2021-06-30-accounts

The TOYBOX CHARITY

Annual Report and Financial Statements for the year ended 30 June 2021

Cover image courtesy of Adobe Stock. © All other images Toybox.

Contents

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|||| |---|---|---| |1. Welcome from the Chair and CEO of Toybox|03| |2.|Our impact at a glance|04| |3.|Reaching street children|06| |4.|Report from the Trustees|16| |5.|Reviewing the last financial year|18| |6.|Our future plans|23| |7.|Fundraising|25| |8. Our people and how Toybox is managed|26| |9.|Financial review and important policies|30| |10. Independent Auditors Report|33| |11. Statement of Financial Activities|36|

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02 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

1

Welcome from the Chair & CEO of Toybox

Working with street children is by its nature challenging, working with street children during a global pandemic – well, we can’t quite find the right words to describe this desperation. This struggle however pales in comparison to the despair experienced by children living and working on the streets, particularly over the last twelve months.

This year not only were more children around the world forced onto the streets for survival, many also grappled with increased vilification from their communities as fearmongering around the spread of COVID-19 intensified and street children continued to be stigmatized and blamed. The pandemic also pushed many children into increasingly dangerous activities to survive. In Nepal, a group of young people began working in makeshift cremation sites – helping to burn the bodies of the dead. There are no words to describe this horror.

To counter these challenges, the team in Bletchley needed to adapt, innovate and be courageous, and this they did, alongside the consistent and dedicated support of our international partners, who often put themselves at personal risk to distribute emergency supplies to those in need or to ensure that a child was safe. Some highlights from the last 12 months include:

• Over 100,000 street children, families and community members supported

• 8,038 street children and families received emergency support due to COVID-19

• 3,585 children and young people received counselling and support to manage their mental health

• Toybox also managed to keep our Birth Registration programme going during this tough time – which proved more vital than ever when some children could not receive government rations as they were not registered. In total this year, 2,259 new legal identity documents were secured.

Street children are often invisible to those who choose not to see them. But together we see them. Our external gratitude is extended to each and every one of Toybox supporters who gave and prayed so generously this year, without you none of this would be possible. Additionally, we would like to thank our volunteers, wonderful trustees and exceptional international partners who have continued to amaze us this year.

We are less grateful for the UK government’s cuts to the aid budget which meant a grant of £1million to support our work with street children in Kenya was revoked, however we move forward!

Thank you so much for taking the time to read this report. May God bless and keep you safe. With thanks and best wishes,

Mr Ian Gray | Chair of the Toybox Board

Mrs Lynne Morris | CEO Toybox

03 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

2

Our impact at a glance

Great numbers to read – but who are the children behind these statistics?

Toybox works through local partners to support children who are either living and/or working on the streets. Additionally we support vulnerable families who are at risk of becoming street living or street connected. Unfortunately, the situation for many of the families Toybox supports, who are often dependant on daily labour for survival, has become even more desperate in the last year. Many have suffered because of the various national restrictions hampering their ability to earn money for food and other essentials. COVID-19 has also continued to restrict many of our partners’ activities, particularly those targeting larger groups of children and caregivers. Despite these everchanging challenges, in the last 12 months together we have achieved:

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8,038
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865
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121,836

children and family members street children and young affected by COVID-19 received people received emergency emergency support including support including medical care, food rations, hygiene kits, food and clothing as part of stationery kits, play equipment ongoing interventions and and seed capital for other emergencies. livelihoods support.

children, young people and their family members directly and indirectly supported.

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2,259
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1,414
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335
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children and young people now have legal identity documents (of which 1,675 are birth certificates).

children supported to

young people and caregivers supported to advance their livelihoods – including vocational training and savings groups.

access formal and informal education.

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3,585
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1,178
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87
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children and young people

caregivers trained in

children and young people received legal representation and/or support.

received counselling or mental health support.

positive parenting.

04 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Our impact at a glance

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Sahana with her mother
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Sahana

11-year-old Sahana lives with her family in a small dwelling in one of Delhi’s most highly populated and congested slums. Life in this overcrowded slum is unimaginably hard – there is just one toilet in the whole of the area, which during the outbreak of COVID-19 the family were too scared to use.

Neither of Sahana’s parents were able to work during lockdown and had no savings or a ration card to be able to purchase emergency supplies. Her school also closed and stopped distributing food. During this time, Sahana told our local partner CHETNA, “I don’t know if we will die of COVID, but if conditions keep getting worse, we will starve.”

For children like Sahana, CHETNA’s support has been vital to their survival. Despite existing government food distribution measures, many people, especially street families like Sahana’s, were not given access to these benefits. At the height of lockdown in Delhi, there were widespread reports of violence against children found on the streets searching for food. Sanjay, CHETNA’s CEO, commented, “If there was a queue for food distribution, these children were asked to stand at the end. Because of their attire, their matted hair and smell, people were afraid that they would contract the virus from the children.”

To respond to this crisis, CHETNA, in partnership with Toybox, used community spaces to distribute emergency food supplies and hygiene kits to vulnerable children and families. Handwashing stations were also installed in these distribution sites and families given information on how to keep themselves safe. The team on the ground distributed educational materials and undertook daily phone calls with children to support them with their studies. Support group meetings were delivered virtually, and mobile top-ups provided to children to ensure they were able to stay in regular contact with project staff – a vital lifeline for many.

Thanks to this work, made possible entirely by the generosity of Toybox supporters, Sahana and her family were able to access emergency food and hygiene materials during the pandemic, and with support of project staff, she could continue her education.

‘ I don’t know if we will die of COVID, but if conditions keep getting worse, we will starve.’

05 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

3 Reaching Street Children – the reason we exist

What we did this year

Toybox does not exist for ourselves; we exist to help street children marginalised and abused by those who should be protecting them. To achieve this, we have worked with eight partners in seven countries this financial year, and together we have supported 121,836 children, young people, and their family members.

Our work is aimed at supporting both the immediate and medium term needs to support children and young people to transition off the streets. Additionally, we hope to solicit longer term policy and attitudinal changes in Government and society to help street children realise their human rights. Over the last twelve months, we have:

Delivered first aid and medical treatment to children on the streets.

Registered children and Provided mobile top ups to young people with their birth children for communication certificates and other legal with partner staff when documents (such as identity access was limited cards) enabling them to during lockdowns to access Government services enable access to online such as health, education, educational activities. emergency support and employment.

Trained young people in vocational trades and supported them to start small businesses with seed funding.

Helped to build young people’s self-esteem by Supported parents and providing opportunities to caregivers to form savings them to represent street clubs to better meet their children in Child Protection families’ basic needs. System forums, build skills to use online platforms, and collect data for evaluations.

Advocated for policy change to improve services for street children and strengthening of the Child Protection Systems which help to keep children safe.

Reintegrated street children with their families and supported children and young people to leave the streets.

Angela and her family received emergency relief and birth registration support during the pandemic (Bolivia).

06 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

Our second year of responding to COVID-19

COVID-19 took its grip during the last quarter of our previous financial period to which we responded by re-allocating up to 20% of project budgets to emergency response activities and adapted existing activities around lockdown restrictions, curfews and protocols in each country. By the beginning of this financial year, the situation had improved to an extent in most of the countries that we work in, which allowed some programme activities to take place as planned. However, some countries then experienced second and third waves with varying intensity.

Street children and their families have been extremely vulnerable to not only the negative health implications of COVID-19 (living in cramped conditions and/or without homes to stay safe in nor access to healthcare); they have also struggled with the economic impacts. Many are entirely dependent on daily wage labour and irregular and unstable income to meet basic needs. Lockdowns and the long-term effects of the pandemic has led to significant challenges for street children and their families around food, shelter, and hygiene.

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shown during the pandemic, without your
of street children would have suffered
more severely during the pandemic
to take more risky behaviours
for survival.’
SathSath – Toybox International
Partner, June 2021.
Despite the pandemic, Zanthia, 22, from
Guatemala, has managed to set up a business
and register all three of her children.
‘ Now I’ve got my own business, I feel good.
I’ve started selling soap as well as clothes
during the pandemic.’
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‘ We are thankful to Toybox for the support
shown during the pandemic, without your
prompt decisions, hundreds and hundreds
of street children would have suffered
more severely during the pandemic
to take more risky behaviours
for survival.’
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We have worked closely with all our partners throughout the pandemic responding quickly and adapting our activities, as required. Our emergency response this year has included support to over 8,000 children and their families by:

• Providing food rations and/or vouchers to 8,038 to children and their family members.

• Distributing hygiene kits (such as masks, soap, gloves, sanitiser and menstruation supplies) to 2,626 children and their family members.

• Distributing stationery kits to support learning when schools closed during lockdown to 1,145 children.

• Providing play items such as balls, skipping ropes, games and other toys to support wellbeing during lockdowns to 767 children.

• Distributing clothing to 702 children and young people.

Ways in which project activities were adapted to meet children’s ever-changing needs included education and sport activities moving online, counselling sessions being held over the phone, and trainings and evaluations being delivered virtually.

07 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

Further emergency support

In addition to responding to COVID-19, our emergency response this year also included responding to two devastating fires in communities we work in in Sierra Leone and India. The first, in March 2021, was in the Susan’s Bay area of Freetown, Sierra Leone, which left thousands of already vulnerable people homeless and many injured. Here, alongside our local partner St George Foundation Sierra Leone, emergency support was provided to 101 street children and their families including food rations, education supplies, uniforms, and hygiene supplies. Medical care was also given to those injured. In the weeks after the fire, work was undertaken to ensure children could continue to attend school and receive counselling to help them cope with what they had gone through. To ensure the long-term safety of children in the community, St George Foundation worked closely with the government and other local and national agencies.

