all races run in South Africa and Zimbabwe to produce a list ofGraded and Listed Races to be approved by the National Board. The purpose of this listis to recognise racing class.5

Inquiry Review CommitteeMr J M Witts-HewinsonMr A M CostaMr R D de KockAdv. G I HoffmanMr D J PillayMr R S Napier(Chairman)This Committee monitors the procedures of Inquiry Boards to ensure procedural fairnessand the appropriateness and consistencies of penalties imposed.Laboratory CommitteeMr J M Witts-HewinsonMr R D de KockDr S S de KockMr D J PillayMr I RobertsonDr D P Wheeler(Chairman)This Committee monitors the standards and eficiencies of the laboratory and evaluatesthe needs of new equipment before recommending such capital expenditure. It alsoensures that the laboratory keeps up with international trends in drug detection.Licensing CommitteeMr R D de KockMr C B HallMr D J PillayMrs J Bockel(Chairman)(Secretary)The mandate of the Licensing Committee is set out in Clause 20.1 of the Constitution asfollows:20.1 The LICENSING BOARD shall have the power to, and may, in its absolute discretion,without any obligation to furnish reasons, grant, refuse to grant, renew, or refuse torenew, any PRIVILEGE provided for in this Constitution or the RULES, excluding thePRIVILEGES referred to in clauses 16.2.6 and 16.2.7.6The National Horseracing Authority of Southern AfricaAnnual Report 2012

Pension Fund Management CommitteeMr J M Witts-HewinsonMr R D de KockDr G M RösemannDr D P Wheeler(Employer Representative)(Employer Representative)(Employee Representative)(Employee Representative)The Management Committee have a iduciary responsibility in ensuring that the interests ofthe employer and employees are looked after through liaising with the administrators of theAlexander Forbes Retirement Fund (Pension Section) to ensure that the fund is eficientlyadministered and that the best possible returns on the fund’s investments are achieved.Remuneration CommitteeMr J M Witts-HewinsonMr C S BeyleveldMr R D de KockMr V W Nsele(Chairman)(By invitation)The mandate of this Committee is set out in Clause 16.6.3 of the Constitution as follows:16.6.3 a Remuneration Committee is appointed on such terms and conditions as may beprescribed by the NATIONAL BOARD to determine, on at least an annual basis, thetype and amount of the remuneration to be provided to the NATIONAL HORSERACINGAUTHORITY employees.Rules CommitteeMr C S BeyleveldMr P DavisMr R D de KockMr G T HawkinsAdv. A P JoubertMr D J PillayMr R J TrotterMr R L Bruss(Chairman)This Committee receives and considers amendments to the Rules as proposed byManagement and/or other stakeholders and makes recommendations on suchamendments to the National Board.7

Transformation CommitteeMr J M Witts-HewinsonMr A MohamedMr V W NseleMr D J PillayMr R J Trotter(Chairman)This Committee sets policy in order to ensure that The National Horseracing Authority,inter alia, works toward achieving staff transformation in line with the demographics ofSouth Africa as well as the use of BEE compliant suppliers.T B A Liaison CommitteeMr R L BrussMr R D de KockMr C B HallMr R MoodleyMr D J PillayMr R J TrotterDr D P WheelerVeterinary Liaison CommitteeMr R BrussMr R D de KockMr C B HallMr R MoodleyMr D J PillayDr D P WheelerThese two Committees meet jointly on an annual basis with representatives of the TBAand the Equine Practitioners Group to discuss matters of mutual concern and interest.The National Board wishes to express its thanks to the Members of the abovementionedCommittees for the generous time and effort which they put into carrying out theirresponsibilities.8The National Horseracing Authority of Southern AfricaAnnual Report 2012

National Board DirectorsJonathan Witts-Hewinson,ChairmanRob de Kock,Chief ExecutiveDenzil PillayChief Executive DesignateCecil BeyleveldEtienne BraunRobin BrussRian du PlessisGraeme HawkinsAltus JoubertAshraf MohamedRoy MoodleyWilliam NseleIan RobertsonRodney TrotterLarry WainsteinThe National Board consisted of seven nationally elected members, two membersappointed by the National Board, two members representing the owner associationsand Chapters in the Gold Circle and the Phumelela racing districts and a representativefrom each of Gold Circle, Phumelela and the TBA, the Chief Executive and Chief ExecutiveDesignate.With the exception of the Chief Executive and the Chief Executive Designate, the Directorscommit their time in an honorary capacity. The Board met on ive occasions between1 August 2011 to 31 July 2012.9

Chairman’s ReportThe Role and Vision of TheNational Horseracing AuthorityThe National Horseracing Authority regulatesboth the sport of thoroughbred horseracing,and the breeding of thoroughbred horses inSouthern Africa. The main function of TheNational Horseracing Authority is to maintainand enhance the integrity of these activities. Thevision of The National Horseracing Authority isfor thoroughbred horseracing and breeding inSouthern Africa, to be widely recognized as beingregulated by The National Horseracing Authorityto the highest standards of professionalism andintegrity.The Operation of The NationalHorseracing AuthorityThe National Horseracing Authority is a professionalregulatory body which operates on a non-proitbasis. In order to regulate racing and breeding, itJonathan Witts-Hewinson, Chairmanhas developed a comprehensive set of Rules whichare based on one hundred and thirty years’ ofregulatory experience in Southern Africa, as well as best international practice.The National Horseracing Authority trains and develops specialist staff who ensurethat the Rules are complied with, and who implement disciplinary action when they aresatisied that a breach has taken place. These specialists are supported by professionalswho provide the veterinary and scientiic expertise needed, both to ensure that thewelfare of the horse is protected, and that our horseracing forensic laboratory maintainsthe highest international standards. They are complemented by people with skills inspeciic areas of race day control and by administrative staff responsible for functionssuch as the Stud Book, registrations and publications.10The National Horseracing Authority of Southern AfricaAnnual Report 2012

The Importance of the Integrity of RacingRacing in Southern Africa is very much dependent upon the willingness of punters to beton races, and of owners to invest in the purchasing and training of racehorses. If they andother groups of people who make racing possible do not have conidence in the integrityof racing, they are unlikely to continue to incur the substantial outlays which they make,and without which racing would not be possible.It is clear that integrity is an integral and essential element in the continued success ofSouth African racing, and for the growth of offshore betting on South African racing, whichPhumelela Gold continues to distribute to an increasing number of overseas countries.It is the mandate of The National Horseracing Authority through the application of ourRules and Disciplinary processes, to uphold and protect the integrity of the sport ofthoroughbred horseracing and to zealously safeguard the safety and welfare of both thehuman and equine participants in the sport.The National Horseracing Authority maintains an open door policy and all industryparticipants are encouraged to communicate with our management with regard to anyconcerns, criticism or proposals which they may have. We welcome such input andrecognize it as being a vital ingredient in assisting us to achieve our vision of regulatingracing to the highest standard of professionalism and integrity.National BoardWith the exception of the Chief Executive and the Chief Executive Designate, the NationalBoard consists of non-executive Directors.During November 2011 Mr S Rasethaba resigned from the Board and in January 2012Mr C Baitz retired from the Board having reached the age of 70. I would like to thank themfor the contribution which they made to The National Horseracing Authority.Mr R Moodley was elected to the Board and Mr A Mohamed was co-opted to the NationalBoard during the period under review.In terms of Clause 15.4.2 of the Constitution, Messrs C S Beyleveld and R J Trotter retiredfrom the Board but were eligible and did offer themselves for re-election. As no othercandidates were nominated, Messrs C S Beyleveld and R J Trotter have been re-elected tothe National Board.11

DirectorateDetails of the directorate of The National Horseracing Authority are provided in thisReport. The Board normally meets four times a year but may meet more frequently shouldthe need arise.Corporate GovernanceThe National Horseracing Authority is committed to the principles of good corporategovernance as advocated by the King reports and supports the code of CorporatePractices and Conduct as contained therein.In this respect it is appropriate to refer to two of the Committees which contribute to theachievement of this objective:Audit, Risk and Finance CommitteeThe Audit, Risk and Finance Committee, which consists of suitably qualiied nonexecutiveDirectors and the Chief Executive, by invitation, meets on a scheduledbasis to consider the inancial accounts and budgets of The National HorseracingAuthority. It assesses the operational and statutory control systems in place, so asto evaluate the risks faced by The National Horseracing Authority. The Committeeliaises with The National Horseracing Authority’s auditors who have unrestrictedaccess to the Committee and are represented at the Committee’s meetings.The Committee also deals with other matters which are delegated to it by theNational Board from time to time.Remuneration CommitteeThe Remuneration Committee consists of non-executive Directors and the ChiefExecutive by invitation. The Committee is responsible for reviewing and approvingchanges in the remuneration of the senior management of The National HorseracingAuthority, as well as the overall remuneration budget for The National HorseracingAuthority.Going ConcernThe Directors believe that The National Horseracing Authority has adequate resourcesand facilities available to continue to operate in the year ahead. They therefore continueto apply the going concern basis in preparing the annual inancial statements.12The National Horseracing Authority of Southern AfricaAnnual Report 2012

