THE STERLING CHARITY {Regl8tered Charlty Number: 1127454) ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE STERLING CHARITY coKrENTS Page Trustees. Annual Report Independent Audftor's Report 7-10 Statement ol Financial Aclivitfds 11 Balance Sheet 12 Stalemenl of CÈsh Flows 13 Notes lo the Financial Statements 14-19
THE STERLING CHARITY TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees submit their annual report and the Sndependentiy auditsd financial statements of The Stèrling Charty ('Ihe chari) for the year ended 31 December 2023. Thp financial statements have been prepared in a¢¢ordance wllh the aGcounting policies set out in the notes to the financial statements and CAimply with the Charty's governlng document, the chareS Act 2011, and where relevanl, the Charities Act 2022, and Accounling and Reporting by Charities: Ststement of Recommended practs'ce applicable lo charities preparing their accounts in accordance with the Flnancial ReportirKJ Sl8ndard applicable In the UK and Republic of Ireland in O¢tober 2019. REFERENCE AND ADMINISTRATIVE DETAILS The Charlty, fegislered charity number 1127454, is based and adrniTbislered in the Unlted Kingdom. The regisleTed address is 95 The Promenade, Chéllenham. Glouce5ter5hire, GL50 1 HH. Tru¥t¢es: The names of the tTUStees who served during the period and those who Conlinue to serve at tha date of this report's approval unless othenyise stated are.. Warren Matthews Elton Shane Paul David Hun5ton Independent Auditor Rawliiison & Hunter Audit LLP Eighth Floor, 6 New Street Square, New Fetter Lane. London EC4A 3AQ Sollcltors: WgIn Osborne Fullerlove 95 The Promenade, Cheltenham, Glouoestershire, GL50 1HH Investment Managers: Rothschild & Co Wealth Managemenl UK Ltd, New Court. St Swilhin's Lane, London. EC4N 8AL STRUCTURE, GOVERNANCE AND MANAGEMENT Goveming document The Charity was established by a Declaration ol Trusl dated 8 December 2008 and registered wilh the Charity Commission on 9 January 2009. It is an unincorporated charitable trust governed by1he pioper law of England and Wale8. The erbtire resources of the Chanty have been unrestricted throughout the year and the trustees have complete discretion for their use in fvrtherance of the object$ of the Charity. Any money or property nol Immediately required for the Charity's purp05e$ Can be held or Invested as the trustees determine.
THE STERLING CHARITY TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT (contlnued) Appolntrnent and removal of trustees Appoinlment of office holders and trustees is governed by the Dèdaration of Trust of the Charity. Trustee inductions and tralnlng Should new trustees be appolnted a formal inductlon process will be conducted by the tfusteeb. Other trustee training 1$ undertaken a5 and when appropriate. All trustees are aware of Iheir legal obligations under Chaiitiès A¢l 2011. and where leVant. the Charities Act 2022. Organlsation and manag•ment The Charity is administered on a daity basis by Timothy William Osborne who reports dire¢tty lo the Intees. The Irustees fomialty meet al least a year. Pay poll¢y fgr Senior statf All trustees gbve their lirne fieety and no trusteè received Muneration in the year. Related Partles Afflllatlon The Charity is not associated with any other charily. Tru8tee$' Responsibllltie5 Ststèm¢nt The trustees are responsible for preparing the Trustees, Annual Report and Flnancial Statements in accordance wbth applicable law and United bQngdom Accounting Standards (United Klngdom Generalty Accepled Accountlng Practice). The law applicable to :harities in England and Wales requires the trustees to prepare financlal statements for each financial year which give a true and fair view of the stste of affairs of the Char and of the incomlng resources and appll¢atlon of resources of the Charlty for that year. In preparing the8e financial $tatem&nts. the trustees are reqylTed to". Select surtable accounting pollcies and then apply them ¢onsistently'. observe the methods and principles of the Chartties SORP 2019 IFRS102)', make judgements and estimates that art reasonable and prudent,. state whether applicable United Kingdom accountlng standards have been followed, subject lo any material departures disclosed and explained in the flnancial staiements,. and prepafe the finan¢ial statements on the going concern basls unless it L8 Inappropriate to presume that the Charity wll continue In operaiion. The tN$tees are responsible for keeping proper accounting records that disclose with reasonable ac¢ura¢y al any time the finan¢l81 position of the Charlty and enable them to ensure that the finanGlal statements comply wf(h the Charities Act 2011, and where relevant, the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provisions of Ihe Trust Deed. They are alsa respon*ible for safeguarding the assets of the Charty and hence for taking reasonable steps lor the prevertlon and detecllon of fraud and other Irregularities.