Less than two weeks later, a fire at a clothes factory in Delhi affected 35 families living in a nearby slum community, many of whom lost their shelter and possessions. First COVID and now a fire. Several people were badly injured, including children. Toybox supported our local partner, CHETNA, to provide 360 children and 120 adults with essential items including food, hygiene packs, shoes, and essential household items. The team on the ground also offered counselling and support to children and organised fire safety awareness sessions and discussions with community members on reducing fire risks.

One child in the community said,

‘ I am extremely grateful and happy to not only receive the ration and household materials but getting health and hygiene kits and the stationery kit. Now I can protect myself from COVID and can also continue my studies.’

The number of children, young people and adults we worked with this financial year

During this financial year, Toybox directly reached a total of 12,423 children and young people and 4,104 adults. To ensure maximum impact for each child, we work with parents, caregivers, teachers and the wider community to ensure consistent, long-term change and thus we have included the adult figures in this table below.

Indirectly, we have reached a further 18,859 children and young people and 86,384 adults. Those classed as indirect beneficiaries may be other children who have had health messages passed on to them, a percentage of adults listening to public service announcements who have followed up on its content, or family members benefitting from increased household income, for example.

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Direct [] Indirect []
Country Children/ Adults Children/ Adults Total
Young People Young People
Bolivia 624 213 1,607 639 3,083
El Salvador 374 286 748 572 1,980
Guatemala 4,866 575 9,995 686 16,122
India 1,499 1,015 1,768 284 4,566
Kenya 2,234 908 532 264 3,938
Nepal 2,221 945 455 80,058 [†] 83,679
Sierra Leone 605 162 3,754 3,881 8,402
TOTAL 12,423 4,104 18,859 86,384 121,770
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• Direct participants are those who participate in and directly benefit from programme activities.

** Indirect participants are those who benefit indirectly from the services provided by the projects to the direct participants, such as family members and their wider communities.

† This figure is high compared to others as includes a percentage of those who saw public service announcements and other awareness raising activities regarding birth registration which were created through the project and are believed to have engaged with the content. This material was broadcast on 7 platforms reaching 1.2 million people in total.

08 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

Some examples of this in more detail…

Birth registration

This year our Birth Registration work has been more vital than ever, as in countries around the world children who were not registered were denied access to government programmes and emergency assistance in response to COVID-19.

Thanks to our partner in Guatemala, CONACMI, and their strong partnership with the Government Department – The National Registry of Persons (RENAP), the majority of our birth registration work has taken place in Guatemala. This successful partnership has led to the registration of 1,430 children and young people this year.

In Nepal, our partner SathSath supported 35 street children who had been forced to drop out of school because they did not have the necessary legal documents. Thankf ~~u~~ lly, thes ~~e~~ children can now continue with their studies.

Education and vocational training

Vocational training aims to give young people the opportunity to develop technical skills which they can take forward to use in their lives to help them earn a living, support themselves and their families, or build a business. In Kenya, 15 young people were able to secure jobs after completing training in mechanics, catering and hair and beauty.

In Guatemala, during the year 240 young people received vocational training in areas including basic and advanced English, health and beauty, and catering. 50 young people were able to go on to secure employment. This was a slight drop on the target (25%) due to the impact of the pandemic.

In Sierra Leone, despite the effects of the pandemic, 181 children out of the 200 enrolled at the start of our education project remained in school at the end of the two-year project. A 91% retention rate.

Abass has been living on the streets of Freetown, Sierra Leone for a very long time. He was involved in drugs, violence and stealing. However, this year with support of St George Foundation, he was able to start school and has now taken his National Primary School Examination. A great success story!

Tackling period poverty

Millions of girls around the world drop of out school each year when they begin their period. Those who remain in education might miss up to 5 days of school each month during their period. This year, 200 period packs were distributed to children in our projects in India – allowing them to not only have access to clean sanitary protection but giving them the independence to manage their periods safely and with dignity. Distributing period packs also helped to raise awareness about menstrual hygiene in communities, helping to break the stigma attached to the subject of periods.

‘ I am glad I no longer have to use the old clothes, which caused a lot of infection and irritation, as I have got access to sanitary napkins. I feel ecstatic when I see all my friends and other girls receiving sanitary pads from CHETNA. I wish for people in my community to not treat girls like untouchables during their periods and to give them respect.’

Aditi – 16, India.

Legal representation

53 children and 34 young people in Kenya were given legal representation within the judicial system which would otherwise have not been available to them. This enabled many cases to be resolved without imprisonment and meant that young people were able to start vocational training courses, gaining valuable skills for a more positive future.

‘ I feel extremely good about using sanitary napkins as I don’t have to worry about staining or the cloths falling out in the middle of nowhere. Before I sometimes had to use wet clothes – my thighs used to get grazed and infected. Now I can easily walk and do my chores.’

Ritu – 16, India.

09 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

What did not work, the lessons we learnt and what we have subsequently changed

Our key lessons this year have included:

• The importance of regular honest conversations with our partners about the situation on the ground in order to adapt and respond quickly. For example, we knew very early about the rising COVID-19 figures in Delhi, had conducted scenario planning and were in a good position to launch a timely Emergency Appeal to supporters, whilst the news was breaking in the UK. This meant we could send additional emergency support quickly, at a time when it was most needed.

• Inability to travel has meant Toybox Programme Managers have not visited projects for over a year. To ensure sufficient support and oversight of partner projects, including

conducting evaluations and designs of new projects, we have learnt new and creative ways of remote support through online platforms, supporting partners to lead on elements themselves and through contracting additional external (local) support when needed.

• Constant adaptation of existing projects due to COVID-19 has resulted in more financial oversight from the International Programmes team. This has promoted us to investigate a new project management database. We are excited about what this will help us to achieve and plan to roll it out in early next year.

How we do what we do

Partnership and our partners

During the year we supported the following partners and their projects

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NEPAL
SIERRA LEONE SathSath and
St George
Child Workers
Foundation in Nepal (CWIN)
Guatemala
Associacion el salvador
Nacional Contra Fundación Viva
el Maltrato Infantil El Salvador
(CONACMI)
india
Childhood
Enhancement
Bolivia
through Training
Alalay
and Action (CHETNA)
kenya
Pendekezo
Letu (PKL)
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10 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

The importance of partnerships

At Toybox we have seen over many years that local organisations are best placed to find the most appropriate solutions to prevent children from becoming street connected. Local grassroots Non-Governmental Organisations (NGOs) have a greater understanding of the context in which they operate and have built strong and lasting relationships with local stakeholders and communities. Many of our partners have been working in their cities and communities for more than twenty years and thereby are fully accepted by the community members. We also know that locally led development increases the effectiveness, legitimacy and cost effectiveness of our engagement with street children while reducing the power imbalance which can occur.

Before starting to work with a new partner, and subsequently every three years, we carry out a detailed Partner Assessment. We recognise all organisations have things to strengthen (including us!) and these assessments allow us to see what is working well and highlight the gaps where additional training or support may be required. Given that programme staff were unable to travel in the past year and challenges with the pandemic, only one partner assessment was carried out. This was undertaken differently to previous years through a combination of remote documentation review and discussion, in addition to face-to-face interaction with an in-country consultant.

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Street outreach session on the
streets of San Salvador.
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Strong partnerships are foundational to Toybox’s success, based on the collaborative relationships we cultivate with our partners built on trust, transparency and accountability. We have significant experience, skills and resources which we bring to all our partnerships and assign a proportion of project funds to working with partners to develop and deliver bespoke training to enhance the impact we have on street children. In the past year, these are some of the ways we have worked with our partners:

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Partner Ways in which we support our partners
Support of organisational fundraising strategy and development of intervention models and narrative
Alalay
proposals to submit to a variety of donors based on this strategy. Data collection and coding training.
Development and maintaining a monitoring database including training staff on collecting data and
using standard forms to use to inform reports to more effectively digitalise processes and records.
CONACMI
The partner assessment process identified elements to be worked on in the following year for greater
organisational efficiency and Toybox supported a youth led evaluation.
Support of fundraising including a part-time staff member focused on the diversification of funds.
VIVA El Salvador
Safeguarding training, and institutional planning.
Supported research into the impact of COVID-19 on child well-being in conjunction with a local Professor
CHETNA of Child Psychology and investment in their social media capacity to enable additional local fundraising
for sustainability. Safeguarding training of focal points and formation of an incident management group.
SathSath Data collection and coding training, project participant feedback training, M&E.
CWIN Data collection and coding training, support to construct Theory of Change.
Review of Strategic plan and creation of new strategic plan (including resource mobilisation). Trainings
PKL on project participant feedback, safeguarding, organisational development and value for money and
integration into project activities.
St George Data collection, report writing, safeguarding and project participant feedback training, support to
Foundation conduct project evaluation internally and awareness raising on mental health.
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11 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

What our partners said about us this year

Toybox undertakes a survey every two years with our partners to better understand what we are doing well and where we can improve in terms of our partnerships. We always enjoy reading the feedback and some extracts are as follows:

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‘PKL appreciates ToYbox support
for the 5 years of partnership. The
partnership has been one of the ‘We are very encouraged by the
strongest. There has been mutual open-mindedness of Toybox as they
understanding and respect and our listen to its partners, initiate
capacity as an organisation has dialogue and give attention to
greatly improved especially in areas our views which are guided by our
of safeguarding, program design/ direct connection with street
implementation and strengthening of children. You have consulted with
financial and management systems’. us on your future strategies and
projects that demonstrate your
PKL willingness to get our inputs’.
CWIN
‘Together, we can
accomplish more
than we could alone
which enhanced our
effectiveness, impact,
and reach to more and
more children’.
‘You have been very open and
transparent in terms of your
CHETNA
decision-making as we think you
always give us the chance to
contribute to the process and
negotiate before final decisions
are made. You do not impose your
decisions on us and you are an
organization that listens’.
ST GEORGE FOUNDATION
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12 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

At Toybox we know that we achieve more together…

At Toybox we believe that for us to have significant impact on improving the lives of street children, it is vital that different organisations and networks work together. As a result, during this past year we have engaged with the following external partners:

BOND

Active member supporting policy and learning and part of several thematic working groups.