FundingThe National Horseracing Authority is funded to a substantial extent by the RacingOperators. We irmly believe that all betting operators who accept bets on horseracingshould contribute on an equitable basis to the costs of regulation provided by TheNational Horseracing Authority. This proposal formed part of our submission to theParliamentary Portfolio Committee, and this outcome is something which we continueto pursue in our ongoing engagements with the Gambling Boards, as well as the relevantGovernment Departments.National Gambling ActDuring the period October 2011 to March 2012 all stakeholders within the greaterGambling sector were afforded the opportunity to present submissions on the report ofthe Gambling Review Commission to the Parliamentary Portfolio Committee on Tradeand Industry.The National Horseracing Authority made a PowerPoint presentation in addition to awritten submission.As part of our submission we have proposed that:Horseracing is brought into the legislative framework;That the NHA is granted Statutory recognition as the National Regulator of theSport of Horseracing;The Rules of Racing be adopted by Government as was done with the BookmakerRules and Totalisator Rules;ALL betting operators contribute equitably toward the costs of the Regulationof the Sport.The Portfolio Committee has forwarded its report and recommendations to the Ministerof Trade and Industry.13

The extract on the recommendations reads as follows:8.4.4. Horseracing and bettingThe Minister should consider:8.4.4.1 Legislation that would allow track operators to close and/or relocate tracksbased on the track’s economic viability.8.4.4.2 Licensing up to 40 medium-stake LPMs and/or permit other entertainment andsocial activities, like restaurants, at race tracks to ensure their sustainability.8.4.4.3 Maintaining the revenue formula for bookmakers and the totalisator in relationto their contributions to the horseracing industry. However, bookmakers shouldnot be allowed to take open bets, namely bets based on the odds of the totalisator.8.4.4.4 Amending gambling legislation that would ensure that the horseracing industryis formally regulated. The Minister should further consider establishing acommission of inquiry into the horseracing and betting industry to inform therestructuring and transformation of the industry.No effect can be given to these recommendations until they have been referred to andapproved by the National Council of Provinces, the Provincial Legislators and the NationalAssembly.Betting ExchangesThe Portfolio Committee recommend that the Minister consider legalising bettingexchanges as it is a form of online gambling which should be regulated in line withGambling Review Commission’s recommendations.TransformationThe National Horseracing Authority has during the year under review established aTransformation Committee and the names of the members of this Committee are set outearlier in this report.14The National Horseracing Authority of Southern AfricaAnnual Report 2012

The Committee has set out objectives and tasked Management to achieve these objectivesand report progress at further Board meetings.As was announced earlier this year, Denzil Pillay has been appointed as Chief ExecutiveDesignate and will replace our current Chief Executive, Rob de Kock, when he retires on31 July 2013.We are in the process of appointing three transformation candidates who will be trainedand developed in all aspects of the racing industry. We anticipate that they will commencetheir training in mid-January 2013.We remain irmly committed to transformation and are conscious of the need to attainthe desired levels of transformation as soon as is realistically possible.The National Horseracing Authority’s LaboratoryThe National Horseracing Authority’s policy of operating its own laboratory is in linewith that of the vast majority of international racing jurisdictions. This enables us, asthe regulatory body, to have direct control over the laboratory and its operation. Thisprovides us, in addition to routine drug testing, with a cost-effective facility to undertakeresearch and the development of methods to detect new drugs which come onto themarket and are of concern to the racing industry.The Laboratory of The National Horseracing Authority continues to play an importantrole in the integrity chain of racing, by providing the racing industry with an extremelycompetitive and effective prohibited substance testing facility, for both horses andjockeys. This service provides for the screening of both urine and blood specimens forprohibited substances. This facilitates effective drug control of pre-race, post-race andout of competition specimens. The testing of jockey specimens is also conducted. Thisis important in order to ensure that jockeys are not under the inluence of substanceswhich could impair their judgement on the track, and which would compromise thesafety of both jockeys and horses.As a result of the investments made in new instrumentation over the past few years,we have an element of additional capacity. Without deviating from our core function,we have over the past few years been able to undertake contract analysis work, whichhas generated substantial income for the laboratory. This has reduced the cost of the15

laboratory to the racing industry. I am pleased to report that revenue earned throughcontract work during the 2012 inancial year amounted to the sum of R1 057 373.Financial StatementsThe inancial statements of The National Horseracing Authority of Southern Africa forthe year ended 31 July 2012, and of the funds held in trust, are included with this report.RevenueRevenue for the year increased from R47 462 938 to R50 303 816, which correspondsto an annual increase of 5,99%. Levies received from the Operators to fund operatingexpenditure amounted to 75,75% of revenue and at R38 105 751, were 7,00% higherthan the previous year.ExpenditureTotal expenditure increased from R48 199 500 in the last inancial year to R52 368 123for the 12 months to 31 July 2012. This represents an increase in operating expenditureof 8,65%.Employee costs make up 68,17% of The National Horseracing Authority’s operatingexpenditure.Net deicit for the yearA net loss of R1 729 643 together with a negative Fair Value adjustment to property ofR1 850 000 was transferred to accumulated funds which decreased from R17 890 597to R14 310 954.AppreciationI would like to thank the National Board Directors for the time and effort which theydevote to carrying out their responsibilities. The Board plays an important role and thecontribution by Board members is vital for the successful performance of The NationalHorseracing Authority. They attend the meetings, in some cases as elected members, andin other cases representing the bodies which have appointed them, but in all cases they act16The National Horseracing Authority of Southern AfricaAnnual Report 2012

in the interests of The National Horseracing Authority,not only when they attend meetings, but also whenasked for advice. The Board members also give of theirvaluable time when attending various sub-committeemeetings and when serving on Inquiry and/or AppealBoards.The ability, dedication and performance of the ChiefExecutive of The National Horseracing Authority isvital to the performance of The National HorseracingAuthority and to the role played by the Chairman andthe Board. I would like to thank Rob de Kock for hiscontribution in this regard. It is of interest to note thatRob was appointed by the International Federation ofHorseracing Authorities as Chairman of its Committeefor the Harmonisation of Raceday Rules. He is a memberof the Executive Council of the Asian Racing Federationand Chairman of its Drug Control Committee and isalso an appointee of the Asian Racing Federation onthe Technical Advisory Committee of the InternationalFederation.Rob de Kock, Chief ExecutiveRob has built up an excellent team who support himadmirably. The racing industry, by its very nature, necessitates working long hours andover weekends and holidays, and the dedication of this team is crucial to the success of TheNational Horseracing Authority.In many cases decisions have to be taken immediately in demanding situations, whereevery action and decision is subject to scrutiny and criticism.Our Stipendiary Stewards and our Stipendiary system continue to be highly regardedinternationally and our Laboratory, which continues to do conirmatory analyses foroverseas laboratories, is well respected internationally.The team deserves our sincere appreciation for the excellent functions which they perform.17

OutlookThe horseracing industry faces challenging times. This is the case not only nationally,but also internationally. A changing world environment, where the South African racingproduct now competes on an international stage, and where the convenience of technology,home-viewing and electronic communications, creates ever changing challenges notonly for the racing operators but also for breeders and other participants in the industry.These changes require that we constantly assess and evaluate what may in the past havebeen accepted as a norm or even an excellence. For The National Horseracing Authority,this means that, for example, we need to ind new ways and means of demonstrating tothose who rely on our regulatory services, that we are in fact achieving the standards ofexcellence to which we aspire.The nature of the thoroughbred horseracing industry is that it is entirely dependent uponthe discretionary spend of both the owner as well as the punter. The sport of horseracing isexactly that (i.e. a sport). As such, it is meant to be both fun and entertaining. Nonetheless,it is also an important industry which creates employment for many thousands of people,who are dependent on the survival of the sport in South Africa. It is therefore extremelydificult to understand why it is that there are so many who are inclined to make it theirbusiness to speak and act negatively and even destructively whenever they possibly can.If we could all devote our energies to the common good of the industry, the sport wouldbe strengthened to the beneit of everyone involved.The coming year brings signiicant changes to The National Horseracing Authority. DenzilPillay gradually moves into the shoes of Rob de Kock (who, as I have indicated above,retires on 31 July 2013). These are large shoes to ill, and Denzil Pillay deserves oursupport. A new Racing Control Executive will commence his duties early in 2013. Freshtraining initiatives are underway, which we trust will serve to further the transformationof not only The National Horseracing Authority, but also other aspects of the broaderthoroughbred racing industry. With an appropriate attitude and a positive approach,I am certain that we can look forward to a bright and successful future, even thoughchallenging hurdles will need to be overcome along the way.Jonathan Witts-HewinsonChairman18The National Horseracing Authority of Southern AfricaAnnual Report 2012

