## The TOYBOX CHARITY
_Annual Report & Financial Statements for the year ended 30th June 2022_
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## Contents
|1.|Welcome from the Chair and CEO of Toybox|03|
|---|---|---|
|2.|Our impact at a glance|04|
|3.|Reaching more street children|06|
|4.|Report from the Trustees|11|
|5.|Reviewing the last Financial Year|13|
|6.|Our future plans|16|
|7.|Our fundraising|18|
|8.|Our people and how Toybox is managed|20|
|9.|Financial review and important policies|25|
|10.|Independent Auditors Report|29|
|11.|Statement of Financial Activities|33|
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_1._
Welcome from the Chair and CEO of Toybox
A warm welcome to the Toybox Annual Report! Over the last three years we have started each of our report by stating – well this has been an interesting year, and this year is no different. At the point of writing this we are on our third Prime Minister, the cost-of-living crisis is really starting to bite, while the ramifications of Covid continue to lurk in the background.
But at Toybox we continue to be hopeful and upbeat, and we are hopeful for two key reasons. Firstly, we must do all we can to stand alongside children in street situations, it is our calling and moral duty. And secondly, our supporters are amazing as they continue to give financially, pray and send in notes of encouragement for the team which we love receiving.
We hope you enjoy reading this report, a report full of promise as we recognise all the great work our international partners have achieved this Financial Year. Children who now have their birth certificates, children in education, children getting the healthcare they need and children with the possibility to reach their God given potential – that has got to be a good read (despite all the numbers ).
What have we done well this year? Well, we have got more money to our international partners including sensible use of our reserves and we continue to manage expenditure very tightly. We directly supported just less than 10,000 children – that is 333 classrooms filled with 30 pupils. I, (Lynne) am always delighted by the numbers of births we have registered, 2,794 this year, but I have also been really pleased to see the 139 children we helped navigate their country’s judicial systems. I (Ian) am delighted to see the high numbers (1,498) of parents and caregivers receiving positive training sessions, it is wonderful to see these people determined to create a better home life for their families.
Thanks for taking the time to read this report. May God bless and protect you this following year.
Mr Ian Gray | Chair of the Toybox Board
Mrs Lynne Morris | CEO Toybox
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Our impact at a glance
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Directly supported
9,974
children and
young people
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Supported 2,794 children and young people and 122
adults to obtain their legal identity documents (of which 1,850 are birth certificates). A further 337 cases have been initiated but not yet completed due to complications
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Trained
1,498
caregivers in
positive parenting
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Enabled 801
children and youth to actively participate in child or youth led activities
Toybox works through local partners to support children who are either living and/or working on the streets. We also support vulnerable families who are atrisk of becoming street dependent. This Financial Year we continued to face the lingering effects of Covid, however despite this most of our activities remained on track. Towards the end of the year, we started to see the challenges of the cost-of living crisis and the beginnings of the impact of this on the communities we work with. Nevertheless, together in the last 12 months we have:
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Ensured
Directly and Directly and
indirectly supported indirectly supported 2,958
24,945 67,416 young people received street children and
children and children, young emergency support
young people people and their including food rations,
family members medical care, and
clothing
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Supported 2,371 Supported children to access 369 formal and informal young people and education caregivers to advance their livelihoods – including vocational training, savings groups, and the receipt of Provided capital to start small businesses
Provided 1,839 children and young people with counselling or mental health support
Provided 139
children and young people with legal representation and/or support
Provided training to Worked alongside 2,073 106 children and children and young young people people as they were in life and reintegrated back leadership into their families or skills communities
Provided 1,346 children and young people with menstrual hygiene education and provisions
Been able to support 1,042 children and young people with first aid
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# Reaching more street children – the reason we exist _[3.]_
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This year we have expanded our work in Guatemala City through a new partnership and our work in India by initiating a project in a new city.
## What we did this year
Toybox exists to help street children marginalised and abused by those who should be protecting them. To do this, we have worked with nine partners in seven countries this year, and together we have supported 67,416 children, young people, and their families and communities.
## Covid, Ukraine and the cost-of-living crisis
During the year, many more programme activities were carried out in a similar way to pre-Covid, particularly with schools gradually re-opening and restrictions being reduced. However, activities involving larger groups of people such as stakeholder consultations and training sessions were still not able to take place and some of the adaptations made during Covid have been successful and continued. Covid also continued to affect project staffing levels, particularly during the Omicron wave causing staff absence and isolation delaying some activities.
Our aim is to support both the immediate and long-term needs of children and young people. Additionally, we hope to solicit policy and attitudinal changes in governments and societies to help street children realise their full potential. Over the last 12 months, we have:
- delivered medical treatment to children on the streets.
- registered children and young people with their birth certificates and other legal documents (for example, identity cards) enabling them to access government social services such as health, education, emergency support and employment.
In the latter part of the year, the knock-on effects of the war in Ukraine have resulted in inflation across the portfolio of countries in which we operate. These rising costs have especially been felt by the children and families we support, many of whom are already living hand to mouth. Project budgets have been impacted but thankfully we have been able to accommodate these increases without reducing the scale or quality of our work.
- trained young people in vocational trades and supported them to either start small businesses with seed funding or access jobs.
- supported parents and caregivers to form savings clubs to better meet their families’ basic needs.
- helped build young people’s self-esteem and leadership skills by providing opportunities for them to represent street children in local and national events.
## The number of children, young people, and adults we worked with this Financial Year
- advocated for policy change to enable street children and young people to receive Covid vaccinations and birth certificates.