Consortium for Street Children

Support with policy and networking.

Crack the Crises

A group of over 70 organisations which came together in 2020 to overcome COVID-19, injustice and climate change. Toybox are particularly interested in the elements of COVID-19 and injustice, with the latter being central to our mission statement and strategy. As a relatively small organisation, we can come together with other organisations to have a greater impact in the international and national arena.

Professor Lorrainne van Blerk

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Toybox has partnered with Professor Lorraine Van Blerk, Chair of Human Geography at the
University of Dundee who is offering technical advice on a research project.
CEO Child Rights Group
A network of similar sized organisations focused on child rights.
BOND
Consortium
for Street
Children
Professor
Crack the
Lorrainne
Crises
van Blerk
‘ I want to encourage both women and men to help raise
awareness on the challenges we face around menstruation
CEO Child
and provide the support wherever needed.’
Rights
Kanci – 14, India. Group
13 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021
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Reaching Street Children – the reason we exist

The Toybox methodology

At Toybox we believe that every child has the right to a safe, healthy childhood in accordance with the United Nation’s Convention on the Rights of the Child. We believe that as well as supporting a child we need to identity and strengthen the systems which encompass that child, including family, community, local, national and international players in order to bring sustainable change. This is the essence of our Ecology of the Child Methodology which we believe is the most holistic way of tackling the challenges street children face, based on the failures experienced at each of these levels.

Before a project starts, a detailed design process takes place which includes consultation to develop a theory of change. This is a key element of Toybox’s Monitoring, Evaluation, Accountability and Learning (MEAL) process called TOCAP (Theory of Change for Adaptive Programming) which requires an analysis of the country and city-wide context. The development of the Theory of Change is then implemented, tested and adapted as necessary throughout the programming cycle. The Theory of Change takes into account the various factors at child, family, community and societal level, all which need to be addressed in order for positive change to take place.

ECOLOGY OF THE CHILD

Child

child level

Every child needs to know their rights and be supported to be able to demand for these to be upheld. The children and young people we work with know their situation better than anyone, so with further support, they are the best advocates to improve their own and their peers’ lives. Nothing about them without them.

Issues

Child labour

Drug and alcohol abuse

• Sexual violence and exploitation

Gang violence Domestic violence Physical abuse Health risks Illiteracy

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Family
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FAMILY level

We recognise the best place for a child to flourish is within the care and protection of a safe family environment, so we focus on strengthening families through counselling and economic opportunities, and build their capacity to know their children’s rights, to protect them whilst also providing for their needs.

Issues

Family conflict

Loss of family income Single-parent households Child-headed households Migration Displacement Dysfunctional families

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Community
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COMMUNITY level

Supporting local communities that have their own structures to protect children (for example through schools, elders, chiefs etc.). Our partners work to try and remove stigmas and discriminations of streetconnected children, which is also key to giving the children a chance for better opportunities in the communities that they live in.

Issues

Poverty

Gang violence

Unemployment

Gender inequality Social inequality

• Lack of awareness of child protection

Harmful cultural practices

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Society
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SOCIETY level

Working with duty-bearers to improve national and local laws to promote the protection of streetconnected children, and build a better understanding for institutions, such as the police and judiciary, to uphold street-connected children’s rights in practice.

Issues

Lack of birth registration

• Weak child protection mechanisms, policies and laws

Ineffective justice systems Stigmatisation

14 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reaching Street Children – the reason we exist

To have the greatest impact on every level, we work with street children in three separate stages of their journey: prevention; intervention; and reintegration.

PREVENTION

Helping children before they end up on the streets.

Vulnerable children and families sometimes need help. Toybox supports projects where a child or family are in danger of becoming street-connected. It is easier to help a child before they become deeply connected to the street meaning our chances of keeping children off the streets are much higher.

INTERVENTION

Working to support children who are living on the streets

In a crisis, children and young people on the streets need direct help and they need it quickly. We support children who are living and/or working on the streets with practical and urgent support as well as helping to build their confidence to leave the streets.

REINTEGRATION

Supporting children into a safe home away from the streets.

Children on the streets often need protection from abuse and neglect. Toybox works to trace family members to help children return home and reintegrate with their families and communities. This can also include helping children to access school or learn vocational skills.

More information about our approach is available at www.toybox.org.uk/our-work/approach

Emphasis on adaptation

For years Toybox has been a strong proponent of learning and adaptive management. We know a project must adapt and change during the lifespan to be as effective as possible. COVID-19 forced continuous adaptations but because of our approach, this did not cause any issues and we were able to respond quickly and effectively.

Online learning became the norm in lockdown in India – children were supported with gadgets to ensure their learning could continue.

15 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

4 Report of the Trustees of The Toybox Charity for the year ended 30 June 2021

The Trustees are pleased to present their Annual Report and Audited Financial Statements for the year ended 30 June 2021.

What motivates us to act?

We are distraught that we live in a world which allows children to sleep on pavements, work in appalling conditions, be subjected to violence and abuse, and denied the right to access healthcare, an education and have a voice in their own communities.

Right now, 100 million children are subject to abuse and exploitation – this must change.

Every child has the right to a life which is free from fear and exploitation, where they can use their skills and talents and fully participate in community life.

Our organisational narrative – the story of Toybox

Our history

In 1991 the BBC aired a documentary about police officers shooting children living on the streets of Guatemala City. A British couple watching this were moved to action by their disbelief, faith, and desire to do something – thus Toybox was born. Our unusual name, Toybox, was chosen to capture the visual representation that every child deserves a childhood free from harm in a loving, nurturing family.

Our today

Our organisational vision

Our vision is of a just and fair world with no street children.

Our organisational mission

Our mission, today and for the next two years, is to positively change the lives of more than 40,000 street children.

During the intervening years, Toybox, with countless dedicated, skilled staff and the most loyal supporters, has expanded its work to reach as many street children as possible. We are now working across Latin America, Asia and Africa alongside children who are:

• living and/or working on the streets;

• subject to physical and sexual violence;

• without birth certificates, unrecognised citizens without rights or opportunities;

• not in school or with no access to healthcare or a job and;

----- Start of picture text -----
Warm clothes will be vital for
children living and working on the
streets this winter in India
----- End of picture text -----

• in conflict with the law

• connected to the streets such as through work and at risk of entering the streets full time

• engaged in child labour, including exploitative and hazardous labour

• orphaned or escaped from an abusive or poverty-stricken home life

Today our passion, commitment and Christian ethos remains undiluted, we are compassionate and determined people based in Milton Keynes, who completely believe that one day soon there will be a world with no street children.

16 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Report of the Trustees of The Toybox Charity for the year ended 30 June 2021

Our values

At Toybox we have one core value: Courageous

• To do the right thing

• To speak the truth against injustice and

• To be unafraid to try new ideas

And our Charitable Objects are:

1. The prevention and relief of poverty anywhere in the world in particular but not exclusively by:

2. a) Providing support for street living and working children, including access to education and healthcare

3. b) Providing support for vulnerable families as to encourage a stable and caring family life and prevent children being forced onto the streets

4. The promotion of the rights of the child, as set out in the Universal Declaration of Human Rights, the Convention on the Rights of the Child and subsequent United Nations conventions and declarations, by any means the Trustees in their absolute discretion choose and in particular by raising awareness as to the needs of street living and working children, and advocacy as to how those needs can be best met.

5. The advancement of education of the public in particular but not exclusively by:

6. a) Educating the public about the nature, causes and effects of poverty

7. b) Conducting and procuring research concerning the same and disseminating the results to the public

8. The promotion of the active engagement of the Christian church in the provision of support to street living and working children, irrespective of gender identity, age, marital status, ethnic origins, disability, sexual orientation, religion or belief.

9. To carry out any other objects which are exclusively charitable and are beneficial to the community in the places where the charity operates.

In setting our programmes each year we have regard to both the Charity Commission’s general guidance on public benefit and prevention and relief of poverty for the public benefit. The Trustees always ensure the programmes we undertake are in line with our Charitable Objects and Aims. All our charitable activities are directed towards and motivated by our desire to help street children and their communities.

Victor, 5, can go to school now he has his birth certificate. (Guatemala)

Reviewing the last financial year 5

What we said we would do, and did we achieve it?

The reason we exist, to support street children, is by its nature challenging and this year, with the ongoing global pandemic and street children at their most vulnerable, was even more so.