Racing ControlHorseracing under the Rules of The NationalHorseracing Authority is conducted throughout theyear at 11 Racecourses which consists of 14 racingsurfaces, located in ive regions, four of which arelocated in South Africa and one in Zimbabwe.Stipendiary StewardsStipendiary Boards are based in Johannesburg(Central Provinces), Durban (KwaZulu-Natal),Port Elizabeth (Eastern Cape), Cape Town(Western Cape) and Harare (Zimbabwe).Each Stipendiary Board has direct control ofthoroughbred racing in their respective racingdistrict.Denzil Pillay, Racing Control ManagerDuties of the Stipendiary Stewards include:Oficiating at all race meetings;Ensuring the safe conduct and integrity of racing;Ensuring the welfare of the racehorse;Attending and supervising track work;Conducting stable inspections;Administering drug-testing operations, including out of competition testing;Investigating the use of prohibited substances;Processing licence and permit applications; andAssisting the Starters with the issuing of starting stall certiicates for horsesand the grading of these horses in the starting stalls.The Stipendiary Stewards are trained and developed in these different racing districtsover an extended period so that they gain the skills, experience and knowledge necessary20The National Horseracing Authority of Southern AfricaAnnual Report 2012

to conduct the race meetings at which they oficiate. The ability to identify participantsin races, the ability to assess and recognise the pace at which races are run and theability to assess whether or not horses and riders are performing to expectation, arefundamental skills required to allow the Stipendiary Stewards to make a determinationas to whether or not the Rules of Racing have been breached. To assist the StipendiaryStewards all races are ilmed by means of cameras located around the track and arereviewed on broadcast quality television monitors after each race. A library of race ilmsis kept which allows the Stipendiary Stewards to refer to a horse’s previous performanceand to compare that performance with any of its other runs.Stipendiary Stewards are also required to conduct Inquiries and hold hearings in termsof the Constitution and the Rules of The National Horseracing Authority. Inquiries areconducted on a basis similar to tribunals with the objective of determining the truth of amatter. Inquiries are instituted to investigate possible breaches of the Rules and wherebreaches are evident, to take the necessary disciplinary action. Outcomes of Inquiriesare published in the Racing Calendar.InvestigationsThere are speciically qualiied Stipendiary Stewards appointed to head up investigationsand make appropriate recommendations to the Stipendiary Board Chairmen in theirrespective areas of responsibility regarding their indings.The Special Investigation Unit which is based at The National Horseracing AuthorityHead Ofice in Turffontein, Johannesburg, has attended to a signiicant number ofinvestigations and complaints over the past 12 months.The 6 most signiicant investigations have all resulted in formal action and appropriatepenalties being instituted against the parties concerned. The Special Investigator issupported and assisted by the Stipendiary Stewards and on various occasions, jointsearches of stables have been undertaken by the Special Investigator, StipendiaryStewards and the Veterinarians, which have yielded excellent successes. There is ananonymous tip-off line and the Special Investigation Unit investigates and responds tocomplaints reported by members of the public via this medium.21

Veterinary SurgeonsThe National Horseracing Authority employs three full-time veterinary surgeons whoare supported by veterinary surgeons in private practice (and who are licensed byThe National Horseracing Authority for this role). The primary responsibility of theseprofessionals is to ensure the welfare of the horses that participate in races. Theymonitor and observe horses when they arrive in the parade ring, as they canter past thestands and go down to the start. At the start they observe the horses for signs of anyproblems and respond to reports from riders. After the start, they follow the ield duringthe race so that they can respond as quickly as possible to any veterinary problems thatmay occur during the race. Horses are again monitored as they return to the unsaddlingarea and the veterinary surgeons receive feedback from riders when they return.The veterinary surgeons are authorised to give horses any treatment that they deemnecessary without reference to any other person. In extreme cases they can and doeuthanase a horse on the spot so as to prevent any unnecessary distress. In addition, theveterinary surgeons are involved in making recommendations to promote and maintainthe welfare of the thoroughbred breed.Duties of the Veterinary Surgeons include:Being responsible for the suspension of horses to ensure adequate veterinarytreatment and the soundness of the horse before it is permitted to return toracing;Routine blood sampling is undertaken for investigation of possible abuse ofprohibited substances to comply with international standards;Maintain a comprehensive horse data base which allows standards to bemaintained and modiied according to international trends;Continual and close liaison and co-operation with colleagues overseas in order toensure that the highest international standards are maintained;Research statistics and data accumulated;Involved in research projects, for example, lasix trials, post-race bloodexaminations and breakdown investigations.HandicappersThe National Horseracing Authority employs all Handicappers in Southern Africa.They are responsible for assessing the relative abilities of horses for the purposes ofhandicapping races and informing the betting public on their ratings of horses. Everyhorse’s performance is analysed after every run and the relative adjustment done beforetheir next start. The handicapping system being applied in Southern Africa is similar tothat used in other leading racing jurisdictions around the world.22The National Horseracing Authority of Southern AfricaAnnual Report 2012

Since the implementation of the merit rating system in 1999, our South African horseshave been included in the World Thoroughbred Racehorse Rankings as published bythe International Federation of Horseracing Authorities (IFHA). WHAT A WINTER witha rating of 120 attained the highest ranking of the South African horses in the SprintCategory as at 31 July 2012. The Equus Horse-of-the-Year VARIETY CLUB attained arating of 119 for the 2011/2012 season.In the year under review the Handicapping Guidelines were reviewed and subsequentlyamended. The amended Handicapping Guidelines are available on the NHA’s website.Raceday OficialsStartersThe National Horseracing Authority employs 3 full-time Starters and 7 part-timeStarters. The “Start” of a race forms an integral part of horseracing. The responsibilitiesof the Starter are to ensure eficient and safe “Starts”. Each horse entered for its irstrace is required to be presented to the Starter for evaluation and certiication prior tonomination. Starters are assisted by Stipendiary Stewards at every training centre on aweekly basis to facilitate oficial starting stall practice sessions.The National Horseracing Authority also employs Handlers, Clerks of Scales,Specimen Collectors, Horse Identiiers and Judges who are essential components ofthe control of racing. These people have particular skills, which are essential to theeficient conduct of race meetings.Personnel ChangesThe following personnel changes occurred during the year under review:Denzil J Pillay was appointed to the position of Chief Executive Designate.Vusi Kunene resigned as a Stipendiary Steward in the Eastern Cape StipendiaryBoard.Gavin Foxcroft was appointed as a Trainee Stipendiary Steward in the Eastern CapeStipendiary Board.Derk Anderson was appointed as Deputy Chairman of the KwaZulu-NatalStipendiary Board.Langa Douse resigned as Deputy Chairman of Central Provinces Stipendiary Board.Neville Daniels was appointed as Deputy Chairman of Central ProvincesStipendiary Board.23

Justin Vermaak who was based in Johannesburg resigned as Handicapper.Matthew Lips was appointed as Senior Handicapper based in KwaZulu-Natal.Dr Robin Gatley, our Veterinary Surgeon based in KwaZulu-Natal passed away on25 May 2012 after suffering a heart attack. Dr Gatley has worked for the NHA forthe past 17 years. He will be missed by all his colleagues.Rule ChangesThe National Horseracing Authority reviews its Rules on an ongoing basis so as to ensurethat not only is racing properly regulated, but also that the Rules are appropriate in anever changing environment.StatisticsNational Statistics in respect of the year ended 31 July 2012 are set out hereunder.National Statistics – 1 August 2011 to 31 July 2012CP KZN WC EC ZIM TOTALNumber of races 1 602 940 729 562 169 4 002Number of meetings 183 109 87 69 23 471Number of trainers 76 38 34 14 9 171Number of assistant trainers 41 25 29 3 8 106Jockeys 45 30 26 11 14 126Apprentices 7 26 0 0 6 39Admissions of Guilt 324 144 172 95 50 785Fines 252 102 120 73 36 583Suspensions 41 37 30 22 13 143Warnings 31 5 22 0 1 59Inquiries held 29 16 16 12 1 74Appeals heard 4 0 0 0 1 5Objections 13 18 9 14 0 54Inquiries and Appeals74 Inquiries were held and 5 Appeals heard during the year under review. Of the 5 Appealsthat were lodged, 1 was dismissed and 1 was upheld, 1 was withdrawn and 2 pending.Admissions of GuiltIn the year under review 785 breaches of the Rules were dealt with by means of theAdmission of Guilt procedure.24The National Horseracing Authority of Southern AfricaAnnual Report 2012

ObjectionsDuring the year under review there were 54 Objections.15 Lodged by licensed oficials 12 Upheld3 Overruled39 By connections 11 Upheld28 OverruledHorses Suspended292 horses were suspended during the period under review. The breakdown is as follows:104 Intractability26 Lameness/Post Race Distress/Other162 Epistaxis (Bleeding)Winning FavouritesRegion Winning Favourites Total No. of Races PercentageCentral Provinces: Sand 172 613 28.06%: Grass 305 983 31.03%Eastern Cape 94 327 28.75%KwaZulu-Natal 305 884 34.50%Western Cape 224 738 30.35%Zimbabwe 54 148 36.49%Eastern Cape was well below the national average on turf. A large majority of thefavourites in this region are either visiting horses, or horses that have entered a localtrainer’s yard from another Province and are having their irst run. These horses becomefavourites possibly due to the belief that their form in the other Provinces is strongerthan that of the Eastern Cape.For example in June 2012, Port Elizabeth recorded 15% winning favourites (6/40),however 11 favourites inished second. During June 2012, 9 visiting horses were madefavourites and failed to perform.Other inluences are the weather and different track conditions, horses performing atFairview Racecourse and not at Arlington and vice-versa.25

