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2022-12-31-accounts

THE STERLING CHARITY (Registered Charity Number: 1127454)

ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 34 DECEMBER 2022

THE STERLING CHARITY

CONTENTS

Page

Trustees’ Annual Report 1-8 Independent Auditor's Report 7-10 Statement of Financial Activities 41 Balance Sheet 12 Statement of Cash Flows 13 Notes to the Financial Statements 14-19

4

THE STERLING CHARITY

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees submit their annua! report and the independently audited financial statements of The Sterling Charity ("the Charity”) for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity’s governing document, the Charities Act 2011, and where relevant, the Charities Act 2022, and Accounting and Reporting by Charities: Statement of Recommended practice applicable to charities preparing their accounts in accordance with the Financia! Reporting Standard applicable in the UK and Republic of ireland in October 2019.

  1. REFERENCE AND ADMINISTRATIVE DETAILS

The Charity, registered charity number 1127454, is based and administered in the United Kingdom. The registered address is 95 The Promenade, Cheltenham, Gloucestershire, GL50 1HH.

Trustees:

The names of the trustees who served during the period and those who continue to serve at the date of this report's approval unless otherwise stated are:

Warren Matthews

Elton Shane Paul David Hunston

Independent Auditor:

Rawlinson & Hunter.Audit LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ

Solicitors:

Wiggin Osborne Fulieriove 95 The Promenade, Cheltenham, Gloucestershire, GL50 1HH

investment Managers: Rothschild & Co Wealth Management UK Ltd, New Court, St Swithin’s Lane, London, EC4N 8AL

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity was established by a Declaration of Trust dated 8 December 2008 and registered with the Charity Commission on 9 January 2009. [tis an unincorporated charitable trust governed by the proper law of England and Waies.

The entire resources of the Charity have been unrestricted throughout the year and the trustees have complete discretion for their use in furtherance of the objects of the Charity. Any money or property not immediately required for the Charity’s purposes can be heid or invested as the trustees determine.

2

THE STERLING CHARITY

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

  1. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Appointment and removal of trustess

Appointment of office halders and trustees is governed by the Declaration of Trust of the Charity.

Trustee inductions and training

Should new trustees be appointed a format induction process will be conducted by the trustees. Other trustee training is undertaken as and when appropriate. All trustees are aware of their legal obligations under Charities Act 2011, and where relevant, the Charities Act 2022.

Organisation and management

The Charity is administered on a daily basis by Timothy William Osborne who reports directly to the trustees.

The trustees formally meet at least twice a year.

Pay policy for senior staff

All trustees give their time freely and no trustee received remuneration in the year.

Related Parties Affifiation

The Charity is not associated with any other charity.

Trustees’ Responsibilities Statement

The trustees are responsible for preparing the Trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The jaw applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing these financial statements, the trustees are required to:

The trustees are responsibie for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, and where relevant, the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

3

THE STERLING CHARITY

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued}

Trustees’ Responsibilities Statement (continued)

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Reserves Policy

The trustees are concerned with maintaining sufficient levels of reserves to enable the Charity to carry out its charitable objects. The trustees believe that the reserves are sufficient for the Charity's current purposes and these are reviewed on a regular basis. These funds will be utilised for the objects of the Charity. In agreeing to any substantial funding the trustees will continue to have regard to maintaining a reasonabie level of reserves to safeguard the objectives of the Charity in the short term.

Risk Management

The trustees actively review the major risks which the Charity faces on a regular basis and believe that maintaining sufficient reserves, combined with regular review of the controls over Key financial systems, will provide sufficient resources in the event of adverse conditions.

The trustees have also examined other operational and business risks faced by the Charity and confirm that they have established systems to mitigate the significant risks. A risk assessment has been undertaken which comprises:

This continuing process will identify risk areas to which the Charity is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these financial statements.

In addition, the trustees have taken due consideration of Good Governance - A Code for the Voluntary and Community Sector, ensuring that the seven main principies of the Code are adhered to. These are:

The trustees recognise that good governance plays an essential part in securing the future of the Charity and confirm that the said main principles of the Code are followed by them in leading, directing and managing the Charity.