THE STERLING CHARITY TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 2. STRUCTURE, GOVERNANCE AND MANAGEMENT IcoTrtlnuedl Trustees, Responsibillti•3 Statement (contlnuedl The trustees are Tesponsible forlhe maintsnan¢e and integrity of the charny and financial Infomiation Included on the charllls website. L&gislation in the United Kirsgdom governing the preparation and dissemination of financial slatements may differ from legislation in other jurtsdictions. Reserves Policy The trustees 8re concerned with maintaining sufficient leve15 of reseryes to enable the Charity lo carry Out its charitable objeGts, The trustees believe that the reserves are sufficient for the Charty's current purposes and these are reviewed on a regular bas15. These fund5 will be utili5ed for the objects of the Charity. In 8greein9 to any substantial funding the trustees wll cont(nue lo have Tegard to maintainlng a reasonable level of investments and reserves. thus reasonable return from the investments to safeguard the obje¢ts'ves of the Charity in the long term. Rlsk Management The trustees actively review the major risks which the Charty faces on a regular basls and believe that maintsining sufficient reserves, combined wbth Tegular review of the conlrols over key financial systems, wll provlde sufficsent resources in the event of adverse conditions. The trustees have also examlned other Operaonal and business risks fa¢ed by the Charity 3nd confirm that they have established systems to mitigate the siunificant risks. A risk assessment has been undertaken which comprises: An annual review of the risks the Charty may fa,. The establishment of systems and procedures to mitigate those risks., and The Implementation of procedures designed to minlmise any potential impact on the Charity should those risk5 malerialise. This continuing process wlll identrfy risk area5 to which the Charity is vulnerable and highltghl any necessary safeguards that will need lo be put In place. No major rl$ks were identffied at the date of these financial statements. In addition. the trustees have taken due Consideratlon of Good Governance - A Code for the Voluntary and Community Sector, ensuring that the seven main principles of the Code are adhered lo. These are.. Organisational purpose., Leadershlp: Integrity., Decision-m8kSng, risk and control.. Board effe¢tivene$$,' Equality, dlversity and hcluslon", and Openness and aG¢e$sibility. The trustees recognise that good governance plays an essential part In securing the futu of the Charity and confirm that the said main principle6 of the Code are followed by them Sn leading. directing and managing the Charity.
THE STERLING CHARI TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 2. STRUCTURE, GOVERNANCE AND MANAGEMEMf (¢ontlnuedl Fundr8lslng The trustees have referred to the Code of Fundraising Practice I'lhe Code") which was developed by the fundraising community through the work of the Instrtule of Fundraising and Publi¢ Fundraising Association. and the Guidance on Charities and Fundraising issued by the Charity Commission {'CC20"1. They confirm that the new Code and CC20 have no irnpaGt on the Charity as it does not engoge in any public fundraising a¢livities. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFrr The objects of the Charity a such exclusively charitable purposes as the trustees may in their absolule di$¢retion determine. The Chartty Is established to aid the ielief of poverty, relief of those in need by reason of youth, age. ill-health, disabiltty, financial hardship, or other disadvantage, the advancement of education, the acfvancemem of science. the advancement of the arts, the advancement of religion, the advancement of health or the savlng of lives and the advancement of environmental protection or improvement throughout the world. Statement of Public Bèneflt The trustees ale avRre of the Charity CoTrrffnission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Ch?Tities Act 2011 to have due regard to it. They consider the information which follows in Ihis annual report. about the Charity's alms. actNities and achievement5 in the areas of interest that the Charity supports demonslrales the b8nefit lo ils beneficiaries and through them to the public that arise from those activttles. ACHIEVEMENT AND PERFORMANCE During the year the Charily was focused on accumulaltng suffiuent reseNes to enable it to achieve ils charrtable objects and deliver public benefit in the future. The Iru5tees believe. h8ving laken into account Charity Commission guidance. that they will meet the public benefit criteria golng foNard. Charltsble actlvlti85 DuTing ihe year, the truste8$ made donations totslling £77,000 (2022- £75.000) to various charilies. A full list of grants madg during the yw Is reflected in note 4 on page 16. Govemance costs of £28,170 (2022 - £28,538) were incurred during Ihe year, and are Included vthin Charitable a¢tiviti6s.