The LaboratoryMaintaining the integrity of racing is crucial and theLaboratory of The National Horseracing Authorityplays a critically important role in this respect. Atthe Laboratory the effective screening for prohibitedsubstances in racehorse urine and blood (plasma)specimens is in place according to the Rules of theNHA and international racing analysis and qualitystandards. This includes pre-race, post-race and out ofcompetition specimens. The wide range of drugs andother substances which are screened for, include manycompounds that could affect the horse both positivelyand negatively. As the safety of jockeys and horses isof utmost importance, jockey specimen screening isalso conducted for substances which could impair thejudgement of the rider on the track.Schalk de Kock,Laboratory DirectorA total of 4 945 equine specimens and 359 jockeyspecimens were analysed during this season. The bulkof the equine specimens were collected post-race,with additional specimens being pre-race total carbondioxide plasma (TCO 2, indicating sodium bicarbonateuse) and out of competition specimens. There were5 equine and 8 jockey specimens found to containprohibited substances.26The National Horseracing Authority of Southern AfricaAnnual Report 2012

RACING AREAPOST-RACESPECIMENSPRE-RACE TCO 2SPECIMENSOUT OFCOMPETITIONSPECIMENSTOTALEQUINESPECIMENSCentral Provinces 1 909 100 146 2 155KwaZulu-Natal 962 39 23 1 024Western Cape 877 93 32 1 002Eastern Cape 569 10 18 597Zimbabwe 167 - - 167TOTALS 4 484 242 219 4 945EQUINE POSITIVES 2007 - 20121210812108 85644202007 2008 2009 2010 2011 201212JOCKEY POSITIVES 2007 - 2012108886445 52012007 2008 2009 2010 2011 201227

The NHA and the Laboratory hold membership of theInternational Federation of Horseracing Authorities(IFHA), the Asian Racing Federation (ARF) and theAssociation of Oficial Racing Chemists (AORC). There isconstant alignment on aspects such as rules, screeningpolicies, analytical techniques, methodologies andcriteria for the conirmation of prohibited substances.In our compliance with the international standardsthere is however much consideration given to ensuringthat drug positives are not called at concentrationswhere there can be no effect on the horse.The Laboratory participates in the proiciencytesting programme of the AORC on an annual basis.This programme ensures compliance with therecommended international screening standards asset by the AORC. The Laboratory again achieved a100% score during 2012. In addition to this externalproiciency testing an internal programme is in placeensuring a consistent screening quality for eachspecimen analysed. A quality management systemMagda Rösemann, has been in place at the Laboratory for more than 18Assistant Laboratory Directoryears. During April 2012 the Laboratory was againthoroughly re-assessed to the current ISO/IEC 17025:2005 quality standard by the South African National Accreditation System (SANAS) andcompliance to this guide was certiied.The Laboratory is constantly kept aligned with changing guidelines and new analyticaltrends, technologies and methodologies in horseracing analysis. A continual programmeof research and development is in place to ensure the Laboratory maintains a worldclass screening and conirmation quality while operating as cost effectively as possible.Intelligent investment in new instrumentation and automated systems has greatlybeneited the Laboratory. The versatile nature of this instrumentation inds applicationin many of the Laboratory operations and can be employed for screening, conirmation,research and development and contract analysis. Fewer instruments are requiredwhile the highly advanced technologies are applied to fewer and simpler methods. Incombination with reduced sample preparation and shorter analysis times this makes fora reduced global cost and a small staff complement is possible.28The National Horseracing Authority of Southern AfricaAnnual Report 2012

The Laboratory has much experience and expertise in both the horseracing forensicand the mass spectrometric analysis ields. This expertise is the envy of many otherlaboratories and was established over many years by a team of dynamic and enthusiasticsenior scientiic staff. This knowledge base is key in our international and localstanding in both horseracing forensics and analytical chemistry. The Laboratory is amajor scientiic contributor at the International Conference for Racing Chemists andVeterinarians (ICRAV), and made four presentations at the 2012 Conference. During thelast ten years more than 30 scientiic full papers were presented at these Conferences andpublished in conference proceedings. The international recognition of the Laboratoryin horseracing analysis has resulted in the Laboratory being able to act as a positiveanalysis conirmatory facility for overseas racing jurisdictions such as England, France,Hong Kong and Singapore.With contract analysis it is important to ensure that the core function of the Laboratoryto serve the racing industry is not compromised. However, much of the contract analysiswe conduct is at high proit margins and signiicantly offsets racing analysis costs. Thisis made possible by the alignment of many contract analysis methodologies with thoseexisting for horseracing. Clients include the SA Equestrian Association, the SaddleBreeders Society of SA, the SA Hackney Breeders, SA Hackney Pony Association, theEndurance Riding Association of SA, Endurance Riding Namibia, the Arab Show HorseSociety of SA, SA Boerperd Breeders Society, veterinary clinics and veterinary clinicservice providers. This year for the irst time specimens were analysed for the SABoer Goat Breeders Association. Local race pigeon analysis for the SA National PigeonOrganisation is growing with additional analysis from the Royal Pigeon Society (UK).29

Racing AdministrationSouth Africa is the ninth largest producer ofThoroughbred foals in the World. The United Statesproduces almost a quarter of the total foal population,having bred 25 250 foals in 2011. Australia is thesecond largest producer of Thoroughbred foals with15 356. Argentina is third on the producer list with8 799 foals, Ireland is fourth with 7 801 foals, Japan isifth with 6 656 foals, France is sixth with 4 984 foals,Great Britain is seventh with 4 665 foals, New Zealandis eighth with 3 621 foals. Rounding off the top ten isBrazil, which produced 2 826 foals.The introduction of obligatory parentage testing hasaffected the foal registration process. Prior to theintroduction, applications to register foals had to bereceived by 31 March of the year following the year inwhich the foal was born. The results of the parentagetesting are now only received in July of the year followingthe year in which the foals are born. Applications for theregistration of foals cannot be dealt with before the testsresults have been received. As a result of this, the StudColin Hall, Book Department did not take any action in respect ofRacing Administration Managerapplications received before the end of July. Regrettably,this has had an undesired effect in that applicationsto register foals are being received later and later each year. Yearlings sold on AuctionSales must be registered and have passports at the time of the Sale. Late receipt of foalregistrations is making it increasingly dificult for the Stud Book Department to register thefoals and produce the passport in time for the Sales.In order to remedy the situation it has become necessary to impose stronger penalties onBreeders who send in their registrations after the end of July.It is also concerning to note that the numbers of all categories of Owners has reducedover the last year. In the economic climate being experienced currently, it is no surprisethat the numbers have reduced. A reduction in the number of Owners is indicative of a30The National Horseracing Authority of Southern AfricaAnnual Report 2012

eduction in the overall health of the sport and also impacts on the revenue streams toThe National Horseracing Authority. It is hoped that this trend will change in the nearfuture.The Stud Book DepartmentFoalsThe table shows the number of foals microchipped and subsequently registered forthe last 5 years:2007 2008 2009 2010 2011Microchipped 3 556 3 616 3 684 3 510 3 318Registered 3 459 3 453 3 466 2 844 1 059* Still receiving registration applicationsIt can be seen from the table that the number of foals bred in 2011 has decreased ashas the number of foals registered in the Stud Book.StallionsThe table below shows the number of stallions that were registered for the years2009 to 2011. The inal number of stallions for 2010 and 2011 are expected toincrease as a result of late registrations.2009 2010 2011Number of Stallions 141 129 98BroodmaresThe table below shows the number of broodmares that were registered for therespective covering seasons:2007 2008 2009 2010 20114 828 4 914 4 773 4 107 2 826The numbers indicate that, even with late registrations, the number of maresregistered in 2011 will probably not exceed that of 2010. This is the third consecutiveyear where the mare population has decreased. It is expected that this trend willcontinue.31

Imported HorsesThe table below shows the number of imported horses that were registered duringthe year 1 August 2011 to 31 July 2012. The previous year’s numbers are shown inthe second column.Imported HorsesCOUNTRY 2011/2012 2010/2011Australia 132 99Ireland 6 6Great Britain 9 8Kenya 0 1USA 4 11Brazil 1 10Argentina 17 36France 0 1Germany 2 1New Zealand 1 0TOTAL 172 173Exported HorsesThe table below shows the number of horses that were exported during the year1 August 2011 to 31 July 2012, as compared to the previous year.Exported HorsesCOUNTRY 2011/2012 2010/2011Singapore 0 37Kenya 15 18Hong Kong 2 6Saudi Arabia 0 2Dubai 14 22Great Britain 13 11United States of America 0 3Ireland 0 2Mauritius 40 *TOTAL 84 101* Numbers not available32The National Horseracing Authority of Southern AfricaAnnual Report 2012

The Registrations DepartmentOwnersThe table below shows the number of Colour Holders registered for the 2011/2012season. The previous year’s numbers are shown in the second column. It is ofconcern to note that the numbers of Owners has decreased since last year.2011/2012 2010/2011Individuals 2 849 3 161Partnerships 432 520Syndicates 59 70Close Corporations 22 27Companies 62 66Trusts 10 9Stud Farms 0 033