4

THE STERLING CHARITY

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 34 DECEMBER 2022

2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Fundraising

The trustees have referred to the Code of Fundraising Practice ("the Code") which was developed by the fundraising community through the work of the Institute of Fundraising and Public Fundraising Association, and the Guidance on Charities and Fundraising issued by the Charity Commission ("CC20"). They confirm that the new Code and CC20 have no impact on the Charity as it does not engage in any public fundraising activities.

  1. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of the Charity are such exclusively charitable purposes as the trustees may in their absolute discretion determine.

The Charity is established to aid the relief of poverty, relief of those in need by reason of youth, age, ill-health, disability, financial hardship, or other disadvantage, the advancement of education, the advancement of science, the advancement of the arts, the advancement of religion, the advancement of health or the saving of lives and the advancement of environmental protection or improvement throughout the world. Statement of Public Benefit The trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 io have due regard to it. They consider the information which follows in this annual report, about the Charity's aims, activities and achievements in the areas of interest that the Charity supports demonstrates the benefit to its beneficiaries and through them to the public that arise from those activities.

4 ACHIEVEMENT AND PERFORMANCE

During the year the Charity was focused on accumulating sufficient reserves to enabie it to achieve its charitable objecis and deliver public benefit in the future. The trustees believe, having taken into account Charity Commission guidance, that they will meet the public benefit criteria going forward.

Charitable activities

During the year, the trustees made donations totalling £75,000 (2027 - £60,000) to various charities. A full list of grants made during the year is reflected in note 4, on page 16.

Governance costs of £28,538 (2027 - £24,829) were incurred during the year, and are included within Charitable activities.

5

THE STERLING CHARITY

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

§. FINANCIAL REVIEW

incoming Resources & Resources Expended

incoming resources totalled £115,130 (2021 - £78,981) comprising of investment income. The Charily’s income was received from the investment portfolio.

Investment income is gross of investment management costs. Investment management costs are separately accounted for under resources expended and more specifically under costs of generating funds,

Investment Objectives and Investment Management Policy

The Sterling Charity's investment objective is to preserve the Charity's assets in real terms (Pounds Sterling) with a modest level of growth through capital growth and income.

The annualised return objective is CPI+2%, which would allow for the Charity’s capital to be maintained (in real terms) and allow for some distributions to support its charitable objects.

Investment Strategy

This return objective requires a medium risk profile whereby the Charity's portfolio may experience regular fluctuations, which could result in a loss. A medium-term (7 to 10 years) time horizon is required. The trustees have delegated the implemeniation of the investment strategy to Rothschild Wealth Management (UK) Limited (“Rothschild”) who manage the investments of the Charity. During the previous year, under advice from Rothschild the trustees changed their portfolio risk strategy to “cautious” from “low' predicated on the resurgent global economy and decreasing volatility across the board. The trustees meet requiarly with Rothschild and, if circumstances require, will amend their approach to portfolio risk from time to time.

6

THE STERLING CHARITY

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

  1. INTERNAL CONTROLS

The trustees are responsible for maintaining an adequate system of internal contro!s and keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, and where relevant, the Charities Act 2022 and SORP 2019.

The trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps towards the prevention and detection of fraud.

The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.

  1. GRANT MAKING POLICY

The Charity has been established to provide grants for purposes that are exclusively charitable under the law of England and Wales. The Charity has in piace sound grant making arrangements so that it can properly select appropriate grantees.

  1. PLANS FOR THE FUTURE

The trustees do not currently propose to deviate from the current objectives and activities of the Charity as detailed in section 3 above. Rothschild Wealth Management (UK) Limited, an external investment firm, continues to manage the assets of the Charity on a discretionary basis going forward.

  1. DISCLOSURE OF INFORMATION TO AUDITOR

In so far as the trustees are aware:

It will be proposed at the next trustees’ meeting that Rawlinson & Hunter Audit LLP will be reappointed as auditor to the Charity for the ensuing year.