During the year, Toybox directly reached a total of 9,974 children and young people (including 33 with disabilities) and 2,526 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 our metrics.
- reintegrated street children with their families and communities, supporting children and young people to leave the streets.
- carried out five project evaluations, giving us new insights into the impact our work is having on street children and where improvements could be made.
- supported partners to conceptualise and carry out innovative programming to reach street children and respond to their needs in different ways.
Indirectly, we have reached a further 14,971 children and young people and 39,945 adults. Indirect beneficiaries may be other children who have had health messages passed on to them, targeted participants hearing information about how to get their birth certificate on the radio, or family members benefitting from food basket, for example.
- helped mitigate some of the impact of rising costs of essentials such as food and transport through budget increases to partners where possible.
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Direct [*] Indirect [**]
Country Children/ Adults Children/ Adults Total
Young People Young People
Bolivia 409 101 818 300 1,628
El Salvador 648 352 2,592 1,408 5,000
Guatemala 1,826 202 5,389 1,864 9,281
India 1,881 815 3,010 3,686 9,392
Kenya 1,232 512 2,572 1,024 5,340
Nepal 3,772 454 516 31,438 36,180
Sierra Leone 206 90 74 225 595
TOTAL 9,974 2,526 14,971 39,945 67,416
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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.
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## Some examples of this more detail
## Birth registration
Our partner in El Salvador held an Identity Workshop for those who lead Registry Offices in 12 municipalities across El Salvador, as well as staff from Children and Family Units of different offices within the Attorney General’s Office (PGR) nationwide. The aim was to raise awareness of the importance of speeding up the registration processes that are carried out and to ensure the population is treated with dignity.
In Nepal, the Birth Registration process for children in street situations is a long drawn-out struggle as each case is unique and often interpretation of the policy on Birth Registration is dependent upon individual understanding by those in Government offices. Our partner Sath Sath has filed a Writ in the court on Birth Registration of street children seeking government intervention to help in cases where documentation is not available (such as fathers name is missing but all documents of citizenship and birth are available with the mother). If the Writ rules in favour of this case and recognises documentation submitted by the mother, the impact will be huge for many other registration cases which currently lack documentation preventing the processing, as well as encouraging many more to come forward to claim theirs.
## Health nutrition and hygiene
In our STRIPE project in Delhi and our new project in Guatemala City, children receive hot cooked meals. This supports in meeting nutritional needs of the children, ensuring they have the energy for learning as well as helping their parents whose daily labour only provides enough for basic food.
Viva, our partner in San Salvador provides children with regular health checks and nutritional monitoring. Those who are found to need additional support are given food baskets.
## Tackling period poverty
Toybox became an official partner of Menstrual Hygiene Day in 2022. We encouraged our partners to also to join the network. On 28th May – Menstrual Hygiene Day, our partners across Asia and Africa organised campaign activities such as holding awareness raising campaigns in schools and running events with children in street situations to share information on menstrual hygiene and its importance as well as holding demonstrations and distributing supplies.
## The lessons we learnt and what we did with that learning
## Our key lessons this year have included:
Importance of monitoring and evaluation visits with partners: Whilst the pandemic brought us the benefits of new technologies and techniques to monitor and collaborate with our partners ensuring that work could still be carried out effectively, the lifting of travel restrictions has once again allowed us to meet with our partners face-to-face, see project
activities in action and spend time with participants and local stakeholders. All emphasising the need and importance for time together in person to improve problem-solving, thinking time and idea generation for new and existing projects.
Collaboration between our partners has enhanced this year with the sharing between partners in different countries on their contrasting approaches, including economic empowerment and community feedback mechanisms. We also facilitated a partner staff member from India to support the redesign process with a partner in Nepal based on their experience doing this. Not only was this a great personal development moment for this staff member but it also gave them the opportunity to learn from their projects on the ground. Our Latin America partners have also enjoyed two online training courses conducted over several weeks which have enabled learning and interaction between themselves. Three partners also met face to face in Guatemala City, together with the Toybox Latin American Programme Manager.
Our adaptive management approach has been praised in external evaluations of our work in Nepal and El Salvador for the way in which partners have been able to adapt to contextual changes including Covid and in favour of more effective interventions.
## 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 dependant. 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 communities. We also know that locally led development increases the effectiveness, legitimacy and cost effectiveness of our engagement with children in street situations 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 is required. Thankfully we were able to start travelling in the final six months of the Financial Year, thereby allowing us to undertake the necessary partner assessments and further training activities as listed in the table below.
Strong partnerships are the foundations to Toybox’s success, based on the collaborative relationships we cultivate with our partners based on trust, transparency and accountability. We have significant experience, skills and resources which we bring to all our partnerships and we 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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Country Partner Ways in which we support our partners
Bolivia Alalay Training has been provided in: Preventing and responding to fraud and bribery; Financial
Sustainability; Feedback and response mechanisms; and Child-Led Most Significant
Change (MSC) methodology. Support to the development of a fundraising strategy.
Wellbeing funds were spent on an organisational away day and refresher training on
core policies. Capacity building has been given in communications (including story-
telling and improving the quality of photos and videos taken).
Guatemala CONACMI Training has been provided in: Preventing and responding to fraud and bribery; Financial
Sustainability: and Feedback and response mechanisms. Toybox supported the refining
of the CONACMI monitoring database and their certification in Safeguarding (Keeping
Children Safe). Support was also given on implementing an organisational sustainability
plan, a HR manual, updating of the organisational strategy and organisational branding
refresh. Capacity building has been given in communications (including story-telling and
improving the quality of photos and videos taken).