Employment Equityand Human ResourcesThe National Horseracing Authority is committed to providing a workplace based onmutual respect, fairness, integrity, non-discrimination and equal opportunity at all levels.It furthermore believes that the transformation and empowerment of individuals is anessential and integral part of corporate governance. In order to achieve its goals in respectof transformation, a Committee comprising members of the Board, together with membersof Management, was recently established. The objective of the Transformation Committeewill be to speed up the delivery of the Authority’s objectives for the promotion of blackeconomic empowerment.Empowerment of the employees is promoted through on-going training, both in- house andusing external service providers. A workplace Skills Plan and an Implementation Reportare central to the establishment of a demand led skills development programme. The SkillsDevelopment Levies Act outlines the laws and regulations for the funding of education andtraining of employees. The National Horseracing Authority subscribes to the objectives ofthe Act and makes use of the funding process to assist in providing adequate resources forskills development.Occupational Health and Safety continues to receive priority status within the workplace.Substantial resources are set aside to ensure that dangers are eliminated and staff membersadequately trained to deal with emergencies that may arise.The table below shows the proiles of the race groups at the various employment levels.The numbers in brackets are the respective numbers for the previous year.34MalesFemalesOccupational CategoriesTOTALAfrican Coloured Indian White African Coloured Indian WhiteTop Management 1 (1) 1 (1)Senior Management 1 (1) 5 (5) 1 (1) 7 (7)Professionally qualiied,experienced specialistsand mid-management 0 (1) 4 (5) 2 (2) 6 (8)Skilled technicaland academicallyqualiied workers,junior management,supervisors, foremen andsuperintendents 7 (9) 1 (1) 2 (2) 14 (13) 1 (0) 1 (1) 6 (6) 32 (31)Semi-skilled anddiscretionary decisionmaking 1 (1) 5 (3) 0 (1) 2 (2) 15 (16) 23 (23)Unskilled and deineddecision making 2 (2) 6 (6) 8 (8)Total Permanent Staff 10 (13) 1 (1) 3 (3) 24 (24) 12 (9) 0 (1) 3 (3) 24 (24) 77 (78)Racemeeting Oficials 55 (50) 2 (3) 2 (2) 33 (34) 2 (1) 0 (0) 0 (0) 23 (28) 117 (118)Total 65 (63) 3 (4) 5 (5) 57 (58) 14 (10) 0 (1) 3 (3) 47 (52) 194 (196)

AnnualFinancial StatementsFOR THE YEAR ENDED 31 JULY 2012The National Horseracing Authority of Southern Africa35

Annual Financial StatementsFOR THE YEAR ENDED 31 JULY 2012The report and statements set out below comprise the annual inancial statementspresented to members:Report of the Independent auditors 39Report of the Directors 41Statement of Financial Position 43Statement of Comprehensive Incomeand Statement of Changes in Equity 44Statement of Cash Flows 45Notes to the Annual Financial Statements 46Funds held in trustThe Trainers’ and Riders’ Benevolent Fund 64Detailed Statement of Comprehensive Income 65Directors’ Responsibilities and ApprovalThe Directors are required to maintain adequate accounting records and are responsiblefor the content and integrity of the annual inancial statements and related inancialinformation included in this report. It is their responsibility to ensure that the annualinancial statements fairly present the state of affairs of the Authority as at the end of theinancial year and the results of its operations and cash lows for the period then ended,in conformity with International Financial Reporting Standards. The external auditor isengaged to express an independent opinion on the annual inancial statements.The annual inancial statements are prepared in accordance with International FinancialReporting Standards and are based upon appropriate accounting policies consistentlyapplied and supported by reasonable and prudent judgements and estimates.37

Annual Financial StatementsFOR THE YEAR ENDED 31 JULY 2012 (CONTINUED)The Directors acknowledge that they are ultimately responsible for the system of internalinancial control established by the Authority and place considerable importanceon maintaining a strong control environment. To enable the Directors to meet theseresponsibilities, the Board of Directors sets standards for internal control aimedat reducing the risk of error or loss in a cost effective manner. The standards includethe proper delegation of responsibilities within a clearly deined framework, effectiveaccounting procedures and adequate segregation of duties to ensure an acceptable levelof risk. These controls are monitored throughout the Authority and all employees arerequired to maintain the highest ethical standards in ensuring the Authority’s businessis conducted in a manner that in all reasonable circumstances is beyond reproach. Thefocus of risk management in the Authority is on identifying, assessing, managing andmonitoring all known forms of risk across the Authority. While operating risk cannot befully eliminated, the Authority endeavours to minimise it by ensuring that appropriateinfrastructure, controls, systems and ethical behaviour are applied and managed withinpredetermined procedures and constraints.The Directors are of the opinion, based on the information and explanations given byManagement that the system of internal control provides reasonable assurance that theinancial records may be relied on for the preparation of the annual inancial statements.However, any system of internal inancial control can provide only reasonable, and notabsolute, assurance against material misstatement or loss.The annual inancial statements set out on pages 41 to 64 were approved by the Board ofDirectors on 25 October 2012 and signed on their behalf by:J M WITTS-HEWINSONCHAIRMANR D de KOCKCHIEF EXECUTIVE38The National Horseracing Authority of Southern AfricaAnnual Report 2012

Report of the Independent AuditorsTO THE MEMBERS OF THE NATIONAL HORSERACINGAUTHORITY OF SOUTHERN AFRICAWe have audited the annual inancial statements of The National Horseracing Authorityof Southern Africa (the Authority), which comprise the statement of inancial positionas at 31 July 2012, the statement of comprehensive income, the statement of changes inequity and the statement of cash lows for the year then ended, a summary of signiicantaccounting policies and other explanatory notes, as set out on pages 41 to 64.Directors’ Responsibility for the Annual FinancialStatementsThe Authority’s Directors are responsible for the preparation and fair presentation ofthese annual inancial statements in accordance with International Financial ReportingStandards. This responsibility includes designing, implementing and maintaining internalcontrol relevant to the preparation and fair presentation of annual inancial statementsthat are free from material misstatement, whether due to fraud or error; selecting andapplying appropriate accounting policies; and making accounting estimates that arereasonable in the circumstances.Auditors’ ResponsibilityOur responsibility is to express an opinion on these annual inancial statements basedon our audit. We conducted our audit in accordance with International Standards ofAuditing. Those standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance whether the inancial statementsare free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the annual inancial statements. The procedures selected depend onthe auditor’s judgement, including the assessment of the risks of material misstatementof the annual inancial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the Authority’spreparation and fair presentation of the annual inancial statements in order to designaudit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the Authority’s internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and the39

Report of the Independent AuditorsTO THE MEMBERS OF THE NATIONAL HORSERACINGAUTHORITY OF SOUTHERN AFRICA (CONTINUED)reasonableness of accounting estimates made by the Directors, as well as evaluating theoverall presentation of the annual inancial statements.We believe that the audit evidence we have obtained is suficient and appropriate toprovide a basis for our audit opinion.OpinionIn our opinion, the annual inancial statements present fairly, in all material respects,the inancial position of the Authority and funds held in trust at 31 July 2012 and ofits inancial performance and its cash lows for the year then ended in accordance withInternational Financial Reporting Standards.HORWATH LEVETON BONERREGISTERED AUDITORSPer R. A. R. FERNANDES (PARTNER)JOHANNESBURG25 OCTOBER 201240The National Horseracing Authority of Southern AfricaAnnual Report 2012

Report of the DirectorsFOR THE YEAR ENDED 31 JULY 20121. General reviewThe Authority’s business and operations and the results thereof are clearly relected in theattached annual inancial statements.ActivitiesThe Authority regulates the sport of thoroughbred horseracing in Southern Africa. It derives itsrevenue predominantly by levying a charge on racing operators, licensing and registration fees,stud book registration fees and analytical testing.2. DirectorsThe Directors of the Authority during the accounting period and up to the date of this reportwere as follows:Mr J M Witts-Hewinson(Chairman)Joined 2007Mr R D de Kock(Chief Executive)Appointed 2004Mr D J Pillay(Chief Executive Designate)Appointed 2012Mr C S BeyleveldJoined 2001Mr E BraunJoined 2001Mr R L BrussJoined 2006Mr W A du PlessisJoined 2010Mr G T HawkinsJoined 2009Adv A P JoubertJoined 2006Mr A MohamedJoined 2012Mr R MoodleyJoined 2012Mr V W NseleJoined 2010Mr I RobertsonJoined 2011Mr R J TrotterJoined 2001Mr L WainsteinJoined 200941

Report of the DirectorsFOR THE YEAR ENDED 31 JULY 2012 (CONTINUED)Mr A Mohamed succeeded Mr S Rasethaba who resigned from the National Board in November2011.Mr R Moodley succeeded Mr C Baitz who retired from the National Board in January 2012.The Secretary of The National Horseracing Authority is Mr C B Hall whose business and postaladdresses are:Business address:Turffontein Racecourse14 Turf Club StreetTurffonteinPostal address:P O Box 74439Turffontein21403. Property, plant and equipmentThere were no changes in the nature or use of property, plant and equipment duringthe year.4. AuditorsHorwath Leveton Boner is available to serve as auditor and will continue in ofice untilthe next Annual General Meeting.5. Events after the reporting periodThe Directors are not aware of any matter or circumstances arising after the inancialyear that need reporting.42The National Horseracing Authority of Southern AfricaAnnual Report 2012

