After reporting it was nearly $3.3 million in the red in its
first year of operation in 2022, the Horseracing Integrity and Safety Authority
made up $1.3 million of that deficit last year, according to tax documents
posted this week on its website.

On its form 990 filed with the Internal Revenue Service,
HISA said it brought in $43,675,102 in revenue and had $39,060,160 in expenses.
Medication enforcement cost $21,565,198, including $12,922,183 that went to
Drug Free Sport, the Kansas City-based company that runs the Horseracing Integrity
& Welfare Unit.

Some $40,285,399 of HISA’s income came from the fees that it
charges state authorities and racetracks. The formula for deciding those fees was
the crux of a federal lawsuit filed last week by Churchill Downs Inc. and the
New York Racing Association. They say that their big race purses illegally were
made part of that formula instead of relying solely on starts per year.

The regulator also collected $619,906 in fines and made $204,950
back from lab tests where it passed on the charges. It reported legal costs of $3,781,875.

Salaries and other compensation for eight people cost HISA more
than $2.3 million. Lisa Lazarus, in her first full year as CEO, was paid
$586,547 in base wages plus another $13,200 in added value. That represents a 17%
raise from the pro-rated $500,000 she made in the 10 1/2 months after she took
the job in 2022.

Other base salaries included chief financial officer Jim Gates
getting $344,340, up from $190,185 in 2022; former interim CEO turned
consultant Hank Zeitlin $305,683, down from $314,827; equine safety and welfare director
Jennifer Durenberger $262,488; racetrack safety director Ann McGovern $224,113,
up from $164,477; director of stewarding and state racing Mark Guilfoil
$190,160; communications director Mandy Minger Thomas $151,673; and assistant
general counsel Sam Reinhardt $110,132.

Salaries of HIWU officers such as CEO Ben Mosier as well as its
employees were not shown since they technically work for Drug Free Sport.

The form 990 is an annual requirement of organizations such as HISA that do not have to pay federal income tax.