THE STERUNG CHARITY TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW Incoming Resourres & Resources Expended Incoming resour¢es totalled £179,021 (2022 - £115, 130) comprising of investment income. The Charity's income was rec8ived from the inveslmenl portfolio. Investment income is gross of inve$thi8nt management costs. Investment management costs art separately accounted for under resources expended and more specificalty under ¢osts of generating funds. Investment ObJectlve8 and Investment Management Pollcy Th8 Sterling Charty's Investment objective is to preserve the Charity's 88sets In real terms (Pounds sterting) with 8 modesl level of growth through capital growth and Income. The annualised tUrn objective is CPl+2%. which would allow for the Charity's capital to be maintained lin real terms) and allow for some distributions to support its tharilable objects, Investhient Strategy This return objective requires a medium risk profile vthereby the Charlty'g porlfolio may experience regular fluctualsons. which could result in a loss. A medium-terni {7 to 10 years) lime horizon 1$ required. The trustees have delegated the implementation of tt)e investment strategy to Rothschild Wealth Management (UK) Limited I"Rothschild") v4ho manage the investrnenls of the Charity. During the pr8viou$ year. under advice from Rothschild the trustees change(J their portfollo risk strategy to "¢autious' from '10 predlcated on the resurgent global economy and decieasing volatillly across the board. The trustees meet regularty wlth Rothschi and, rf Circumstan require, will amend their approach to portfolio rlsk from time to time.
THE STERLING CHARrrY TRUSTEes' ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 INTERNAL CONTROLS The Irustees are responsible for mainlaining an adequate system of intemal controls and keeping proper accounting records which disclose YAlh reasonable accuracy at 8ny lime the financial position of the Charity and lo enable them to ensur8 that the flnan¢lal statements ¢omply with the Charrtiè5 Acl 2011, and where relevant, the Charities Acl 2022. and SORP 2019. The trustees are also responsible for safeguarding the assets of the Charlty and hgnGe for tsking reasonable steps towards the preventlOD and detection of fraud. The system of internal contro15 is designed to provide reasonable. but not absolute. assurancg against materlal mlsstatement or loss. GRApif MAKING POLICY The Charity has been established to provide grants for purposes that are exdusivety charitable under the law of England and Wales. The Charity h8s in place sound grant making arrangements so that11 ¢an property select appropriate grantees. PLANS FOR THE FufuRE The trustees do not currently Propose to devlate from the current objectives and activlties of Ihe Charity as detailed in secllon 3 above. Rothschild & Co Wealth Management (UK) Limited, an external tnvestment firm, contlnues to manage the assets of the Charity on a dls¢retionary basis golng forward. DISCLOSURE OF INFORMATION TO AUDrroR In so far as Ihe trustees are awa. the is no relovant audit infomation of whlch the Char51Is audMor 15 unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to estsblish that the auditor is aware of that information. 10. AUDITORS It wll be proposed at the next truste85' meeting thal Rowlinson & Hurrter Audit LLP wll be r appointed as audltor to the Charity for the ensuing year. Approved by the twstees on L<w¢L }(fr llrf Ib'"and 5i3ned on their behalf by.. Paul Davld Hunston