Statement of Financial PositionAT 31 JULY 2012Notes 2012 2011RRAssetsNon-current assetsProperty, plant and equipment ............................................... 2 5 075 090 3 130 369Investment Property ................................................................... 3 21 450 000 23 300 00026 525 090 26 430 369InvestmentsThe Trainers’ and Riders’ Benevolent Fund ...................... Page 64 810 416 824 619810 416 824 619Current assetsAccounts receivable .................................................................... 4 1 514 849 1 553 280Cash and cash equivalents ........................................................ 7 728 240 11 243 6689 243 089 12 796 948Total assets 36 578 595 40 051 936Equity and liabilitiesEquityAccumulated funds ........................................................... 14 310 954 17 890 597Non-distributable reserves ............................................ 3 14 500 000 14 500 00028 810 954 32 390 597Non-current liabilitiesPost employment medical beneits obligation 5.1 1 540 000 1 435 000The Trainers’ and Riders’ Benevolent Fund ........................ Page 64 810 416 824 6192 350 416 2 259 619Current liabilitiesLeave pay ......................................................................................... 5.2 632 389 611 739Accounts payable .......................................................................... 4 784 836 4 789 9815 417 225 5 401 720Total equity and liabilities 36 578 595 40 051 93643

Statement of Comprehensive IncomeFOR THE YEAR ENDED 31 JULY 2012Notes 2012 2011RRIncome .................................................................................. 7 50 303 816 47 462 938Operating expenses .......................................................... 52 368 123 48 199 560Operating loss (2 064 307) (736 622)Interest received ........................................................................... 332 129 565 286Proit on disposal of property, plant and equipment 2 535 -Fair value adjustment ................................................................. (1 850 000) -Total comprehensive income for the year (3 579 643) (180 308)Statement of Changes in EquityFOR THE YEAR ENDED 31 JULY 2012NonDistributableReserve(Note 3)RetainedIncomeTotal EquityBalance at 1 August 2010 14 500 000 18 070 905 32 570 905Net loss for the year - (180 308) (180 308)Balance at 31 July 2011 14 500 000 17 890 597 32 390 597Net loss for the year - (3 579 643) (3 579 643)Balance at 31 July 2012 14 500 000 14 310 954 28 810 95444The National Horseracing Authority of Southern AfricaAnnual Report 2012

Statement of Cash FlowsFOR THE YEAR ENDED 31 JULY 2012Notes 2012 2011RROperating activitiesCash generated from operating activities ................................ 11.1 (203 019) 900 089Interest received ........................................................................... 332 129 556 314Net cash generated 129 110 1 456 403Investing activitiesInvestments decreased .............................................................. 14 203 9 691 100Proceeds on sale of property, plant and equipment 85 000 -Property, plant and equipment acquired .............................. (3 729 538) (438 340)Net cash (outlow) inlow on investing activities (3 630 335) 9 252 760Financing activitiesDecrease in The Trainers’ and Riders’ Benevolent Fund (14 203) (61 670)Cash utilised from inancing activities (14 203) (61 670)(Decrease) increase in cash and cash equivalents (3 515 428) 10 647 493Cash and cash equivalents at beginning of year ................ 11 243 668 596 175Cash and cash equivalents at end of year 7 728 240 11 243 66845

Notes to the Annual Financial Statements31 JULY 20121. Accounting policiesThe annual inancial statements are prepared in accordance with International FinancialReporting Standards using the historical cost convention, except for the measurement ofinvestment property and certain inancial instruments at fair value, and incorporate thefollowing principal accounting policies which are consistent with those adopted previously:1.1 Property, plant and equipmentThe cost of an item of property, plant and equipment is recognised as an asset when it is probablethat future economic beneits associated with the item will low to the Authority; and the cost ofan item can be measured reliably.Property, plant and equipment are carried at cost less accumulated depreciation and anyimpairment losses.Depreciation has been provided for by using the following average rates and bases:1.1.1 Buildings on leasehold properties are written off over 50 years on the straight line basis.1.1.2 Motor vehicles, furniture and equipment are depreciated at 20% per annum on thestraight-line basis.The residual value and the useful life of each asset is reviewed at each inancial period-end.Each part of an item of property, plant and equipment with a cost that is signiicant in relation tothe total cost of the item is depreciated separately.The gain or loss arising from the derecognition of an item of property, plant and equipmentis included in proit or loss when the item is derecognised. The gain or loss arising from thederecognition of an item of property, plant and equipment is determined as the differencebetween the net disposal proceeds, if any, and the carrying amount of the item.46The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)1.2 Investment propertyInvestment property is recognised as an asset when it is probable that the future economicbeneits that are associated with the investment property will low to the Authority, and the costof the investment property can be measured reliably.Investment property is initially recognised at cost. Transaction costs are included in the initialmeasurement.Costs include costs incurred initially and costs incurred subsequently to add to, or to replace apart of, or service a property. If a replacement part is recognised in the carrying amount of theinvestment property, the carrying amount of the replaced part is derecognised.Fair valueSubsequent to initial measurement investment property is measured at fair value. Fair value isupdated annually through valuation.A gain or loss arising from a change in fair value is included in proit or loss for the period in whichit arises.1.3 ProvisionsProvisions are recognised when the Authority has a present obligation (legal or constructive)as a result of a past event, can be reliably measured and it is probable that the Authority will berequired to settle the obligation.The amount of a provision is the present value of the expenditure expected to be required tosettle the obligation.1.4 Financial instrumentsThe Authority classiies inancial instruments, or their component parts, on initial recognitionas a inancial asset or a inancial liability in accordance with the substance of the contractualarrangement.Financial assets and inancial liabilities are recognised on the Authority’s statement of inancialposition when the Authority becomes party to the contractual provisions of the instrument.47

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)Accounts receivableAccounts receivable which includes trade receivables are measured at amortised cost less anyimpairment losses recognised to relect irrecoverable amounts.Cash and cash equivalents and investments at call and on short termdepositCash and cash equivalents at call and on short term deposit that are readily convertible to aknown amount of cash and are subject to an insigniicant risk of changes in value are recordedat fair value.Accounts payableTrade payables are initially measured at fair value and are subsequently measured at amortisedcost using the effective interest rate method.Other Financial liabilitiesFinancial liabilities at fair value through proit or loss are measured at fair value with changes infair value recognised in proit or loss.1.5 Cash lowsFor the purpose of the statement of cash lows, cash and cash equivalents consist of cash at bankcash on hand and call and short term deposits.1.6 Impairment of assetsThe Authority assesses at each statement of inancial position date, whether there is any indicationan asset may be impaired. If any such indication exists, the Authority estimates the recoverableamount of the asset. If there is impairment it is written off to proit and loss.1.7 Employment beneit costsShort term beneitsThe cost of short-term employee beneits, (those payable within 12 months after the service isrendered) are recognised in the period in which the service is rendered and are not discounted.The expected cost of compensated absences is recognised in proit and loss as the employeesrender services that increase their entitlement or, in the case of non-accumulating absences, whenthe absence occurs.Deined contribution plansPayments to deined contribution retirement beneit plans are charged to proit and loss asservices are rendered.48The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)1.8 IncomeIncome is measured at the fair value of the consideration received or receivable and representsthe amounts receivable for goods and services provided in the normal course of business, net ofValue Added Tax.Interest is recognised, in proit or loss, using the effective interest rate method.When the outcome of a transaction involving the rendering of services can be estimated reliably,income associated with the transaction is recognised at the statement of inancial position date.The outcome of a transaction can be estimated reliably when all the following conditions aresatisied: the amount of income can be measured reliably, it is probable that the economic beneitsassociated with the transaction will low to the Authority and the costs incurred for the transactionand the costs to complete the transaction can be measured reliably.1.9 Standards and interpretation effective and adopted in the current yearIn the current year, the Authority has adopted the following standards and interpretations that areeffective for the current inancial year and that are relevant to its operations:Standard\InterpretationDetails of amendmentsEffective date:Years on \ afterExpected impactIAS 1 Presentation of Financial Statements • Clariication of statement of changes in equity. 01 January 2011 No material impactIAS 24Related Party Disclosures• Simpliication of the disclosure requirements forgovernment-related entities.• Clariication of the deinition of a related party.01 January 2011 No material impactStandards issued but not yet effectiveThe Authority has chosen not to early adopt the following standards and interpretations, whichhave been published and are mandatory for the Authority’s accounting periods beginning on orafter 1 August 2012 or later periods:Standard\InterpretationIAS 1 Presentation of Financial StatementsDetails of amendments• Present those items of other comprehensiveincome that may be reclassiied to proit or loss inthe future separately from those that would neverbe reclassiied to proit and loss.Effective date:Years on \ afterExpected impact01 July 2012 No material impact49