Our key strategic priorities for the last financial year were the second year of our current strategic plan:

Grow and Diversify – to ensure that we grow and diversify by:

Reaching more street children

----- Start of picture text -----
Reaching more street children
To have worked with 12,100 (direct) To support 1,000 children to access birth
street children by 30 June 2021. registration documents by 30 June 2021.
Yes! We have worked directly Yes, we are delighted to say that even during
with 12,423 children and this challenging year and restrictions on
young people this year. planned activities we registered 1,675 children
with their legal identity documents.
To include more advocacy work at local and
national level in the countries in which we work
in order to influence policy and practice to
support children and reduce abuse of them.
Yes, there have been 12 national advocacy
----- End of picture text -----

----- Start of picture text -----
To include more advocacy work at local and
national level in the countries in which we work
in order to influence policy and practice to
support children and reduce abuse of them.
Yes, there have been 12 national advocacy
initiatives and 12 local level advocacy
initiatives in the past year.
----- End of picture text -----

----- Start of picture text -----
Learning is fun at a
Learning Centre in Nepal.
----- End of picture text -----

18

THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reviewing the last financial year

Diversification of total income by securing funding from institutional grants and further growth and diversification of the voluntary income portfolio and the supporter database

To make at least 3 submissions to institutional funders with a success rate of at least 33% by June FY21

Well there is a story here… we were successful in our first ever FCDO grant for £1million, only to have it cut when the government significantly reduced the aid budget – so disappointing for Toybox but so much more disappointing for the children in Kenya we hoped to support with this grant.

To ensure Regular Giving Income is no less than 40% of total voluntary income by 30 June 2021

Well this objective was not achieved because our cash appeals performed so well as our supporters responded with such incredible generosity – in hindsight not the most use objective to include!

The total number of social media engagements for FY21 is 20,000

Yes – hurrah for this one we achieved 56,753 social media engagements.

To embed the Value for Money proposition into the organisation by ensuring it is considered during project designs and evaluations as well as in organisational planning and management of both Toybox and its partners by 30 June 2021

This took a backseat at the organisational level because of the project adjustments which were made as a result of COVID-19 however significant progress was made with two of our partners and we will continue to expand and build on this during the next financial year.

To grow our active database by 3% by 30 June 2021

No, we undertook a database cleaning exercise, and although new supporters did join us this year, the outrun was a 0% growth rate.

19 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reviewing the last financial year

Deepen Impact – to ensure that all those who engage with Toybox are impacted by our work, in particular the street children we work with by:

Ensuring and measuring all impacts of our work with street children

To ensure the improvement of beneficiary counting mechanisms by 30 June 2021

Getting there! – We have worked hard with partners to prevent double counting of participant numbers and have collected all data by gender. We also have much better data on children with disabilities and have agreed on a set of standard indicators that we will use across projects from next year onwards to improve key measures.

At least 3 partners have established feedback mechanisms which are known by participants, are being used and influence project decision making this financial year

Yes. The great news is that we have achieved this and across all of our partners we are seeing an improvement in child-friendly ways of gathering feedback from project participants.

To send 10% more funding to international partners, versus the previous 12 months, by 30 June 2021

To continue working on safeguarding and ensure that 80% of our partners are on a RAG rating of green by 30 June 2021

Good news! Given the increase in online platforms used by partners and project participants due to COVID-19, we made our RAG rating criteria tougher this year! Under these new criteria, 63% of partners are on green and none are on red. All are consistently improving their practice and proactivity regarding safeguarding – particularly online.

Great news here! We achieved an increase of 9.5%. We were also able to send an additional 7% to our partners for emergency response work, thanks to the generosity of our supporters.

To rewrite our Articles of Association and complete a governance review

Yes, we rewrote our Articles of Association and are mid-way through a 2-year review of governance structure, policies and procedures.

20

THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reviewing the last financial year

Deepening the customer experience for all those supporters who engage with Toybox

To have a healthy, engaged workforce who feel valued and well equipped

----- Start of picture text -----
The Toybox website is refreshed and
launched by 31 December 2020
Yes, we did, and it looks good! Do
take a look at www.toybox.org.uk
----- End of picture text -----

----- Start of picture text -----
To spend 1.5% of employee salaries on
training and professional development by
30 June 2021
This one is interesting – we actually only
spent 0.3% but completed a total 92
external training courses (with a team
of 12) … showing we sourced a lot
of free learning!
----- End of picture text -----

----- Start of picture text -----
To ensure exceptional customer care
by ensuring the complaints is less than
1% by 30 June 2021
Yes – we hope our care for our supporters
is apparent to all who engage with
us. We received and responded to two
complaints this financial year.
----- End of picture text -----

To implement an annual staff survey and track staff well-being and satisfaction

Yes, the annual survey showed that 100% of employees either agreed or strongly agreed that they enjoyed working for Toybox.

----- Start of picture text -----
Brothers doing homework after
school in San Salvador.
----- End of picture text -----

21 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Reviewing the last financial year

In addition to the targets mentioned above we undertook the activities listed below:

Our business as usual during a global pandemic

So much of the day-to-day tasks we undertake to run Toybox are excellently delivered but we just see them as normal, here is a snapshot of some of the things that we consider to be normal:

• Monthly Income and Expenditure statements are produced by the fifth working day of each month.

• We have a rolling review programme for our Board and Management Policies.

• We audit our Board performance, diversity and skills set on an annual basis.

• Each quarter we have a week of team learning sessions and meetings which include a review of the previous quarter, organisational training days, innovation days, staff well-being days and annual day of prayer and hope.

• We have a two-year rolling programme for a financial review of all our international partners.

• Our supporters are thanked for their donations within two working days.

• We carry out an annual survey of staff satisfaction and diversity audit.

• Quarterly narrative and financial reports are received for each project with progress and learnings discussed with each partner.

• Organisational development for our partners either via Toybox directly running training or by funding provided for partners to use in-country consultants to build their own expertise.

• We have a continuous improvement cycle in place for our communications with our supporters to ensure we are providing robust feedback about the difference their donations are making.

• Undertake two annual appeal mailings to current and prospective supporters.

• Mail four supporter magazines each year to highlight work that is being undertaken by our partners.

Being an innovative and learning organisation

We strive to keep innovation central to our work, dedicating time and energy to innovation and tracking how this improves the organisation. This financial year we implemented over 161 changes to improve the way we work, from the big new projects to small incremental changes.

----- Start of picture text -----
Children like Ada, often
balance school with helping
out their parents at work
----- End of picture text -----

22 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

6 Our future plans

We are now in the second year of our strategic plan and despite the challenges COVID-19 has brought us, we are still broadly on track in some areas, including fundraising. Other areas, including delivering programmes for street children, have been subject to countless changes over the last 12 months.

We want to run an exceptional organisation, powered by storytelling and innovation. An organisation which is not only the voice for and with street children but is also the organisation of choice for the UK public who want to end the injustice of children being forced to live or work on the streets.

Our key objectives for next year are:

Grow and Diversify – to ensure, during this strategic period, that we grow and diversify by:

‘ I felt my life would end on the street,’ says Anesh, 21, Nepal. Now he has trained as a driver and is saving to buy his own car.

Reaching more street children

• To have worked with 13,000 (direct) street children and young people by 30 June 2022.

• To support 1,500 children and young people to access birth registration documents by 30 June 2022.

• To support 1,500 children and young people with access to formal and informal education by 30 June 2022.

• To establish one new in country partnership.

Diversification of total income by securing funding from large grants givers and further growth and diversification of the voluntary income portfolio and the supporter database

• To make at least 1 large grant submission to an institutional funder.

• To secure 3 new grants from corporates or charitable foundations by 30 June 2022.

• To secure a 2% increase in the value of the Regular Giving Programme by 30 June 2022.

• To secure 2% of voluntary income from lapsed supporters by 30 June 2022.

23 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Our future plans

Deepen Impact – to ensure, during this strategic period, that all those who engage with Toybox are impacted by our work, in particular the street children we work with by:

Ensuring and measuring all impacts of our work with street children

• To implement a new Project Management Database for our projects by 31 March 2022.

• To design and implement a methodology for collating and presenting street children’s stories, allowing the child to tell their story by 31 December 2021.

• To complete the Governance Review, which was started in the previous financial year, by 30 June 2022.

• To have developed a Toybox Economic Empowerment model by 30 June 2022,

• To have at least 5 partners with established feedback mechanisms which are known by project participants, are being used, and influence project decision making by 30 June 2022.

• To ensure continuous improvement in safeguarding and ensure that 80% of our partners are on a RAG rating of green by 30 June 2022.

• To send 5% more funding to international partners, versus the previous 12 months, by 30 June 2022.

Deepening the customer experience for all those supporters who engage with Toybox

• To have 50,000 social media engagements by 30 June 2022.

• To have over 30,000 website users by 30 June 2022.

• To ensure exceptional customer care by ensuring no more than 10 complaints by 30 June 2022.

• To design, test and implement and new automated post process for donations in time for Easter 2022.

To have a healthy, engaged workforce who feel valued and well equipped

• We will spend 1.5% of our salaries budget on training and professional development by 30 June 2022.

• To implement an annual staff survey and track staff well-being and satisfaction.

Emergency relief activities during the pandemic in India gave children and families access to some of the most basic needs.

24 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

7 Our Fundraising

Toybox raises £5.34 for every £1 we spend on regular fundraising activities (FY20 £5.12).