Approved by the trustees on i$ Cxteje- 2023 and signed on their behalf by:

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Pau! David Hunston
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a

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF

THE STERLING CHARITY

Opinion

We have audited the financial statements of The Sterling Charity (“the Charity”) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable taw and United Kingdom Accounting Standards, inciuding Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

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

Conclusions relating to going concern

in auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individuaily or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to gaing concern are described in the relevant sections of this report.

8

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF

THE STERLING CHARITY (continued)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annuai Report and Financial Statements, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon,

in connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to reportin this regard.

~

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Reguiations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of financial statements and for being satisfied that give a true and fair view, and for such internal controls as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF

THE STERLING CHARITY (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in jine with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our assessment of the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur, is considered to be low. This conclusion was reached for the reasons outlined below:

We designed our audit procedures to respond to identified audit risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

Because of the inherent limitations of an audit and the audit procedures described above, there is an unavoidable risk that we will not detect ail irregularities, including those leading to a material misstatement in the financial statements or non-compliance with reguiation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, misrepresentation or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reperting Council's website at: www,frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

10

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF

THE STERLING CHARITY (continued)

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rawlinson & Hunter Audit LLP Statutory Auditor Chartered Accountants Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ

Date: /& igcPofer 28 vas

Rawlinson & Hunter Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

44

THE STERLING CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Funds Unrestricted Funds Unrestricted Funds
Note 2022 2021
£ £
INCOMEAND EXPENDITURE
Incoming resources
Investment income 2 115,130 78,981
Total incoming resources 145,130 78,9814
)
-
Expenditure on
Cost of generating funds 3 (157,066) (162,153)
Charitable activities 4 (103,538) (84,829)
Totalresourcesexpended (260,604) (246,982)
Other recognised (Josses) / gains
Realised gain on investments 6 167,210 265,691
Unrealised (loss) / gain on investments 6 (447,601) 835,094
Foreign exchange (loss) /gain 5 (870,806) 177,347
Totalotherrecognised (losses) /gains (A51497) 4,278,132
Netmovement in funds {1,296,671} * 4,110,134
Reconciliation offunds
Totalfunds broughtforward at 1 January2022 16,115,535 15,005,404
Totalfundscarriedforwardat31December2022 14,818,864 16,115,535

The Statement of Financial Activities includes all gains and losses recognised during the year.

All incoming resources and resources expended derive from continuing activities.

The notes on pages 14 to 19 form part of these financial statements

12

THE STERLING CHARITY

BALANCE SHEET

AT 31 DECEMBER 2022

Note 2022 2021
£ £
Fixed Assets
Investments 6 14,414,340 15,711,277
Cash undermanagement 6 425,464 431,778
14,839,804 16,143,055
Creditors -Amounts falling 7 {20,940) (27,520)
due in one year
Net current liabilities (20,940) (27,520)
Total assets less current liabilities 14,818,864 16,115,535
Net Assets 14,818,864 16,115,535
Represented by:
UNRESTRICTED FUNDS
CapitalFund £14,818,864 £16,115,535

The financial statements were approved and authorised for issue by the Board on i3 Cctetsec"2be3 and signed on their behalf by:

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Dte
Paul David Hunston
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The notes on pages 74 to 19 form part of these financial statements

13

THE STERLING CHARITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
£ £
Cash outflowfrom operating activities
Netmovement in funds (1,296,671) 41,110,131
Less incomefrom investments (115,130) (78,981)
(Decrease) / increase in creditors (6,580) 42,309
Unrealised oss / (gain) on investments 447,601 (835,094)
Realisedgain in investments (167,210) (265,691)
Net cash outflowfrom operating activities (4,137,990) (57,326)
Cash inflowfrom investing activities
Payments to acquire investments (2,489,149) (4,902,077)
Receipts from saie of investments 3,505,665 4,790,520
Incomefrom investments 445,130 78,984
Net cash inflow / (outflow) from investing activities 1,131,676 (32,576)
Net decrease in cash and cash equivalents (6,314) (89,902)
Cash and cash equivalents at 1 January 431,778 527,680
Cash and Cash equivalents at 31 December 425,464 431,778
Cash at bank and in hand 7 -
Cash under management 425,464 431,778
CashandCashequivalentsat31December 425464 431,778