Guatemala Puerta de Training in Anti-fraud and bribery and support with Monitoring and Evaluation as well
Esperanza as the formulation of organisational policies.
El Salvador VIVA El Training has been provided in: Preventing and responding to fraud and bribery; Financial
Salvador Sustainability; Feedback and response mechanisms; and Child Led Most Significant
Change (MSC) methodology. An external (In-country) Partner Assessment was
undertaken and support with implementing recommendations including a fundraising
and volunteer management plan in conjunction with the University of San Salvador.
Extra funding was provided to support an external evaluation of completed projects
to assess impact and improve the quality of new project design. Toybox supported
the induction of their new CEO which included a peer learning visit (to CONACMI)
and support to their new strategy process. Capacity building has been given in
communications (including story-telling and improving the quality of photos and
videos taken).
India CHETNA During the year a Partnership Assessment (Programme evaluation) was conducted;
a 3-day annual staff capacity building workshop was organised in Delhi. With workshop
sessions on communications, safeguarding, monitoring and evaluation and team
building held. Capacity building has been given in communications (including story-
telling and improving the quality of photos and videos taken).
Nepal SathSath The last 12 months has seen in-country Monitoring and Evaluation training along with
online Anti-fraud and bribery training sessions held. We have linked the partner with
another organisation to complement the Toybox supported education programme.
Organisational sustainability training. A workshop with 50 staff and project participants
on well being and mental health was held. Strengthening of SathSath Café 77 personnel
with training. Capacity building has been given in communications (including story-telling
and improving the quality of photos and videos taken).
Nepal CWIN Over the year training in safeguarding, proposal and report writing has been offered
as well as a wellbeing fund for staff wellness.
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Country Partner Ways in which we support our partners
Kenya PKL This partner has been supported with QuickBooks – Financial Training. As well as a
series of staff trainings including risk management, safeguarding, project budgeting
and Value for Money. Two staff also benefitted from anti-fraud and bribery and, financial
sustainability training. Some of these were recommendations implemented as part of
the 2020 Partner assessment. Nine staff were trained on an economic empowerment
model. 17 staff were trained on resource mobilisation and partnerships to input into
the organisational resource mobilisation strategy. Capacity building has been given
in communications (including story-telling and improving the quality of photos and
videos taken).
Sierra St George Anti fraud and bribery and QuickBooks-Financial Training were provided. Support to
Leone Foundation ensure all 22 staff have been trained in Safeguarding and Monitoring and Evaluation.
A generator, office equipment and software were purchased to improve efficiency of
office working. Refresher training was given on auditing, VSLA, security and safety.
Workshop for staff on mental health and action plan to roll out new strategies for
supporting mental health in the workplace to reduce stress. The training has led to a
greater openness regarding discussing mental health within the workplace and with
children. Capacity building has been given in communications (including story telling
and improving the quality of photos and videos taken)
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For the first time this year Toybox allocated some funds for “wellbeing” for partner staff given their hard work during the Covid period and challenges this entailed. Partners chose how they would spend these funds including an extra allowance ahead of Christmas, staff retreats, yoga workshops and team building activities.
University of Dundee – Toybox have partnered with Professor Lorraine Van Blerk, a Geography professor who has many years of experience of conducting research with street children as part of a Lockdown research study across all our countries of intervention. The decision to undertake this research was to understand street children’s experiences in different contexts during the pandemic. This piece of work was initiated in 2020 and is now in its final stages.
## 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:
CEO Child Rights Group – a network of CEOs of similar sized organisations focused on child rights.
All Party Parliamentary Groups (APPG) – on Extreme Poverty and Street Children.
BOND – the UK network for organisations working in international development
We also encourage our partners to increase their impact through working together in local level consortiums of organisations working with children in street situations to enable sharing of learning, influence with government police and practice and preventing the duplication of efforts.
Consortium for Street Children – a network of over 130 community organisations, national and international nongovernmental organisations, researchers, advocates and practitioners working with children in street situations in over 135 countries.
## In addition, we are working to the following standards:
Misconduct Disclosure Scheme (MDS) which facilitates the sharing of Misconduct data between employers to help improve our safe recruitment of staff and Board members.
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.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022 11 _4._ Report of the Trustees of The Toybox Charity for the year ended 30th June 2022
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ended 30th June 2022
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The Trustees are pleased to present their Annual Report and Audited Financial Statements for the year ended 30th June 2022.
## 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 vision
Our vision is of a just and fair world with no street children.
## Our organisational mission
Our mission, today and until 30th June 2023 (end of the current strategic plan) is to positively change the lives of more than 40,000 children in street situations.
## 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
During the intervening years, Toybox, with countless dedicated, skilled staff and 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;
- 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.
## 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:
- a) Providing support for street living and working children, including access to education and healthcare
- b) Providing support for vulnerable families as to encourage a stable and caring family life and prevent children being forced onto the streets
2. 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.
3. The advancement of education of the public in particular but not exclusively by:
- a) Educating the public about the nature, causes and effects of poverty
- b) Conducting and procuring research concerning the same and disseminating the results to the public
4. 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.
5. 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.
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Reviewing the last
Financial Year
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## What we said we would do, and did we achieve it?