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)1.10 Presentation currencyAll amounts have been presented in the currency of South African Rand which is the functionalcurrency of the Authority.1.11 Lease transactionsRentals payable under operating leases are charged to proit and loss on a straight line basis overthe term of the lease.1.12 Services received in-kindThe Authority cannot reliably determine a fair value for services received in-kind that consistmainly of board and committee attendance, and as a result does not recognise the value of theseservices received in proit and loss.1.13 Signiicant JudgementsThere are a number of areas where judgement is applied in the inancial statements. The followingareas have a signiicant risk of causing material adjustments to the carrying value of assetsand liabilities within the next inancial year; estimating the useful lives and residual values ofproperty, plant and equipment, valuation of investment property, impairment provisions for tradereceivables and estimating trade payables and provisions.51

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)2. Property, plant and equipmentBuildings onLeaseholdpropertyMotor VehiclesFurniture andequipmentTotalR R R R2012Balance at beginning of year ............................... 431 967 9 387 2 689 015 3 130 369Current year movement- Additions - - 3 729 538 3 729 538- Disposals - - (82 465) (82 465)- Depreciation (20 562) (1 114) (1 680 676) (1 702 352)Balance at end of year 411 405 8 273 4 655 412 5 075 090Made up as follows:-- Assets at cost 2 983 900 166 074 17 227 778 20 377 752- Accumulated depreciation (2 572 495) (157 801) (12 572 366) (15 302 662)Carrying value 411 405 8 273 4 655 412 5 075 0902011Balance at beginning of year .............................. 351 336 10 860 3 743 637 4 105 833Current year movement- Additions 99 023 - 339 317 438 340- Disposals - - (1 123) (1 123)- Depreciation (18 392) (1 473) (1 392 816) (1 412 681)Balance at end of year 431 967 9 387 2 689 015 3 130 369Made up as follows:-- Assets at cost 2 983 900 166 074 14 941 574 18 091 548- Accumulated depreciation (2 551 933) (156 687) (12 252 559) (14 961 179)Carrying value 431 967 9 387 2 689 015 3 130 36952The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)3. Investment property2012 2011RRBalance at beginning of year .............................. 23 300 000 23 300 000Fair value adjustment ........................................... (1 850 000) -Balance at end of year 21 450 000 23 300 000Carrying value 21 450 000 23 300 000The investment property comprises land and buildings situated on Sub 15 of the farmSummerveld No. 14226, Shongweni. The property was valued by Africa Corporate Real EstateSolutions on 1 July 2012, as follows:-Existing use value of land ..................................... 800 000 800 000Depreciated replacement cost ofimprovements .......................................................... 20 650 000 22 500 00020 650 000 22 500 000Africa Corporate Real Estate Solutions was represented by Trevor Richardson (PrQs, ProfessionalValuer, MRICS, MIV).The valuator is independent and is recognised as experienced in the locationand category of the investment property.The determination of the valuation value of land is supported by market valuation.The property cannot, without written approval of The Premier of KwaZulu-Natal, be usedother than for the purpose of horseracing, including the stabling and training of race horses, orpurposes ancillary thereto.Non-distributable reserve relects the difference between cost and revaluation, when thisproperty was reclassiied as an investment property, from property, plant and equipment in theyear ended 31 July 2009.Subsequent changes in valuations are charged to proit and loss.53

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)4. Accounts ReceivableAccounts receivable is made up as follows:-2012 2011RRTrade receivables 1 281 858 1 327 661Prepayments 175 679 103 764Staff loans 57 312 121 8551 514 849 1 553 280At 31 July 2012, accounts totalling R447 526 (2011: R896 913) were trade receivables past due,but not impaired. These relate to customers for whom there is no history of default or there hasnot been a signiicant change in credit quality and the amounts are still considered recoverable.The ageing of trade receivables are as follows:30 - 60 days ............................................................... 673 914 345 60460 - 90 days ............................................................... 26 668 59 55290 days and over ..................................................... 581 276 922 505Balance at end of year 1 281 858 1 327 661Accounts receivable past due are impaired to fair value.The amount of the provision is R53 332 (2011:R134 797).The ageing of these trade receivables is as follows:120 days and over ................................................... 53 332 134 797Balance at end of year 53 332 134 797The provision for impairment of trade receivables can be reconciled as follows:Balance at beginning of year ............................... 134 797 77 238(Decrease) increase for the year ...................... (81 465) 57 559Balance at end of year 53 332 134 797The creation and release of provision for impaired receivables have been included in proit andloss. Amounts charged to the provision account are written off when there is no expectation ofrecovery.The maximum exposure to credit risk at the reporting date is the fair value of accounts receivable.The Authority does not hold any collateral as security for accounts receivable.54

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)5. Provisions2012 2011RRPost employment medical beneits .................. 1 540 000 1 435 000Leave pay .................................................................... 632 389 611 739Total provisions 2 172 389 2 046 7395.1 Post employment medical beneitsThe latest valuation of the Authority’s post employment medical beneits obligation, carried outat 31 July 2012, revealed that the present value of projected future beneit obligations amountedto R1 540 000 (2011: R1 435 000).During the 2004 inancial year, the Authority offered to purchase annuities to offset the pastservice medical beneits obligation of employees and an increase in salaries to cover the cost offuture service. The offer was accepted by all but four employees.At year-end, this provision related to 2 past employees and their spouses and 1 widow of an exemployee.Valuation assumptions applied:Health care cost inlation ..................................... 8% 8%Discount rate of interest ....................................... 10% 10%Balance at beginning of year ............................... 1 435 000 1 298 000Transferred to proit and loss ............................. 105 000 137 000Liability recognised at end of year 1 540 000 1 435 0005.2 Leave payBalance at beginning of year ............................... 611 739 1 317 906Leave utilised during the year ............................. (216 365) (261 438)Increase(decrease) required to conform toleave policy of the Authority ............................... 237 015 (444 729)Balance at end of year 632 389 611 73955

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)6. The Jockey Club of South Africa (1974) Staff Pension Fund(in liquidation)The fund is administered by Alexander Forbes Financial Services and the most recent actuarialvaluation of the fund, at 31 August 2005 was submitted to the Financial Services Board on17 July 2009, and conirmed that the fund was in a sound inancial position. There are noactive members in the fund as all members were transferred out during April to June 2003to the Alexander Forbes Retirement Fund (The National Horseracing Authority Section), andemployer contributions ceased on 31 May 2003. The reported actuarial surplus, after providingfor distribution to former members, pensioners, active members and employer, amounts toR653 000. The amount estimated for distribution to the employer amounts to R1 071 000.No portion of this surplus has been recognised by the Authority pending the distribution of thesurplus amongst the various stakeholders.The Financial Services Board has appointed a liquidator and the fund is in the process of beingwound up.2012 2011RR7. IncomeAnalytical testing ..................................................... 1 057 373 1 163 763Levies from racing operators ............................... 38 105 751 35 612 851Registration fees ...................................................... 6 768 105 6 462 065Stud book registration fees ................................. 4 371 442 4 219 048Sundry revenue ........................................................ 1 145 5 211Total revenue 50 303 816 47 462 9388. Stud book registration feesRegistration fees ...................................................... 4 372 342 4 232 548Collected on behalf of the ThoroughbredBreeders’ Association ........................................... (900) (13 500)4 371 442 4 219 04856The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)2012 2011RR9. Legal, litigation and disciplinary costsDisciplinary and appeal board costs ................. 1 082 660 755 772Fines ............................................................................. (710 060) (426 350)Operational matters ............................................... 524 947 215 407897 547 544 829Transferred to The Trainers’ and Riders’Benevolent Fund ..................................................... 177 515 106 5871 075 062 651 41610. Employment costsThe Authority did not pay any directors’ emoluments during the year to the non-executivemembers of the board (2011: Nil).Salaries, bonuses, wages and other beneits ......... 30 971 640 28 805 088Contributions to pension fund ............................ 2 686 875 2 478 569Contributions to medical aid scheme .............. 2 039 777 1 959 65935 698 292 33 243 316Full-time employees .............................................. 77 78Part-time employees .............................................. 117 118The salaries and other salary related beneits paid during the year to top and senior managementamounted to R7 904 342 (2011: R7 432 577).58The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)2012 2011RR11. Notes to the Statement of cash lows11.1 Cash generated from operating activitiesNet loss for the year ................................................ (1 729 643) (180 308)Adjusted for:Increase in post employment medicalbeneits obligation .................................................. 105 000 137 000Increase(decrease) in leave pay provision ... 20 650 (706 167)Interest received ...................................................... (332 129) (556 314)Depreciation .............................................................. 1 702 352 1 412 681(Proit) loss on disposal of property, plantand equipment ......................................................... (2 535) 1 123Movement in working capital:Decrease (increase) in accounts receivable 38 431 (302 655)(Decrease) increase in accounts payable (5 145) 1 094 729(203 019) 900 08912. Contingencies and commitments12.1 Operating LeasesThe Authority erected its administration ofices on land owned by Phumelela Gaming & LeisureLtd.The parties entered into a long-term lease whereby the Authority would pay a nominal rent andwould be responsible for the full maintenance of the property.12.2 Capital expenditureCommitments in respect of capital expenditure, approved by the Directors of the Authority, butnot yet committed, is R450 000 (2011: R3 733 953).13. TaxationSouth African Revenue Services have informed the Authority that the original exemption undersection 10(1)(cB) of the Income Tax Act, granted to the Authority on 22 August 1978, is stillapplicable until the Commissioner has informed the Authority of his decision in respect of the reapplicationfor continuance of the original exemption. Accordingly, no tax has been provided for.59