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE STERUNG CHARITY Oplnlon We have audlled the financial ststsments of The Sterllng Charty ('the char.) for the yoar ended 31 December 2023which comprise the Statement of Finanal Actlvities, the Balance Sheet, the Stalement of Cash Flows and notes to the financlal statements, including a summary of signifi¢anl accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom AGcounting Standards. including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdorn Generally Accepted Accounting Practice). In our opinion the financial Statements.. give a true and fair view of the state of the Charty's affairs as a131 December 2023 and of tts Incoming resourrEs and appli¢ation of resources including its Income and expenditUTg for the year then ended- have been propevly prepared in accordance ¥th United Kingdom Generally Accepted Accounting Pr8Ctiee,' and have been prepared in accordance with the requlrem8nts of the Charitie$ Act 2011, and vthere relevant, the Charilies Act 2022. Bagls for oplnlon We conducted our audit in accordance wlth InlernalSonal Standards on Audltlng (UK) IISAS (UK)) and applicable law. Our re5ponsibililies under those standards are fvrther described in the Auditor's responsibilities for the audll of the financial statements section of our report. We are independent of the Charlty in accordance with the elh1¢81 requlrements that a relevant to our audtt of Ihe financial ststemenl$ in the UK, including the Finan¢lal Reporting Council's Ethical Standard, and we have fulfied our other ethical responsibilities in accordance with these requirements. We believe Ihat the audFt evidence we have obtained Is 8ufficiont and appropriate to provide a ba515 for our opinion. Concluslofts relatlng Io golng concern In auditing the financial statements, we have Concluded that the trustees, use of the going Goncern ba$1$ of accounting in the preparation of the financial ststements is appropriate. Based on the Work we have performed. we have not identified 8ny material uncertainties 14b'n9 to ovonts or conditions that, individualty or collectively, may cast significant doubt on the Charit$ ability to continue as a going concern for a period of at least twelve months from when the financial stalem8nts are authorised for issue. Our responsibilities and the responsibllities of the trustees vith respect to going con¢em a descrfbed in the relevant seclions of this report.
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF
THE STERUNG CHARITY IGontlnu¢d)
Other Infomiatlon
The trustees are respon6ible for the other infomiation. Th8 other information comprises the infonnation
included in the Annual Report of the Truste8s and Financial Statements, other than the financial statwnents
and our Hudrtols report thereon. Our opiiiion on the financial statements does not cover the other
infomalion and we do ng1 expre55 any form of as5uran¢e conclusion thereon.
In connection with our audtt of Ihe financial statements. our responslbility is to read the olher information
and. in doing so, consider whether the olher information Is m8terially inconsistent wlih the finan¢ial
Statements or our knowledge obtalned in the COUT5e of the audit or othetwise sppears to be malerially
misslated. If we Identfy such material inconsistencies or apparent material rnisstatements, we are reqyired
lo detemine whether this gives rise lo a material misstatement in the financial Statements themselves. If,
based on the WOTk WÈ have performed, we conGlude that there is a material misslatement of this other
Information, we are required to report that fact.
We have nothing to report In thls regard.
