Audit 355958

Title: NOTE 1: ORGANIZATION Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. Mustang Champions is dedicated to the successful transition of American mustangs from off-range holding to placement in private care, working in partnership with the Bureau of Land Management’s (BLM) Wild Horse and Burro Program. The primary sources of the Organization’s revenue consist of grant funding from BLM, general public contributions, and event income.

Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions.

Title: NOTE 3: CONTINGENCY Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. The Organization receives grants for specific purposes that are subject to grantor review. Such reviews could result in a request for reimbursement by the grantor if unallowable costs are identified. The Organization’s management believes that any liability for reimbursement which could arise as the result of these audits would not be material to the financial position of the Organization.

Title: NOTE 4: CONCENTRATIONS Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. BLM funding accounted for 87% of the Organization’s total revenue during the fiscal year.

Title: NOTE 5: LEASES Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. The Organization leases office space under an operating lease which expires on 31 December 2024 and becomes month to month thereafter. Total office rent expense for the fiscal year ended 30 September 2024 amounted to approximately $12,400. Future minimum cash payments due under the lease at 30 September are $4,050.

Title: NOTE 6: LIQUIDITY AND AVAILABILITY Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use, within one year from the statement of financial position date, comprise the following: Cash $159,347 Accounts receivable 650 $159,997 As a part of the Organization’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due.

Title: NOTE 7: RELATED PARTY TRANSACTION Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. One contractor is related to a member of management. This contractor was paid $94,000 during the fiscal year.

Title: NOTE 8: FUNCTIONAL EXPENSES Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. Program Administrative Fundraising Total Event costs $500,517 $0 $0 $500,517 Payroll and related 402,328 95,002 67 497,397 Contract labor 365,093 16,040 0 381,133 Advertising and marketing 228,923 0 228,923 Office 105,392 25,062 0 130,454 Travel 56,194 0 0 56,194 Cost of goods sold 18,457 0 0 18,457 Other 76,568 16,738 0 93,306 $1,753,472 $152,842 $67 $1,906,381

Title: NOTE 9: REVENUE FROM CONTRACTS WITH CUSTOMERS Accounting Policies: FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES The Organization is an organization is exempt from federal income taxes under IRS Code Section 501(c)(3). Unrelated business income, of which the Organization had no significant amounts for the year ended 30 September 2024, is subject to federal income taxes and franchise fees. Accordingly, there is no provision made for federal income or franchise taxes in the accompanying financial statements as well as no uncertain tax positions as of year-end. FEDERAL AWARDS A significant portion of the Organization’s revenue is derived from federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received under these conditional contributions are recognized as revenue when the Organization has incurred expenditures in compliance with specific contract or grant provisions. The Organization has contracts for $1,172,277 for which qualifying expenditures have not been incurred and accordingly have not been recognized. FORT WORTH STOCK SHOW AND RODEO DONATION Fort Worth Stock Show and Rodeo donated a portion of their ticket sales to the Organization. EVENT AUCTION PROCEEDS The Organization recognizes horse auction proceeds at the point in time when the auction has ended, and its performance obligation has been met, when horse ownership has been transferred to the winning bidder in exchange for the agreed upon rate. Payment is due and received on the day the auction takes place. In relation to auction proceeds, as of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. EVENT TICKETS, ENTRY FEES, AND OTHER SALES The Organization recognizes the income from event tickets, entry fees, and merchandise sales, at the point in time when control of the promised good or service is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligation. For event tickets and entry fees, revenue is considered earned on the date of the event. Income from merchandise sales is considered earned on the date of the sale and when ownership of the merchandise passes to the customer in exchange for the agreed upon exchange rate. Payment is due at the date of the merchandise sale or event. As of 30 September 2024 and 2023 there were no contract receivables, contract assets, contract liabilities, or any other variable considerations or related obligations. CONTRIBUTIONS Contributions received (including unconditional contributions) are recorded as support without restrictions or support with restrictions in the period received depending on the existence and/or nature of any donor restrictions. Contributions received with donor imposed restrictions that are satisfied in the same reporting period are reported as without donor restrictions on the statements of activities. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return or right of release, are not recognized until the conditions on which they depend have been substantially met. The Organization records donated assets at their estimated fair values at the date of receipt. Contributions of land, buildings, and equipment are recorded without donor restrictions, unless explicit donor stipulations specify how the donated assets must be used. Gifts of assets with explicit restrictions that specify how the assets are to be used are accounted for as net assets with donor restrictions. The Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. SUBSEQUENT EVENTS The Organization has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued FUNCTIONAL ALLOCATION OF EXPENSES The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Payroll and related expenses are allocated based upon staff time devoted to each function. Contract labor, office, and other expenses are allocated based on management’s knowledge and review of individual transactions. De Minimis Rate Used: Y Rate Explanation: Mustang Champions elected to use the 10% de minimis indirect cost rate. For the fiscal year, the Organization has $124,252 in revenue satisfied at a point in time.