At Toybox we want the money our supporters entrust to us to have the widest and deepest impact it possibly can. In order to do this, we sometimes take the decision to buy in professional fundraising services when we recognise that our in-house Marketing and Fundraising team has a knowledge or skills gap. We work with some brilliant agencies and have spent time with each of them developing strong and strategic

partnerships which enable us to buy-in the specific skills for just the time we require them. We believe that by employing a specialist agency we are maximising our opportunities to raise the most money we can whilst striving towards our aim which sees us always working to reach and change the lives of more street children.

During the year we used the following agencies for the fundraising activities listed below:

----- Start of picture text -----
Agency Campaign Support
Beanwave Street Life magazines Creative
Rogue Creative Easter and Christmas Appeals Creative
DM Focus Easter and Christmas Appeals, Street Life magazines, Data Management, Media buying, Print,
Christmas Appeal, Regular Giving updates Production and Fulfilment Management
Fusion Design Associates Regular giving updates, Prayer Guide Creative
Payroll Giving in Action Payroll Giving promotional activity Donor Recruitment
Propack Street Life magazines Print, Fulfilment
RNB Street Life magazines Print, Fulfilment
RSM2000 Text fundraising Inbound text donation processing
StC Payroll Giving Make a Difference Consortium Payroll Giving activities Fulfilment
----- End of picture text -----

Toybox is registered with the Fundraising Regulator and we have worked hard to ensure we are delivering fundraising practices and activities that are compliant with the Code of Fundraising practice. In addition, we are compliant with all the current General Data Protection Regulation (GDPR) and Data Protection Act (2018) legislation. For more information on our Data Protection Policy and Privacy Policy please visit our website: www.toybox.org.uk/policies

Payroll Giving in Action is the only agency who carried out fundraising on our behalf during the year. They work within the Fundraising Regulator’s Code of Fundraising Practice and we have not received any complaints regarding their work on our behalf.

We believe that fundraising should be a positive experience for all, whether an individual is an existing or potential supporter. We recognise it is inevitable that our team will meet people who may be vulnerable or need additional support to make an informed decision about making a donation to us. With all of the fundraising activities we undertake ourselves and those that are operated on our behalf by the agencies listed above

we work hard to ensure that we conduct our fundraising under the four principles set out by the Institute of Fundraising’s Treating Donors Fairly: Respect; Fairness; Responsive and; Accountable.

For more information about how we take reasonable and appropriate steps to ensure we treat all supporters with dignity please visit our website: www.toybox.org.uk/policies

Within this year Toybox had a team of 6 Marketing and Fundraising professionals (FTE of 4.3) working to raise funds from the UK public and Toybox supporters. Members of our International Development Team also worked to raise funds from Institutional Donors. During the year we received two complaints about our fundraising activities.

25 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

8 Our people and how Toybox is managed

The Toybox Charity is a registered charity and charitable company limited by guarantee governed by its Memorandum and Articles of Association dated 29 March 2000 as amended by special resolution dated 6 December 2000, 28 June 2010 and 4 March 2021 which sets out the objects and powers.

Our people

Directors and Trustees

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year, and on the date the report was approved, were:

Mr I R Gray	Chair
Ms N Battle
Mr F Caicedo
Mrs G Derham	Finance and Audit Committee member
Mr F Goss
Mr J Sambruck
Mr S Shrouder Mr W Rockett	Chair of Finance and Audit Committee

----- Start of picture text -----
Despite a difficult childhood, 16-year-old
Mabinty is looking forward to the future
now she is back at school in Sierra Leone.
‘ I am looking forward to becoming an
electrical engineer after a successful
completion of my education in the future.’
----- End of picture text -----

Trustee and Committee Meetings

Trustees met four times during the year to make strategic and policy decisions. The CEO and members of the Leadership Team attended these meetings but held no voting powers. The CEO reports to and is appointed by the Trustees to manage the day-to-day operations of the charity. There is also a Finance and Audit Committee which met four times during the year.

All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses are disclosed in Note 5 to the accounts. Trustees are required to disclose all relevant interests and register them with the CEO and in accordance with the charity’s policy withdraw from decisions where a conflict of interest arises.

At each Board meeting the Trustees receive quarterly management accounts, a Key Performance Indicator (KPI) Dashboard and an Organisational Risk Report to determine the strategic direction of the charity.

Board Evaluation and Diversity Monitoring

Evaluation

Appointment of Trustees, Induction and Training

The process for recruitment of new Trustees is as follows: after an open recruitment process, selected candidates are interviewed by a Board nominated Recruitment Panel; if successful at this stage they are then invited to observe a Board meeting and at this meeting the candidate will or will not be approved by the full Board.

When appointed new Trustees are provided with an information pack containing copies of all the governing documents, annual report, strategic plan, core documents and other supporting papers. Each new Trustee receives a full induction programme and spends time in the UK office meeting staff and gaining a detailed understanding of each department. After initial attendance at Trustee meetings, new Trustees may undertake an international awareness visit. Training is made available as required and can include providing suitable publications, in-house updates and external events.

Each year the Board complete the following surveys: Skills Audit; Board Effectiveness Survey and an annual survey of the Chair, which is undertaken anonymously and disseminated to the full Board for discussion.

Diversity

Toybox is committed to creating a diverse and inclusive Board where everyone is comfortable to bring their whole selves. The Board recognises the value brought by those with varied skills, backgrounds, characteristics and life experiences. Our Board is made up by a mix of people with different professional skills, knowledge, experience and ways of thinking which we believe ensures Toybox is well governed. This financial year 28% of our board identify as female and 42% identity as minority ethnic.

Reported conflicts of interest

During this financial year no Trustee conflict of interest were reported.

26 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Our people and how Toybox is managed

Governance and Board due diligence

A full governance review was undertaken this financial year, in addition to the re-stating of the Articles of Association and organisational Objects. The governance review included a structure, policy, and process review. Additionally, the Board continue to review their performance against the Charity Commission’s Governance Code for larger charities, an activity we have undertaken since December 2017.

During the year Trustees attendance at Board and SubCommittee meetings was as follows:

----- Start of picture text -----
Trustees Board Sub-committee
meetings meetings
Mr I Gray 4 1
Ms N Battle 4
Mr F Caicedo 3 -
Mr F Goss 4 -
Mrs G Derham 4 4
Mr S Shrouder 3 -
Mr W Rockett 4 4
----- End of picture text -----

----- Start of picture text -----
Street – Guatemala
----- End of picture text -----

Leadership Team

The Chief Executive Officer (CEO) is responsible for the day-to-day operation of the charity and managing the staff of the charity on behalf of the Trustees. The CEO heads the Leadership Team, the staff team who deliver the strategy and programmes of Toybox. The Leadership Team comprises of:

	Lynne Morris	CEO
	Naomi Hall Opiyo	Director of Impact and Programmes
	Naomi Lewis	Director of Marketing and Fundraising
	Graeme Everist	Director of Finance and Resources

The salaries of executive teams in the third sector are constantly under scrutiny. At Toybox we strive to employ dedicated professionals whilst ensuring a pay structure which is fair, equitable and reflects the mission and values of the organisation. For this financial year, the ratio between the highest paid employee and the average FTE salary was 2.29 (2020: 2.27); our aim is to keep this ratio below three. We do not want a situation where the Leadership Team are paid vastly different from the other team members; salary information for the Leadership Team is shown in note 5 to the accounts.

Salaries are reviewed annually, and any increase is based on the cost-of-living increase over the last 12 months and will consider the Consumer Price Index movement for the previous year to 31 December. This salary increase applies to every member of staff and is determined by the Trustees. Toybox is also committed to paying at least the Living Wage for every position.

CEO remuneration

The salary of the CEO is reviewed in line with all other staff members and any increase is based on the cost-of-living increase over the last 12 months and will consider the Consumer Price Index movement for the previous year to 31 December.

Our people and how Toybox is managed

How the organisation is managed

Risk Management

The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks, establishing systems and procedures to manage major risks.

The positive risk management strategy adopted by Trustees comprises:

• Quarterly review of the major risks of the charity, the overall risk map, movement in risks, actions taken, and an updated risk map presented and discussed at each Trustee meeting;

• Ongoing systems and procedures to mitigate major risks identified;

• Implementation of procedures designed to minimise any potential impact on the charity should these risks materialise.

This strategy of positive risk management identifies significant risks, along with the probability of such risks occurring, the likely level of impact, together with mitigating action. Particular attention is given to those risks having the potential to have the greatest impact on the charity such as safeguarding, reputation, finance, funding, international partnerships and health and safety. Procedures to mitigate other identified significant risks are implemented covering areas such as staff retention, erosion of values, mission drift, key relationships and efficiency. Significant opportunities and threats are discussed in more detail at the Trustee meetings. Outcomes of these discussions feed into the strategic and operations plans.