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)14. Risk managementThe Authority manages its capital to ensure that it will be able to continue as a going concern,while maximising the quality of services rendered.The capital structure of the Authority consists of debt (non-current liabilities), cash and cashequivalents (including call and short-term deposits) and equity (accumulated funds andreserves).At the reporting date, there are no signiicant concentrations of credit risk for accounts receivable.The carrying amount relected below represents the Authority’s maximum exposure to creditrisk for such accounts receivable. The carrying value of the inancial instruments approximatesits fair value.2012 2011RRFinancial assetsAccounts receivable at amortised cost ........... 1 514 849 1 553 280Cash and cash equivalents at amortised cost 7 728 240 11 243 668The Trainers’ and Riders’ Benevolent Fund .... 810 416 824 61910 053 505 13 621 567Financial LiabilitiesPost employment medical beneit obligation 1 540 000 1 435 000Leave pay .................................................................... 632 389 611 739Trade and other payables .................................... 4 784 836 4 789 981The Trainers’ and Riders’ Benevolent Fund 810 416 824 6197 767 641 7 661 339The Authority’s activities expose it to a variety of inancial risks. These risks include interestrate risk, credit risk and liquidity risk. The Authority does not enter into or trade inancialinstruments, including derivative inancial instruments. There are no borrowings.60The National Horseracing Authority of Southern AfricaAnnual Report 2012

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)14. Risk management (continued)Market riskThe Authority’s activities expose it primarily to the inancial risks of interest rates. Interestrates on cash and short term deposits are linked to the prime rate and as such are subject to themovement of prime rates.Sensitivity analysis: an increase of 1% in the prime interest rate would have increased theAuthority’s proits by approximately R77 468 (2011: R105 266) as at year-end.Credit riskCredit risk refers to the risk that counterparties will default on their contractual obligationsresulting in inancial loss to the Authority. Potential concentrations of credit risk consistprincipally of cash and cash equivalents, and deposits with banks and inancial institutions, aswell as trade receivables. For banks and inancial institutions, only independently rated partieswith a minimum rating of “A” are accepted. Accounts receivable consist of a number of customersfrom the racing industry. The management of this risk is discussed under note 4 – Accountsreceivable.Liquidity RiskThe Authority manages liquidity risk by maintaining adequate reserves, banking facilities andreserve borrowing facilities, by continuously monitoring forecast and actual cash lows andmatching the maturity proiles of inancial assets and liabilities.61

Notes to the Annual Financial Statements31 JULY 2012 (CONTINUED)14. Risk management (continued)The table below analyses the Authority’s inancial liabilities into relevant maturity groupingsbased on the remaining period at the statement of inancial position to the contractual maturitydate. The amounts disclosed in the table are the contractual undiscounted cash lows. Balancesdue within 12 months equal their carrying balances as the impact of discounting is not signiicant.At 31 July 2012Less than1 yearBetween 1and 2 yearsOver 5 yearsTrade payables ........................................................... 2 822 207 - -Other payables ........................................................... 1 962 629 - -Leave pay ..................................................................... 180 706 451 683 -The Trainers’ and Riders’ Benevolent Fund - 810 416 -Post employment medical beneits .................... - - 1 540 0004 965 542 1 262 099 1 540 000At 31 July 2011Less than1 yearBetween 1and 2 yearsOver 5 yearsTrade payables ........................................................... 3 165 536 - -Other payables ........................................................... 1 624 445 - -Leave pay ..................................................................... 169 001 442 738 -The Trainers’ and Riders’ Benevolent Fund - 824 619 -Post employment medical beneits .................... - - 1 435 0004 958 982 1 267 357 1 435 00062The National Horseracing Authority of Southern AfricaAnnual Report 2012

The Trainers’ and Riders’ Benevolent FundSTATEMENT OF FINANCIAL POSITION AT 31 JULY 20122012 2011RRAssetsCurrent assetsThe National Horseracing Authority of SouthernAfrica - funds held in trust and invested withinancial institutions 810 416 824 619EquityAccumulated fundsBalance at beginning of year ................................................. 824 619 886 289Loss for the year ....................................................................... (14 203) (61 670)Balance at end of year 810 416 824 619STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 JULY 20122012 2011RRIncomePercentage of:Fines and forfeited deposits .................................................. 177 515 106 587Licence fees ................................................................................ 1 227 1 197Contributions from The National HorseracingAuthority of Southern Africa 178 742 107 784ExpenditureGrants paid during the period .............................................. 192 945 169 454Loss for the year transferred to accumulated funds (14 203) (61 670)64The National Horseracing Authority of Southern AfricaAnnual Report 2012

Statement of Comprehensive IncomeFOR THE YEAR ENDED 31 JULY 2012Notes 2012 2011RRIncomeAnalytical testing ............................................................................ 1 057 373 1 163 763Interest received ............................................................................. 332 129 556 314Levies from racing operators ..................................................... 38 105 751 35 612 851Registration fees ............................................................................. 6 768 105 6 462 065Stud book registration fees ......................................................... 8 4 371 442 4 219 048Sundry revenue ............................................................................... 1 145 5 211Proit on disposal of property, plant and equipment 2 535 -Total revenue 50 638 480 48 019 252Operating expenditureAccounts ............................................................................................. 236 745 41 473Central services ............................................................................... 2 136 242 1 945 711Data processing ............................................................................... 235 131 227 984Laboratory ......................................................................................... 9 709 087 9 348 680Legal, litigation and disciplinary costs ................................... 9 1 075 062 651 416Management ..................................................................................... 5 285 338 4 714 086Public relations ................................................................................ 43 200 76 801Race meeting oficials and staff ................................................. 11 861 250 10 948 879Regional ofices ................................................................................ 2 036 110 1 950 469Registrations and publications ................................................. 264 688 252 943Special investigation unit ............................................................ 572 211 556 727Stipendiary stewards .................................................................... 12 483 823 12 111 874Stud book department .................................................................. 2 914 772 2 648 157Veterinary services ........................................................................ 3 172 448 3 031 501Total operating expenditure 52 026 108 48 506 166Other (income)/expenditureLoss on disposal of property, plant and equipment - 1 123Leave pay ............................................................................................ 237 015 (444 729)Post-employment medical beneit obligations ................... 105 000 137 000Total other expenditure 342 015 (306 606)Total expenditure 52 368 123 48 199 560(1 729 643) (180 308)Fair value adjustment (1 850 000) -Comprehensive income for the period transferredto Accumulated Funds (3 579 643) (180 308)This statement is for information purposes only and does not form part of the Annual FinancialStatements and is unaudited.65

Organisation StructureSenior ManagementR D de Kock, Chief ExecutiveDr S S de Kock, Laboratory DirectorC B Hall, Racing Administration ManagerD J Pillay, Chief Executive DesignateManagementMrs J C Bockel, Licensing and RegistrationsDr M Rösemann, Assistant Laboratory DirectorMrs L A McPherson, Stud BookStipendiary BoardsCentral ProvincesD Durant, ChairmanN P Daniels, Deputy ChairmanEastern CapeM R Jones, ChairmanKwaZulu-NatalF S Parker, ChairmanD M Anderson, Deputy ChairmanWestern CapeE P Rodrigues, ChairmanA Hyde, Deputy ChairmanZimbabweP D Patterson, Chief Stipendiary66The National Horseracing Authority of Southern AfricaAnnual Report 2012

Veterinary SurgeonsDr D P Wheeler, Central ProvincesDr R Crosley, KwaZulu-NatalDr M Ledger, Western CapeHandicappersR S Smith (Manager : Handicapping)M LipsL MaharajK G NicolAuditorsHorwath, Leveton & BonerAttorneysBell Dewar67

DirectoryHead OficeThe National Horseracing Authority of Southern AfricaP O Box 74439 Tel: 011 683 9283TURFFONTEIN Fax: 011 683 55482140Central Provinces Regional OficeThe National Horseracing Authority of Southern AfricaP O Box 74439 Tel: 011 683 9283TURFFONTEIN Fax: 011 683 13822140Eastern Cape Regional OficeThe National Horseracing Authority of Southern AfricaP O Box 5299 Tel: 041 366 1686WALMER Fax: 041 366 12416065KwaZulu-Natal Regional OficeThe National Horseracing Authority of Southern AfricaP O Box 78101 Tel: 031 314 1740Avondale Road Fax: 031 314 1755410168The National Horseracing Authority of Southern AfricaAnnual Report 2012

Western Cape Regional OficeThe National Horseracing Authority of Southern AfricaP O Box 18258 Tel: 021 700 1900WYNBERG Fax: 021 797 13437824Zimbabwe Regional OficeThe National Horseracing AuthorityP O Box BW 90 Tel: 00263 4 88 2233Borrowdale Fax: 00263 4 88 3246HARAREZimbabwe69