The reason we exist is to support street children which by its nature challenging. This year the situation was exacerbated by Brexit, Covid, the war in Ukraine and the cost-of-living crisis, all global events which have put street children into an even more vulnerable situation.
## Our key strategic priorities for the last Financial Year were the third year of our current strategic plan:
Grow and Diversify – to ensure that we grow and diversify by:
## Reaching more street children
- To have worked with 13,000 (direct) street children and young people by 30th June 2022. Not quite! We worked directly with 9,974 street children and young people this year. Although this figure is less than our target, it represents improvements to our systems for tracking our participants and ensuring they are not counted twice when participating in more than one project or activity.
- To support 1,500 children and young people to access birth registration documents by 30th June 2022. Oh yes! We supported 1,850 children to access their birth registration documents and a further 944 to access other types of identity documents (such as ID card, citizenship or health cards).
- To support 1,500 children and young people with access to formal and informal education by 30th June 2022. Yes. We supported 2,371 children to access formal or informal education this past year.
- To establish one new in country partnership. Yes. We established a new partnership in Guatemala with Puerta de Esperanza.
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 one large grant submission to an institutional funder. Yes. We did but unfortunately it was unsuccessful.
- To secure three new grants from corporates or charitable foundations by 30th June 2022. Yes. We actually secured five new grants.
- To secure a 2% increase in the value of the Regular Giving Programme by 30th June 2022. A challenging target in a chaotic environment, our Regular Giving Programme decreased by 2%. – Sad times!
- To secure 2% of voluntary income from lapsed supporters by 30th June 2022. Oh so close – 1.6% which was pretty good in this context.
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 31st March 2022. Sadly no. We had to change supplier, but this should be in place by February 2023 as a new supplier has since been chosen.
- To design and implement a methodology for collating and presenting street children’s stories, allowing the child to tell their story by 31st December 2021. Almost! A methodology was designed with systems and training provided to partners on story gathering by November 2021. However, the implementation of participatory content gathering with children wasn’t finalised until July 2022.
- To complete the Governance Review, which was started in the previous Financial Year, by 30th June 2022. Yes, a full review was undertaken and completed by 30 June 2022.
- To have developed a Toybox Economic Empowerment model by 30th June 2022, No. This has not yet been completed due to staff changes, but we have been working with partners on improving and growing economic empowerment within the Toybox portfolio resulting in both us and our partners developing greater expertise in the area which we will continue to build on.
- To have at least five partners with established feedback mechanisms which are known by project participants, are being used, and influence project decision making. Yes-ish! To date, four partners have achieved a green rating in terms of feedback mechanisms, an increase on the previous year’s figures.
- To ensure continuous improvement in safeguarding and ensure that 80% of our partners are on a RAG rating of green by 30th June 2022. Hurrah Yes. 89% of our partners had a RAG rating of green.
- To send 5% more funding to international partners, versus the previous 12 months, by 30th June 2022. Not too shabby – we sent an extra 11% this year including foreign exchange savings, so we are moving in the right direction!
## Deepening the customer experience for all those supporters who engage with Toybox
- To have 50,000 social media engagements by 30th June 2022. Close! We managed 44,362 social media engagements.
- To have over 30,000 website users by 30th June 2022. Yes. More than 32,646 people visited our website.
- To ensure exceptional customer care by ensuring no more than 10 complaints by 30th June 2022. Yes. We had one complaint this year.
- To design, test and implement a new automated post process for donations in time for Easter 2022. Nope! We did not manage this but it will be ready for Christmas 2022.
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To have a healthy, engaged workforce who feel valued and well equipped
- To spend 1.5% of employee salaries on training and professional development by 30th June 2022. Yes. We spent 1.7% – slightly above the budget but we are happy to exceed this to ensure great training for the team.
- To implement an annual staff survey and track staff wellbeing and satisfaction. Yes. 100% of the organisation agree or strongly agree that they enjoy working for Toybox – which is great news.
In addition to the targets mentioned above we undertook the activities listed below:
## Business as usual
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 wellbeing 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.
- We track innovations and improvements made to our systems.
- 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 capacity.
- 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 three annual appeal mailings to current and prospective supporters.
- Mail three 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 116 (versus a target of 121) changes to improve the way we work, from the big new projects to small incremental changes.
All we have achieved this year would not have been possible without our amazing supporters – individuals, foundations and corporates – thank you. For example, the World Day of Prayer donated £1,250 for our Birth Registration and Outreach Programme in El Salvador.
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Our future plans
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We are now in the third year of our strategic plan and despite the challenges Brexit, Covid, the war in Ukraine and a cost-ofliving crisis has brought, we are still broadly on track in some areas, including fundraising. Other areas, including delivering programmes for street children, have been subject to some change 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:
## Reaching more street children
- To have worked with over 8,000 (direct) children in street situations by 30th June 2023.
- To support over 1,600 children and young people to access birth registration documents by 30th June 2023.
- To support over 1,000 children and young people with access to formal and informal education by 30th June 2023.
- 150 young people and caregivers are supported to start small businesses by 30th June 2023.
## 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 two large grants submissions to institutional funders.
- To secure six new grants from corporates or charitable foundations by 30th June 2023.
- To secure a 1% increase in the value of the Regular Giving Programme by 30th June 2023.
- To secure 2% of voluntary income from lapsed supporters by 30th June 2023.
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 31st December 2022.
- To ensure continuous improvement in safeguarding and ensure that at least 80% of our partners are on a RAG rating of green by 30th June 2023.