Matters on whlch we are required to report by exceptlon
We have nothing to report in respect of Ihe following matters in relation lo which the Charities
INDEPENDepir AUDITOR'S REPORT TO THE TRUSTEES OF THE STERLING CHARITY (contlnued) Audltor'j regponslbilities lor the audit of the flnanclal 5tatemonts Icontlnuod) Irregularities, induding fraud, are instances of non-compliance wth laws and regulations. We design proureS in line with our responsibilities, oudined above. to ddecl material misstatements in respecl of iriegularlties. including fraud. The exlenl to whith our procedure5 are capable of deteGtin9 irregularities, induding fraud is detailed below. Our assessment of the susceplibilfy oflhe entlly's financial stotsments lo materi81 misstement, inGluding how fraud might o¢¢ur, is considered to be low. Thh Goncluston wa$ reached ftr the reasons outlined below: due to the relatively simple business model and low volume of transadions within the Charity there are comparalNely few unexpected fluctuations in the report results and balances and any such unexpected rtem$ would be $pecffically enquired into by us,. and there are a number of individual$ which comprise 'managemenf and therefore there is no single Indwidual who is likely to be able to override Controls to effect a fraud. We designed our audit proureS to respond to identified audit Tlsks, including nonwcompliance with laws and regulations {irregularltlesl that are material to the financial st?temenls. Some of the specffi¢ procedures p&rfomied to detect Irregularities, includtfflg fraud, are detarfed below.. the review of control accounts and joumal entries tor large, unusual or unauthorised èntrles., the review of trustees. meeting minutes fof Unrerded tran$a¢tions- the analytical review of the detailed statement of financial 8ctlvitles foi variances that are either unexpected or considerèj not to be in accordance wilh our understsnding of the Charity aclivltles during the year., obtaining and reviewing for comFdeteness a Ilst of entities and persons con51dered lo be related parties (as defined by Flnancial Reporting Standard 102) and reviewing the ledgers of the Challty for previously unreported related paty transactions., ar review of tr8ns8Ctions and journals for any indication of fraud or management override. Because of the inhererrt limitations of an audit and the audit procedures descrlbed above, there is an unavoidable fFsk that we will not dete all irregulaiities, Including those leading to a material misstatement in the financial statements or non-compliance th fegulation. This risk increase5 the more that compliance with a law or regulation is removed from the events and transactions Teflected in the financlal statements. as we wi15 be less likely to become aw8re of instances of non-¢ompliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, a5 fraud involves intentlonal concealment, forgery, co51usion. omission, misrepresentation or the override of internal controls. We are not responsible for preventing non-compliance and ¢annot be expected to detect non-compliance with all laws and regulations. A fvrther description of our responsibillties for the audit of the flnancial statements is localed on the Financial Reporling Council's website at.. vAvw.frc.OT .ukJ8udilorsres onsibilities. This description forms part of our auditorfs report.
10 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE STERLING CHARITY Icontlnued) Use of our report This report is made strlely to the Charity's trustees. as a body. in 8ccordance part 4 of the Charities {Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state lo the Charity's ITUStees those matters we are requi to state to them in an audito9 report and for no other purpose. To the fullest extent peTmthed by law, we do not aocept or assume responsibility to anyone other than the Charity and tts trustees as a body. for our audrt work, for th1$ report, or for the opinions we ha¥8 fomied. RavAlnson & Hunter Audlt LLP Statutory Auditor Chartered Accountants Elghlh Floor 6 New Street Square New Fetter Lane London EC4A 3AQ Date.. Rawlinson & Hunter Audit LLP is 81igible for appointment as an auditor of the Charty by vlrtue of it5 eligibilty for appointmenl as auditor of the Charity under section 1212 of the Companies Act 2006.
THE STERLING CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlcted Funds 2023 Unre$lrlcted Funds 2022 Notè INCOME AND EXPENDITURE Incomlng resources Investment in¢ome 179,021 115,130 Total incomlng resources 179,021 115,130 Expendfture on Cost of generatlng funds Charitable activities 1157,700) (105,170) (157.0661 (103,5381 Totsl rèsources exponded (262,870) (260,604) othgr recognSsed galnslllossesl Realised gain on inve51ments Unrealised gain I Iloss) on investrnents Foreign exchange gain l {lossl Total oth¢r recognlsed gain81{losse*l 149.805 1.047.208 219,090 167,210 (447.601) {870.806) 1,415.903 (1,151.1971 Net movemerrt In funds 1,332,054 (1,296,671) Reconclllatlon of funds Total funds brought foThYard at 1 January 2023 Total funds carrled for4vard at 31 D•cember 2023 14,818,864 16,115,535 16,150,918 14,818,864 The Ststemenl of Financial Activities includes all gains and losses recognised during the year. All incoming resources and resources expended derlve from continuing actr¥ities. The notes cn pages 14 to 19 lonn part ol these finonci816tatemenls