During the year we monitored and identified risks in the areas of; Strategy, Governance, Management, Regulatory Issues, Global and Charity Sector and Significant Projects that are under way. The principal risks that were identified included:

----- Start of picture text -----
Risk Strategy for managing this risk
Impact of COVID-19: operational Review and RAG rating of all operational partners and suppliers with alternative
partners and suppliers’ ability to scenario planning in place.
function/ability to deliver projects/impact
Constant project monitoring and online evaluations of projects with ongoing
of fundraising/health and well-being of
adjustments as required to respond to the developing COVID-19 situation within
team/inability to progress our strategy each context.
and/or our business operating model.
Regular tracking of income and reducing of expenditure to cover the basic core
costs, scenario planning throughout the financial year.
Increased and ongoing support for employees to ensure a healthy organisation,
no travel throughout the Financial Year, all appropriate risk assessments in place.
Monitoring and adjusting strategic KPIs and reviewing the business operating model.
Fluctuation in international currencies Participation forward schemes to ensure the best rates possible for foreign
values. exchange and Reserves Policy which include challenging fluctuation rates.
Cyber security attack. Ongoing training, phishing testing and support from our external provider. We
submit ourselves for CyberEssentials Plus accreditation each year, to ensure that
we are following best practice.
----- End of picture text -----

Safeguarding incidents

During the financial year no safeguarding incidents occurred at Toybox in the UK or related to Toybox staff, volunteers or Board members. A focus this year has been to encourage our partners to report more minor incidents and near misses to help reduce barriers to reporting, test the efficacy of reporting mechanisms and to work with partners in how they deal with incidents. This has included additional emphasis on online safeguarding given the surge in use of digital platforms during Covid. By the end of the financial year, we were receiving quarterly incident reports from 75% partners although not all had incidents or near misses each quarter. The majority of issues reported were dealt with internally and did not reach the threshold for reporting to the Board.

Issues relating to safeguarding (which reach a certain threshold) are reported to the Board, through the Organisational Dashboard and the International Department report which highlights the compliance status of our partners.

A safeguarding audit was conducted at the beginning of the financial year to assess the status of each partner against a 20-point checklist, with a subsequent action plan for each partner produced.

All Toybox staff and Trustees receive safeguarding training and have read and signed the Child and Youth Safeguarding Policy and Code of Conduct, as have all our partners. We have also been training our partners on safeguarding and carried out training this year with several of them. We have supported two of our partners to receive additional support from Keeping Children Safe (KCS) leading to child safeguarding certification - the internationally recognised KCS kite mark.

Toybox reports every quarter to the Board on any outstanding issues with our own safeguarding plan as well as producing a RAG rating for partners. All our partners are either on green or amber, none are on red.

28 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Our people and how Toybox is managed

Prevention and detection of fraud

Toybox has a zero-tolerance approach to fraud of any kind, in any circumstance, whether perpetrated by staff, volunteers, contractors or partners. We are determined to prevent it, and where this is not possible to detect and investigate such acts. Fraud of any size will be taken seriously.

Toybox expects its Trustees, staff and volunteers will always have the highest standards of honesty. Fraud prevention and detection is the responsibility of everybody in Toybox - employees, volunteers and management. Processes may be devised to prevent and detect fraud, but the commitment and dedication of staff and volunteers is a vital ingredient to improve protection.

Some of the measures we take to prevent fraud include identifying the risks to which operations, locations and assets are exposed, we develop adequate controls to ensure effective compliance with these controls which includes:

• thorough recruitment procedures

• physical security of assets

• clear responsibilities and reporting lines within the organisation

• adequate staffing levels

• supervision and counter checking

As we work with international partners, we have additional control systems to detect and prevent fraud, such as:

• ensuring a thorough, documented Partner Assessment is undertaken prior to engagement to assess the partner’s control environment, which is then repeated every three years of the relationship;

• ensuring relevant Toybox Policies are shared and understood by partner staff;

• ensuring reporting requirements are effectively communicated to partner staff, including the type of documents expected to support all reports;

• ensuring a signed Partnership Agreement supports all work with partners and;

• ensuring financial reports received from partners are thoroughly reviewed, fully supported and compared to the approved budget prior to sending the next tranche of funds.

It is the responsibility of all staff to report suspected, actual or attempted fraud. All reported instances of actual, attempted or suspected fraud are investigated and appropriate action taken. Control weaknesses identified due to reported instances will be addressed with immediate effect to prevent future similar occurrences.

• separation of duties

• random spot checks by managers

• complete and secure audit trails

Health and Safety

During the financial year no health and safety issues occurred or were reported at Toybox.

• performance monitoring by management

• budgetary and other financial reports

• reviews by independent bodies such as the annual audit

Data Protection

During the financial year no data protection issues occurred or were reported to the Board.

‘ Being the only girl child in my house, I was the one doing all the cooking and other domestic work. Now, I dream of being educated and becoming a woman of substance so I can be an advocate for other girls who are going through similar abuses in the hands of relatives and other abusers.’

Kumba – 17, Sierra Leone.

29 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

9

Financial Review and

important policies

Income

Total income for the financial year was £1,964,078 (2020: £2,229,239). Please note that the previous financial year covered a 15-month period.

Regular Giving represented 32% of total income (2020: 38%). This reduction is in part caused by a gradual decline in the number of supporters giving by Direct Debit or Standing Order, and in part due to the continued increase in cash giving in response to appeals, which this year represents 58% of total income (2020: 50%)

Income from Trusts and Foundations was 6% of total income, down from 11% in 2020.

Investment income for the year was £2,995 (2020: £5,494)

We strive to use our resources for generating income in the most cost effective and productive way possible. Our fundraising activities are limited to - event fundraising, radio advertising, online advertising and Direct Mail activities, including inserts in publications. In addition, we send appeals to engage with our current supporters.

Expenditure

Total resources expended during the year were £1,839,952 (2020: £2,060,861). Charitable expenditure was £1,472,259, representing 80% of total costs (2020: 79%).

Grants to partners totalled £932,663 for the year. Monitoring and evaluation costs of £211,155 comprised all international and UK support costs including staff costs and travel, and Advocacy and Awareness costs in the UK totalled £203,621.

This year, including salaries, £367,693 was spent on raising funds which represents 20% of total expenditure (2020: £434,277, 21%). Staff costs were 24% of total expenditure (2020: 26%), while Other UK costs fell from 9% of total expenditure in 2020 to 8% this year.

Expenditure continues to be closely controlled, and efficient and effective use of our resources is pursued in every area of our work.

----- Start of picture text -----
Normal Operating Expenditure Normal Operating Expenditure
including salaries
Advocacy & Raising
Awareness Funds
11% 20%
Raising
Funds Grants to
Partners
20%
57%
Monitoring Charitable
& Evaluation Expenditure
12% 80%
Erick, 2, from Guatemala,
now has his birth certificate.
----- End of picture text -----

30

THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Financial Review and important policies

Reserves

Regular giving provides income stability which allows the charity to commit to existing and new projects and make long-term decisions to help more street children. The reserves provide a cushion in the event of shortfalls in income compared to the budget so that projects can be planned and approved within the project planning cycle. The reserves policy is reviewed annually by the Finance and Audit Committee and subsequently approved by the full Board; it was most recently reviewed in December 2020.

The level of reserves required is based on budgeted expenditure for the financial year, with the aim being for reserves to be three months expenditure, plus an amount to cover any contingency or risk identified. In this respect a provision for a possible decline in income of £100,000 or 5%, plus a provision for a fall in value of the GB Pound against the US Dollar of £50,000 or 5%, is made.

At 30 June 2021 the general unrestricted reserve, excluding fixed assets, was £528,473 and equivalent to 3.1 months expenditure (2020: £696,052 or 4.75 months).

In 2020 the Trustees designated £35,101 of the unrestricted reserves to ensure that projects which were delayed by COVID could be completed. £9,461 of this was expended in the year, with the remainder due to be used in 2021/22.

During this year £90,000 was added to this reserve to fund a three-year project in Nepal. At the year-end £29,574 of this had been expended. A further £182,500 was designated to enhance our work in Kenya for two years, and £38,000 has been added to support other elements of the international programme. Funds have also been set aside to test new Fundraising initiatives (£30,000) and support the development of our IT infrastructure (£16,500) as we adopt new technology to increase efficiency and effectiveness.

Total designated reserves now stand at £353,066.

Restricted reserves represent income which has been received to fund specific projects and the balance therefore needs to be carried forward to be expended by projects this financial year. At 30 June 2021 restricted reserves amounted to £49,691 (2020: £52,470).

At 30 June 2021 the total funds of the charity amounted to £953,850 (2020: £829,724). Therefore, the Trustees are of the view that the Charity is a going concern because it continues to be able to meet its obligations as they fall due.

Important policies

At Toybox we have a wealth of essential policies and procedures including:

• Child and Youth Safeguarding Policy

• Equality and Diversity Policy

• Health and Safety Policy

• Anti-Fraud and Anti-Bribery Policy

• Data Protection Policy

All these policies and more can be found on our website: www.toybox.org.uk/policies

Investment Policy

The aim in investing funds is to provide a maximum income return, whilst ensuring that there is appropriate liquidity to cover both operational costs as timing requires and other reserves as determined by the Reserves Policy.

Our investment policy is to adopt a prudent approach with regard to the investments held and to accept lower rates of returns to reduce the level of speculative risk. As a result, the investment practice is to invest in bank or building society deposits on terms to match the timing of returns to meet the needs of the charity. Toybox does not have a bespoke ethical investment policy but where practically possible Toybox will make investments covered by an ethical policy of the bank with which investments are held.