- To send 2% more funding to international partners, versus the previous 12 months, by 30th June 2023.
- To put in place a sustainability framework by March 2023 which will guide decision making on projects and partnerships to maximise the impact Toybox can have.
- To have completed the development of the Toybox Economic Empowerment model by 30th June 2023.
- To complete an external review of our governance activities by 30th June 2023.
## Deepening the customer experience for all those supporters who engage with Toybox
- Reduce our physical IT infrastructure by migrating our data and applications to a cloud-based solution – by 30th June 2023.
- Refresh Toybox brand with full implementation across all channels by 30th June 2023.
- To review and implement a new social media strategy by 31st December 2022.
- To have a website conversion rate of >6% by 30th June 2023.
- To ensure exceptional customer care by ensuring no more than 10 complaints by 30th June 2023.
## To have a healthy, engaged workforce who feel valued and well equipped
- To spend 1.5% of employee salaries on training and professional development by 30th June 2023.
- To implement an annual staff survey and track staff wellbeing, satisfaction and Equality, Diversity and Inclusion.
THETOYBOX CHARITY- ANNUAL REPORT AND NANCIAL STATEMETrttS FOR THE YEAR ENDED 30TH JUNE 2022
Our fundraising
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Toybox raises £5.36 for every £1 we spend on regular fundraising activities (FY22 £5.34).
developing strong and strategic partnerships which enable us to buy-in the specific skills for key tasks. 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.
At Toybox we want the money our supporters entrust to us to have the widest and deepest impact it possibly can. To achieve this we sometimes we 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, or it is more cost effective. We work with some brilliant agencies and have spent time with each of them
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, Christmas and Summer Appeals Creative
DM Focus Easter, Christmas and Summer Appeals, Street Life Data Management, Media buying, Print,
magazines, Regular Giving updates Production and Fulfilment Management
Fusion Design Associates Regular Giving update, Prayer Guide, Alternative Gifts, Creative
Annual Church Giving Update
Payroll Giving in Action Payroll Giving promotional activity Donor Recruitment
RSM2000 Text fundraising Inbound text donation processing
StC Payroll Giving Make a Difference Consortium Payroll Giving activities Fulfilment
OnePost Street Life magazines, Christmas and Easter Appeal Post
**----- End of picture text -----**
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
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 UK 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
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 one complaint about our fundraising activities.
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 strongly 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 do 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.
THETOYBOX CHARITY- ANNUAL REPORT AND NANCIAL STATEMETrttS FOR THE YEAR ENDED 30TH JUNE 2022
Our people and how
Toybox is managed
ooo
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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Toybox is a registered charity and charitable company limited by guarantee governed by its Memorandum and Articles of Association dated 29th March 2000 as amended by special resolution dated 6th December 2000, 28th June 2010 and 4th 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||
|Ms C McLeod|Appointed 09.09.21|
|Mr J Sambruck||
|Mr S Shrouder|Resigned 08.09.22|
|Mr W Rockett|Chair of Finance and Audit Committee|
|Mr D Westwood|Appointed 09.06.22|
## 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 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.
## 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
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 30% of our Board identify as female, 10% identify as having a disability and 30% identity as minority ethnic.
## Reported conflicts of interest
During this Financial Year no Trustee conflict of interest were reported.
## 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:
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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**----- Start of picture text -----**
Trustees Board Sub-committee
meetings meetings
Mr I Gray 4 -
Ms N Battle 3
Mr F Caicedo 3 -
Mr F Goss 3 -
Mrs G Derham 4 4
Mr S Shrouder 0* -
Mr J Sambruck 4 -
Mr W Rockett 4 4
Mr D Westwood 2 -
Ms C McLeod 1 -
**----- End of picture text -----**
*Mr S Shrouder was unwell during this Financial Year.
## 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 2.18 (2021: 2.29); 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 previous 12 months and will consider the Consumer Price Index movement for the previous year to 31st 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 Renumeration
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 previous 12 months and will consider the Consumer Price Index movement for the previous year to 31st December.
## Team Toybox
Toybox undertakes annual staff surveys including the monitoring of our equity, diversity and inclusion metrics. This Financial Year 8% of our of employees identify as male, 8% identify as having a disability and 8% identity as minority ethnic.
## 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 Board 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:
## RISK
External political and funding environment. The continued impact of Brexit and Covid coupled with the war in Ukraine and the cost-of-living crisis.
## STRATEGY FOR MANAGING THIS RISK
Continuous dialogue with partners about budget and activities which need to be undertaken, including how Toybox can support. We ready and prepared to help beneficiaries and partners with food insecurity and costs increase.
Weekly tracking of income and reducing of expenditure to cover the basic core costs, scenario planning throughout the Financial Year.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## RISK
Failure to implement anti-bribery and fraud policies, overseas or in UK.
## STRATEGY FOR MANAGING THIS RISK
Due to travel limitations in the first three quarters of the year and the inability to carry out in person reviews additional spot checks of quarterly financial returns were undertaken coupled with external assessments of one partner this Financial Year. Four more are planned for FY23. Six partners also undertook in depth training on Anti Fraud and Bribery.
## RISK
Over reliance of some international partners on Toybox funds which is a risk to them if Toybox were to fold and means less division of core costs among various donors.
## STRATEGY FOR MANAGING THIS RISK
Risk analysis of each partner with RAG rating and mitigating actions to be introduced. Some partners are receiving additional support to enhance their fundraising capacity and strategy development including additional training and bespoke consultancy.