The notes on pages 14 to 19 form part of these financial statements

14

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

  1. ACCOUNTING POLICIES

The Sterling Charity {the Charity"), registered number 1127454, is based and administered in the United Kingdom. The registered address is 95 The Promenade, Cheltenham, Gloucester, GL50 1HH. The nature of the Charity's operations and principal activities are set out in the Trustees’ Annual Report.

The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicabie to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 (‘SORP"), the Financial Reporting Standard applicable in the United Kingdom and Republic of ireland (FRS 102), the Charities Act 2011, and where relevant, the Charities Act 2022, and UK Generally Accepted Accounting Practice.

The financial statements are presented in sterling which is the functional currency of the Charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Fixed asset Investments

Fixed asset investments are included at closing market value at the balance sheet date. Realised gains and losses on investments are recognised on disposal of investments and any gain or loss on revaluation is taken to the Statement of Financial Activities. The determination of any gains and losses is calculated by reference to the market value of such assets at the beginning of the accounting period.

Cash held for investment is included within investment in accordance with SORP (FRS102).

incoming resources

Investment income is eamed through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these cosis. Interest income and dividend income is recognised as the Charity's right to receive payment is established and the amount of the income receivable can be measured reliably.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation committing the Charity to the expenditure.

Charitable activities comprise grants and donations made during the period and are expended through the Statement of Financial Activities when a firm commitment is conveyed to the recipient.

Governance costs include the costs associated with meeting the constitutional and statutory obligations of the charity, as opposed to the management functions inherent in generating funds.

Status of funds

All funds are held on an unrestricted basis. The trustees have complete discretion for their use in pursuance of the Charity’s objectives and which have not been designated for other purposes.

18

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

  1. ACCOUNTING POLICIES (continued)

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transactions vaiue.

Foreign currency Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the baiance sheet date are transtated using the closing rate. All differences are taken to the Statement of Financial Activities.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that aré repayable on demand and for7n an Integral part of the entity's cash management.

Taxation

The Charity is not subject to any taxes on its charitable activities.

irrecoverable VAT is not separately analysed and is charged to the Statement of Financial Activities when the expenditure to which it relates is incurred and allocated.

Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist, The levels of funds held and the levels of income and expenditure, together with the level of reserves are considered sufficient for the Charity to meet its requirements for a period of at least 12 months from the signing of the financial statements.

Judgements and key sources of estimated uncertainty

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions in certain circumstances that effect 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 may differ from these estimates. The trustees do not consider there are any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities at the year end.

16

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2022|2021| |2.|INVESTMENT|INCOME| |£|£| |income from|investments|115,130|78,981| |115,130|78,981| |3.|COST|OF|GENERATING|FUNDS|2022|2021| |£|£| |investment|management|fees|157,066|162,153| |157,066|162,183| |4.|CHARITABLE|ACTIVITIES| |The|following|grants|were|awarded|during|the|year|2022|2621| |£|£| |Medical|Engineering|Resource|Unit (UK|Registered|Charity|42,500|10,000| |No.|269804)| |The Movement|for|Non-Mobile|Children|(Whizz-Kidz)|(UK|42,500|10,006| |Registered|Charity|No.802872)| |Demand|Design|and|Manufacture|for|Disability|(UK|42,500|10,060| |Registered|Charity|No.1008128)| |Ruskin|Mill|Trust|Limited|(UK|Registered|Charity|42,500|10,060| |No.1137467)| |InFocus|Charity|(formerly West|of England|School|&|42,500|10,000| |College|for|young|people with|little|or|no|sight)|(UK| |Registered|Charity|No,1058937)| |Child|Brain|Injury|Trust|(UK|Registered|Charity|12,500|410,000| |No.1113326)| |75,006|60,000| |Governance|Costs| |Independent|auditor's|fees|20,601|18,320| |Legal fees|7,937|6,509| |103,538|84,829| |There|are|no|employees|other|than|the|trustees who|are|key|management.|