Foreign Exchange Policy

Managing foreign exchange in a charity is not about speculation or trying to make a profit, but about the management of uncertainty. At the beginning of the financial year Toybox agrees a budgeted expenditure with its partners for the forthcoming year and agrees to pay a certain amount in an agreed currency, based upon a budgeted exchange rate from GB Pounds. Toybox has historically carried any exchange rate risk which arises when the budgeted exchange rate fluctuates from the budgeted rate. In aiming to minimise the exchange rate risk Toybox has uses Forward contracts and Participating Collars with approved Foreign Exchange providers.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of The Toybox Charity for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

31 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Financial Review and important policies

In preparing these financial statements, the Trustees are required to:

In so far as the Trustees:

• are aware there is no relevant audit information of which the charitable company’s auditors are unaware and;

• select suitable accounting policies and then apply them consistently;

• have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

s it is inappropriate to presume that the charitable jurisdi	ctions.
any will continue in operation.
stees are responsible for keeping adequate accounting
that disclose with reasonable accuracy at any time
ncial position of the charitable company and enable
ensure that the fnancial statements comply with
panies Act 2006. They are also responsible for
rding the assets of the charitable company and hence
g reasonable steps for the prevention and detection of
nd other irregularities.
Reference and Administrative Details		Nancy, 3, now has her birth certificate.
Charity number 1084243		Her mum says, ‘ I hope she has an abundant and full ~~education and that everything wor~~ks
Company number 03963000		out well for her in the future now.’
Registered Offce & Challenge House, Sherwood Drive, Bletchley, Milton Keynes,
Principal Address Buckinghamshire MK3 6DP
Telephone: [phone] Email: [e-mail]
Website: www.toybox.org.uk
Auditors Moore Kingston Smith LLP, 4 Victoria	Square, St Albans, AL1 3TF
Bankers Co-operative Bank, 10 Warwick Lane, London, EC4M		7BP

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board of Trustees on 2 December 2021 and signed on its behalf by:

Mr I R Gray, Chair of Trustees Date: 2 December 2021

32 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

10 Independent Auditors’ Report to the Members of the Toybox Charity

Opinion

We have audited the financial statements of (name of charitable company) (‘the company’) for the year ended [date] which comprise [specify the titles of the primary statements such as the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement] and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

• give a true and fair view of the state of the charitable company’s affairs as at [date] and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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, individually or collectively, may cast significant doubt on the charitable company’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 going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 there is 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 report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the [strategic report and the] trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• [the strategic report and the] trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in [the strategic report or] the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; [or]

33 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Independent Auditors’ Report to the Members of the Toybox Charity

• we have not received all the information and explanations we require for our audit. [or]

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ annual report and from preparing a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page [x], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Carla, 38, received a loan to set up her own business to support her children in Bolivia.

‘ With time, I hope to grow my business, have more products, live in a house with all the basic services and instead of just having one cart, maybe having two. My children are now happy.’

34 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Independent Auditors’ Report to the Members of the Toybox Charity

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council

• We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

Silvia Vitiello Senior Statutory Auditor

Date:

For and on behalf of

Moore Kingston Smith LLP, Statutory Auditors 4 Victoria Square, St Albans AL1 3TF

35 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

11 Statement of Financial Activities

(Incorporating an income and expenditure account)

Year Ended 30 June 2021

----- Start of picture text -----
Notes Unrestricted Restricted 2021 Unrestricted Restricted 2020
Funds Funds Total Funds Funds Total
£ £ £ £ £ £
Income from:
Donations and legacies 2 1,554,708 406,375 1,961,083 1,933,524 290,221 2,223,745
Investments 3 2,995 - 2,995 5,494 - 5,494
Total income 1,557,703 406,375 1,964,078 1,939,018 290,221 2,229,239
Expenditure on:
Raising funds 367,693 - 367,693 434,277 - 434,277
Charitable activities 429,491 1,042,768 1,472,259 508,918 1,117,666 1,626,584
Total expenditure 4 797,184 1,042,768 1,839,952 943,195 1,117,666 2,060,861
Net income/(expenditure) for the year 6 760,519 (636,393) 124,126 995,823 (827,445) 168,378
Transfers between funds (633,614) 633,614 - (861,169) 861,169 -
Net movement in funds 126,905 (2,779) 124,126 134,654 33,724 168,378
Funds at 1 July 777,254 52,470 829,724 642,600 18,746 661,346
Funds at 30 June 904,159 49,691 953,850 777,254 52,470 829,724
----- End of picture text -----

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 13 to the accounts.

The notes on pages 39 to 47 form part of these accounts.

36 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Balance Sheet as at 30 June 2021

Company Number: 03963000

	Notes 2021 £ 2020 £
Fixed Assets Intangible assets Tangible assets Current Assets Debtors Short term deposits Cash at bank Creditors: amounts falling due within one year Net Current Assets Net Assets Funds Unrestricted: General Designated Restricted TOTAL FUNDS	9 6,379 12,928 10 16,241 27,963
	22,620 40,891
	11 95,516 65,471 247,416 269,866 628,264 494,614
	971,196 829,951
	12 (39,966) (41,118)
	931,230 788,833
	953,850 829,724
	551,093 736,944 353,066 40,310 49,691 52,470
	13 953,850 829,724

The accounts were approved by the Board of Trustees on 2 December 2021 and were signed on their behalf by:

Mr I R Gray, Chair of Trustees.

The notes on pages 39 to 47 form part of these accounts.

37 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Statement of Cash Flows

Year Ended 30 June 2021

----- Start of picture text -----
Notes 2021 2020
£ £
Cash flows from operating activities
Net cash used in operating activities 7 133,889 254,868
Cash flows from investing activities
Purchase of tangible fixed assets (1,534) (6,600)
Bank interest received 2,995 5,494
Net cash used in investing activities 1,461 (1,106)
Change in cash and cash equivalents in the year 135,350 253,762
Cash and cash equivalents at the beginning of the year 659,217 405,455
Cash and cash equivalents at the end of the year 8 794,567 659,217
----- End of picture text -----

38 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Notes to the Accounts

1. Accounting Policies

a) Basis of preparation

The charity is a company limited by guarantee and has no share capital. The liability of each trustee in the event of winding up is limited to £1. The total number of members at 30 June 2021 was 7 (2020:7).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

b) Public benefit entity

The Toybox Charity meets the definition of a public benefit entity under FRS 102.

c) Going concern

Having reviewed income forecasts due to the more challenging fundraising environment and considered the likely impact of the ongoing COVID-19 situation both in the UK and in the countries where we fund projects, the Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

f) Volunteer services and gifts in kind

No amounts are included in the accounts for services donated by volunteers. The charity received £nil worth of training (2020: £nil) and £nil of consultancy (2020: £1,300) through gifts in kind during the year.

g) Resources expended

Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Overseas grant payments were recognised when a constructive obligation arose which resulted in the payment being unavoidable. Grants to partners may be remitted before the start of the period to which they relate in order to assist partners with their cash flow, and accordingly have been treated as a prepayment at the year end. Should the grant conditions not be met, the payment could be refundable.

Certain expenditure is directly attributable to specific activities and has been allocated to those cost categories. Certain other costs and some staff costs are attributable to more than one activity. In these cases, the costs have been apportioned to the other individual activities on the basis of the time spent by staff on those activities.

Support costs represent the costs incurred by UK based staff directly providing support to charitable activities including governance, management, technical and prayer support.

39 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

h) Fund accounting

Restricted funds are those which are to be used for particular purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received for charitable purposes.

Designated funds are unrestricted funds earmarked by the Trustees to be used for the development of international projects, marketing investment and organisational development.

i) Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Goodwill and database 5 years straight line

j) Tangible fixed assets

All fixed assets acquired for more than £1,000 are capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Furniture & fittings 10% per annum straight line

Equipment 25% per annum straight line

k) Debtors

Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Foreign currencies

Foreign currency transactions are recorded at the exchange rate achieved when the foreign currency was purchased. In order to minimise the risk from buying foreign currencies, forward contracts are entered into. The expenditure is recorded at the average rate of the balance held in the foreign currency account when the payment is made.

Assets and liabilities at the balance sheet date are translated into sterling at the rates of exchange ruling at that date, with exchange gains and losses taken to the Statement of Financial Activities.

n) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be

recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

40 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

p) Pensions

The charity operates a defined contribution stakeholder pension scheme. The pension charge represents the amount payable by the charity to the scheme during the year.

q) Operating leases

Rental charges are applied on a straight-line basis over the period of the lease. There are currently no operating leases.

r) Taxation

Toybox is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

s) Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Material derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

41 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

2. Income from Donations and Legacies

----- Start of picture text -----
Unrestricted Restricted 2021 2020
£ £ £
Regular Giving:
Lifetime 322,337 - 322,337 429,360
Lifeline 312,046 - 312,046 397,022
Trusts 16,160 105,756 121,916 234,363
Other donations 874,884 300,619 1,175,503 1,120,296
Voluntary income 1,525,427 406,375 1,931,802 2,181,041
Legacies 29,281 - 29,281 42,704
1,554,708 406,375 1,961,083 2,223,745
----- End of picture text -----

3. Income from investments

All of the investment income arises from interest bearing deposit and current accounts.

No income from investments was attributable to restricted funds (2020: nil)

4. Analysis of expenditure on charitable activities

----- Start of picture text -----
Charitable Activities
Raising Grants to Monitoring & Advocacy & Support Total Total
funds partners Evaluation Awareness costs 2021 2020
£ £ £ £ £ £ £
Overseas projects - 932,663 - - - 932,663 1,007,795
International support costs - - 983 - - 983 10,628
UK staff costs 99,402 - 156,360 93,771 97,434 446,966 537,975
Marketing and Fundraising 232,175 - - 71,962 - 304,137 316,589
UK office costs 36,116 - 49,782 34,001 35,303 155,203 187,874
367,693 932,663 207,125 199,734 132,737 1,839,952 2,060,861
Support costs allocated - 124,820 4,030 3,887 (132,737)
367,693 1,057,483 211,155 203,621 - 1,839,952 2,060,861
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Grants were made to partner organisations to implement programmes with street children. Our partner organisations during the year are detailed in the Trustees Report.