## RISK
Fluctuation in international currencies values.
## STRATEGY FOR MANAGING THIS RISK
Participation forward schemes and regular reviews to ensure the best rates possible for foreign exchange throughout the year.
## RISK
## Cyber security attack.
## STRATEGY FOR MANAGING THIS RISK
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.
## Safeguarding incidents
During the Financial Year no safeguarding incidents occurred at Toybox in the UK or relating to Toybox staff, volunteers or Board members. This year we have continued to encourage our partners to report more incidents and near misses; to help in reducing reporting barriers; test the efficacy of reporting mechanisms and to work with partners in how they deal with incidents. By the end of the Financial Year, we were receiving quarterly incident reports from 50% of 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 Toybox Board.
During monitoring trips, safeguarding processes and documentation was reviewed for several of our partners and advice given to further improve prevention and documentation.
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 each our partners. Regular safeguarding audits are conducted to assess each partner against a 20-point checklist, with a subsequent action plan produced for each partner.
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 partners. From the two organisations supported to receive additional support in safeguarding by Keeping Children Safe (KCS) they have continued to implement the recommendations and have been active in training other organisations locally.
Quarterly reports are made to the Board on any outstanding issues with our own safeguarding plan as well as producing a RAG rating for partners. 86% of our partners are on green and none are on red. The Toybox safeguarding leads receive regular training and are part of safeguarding networks to continually improve knowledge and practice.
## 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 to 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.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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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
- separation of duties
- random spot checks by managers
- complete and secure audit trails
- performance monitoring by management
- budgetary and other financial reports
- reviews by independent bodies such as the annual audit
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. During the year we worked with a trusted external provider to conduct Anti Fraud and Bribery Training for all four of our Latin America partners in a single cohort. This online training took place online over a four week period was highly praised by partners with 20 staff members benefitting across the organisations.
It is the responsibility of all employees 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.
## Health and Safety
During the Financial Year no health and safety issues occurred or were reported at Toybox.
## Data Protection
During the Financial Year no Data Protection issues occurred or were reported to the Board.
## Safeguarding
During the Financial Year no Safeguarding issues were reported to the Charity Commission.
THETOYBOX CHARITY- ANNUAL REPORT AND NANCIAL STATEMETrttS FOR THE YEAR ENDED 30TH JUNE 2022
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Financial review and
important policies
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Income
Total income for the Financial Year was £2,111,757 (2021: £1,964,078).
Regular Giving represented 30% of total income (2021: 32%). 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 48% of total income (2021: 58%), and legacies which make up 14% of total income this year (2021: 1%)
Income from Trusts, Foundations and Corporate donors (Principal Gifts) was 9% of total income, in line with 2021.
Bank interest for the year was £2,658 (2021: £2,995). We have also recognised income of £32,171, being the value of outstanding forward contracts against the spot rate at 30th June 2022.
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 £1,996,876 (2021: £1,839,952). Charitable expenditure was £1,602,690, representing 80% of total costs (2021: 80%).
Grants to partners totalled £1,039,353 for the year. Monitoring and evaluation costs of £217,855 comprised all international and UK support costs including staff costs and travel, and Advocacy and Awareness costs in the UK totalled £216,134.
This year, including salaries, £394,186 was spent on raising funds which represents 20% of total expenditure (2021: £367,693, 20%). Staff costs were 24% of total expenditure (2021: 24%), while Other UK costs fell from 8% of total expenditure in 2021 to 7% this year.
Expenditure continues to be closely controlled, and efficient and effective use of our resources is pursued in every area of our work.
Normal Operating Expenditure including salaries
**----- Start of picture text -----**
Advocacy &
Awareness
11%
Raising
Funds Grants to
20% Partners
58%
Monitoring
& Evaluation
11%
**----- End of picture text -----**
**----- Start of picture text -----**
Normal Operating Expenditure
Raising
Funds
20%
Charitable
Expenditure
80%
**----- End of picture text -----**
## 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 2021.
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 30th June 2022 the general unrestricted reserve, excluding fixed assets, was £571,844 and equivalent to 3.2 months expenditure (2021: £528,473 or 3.1 months).
Prior to this year, a total of £343,066 had been designated by the Trustees for a variety of purposes in the UK (marketing and IT) and overseas. During the year £160,264 of this was expended and a further £172,727 was designated for future investment. Since the year end, an additional £60,000 has been added to designated funds, and the balance now comprises the following:
|Marketing|£60,000|
|---|---|
|Administration & IT|£56,500|
|Nione Project – Kenya|£171,250|
|SAFE Project – Nepal|£30,234|
|Puedez Project – Guatemala|£16,000|
|International Programme Initiatives|£101,545|
|TOTAL|£435,529|
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 in future periods. At 30th June 2022 restricted reserves amounted to £48,817 (2021: £49,691).
At 30th June 2022 the total funds of the charity amounted to £1,068,731 (2021: £953,860). 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.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Important policies
At Toybox we have a wealth of essential policies and procedures including:
- Child and Youth Safeguarding Policy
- Equity, Diversity and Inclusion Policy
- Health and Safety Policy
Care for the Environment Policy
- Anti-Fraud and Anti-Bribery Policy
- Data Protection Policy
Donor Acceptance Policy
- Whistleblowing 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 used Forward contracts 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.
In preparing these Financial Statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- 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.
The Trustees are responsible for keeping proper 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.
In so far as the Trustees:
- are aware there is no relevant audit information of which the charitable company’s auditors are unaware and;
- 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.