12 THE STERUNG CHARrrY BALANCE SHEET AT 31 DECEMBER 2023 Note 2023 2022 Flxed Assets Investmants Cash undei management 16,046,306 124 935 16,171,241 14,414,340 425 464 14,839,804 Current Assets Debtors Cash and bank in hand 10,32S 10,325 Credltors. Amounts falllng due In one year 30 Net cuir•nt Ilabllities 324 Total as•ets legs current Ilabllttles 16,150,918 14,818.864 Net Assets 16,150,918 14,818,864 Representsd by: UNRESTRICTED FUNDS Capltsl Fund £16,150,918 £14,818,864 The financial statements were approved and 8Uthorised for issue by the Trustees on 2 I frf i fnhtk ?.' and signed on their behalf by.. Paul David Hun5ton Tho note5 on p8ge$ 14 to 19 form part of these financial statements
13 THE STERLING CHARrrY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash outnow from operating aGtlvltles Net movement in funds Less income from investments Increase in debtors Increase l (Decrease) in cteditor5 Unrealised {gain) I loss on investrnents Realised gain on inveslments 1.332,054 (179,021) (10,325) 9,708 {1,047,208) {149.605) (1,296.8711 (115,1301 (6.580} 447.801 (167.210} Net cash ouffiow from operating actlvltlos (44.39n (1.137,9901 Cash Inflow from Investlng actlvrtles Payments lo acqulre investments Receipts from sale of investments Income from investments (4,887.828) 4,452.675 179,021 (2.489,119) 3.505,665 115.130 Net ¢ash {outnow) 15nflow from Investlng actlvltles (256,132) 1,131,678 Net decrease in cash and ¢ash equivalents Cash and cash equivalents at 1 January (300,529) 425,464 (6,3141 431,778 Cash and Cash equlva10nts at 31 December 124,935 425.464 Cash al bank and in hand Cash under management 124,935 425.464 Cash and Cash equlvalents at 31 December 124,935 425.464 The notes on pages 14 to 19 fom part of Ih•se financial 8t81ements
14 THE STERLING CHARrrf NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POUCIES The Sterling Charity (the Charity'i, registered number 1127454, Is based and admlnlstered in the United Kingdom. The regislered address 1$ 95.The Promenade. Cheltenh8m, Gloucester. GL50 1 HH. The nature of the Charity's operations and prlncipal a¢tivibes are set out in the Tru8tee8' Annual Report. The Charty constitutes a publrc benefit entty as defined by FRS 102. The financlal Statements have been prepared in accordance wfth Accountlng and Reportsng by Charities.. Slalement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Finan¢lal Reporting Standard applicable in Ihe UK and Republic of Ireland issued in October 2019 I°SORP"), the Financial Reportin Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). the Chartties Act 20 1, and where relevant, the Charlties Act 2022, and UK Goneral Accepted AoUntIng PracliGe. The financlal statements are presentsd in sterling which is the functional currency of the Charity. Thesi nifi¢ant accounting policies applvèd in the preparation of these financial statements are set out be ¢)w. These policies have been ¢onststently applied to all years presentod unless otherwise staled. Flxed asset Investments Fixed asset investments are included at closing market value at the balance sheet date. Realised gains Bnd losses on investments are recognised on disposal of Investments and any gain or loss on valuation 1$ taken to Ihe Statement of Flnan¢ial Activfties. The determination of any gains and losses is cal¢ulated by reference to the market value of such assets at the beginning of the accounting pertod. Cash held for investment Is included within investment In accordan wlth SORP (FRS102). Ineomln9 resources Investrnent income Is earned through holdlng assets for Investment p.urposes suth as share5. It inclLtdes dNidends and inlerest. Where it is not practsc?ble to identfy Investment management costs inGuired wlhin a scheme with reasonable accyra¢y the investment income is reported net of these costs. Interesl income and dividend inGome is recognised as the Charity's right lo receive payment is established and the amount of the income re¢eivable can be measured reliably. Resources expended All expenditure is accounted for on an accfuals basis and has been classrfied under headings that aggregate all costs related to the Category. Expendllure is recognised where there 15 a legal or constructive obligallon committing the Charity lo the expenditure. Charitable activlties Comprise grants and donations made during the period and are expended through the Statement of Financial Activities when a firm commitment is conveyed lo the recipient. Governance costs include the costs associated wrth meeting Ihe constitutional and statutory obligations of the charty, as opposed to the management functions Inherent in generating fvnds. status of funds All funds are held on an unrestricted basis. The Iruslees have complete discretion for their use in pursuance of the Charity's objectives and lch have not been designated for other wrposes.