UK staff costs include those who are working in the UK and internationally and consist of all costs relating to UK staff employed, including their training and development. Staff and support costs are allocated to the areas of activity according to staff time spent on each activity.

Support costs include governance costs of £10,020 for audit fees (2020: £9,540) and £nil for Trustee expenses (2020: £nil).

42 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

5. Staff costs and numbers

The average number of contracted employees during the year was:

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2021 Actual 2021 FTE 2020 Actual 2020 FTE
Number Number Number Number
Overseas 3.5 3.1 3.1 2.9
Advocacy and Awareness 3.0 2.1 2.8 2.1
Fundraising 2.7 2.2 3.2 2.6
Support 3.4 2.2 2.8 2.1
12.6 9.6 11.9 9.7
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The cost of employing these staff was:

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2021 2020
£ £
Salaries 382,429 462,826
Social security costs 31,795 34,449
Employer’s pension contributions to defined contribution scheme 26,948 32,357
441,172 529,632
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The total employee benefits including salaries and pension contributions of the Leadership Team were £234,227 (2020: £282,188 for fifteen months). No employees earned within the range £70,001 to £79,999 during the year (2020: one). One employee earned within the range £80,001 to £89,999 during the year (2020: none).

The charity Trustees were not paid nor received any other benefits from employment with the charity in the year, and no trustee received payment for professional or other services supplied to the charity (2020: nil). During the year Trustees expenses incurred were £nil (2020: £nil).

6. Net income/(expenditure) for the year

This is stated after charging/(crediting):

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2021 2020
£ £
Depreciation 13,256 15,144
Amortisation 6,550 8,187
Currency loss/(gain) 69 (166)
Auditors remuneration: UK audit (excluding VAT) 8,350 8,150
Provision of corporation tax services by auditors 585 575
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43 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

7. Reconciliation of net income/(expenditure) to net cash flow from operating activities

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2021 2020
£ £
Net expenditure for the reporting period 124,126 168,378
Depreciation charges 13,256 15,144
Amortisation charges 6,550 8,187
Bank interest (2,995) (5,494)
Increase/(decrease) in short term deposits with 120 days notice 24,149 (1,406)
(Decrease)/increase in debtors (30,045) 60,873
Increase/(decrease) in creditors (1,152) 9,186
Net cash provided used in operating activities 133,889 254,868
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8. Analysis of cash and cash equivalents

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At 1 July Cash At 30 June
2020 Flows 2021
£ £ £
Cash in hand 494,614 133,650 628,264
Short term deposits up to 90 days notice 164,603 1,699 166,302
Total cash and cash equivalents 659,217 135,349 794,566
Short term deposits 120 days notice 105,263 (24,149) 81,114
Total cash and short term deposits 764,480 111,200 875,680
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9. Intangible Assets

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Goodwill and Total
Databases
£ £
Cost
At 1 July 2020 32,684 32,684
Additions - -
Disposals - -
At 30 June 2021 32,684 32,684
Amortisation
At 1 July 2020 19,756 19,756
Charge for the Year 6,550 6,550
Disposals - -
At 30 June 2021 26,306 26,306
Net Book Value
At 30 June 2021 6,378 6,378
At 30 June 2020 12,928 21,115
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44 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

10. Tangible fixed assets

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Furniture Equipment Total
& Fittings
£ £ £
Cost
At 1 July 2020 3,875 76,307 80,182
Additions - 1,534 1,534
Disposals - (9,958) (9,958)
At 30 June 2021 3,875 67,883 71,758
Depreciation
At 1 July 2020 3,875 48,344 52,219
Charge for the Year - 13,256 13,256
Disposals - (9,958) (9,958)
At 30 June 2021 3,875 51,642 55,517
Net Book Value
At 30 June 2021 - 16,241 16,241
At 30 June 2020 - 27,963 27,963
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The assets owned by the charity are used for direct charitable purposes.

11. Debtors

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2021 2020
£ £
Gift Aid recoverable 13,968 19,309
Prepayments 15,306 22,043
Grants to partners 63,640 21,358
Other debtors 2,602 2,761
95,516 65,471
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The grants to partners shown above were remittances which were made before the year end relating to budgeted expenditure for the period April to June in the next financial year.

12. Creditors: amounts falling due within one year

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2021 2020
£ £
Taxation and social security 8,063 9,146
Accruals and other creditors 31,903 31,972
39,966 41,118
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45 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

13. Movements in funds

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At 1 July Income Expenditure Transfers At 30 June
2020 £ £ £ £ 2021 £
Restricted Funds
Guatemala
Conacmi: Violence Prevention - 36,912 80,774 43,862 -
Conacmi: Youth Employment - - 84,746 84,746 -
Conacmi: Street Outreach - 46,969 55,219 8,250 -
Conacmi: Capacity Building - - 8,771 8,771 -
Conacmi: Covid Response - - 4,720 4,720 -
El Salvador
Viva: Street Outreach - 67,590 70,443 2,853 -
Viva: Advocacy - - 44,945 44,945 -
Viva: Capacity Building - - 25,459 25,459 -
- - - - -
Viva: Covid Response
Bolivia
Alalay: Street Outreach - 54,913 55,557 644 -
Alalay: Birth Registration - 49,862 46,396 - 3,466
Alalay: Child Protection Systems Strengthening - - 40,052 40,052 -
Alalay: Capacity Building - - 9,768 9,768 -
Alalay: Covid Response - - 548 548 -
India
Chetna: From Street to School NE Delhi 52,470 56,055 66,346 - 42,179
Chetna: SURE - 5,050 60,877 55,827 -
Chetna: Emergency Appeal - 35,619 32,958 - 2,661
Chetna: Capacity Building - - 7,264 7,264 -
Chetna: Scoping - 1,385 - - 1,385
Kenya
PKL: Safe from the Streets - 34,020 136,386 102,366 -
PKL: Capacity Building - - 9,488 9,488 -
Nepal
SathSath: The Bridge - 7,000 57,099 50,099 -
SathSath: Making Children Visible - - 39,802 39,802 -
CWIN: SAFE - - 38,727 38,727 -
Sath Sath/CWIN: Capacity Building - - 4,279 4,279 -
Sierra Leone
SGF: Education for SCC - 11,000 57,734 46,734 -
SGF: Capacity Building - - 4,410 4,410 -
Total Restricted Funds 52,470 406,375 1,042,768 633,614 49,691
Unrestricted Funds
Designated Funds
IT Investment - - - 16,500 16,500
Marketing Investment 30,000 30,000
US Costs 5,209 - (5,209) -
International Programme 35,101 39,035 310,500 306,566
Total Designated Funds 40,310 - 39,035 351,791 353,066
General Funds 736,944 1,557,703 758,149 (985,405) 551,093
Total Unrestricted Funds 777,254 1,557,703 797,184 (633,614) 904,159
TOTAL FUNDS 829,724 1,964,078 1,839,952 - 953,850
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Details of the work of each overseas project are given in the Trustees Report.

Income is restricted to the project when the donation is received specifically for the work of that project. Most of the income received by the charity is unrestricted, and so is transferred to fund projects where there has been no specific donor commitment. Designated funds represent those amounts that have been set aside for specific expenditure the current financial year.

46 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

NOTES TO THE ACCOUNTS

14. Analysis of Net Assets Between Funds

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General Designated Restricted Total
Unrestricted Funds
£ £ £ £
Intangible Fixed Assets 6,379 - - 6,379
Tangible Fixed Assets 16,241 - - 16,241
Current Assets 568,439 353,066 49,691 971,196
Current Liabilities (39,966) - - (39,966)
Net Assets at the end of the year 551,093 353,066 49,691 953,850
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15. Pension Scheme

The charity operates a defined contribution stakeholder pension scheme on behalf of its employees. The assets of the scheme are held separately from those of the charity. At 30 June 2021 there were outstanding contributions of £4,622 (2020: £3,833).

16. Related party transactions

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

17. Commitments

Toybox enters in to Forward Contracts to purchase US dollars, Kenyan Shillings and Indian Rupees in order to reduce the risk that the charity faces should the value of the GB pound decline over the next 12 months.

At 30th June 2021, the following contracts were in place:

Analysis of Net Assets Between Funds

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US Dollars Kenyan Shillings Indian Rupees
Maturity Date Quantity Rate Maturity Date Quantity Rate Maturity Date Quantity Rate
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24/09/2021 22,500 1.3028 24/09/2021 100,000 1.3137 15/12/2021 65,000 1.3140 15/12/2021 55,000 1.3264 15/03/2022 65,000 1.3145 15/03/2022 55,000 1.3272 15/06/2022 35,000 1.4015 14/09/2022 35,000 1.4014	15/09/2021 4,350,000 150.64 15/12/2021 4,350,000 156.02 15/03/2022 4,350,000 157.39 15/06/2022 2,000,000 148.76	15/09/2021 1,500,000 98.85 15/12/2021 1,000,000 99.82 15/03/2022 1,000,000 100.03 15/06/2022 750,000 104.83 15/09/2022 750,000 103.47

47 THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021

Challenge House, Sherwood Drive, Bletchley, Milton Keynes, Buckinghamshire, MK3 6DP T: 01908 360050

E: [e-mail]

www.toybox.org.uk

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Charity number: 1084243
Company number: 03963000
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