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.
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## Reference and Administrative Details
|Charity number|1084243|
|---|---|
|Company number|03963000|
|Registered Offce &|Challenge House, Sherwood Drive, Bletchley, Milton Keynes,|
|Principal Address|Buckinghamshire MK3 6DP|
||Telephone: 01908 360050 Email: info@toybox.org|
||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|
Approved by the Board of Trustees on 1 December 2022 and signed on its behalf by:
Mr I R Gray, Chair of Trustees Date: 1 December 2022
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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# _10._ Independent Auditors’ Report to the Members of the Toybox Charity
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Independent Auditors’ Report to the Members of the Toybox Charity
## Opinion
We have audited the financial statements of the Toybox Charity (‘the company’) for the year ended 30 June 2022 which comprise 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 trustees’ annual report for the Financial Year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ annual report has 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 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]
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
31
- 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, 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.
## 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.
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- 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.
- 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 noncompliance 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.
Silvia Vitiello Senior Statutory Auditor
## For and on behalf of
Moore Kingston Smith LLP, Statutory Auditors 4 Victoria Square, St Albans AL1 3TF
## 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.
Date: 1st December 2022
THETOYBOX CHARITY- ANNUAL REPORT AND NANCIAL STATEMETrttS FOR THE YEAR ENDED 30TH JUNE 2022
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11.
Statement of
Financial Activities
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Statement of Financial Activities
(Incorporating an income and expenditure account)
## Year Ended 30 June 2022
**----- Start of picture text -----**
Notes Unrestricted Restricted 2022 Unrestricted Restricted 2021
Funds Funds Total Funds Funds Total
£ £ £ £ £ £
Income from:
Donations and legacies 2 1,621,290 455,638 2,076,928 1,554,708 406,375 1,961,083
Investments 3 34,829 - 34,829 2,995 - 2,995
Total income 1,656,119 455,638 2,111,757 1,557,703 406,375 1,964,078
Expenditure on:
Raising funds 394,186 - 394,186 367,693 - 367,693
Charitable activities 622,259 980,431 1,602,690 429,491 1,042,768 1,472,259
Total expenditure 4 1,016,445 980,431 1,996,876 797,184 1,042,768 1,839,952
Net income/(expenditure) for the year 6 639,674 (524,793) 114,881 760,519 (636,393) 124,126
Transfers between funds (523,919) 523,919 - (633,614) 633,614 -
Net movement in funds 115,755 (874) 114,881 126,905 (2,779) 124,126
Funds at 1 July 904,159 49,691 953,850 777,254 52,470 829,724
Funds at 30 June 1,019,914 48,817 1,068,731 904,159 49,691 953,850
**----- 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 37 to 45 form part of these accounts.
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Balance Sheet as at 30 June 2022
Company Number: 03963000
Notes 2022 2021
£ £
Fixed Assets
Intangible assets 9 - 6,379
Tangible assets 10 12,540 16,241
12,540 22,620
Current Assets
Debtors 11 310,363 95,516
Short term deposits 249,173 247,416
Cash at bank 563,717 628,264
1,123,253 971,196
Creditors: amounts falling due within one year 12 (67,062) (39,966)
Net Current Assets 1,056,191 931,230
Net Assets 1,068,731 953,850
Funds
Unrestricted:
General 584,385 551,093
Designated 435,529 353,066
Restricted 48,817 49,691
TOTAL FUNDS 13 1,068,731 953,850
The accounts were approved by the Board of Trustees on
2 December 2022 and were signed on their behalf by:
Mr I R Gray, Chair of Trustees.
The notes on pages 37 to 45 form part of these accounts.
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Statement of Cash Flows
Year Ended 30 June 2022
Notes 2022 2021
£ £
Cash flows from operating activities
Net cash used in operating activities 7 (57,325) 133,888
Cash flows from investing activities
Purchase of tangible fixed assets (8,326) (1,534)
Bank interest received 2,658 2,995
Net cash used in investing activities (5,668) 1,461
Change in cash and cash equivalents in the year (62,993) 135,349
Cash and cash equivalents at the beginning of the year 794,566 659,217
Cash and cash equivalents at the end of the year 8 731,573 794,566
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## 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 2022 was 9 (2021:7).
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
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 (2021: nil).
## 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.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Notes to the Accounts – continued
## 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.
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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## Notes to the Accounts – continued
## 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 non-current liabilities. Trace 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.
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## Notes to the Accounts – continued
## 2. Income from donations and legacies
**----- Start of picture text -----**
Unrestricted Restricted 2022 2021
£ £ £
Regular Giving:
Lifetime 305,547 - 305,547 322,337
Lifeline 311,999 - 311,999 312,046
Principal Gifts 25,633 148,994 174,627 169,436
Other donations 692,419 306,644 999,063 1,127,983
Voluntary income 1,335,598 455,638 1,791,236 1,931,802
Institutional grants - - - -
Legacies 285,692 - 285,692 29,281
1,621,290 455,638 2,076,928 1,961,083
**----- End of picture text -----**
## 3. Income from investments
Investment income arises from interest bearing deposit and current accounts (£2,658) and gains on the fair valuation of forward exchange contracts (£32,171).