15 THE STERLING CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Icontinuedl Flnanclal Instruments The Charity onty has financial assets and flnancial liabilities of a kind that qualify as basic financial Instruments. Basic finanual instruments are recognised al Iransactlons value. Forelgn currency Foreign currency transactions are initlalty recognlsed by applying lo the foreign currency amount the spot exchange rate betsveen the functional currency and the foreign CuTneY at the dale of the transaction. Moftetary assets and liabilities denomlnated in a foreign currency at the balallce sheet date are translated using the closing rate. All differences are taken to the Statemenl of Financial Activlties. Debtors and credltors reGelvab5e I payable withln one yeai Debtors and creditors with no stated interest rale and Te¢eivable or payable withln one year are recorded at IransaGlion prfce. Any losses arising from impalrmenl are regnised in expenditure. Cash and ¢ash equlvalents Cash is represented by cash in hand and deposits with finan¢ial institutions repayable without penalty on notl¢e of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no moTe than three months from the date of acquisityon and that are readlly convertlble lo known amounts of Cash with insignrfiGant rlsk of change in value. In Ihe Statement of Cash Flows, cash and cash equivalenls are shown net of bank overdrafts that are repayable on demand 8nd fom an integral part of the entrty'$ cash management Taxation The Charity Is not subieel lo any taxes on charitable activities. IrreGoverab16 VAT is not sèparately analysed and Is charged to the Statement of Finalal.A¢tfvities when the expenditure to which it relates is incurred and allocated. Going Concern The finan¢i81 statements have been prepared on a going ¢oncern basi$ as the truslees believe thal no material un¢ertalnties exist. The levels of fvnds held and the levels of in¢om& and expenditure. togelheT With the levél of reserves are consldered sufficient for the Charity lo meet Its requlTrmerrt$ for a pertod of at least 12 months from the signing of the financial statements. Judgements and key source$ of esllmated unGert•inty The preparation of financial statements in accordance with generally accepted ac¢ounting principles requires management lo make estimates and assumpts'ons in ¢ertain circumstances that effect reported amounts of assets and liabililies and disclosure of contingent assets and liabilities at the dale of the financial statements and th8 reported amounts ol rev8nue$ antj expenses durlng the reporting period. Actual results may dlffeT from these estimates. The Irustees do not consider the affj any estimates and assumptions Ihal have a signrflcant risk of causing a material adjustment to the Carrying amounts of Bssets and liabilities at the year end.
16 THE STERLING CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 INVESTMENT INCOME Income from investments 179,021 115,130 179,021 115.130 COST OF GENERATING FUNDS 2023 2022 Investment management fees 157,700 157,086 157,700 157,066 CHARITABLE ACTIVITIES The following grants were awarded during the year 2023 2022 Medical Engineering Resource Unit (UK Registered Charity No. 269804) The Movement for Non-mobile Children (Whi2z-Kidz> (UK Registered Charty No.802872) Demand Design and Manufacture for Di$8bilily (UK Re91slered Charity No.1008128) Ruskin Mill Trust Llmited (UK Registsred Charity No.1137167) InFocus Charlty Iformerty We51 of England School & College for young people with little or no sight) (UK Reglstered Charrty No.1058937) Child Braln Injury Trust IUK Registered Charity No.1113326) Oame Vera Lynn Chlldren's Charity (UK Registered Charty No.1089657) 11,000 12,500 11,OOQ 12.500 11,000 12,500 11.000 12,500 11.000 12.500 11.000 12.500 11,000 77,000 75,000 Govemanc8 Costs Independenl audltorfs fees Legal fees 19,900 8,270 20,601 7.937 105.170 103,538 There are no employees other than Ihe trustees who are key management.