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17

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

5. FOREIGN EXCHANGE 2022 2021
£ £
Foreignexchange (!oss} /gain (870,806) 177,347
{870,806} 177,347
6. INVESTMENTS (ATMARKETVALUE) 2022
£		 2021
£
Quoted investments within the United Kingdom 5,244,534 6,415,045
Quoted investments outside the United Kingdorn 9,169,809 9,295,232
14,414,340 15,711,277
Cash held as part of portfolio 425,464 431,778
Total investmentsand cash undermanagement 14,839,804 16,143,055
2022 2021
£ £
Net realised (loss) /gain on UK investments (26,445) 106,363
Net realised gain on overseas investments 193,655 159,328
Total net realised gain on investments 167,210 265,691
Net unrealised (loss) / gain on UKinvestments (92,303) 172,913
Net unrealised (loss) / gain on overseas investments (355,298) 662,181
Tota! netunrealised (loss) / gain on investments (447,601) §35,094
Quoted investments within the United Kingdom
Marketvalue 1 January 6,415,045 7,321,365
Additionsatcost 640,918 993,964
Disposals (1,692,684) (2,179,560)
Net realised investment {ioss) / gain (26,445) 406,363
Net unrealised investment (loss) /gain (92,303) 172,913
MarketValue at31 December §,244,531 6,415,045
HistoricCostat31December 4,972,770 6,154,192

18

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

6. INVESTMENTS (AT MARKET VALUE) (Continued)

Quoted investments outside the United Kingdom

Quoted investments outside the United Kingdom
2022 2021
£ £
Market value 1 January 9,296,232 7,177,570
Additions at cost 1,848 201 3,908,113
Disposals (1,812,981) (2,610,960)
Net realised investmentgain 193,655 159,328
Net unrealised investment (loss) /gain (355,298) 662,181
MarketValue at 31 December 9,169,809 9,296,232
Historic Cost at31 December 6,464,189 5,974,274
Material holdingswere as follows (percentage ofthe portfolio value):
RWealth Management SICAV-SIF selected funds 35.70% 28.92%
7. GREDITORS - amountsfalling duewithin oneyear 2022 2021
£ £
Accruals 20,940 27,520
20,940 27,520
  1. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

No trustees or persons connected with them received any remuneration, and no expenses were reimbursed to them during the year.

Paul Hunston, who served during the year as a trustee, is a partner in the firm of solicitors Wiggin Osborne Fuilerlove who are the solicitors of the Charity. The Charity incurred fees from Wiggin Osborne Fulleriove totailing £7,865 (2027 - £6,570) in relation to legal advice and services relating to 2022. Invoices raised by Wiggin Osborne Fullertove were approved during the course of the year by the Board of trustees (excluding Mr Hunston) in accordance with clause 25(i) (b} of the Charity's Declaration of Trust.

19

THE STERLING CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

9. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Board of trustees.

10. FINANCIAL INSTRUMENTS

The carrying amounts of the charity's financial instruments are as follows:

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |2022|2021| |£|£| |Financial|assets| |Measured|at fair|value|through|SOFA:| |-Fixed|asset|quoted|investments|(Note|6)|14,414,340|15,711,277| |-Cash|under management|{Note|6)|425,464|431,778| |Financial|liabilities| |Measured|at|amortised|cost:| |-Accruals|(Note|7)|20,940|27,520| |The|income,|expenses,|net|gains|and|net|losses|attributable| |to|the|charity's|financial|instruments|are|summarised|as| |follows:| |Income|and expense| |Measured|at|fair|value|through|SOFA:| |Net|(loss)|/|gain|{including|changes|in|fair value)|(1,151,197)|1,278,132|

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