17 THE STERLING CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOREIGN EXCHANGE 2023 2022 Foreign exchange gain l (loss) 219,090 {870,8061 219,090 {870,8061 INVESTMENTS IAT MARKEf VALUE) 2023 2022 Quoted investments within the United lfjngdom Quoted investmenls outside the United Kingdom 5,965.366 10,080,940 5,244,531 9,169,809 16.046,306 124,935 14,414,340 425,464 Cash hetd as part of portfolio Total Investments and cash under management 16,171,241 14,839,804 2023 2022 Net realised Ilossllgain on UK investments Net realised gain on overseas investments 5,839 143,966 (26.4451 193,655 Total ngt r04llsed galn on Inveslrnents 149,605 167,210 Net unrealisèd gain l (lossl on UK investments Net unrealised gain l (lossl on overseas Investments Total net unreallsèd lgalnl I loss on Investments 352,818 694,390 (92,303) 1355.298) 1,047,208 {477,801) Quoted Invtstmenls wlthln th• Unlted Klngdom Markel value 1 January Addibons at cost Di5P0581$ Nel re81ised investment 98ln I (loss) Nel unrealised investmenl galn l (loss) 5.244,531 2,825,452 12.263,074) 5,639 352.818 6,415,045 640,918 (1,692.684) {26,445) 192,3031 Market Value al 31 Deber 5.965.366 5,244,531 Hhtorfc Cost at 31 December 5,394,765 4,972,770
18 THE STERLING CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2Q23 INVESTMENTS {AT MARKET VALUE) (Continued) Quoted investments outslde the Unlted Klngdom 2023 2022 Market value 1 January Additions at cost Disposals Npt realised investment gain Net unrealised investment gain l (lossl 9.169,809 2.262.376 {2,189,601) 143,966 694.390 9,296,232 1.848,201 {1,812,9811 193,655 {355,2981 Market Value at 31 DK¢rnbgr 10,080.940 9,169,809 Hlslorlc Cost at 31 December 6,798.767 6.464.169 Material holdings were as follows (percentage of the portfolio value): R Wealth Management SICAV-SIF Selected funds 35.70% DEBTORS - amounts falllng due wlthln one year 2023 2022 Accrued income 10,325 10,325 CREDITORS- amounts falling due wlthln one year 2023 2022 Accruals 30,648 20.940 30,648 20,940
19 THE STERLING CHARI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS No trustee5 or persons ¢onneGtèd with them receed any remuneiallon. and no expenses we reimbursed to them during the year. Paul Hunston, who served during the year as a Iruslee, is a partner in the firni of Solicitors Wiggin Osborne Fulledove who are the solicitOT5 of the Charity. The Charity incurred fees from Wiggin osborne Fullerlove tolalling £8.308 (2022- £7,865) in relation to legal advice and service5 relating to 2023. Invoices raised by wgin 05bome Fullerlove were approved durfng the course of the year by the 8oard of trustees {exduding Mr Hunstonl in accordance wRh clause 25{i) Ib) of the Charity's Declaration of Trust. 10. ULTIMATE CONTROLLING PARTY The ultimate controllin9 party is the Board of trustees. 11. FINANCIAL INSTRUMENTS The ¢arrying amounts ol the charivs finanual instruments are as follows.. 2023 2022 Financial assets Measured al fair value through SOFA.. -Fixed asset quoted investments (Note 61 -cash under management (Note 6) 16,046.306 124.935 14,414.340 425,464 Measured at amortised cost.. ArUed income (Note 7> 10,325 Financial liabilities Measured al amortised cost.. -Accrual$ (Note 81 (30,648) {20.940) The income, expenses, net gains and net losses attributable lo the ¢har5ty's financial instruments are summarised as fallows.. Income and expènse Meayured al falr value through SOFA.. Net gain /(loss) (Including th8ng8s in falr value) 1,415.903 11,151,197>