No income from investments was attributable to restricted funds (2021: 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 2022 2021
£ £ £ £ £ £ £
International projects - 1,039,353 - - - 1,039,353 932,663
Constructive obligation - - - - - - -
International support costs - - 12,265 - - 12,265 983
UK staff costs 98,847 - 162,828 107,663 99,993 469,331 446,966
Marketing & fundraising 262,226 - - 72,605 - 334,831 304,137
UK office costs 33,113 - 41,464 34,578 31,941 141,096 155,203
394,186 1,039,353 216,557 214,846 131,934 1,996,876 1,839,952
Support costs allocated - 129,348 1,298 1,288 (131,934) - -
Governance - - - - - - -
394,186 1,168,701 217,855 216,134 - 1,996,876 1,839,952
**----- End of picture text -----**
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 £11,040 for audit fees (2021: £10,020) and £nil for Trustee expenses (2021: £nil).
THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
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Notes to the Accounts – continued
5. Staff costs and numbers
The average number of contracted employees during the year was:
2022 Actual 2022 FTE 2021 Actual 2021 FTE
Number Number Number Number
International Programmes 3.4 2.8 3.5 3.1
Advocacy & Awareness 3.3 2.4 3.0 2.1
Marketing & Fundraising 2.7 2.3 2.7 2.2
Support 2.9 2.2 3.4 2.2
12.3 9.7 12.6 9.6
The cost of employing these staff was:
2022 2021
£ £
Salaries 397,116 382,429
Social security costs 31,222 31,795
Employer’s pension contributions to defined contribution scheme 30,187 26,948
458,525 441,172
The total employee benefits including salaries and pension contributions of the Leadership Team were £224,588 (2021: £234,227).
One employee earned within the range £60,001 to £69,999 (2021: none). One employee earned within the range £80,001 to
£89,999 during the year (2021: one).
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 (2021: nil). During the year Trustees expenses incurred
were £nil (2021: £nil).
6. Net income/(expenditure) for the year
This is stated after charging/(crediting):
2022 2021
£ £
Depreciation 12,027 13,256
Amortisation 6,379 6,549
Currency loss/(gain) (32) 69
Auditors remuneration: UK audit (excluding VAT) 9,200 8,350
Provision of corporation tax services by auditors 750 585
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Notes to the Accounts – continued
7. Reconciliation of net income/(expenditure) to net cash flow from operating activities
2022 2021
£ £
Net expenditure for the reporting period 114,881 124,126
Depreciation charges 12,027 13,256
Amortisation charges 6,379 6,549
Bank interest (2,658) (2,995)
(Increase) / decrease in short term deposits with 120 days notice (203) 24,149
(Increase) / decrease in debtors (214,847) (30,045)
Increase / (decrease) in creditors 27,095 (1,152)
Net cash provided used in operating activities (57,325) 133,888
8. Analysis of cash and cash equivalents
At 1 July Cash At 30 June
2021 Flows 2022
£ £ £
Cash in hand 628,264 (64,547) 563,717
Short term deposits up to 90 days notice 166,302 1,554 167,856
Total cash and cash equivalents 794,566 (62,993) 731,573
Short term deposits 120 days notice 81,114 203 81,317
Total cash and short term deposits 875,680 (62,790) 812,890
9. Intangible assets
Goodwill and Total
Databases
£ £
Cost
At 1 July 2021 32,684 32,684
Additions - -
Disposals - -
At 30 June 2022 32,684 32,684
Amortisation
At 1 July 2021 26,305 26,305
Charge for the Year 6,379 6,379
Disposals - -
At 30 June 2022 32,684 32,684
Net Book Value
At 30 June 2022 - -
At 30 June 2021 6,379 6,379
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43
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Notes to the Accounts – continued
10. Tangible fixed assets
Furniture Equipment Total
& Fittings
£ £ £
Cost
At 1 July 2021 3,875 67,883 71,758
Additions - 8,326 8,326
Disposals - - -
At 30 June 2022 3,875 76,209 80,084
Depreciation
At 1 July 2021 3,875 51,642 55,517
Charge for the Year - 12,027 12,027
Disposals - - -
At 30 June 2022 3,875 63,669 67,544
Net Book Value
At 30 June 2022 - 12,540 12,540
At 30 June 2021 - 16,241 16,241
The assets owned by the charity are used for direct charitable purposes.
11. Debtors
2022 2021
£ £
Gift Aid recoverable 31,431 13,968
Prepayments 45,653 15,306
Grants to partners 198,155 63,640
Derivative Asset – Forward Contracts 32,171 -
Other debtors 2,953 2,602
310,363 95,516
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.
Toybox enters in to Forward Contracts for the purchase of foreign currency. These contracts have been measured at fair value on the
quoted market price as determined by the financial institution, giving rise to the Derivative Asset.
12. Creditors: amounts falling due within one year
2022 2021
£ £
Trade Creditors 20,317 2,063
Taxation and social security 10,127 8,063
Accruals and other creditors 36,618 29,840
67,062 39,966
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44
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Notes to the Accounts – continued
13. Movements in funds
At 1 July Income Expenditure Transfers At 30 June
2021 £ £ £ £ 2022 £
Restricted Funds
Guatemala
Birth Registration - 33,486 40,894 7,408 -
SCC Rights - 131,361 131,361 - -
Puedez - - - - -
Capacity Building - - 8,785 8,785 -
El Salvador
Street Outreach - 62,148 62,148 - -
Advocacy - - 50,349 50,349 -
Capacity Building - - 15,824 15,824 -
Bolivia
Economic empowerment and outreach - 25,599 35,631 10,032 -
Citizenship (includes birth registration) - 29,849 29,849 - -
Advocacy - - 27,476 27,476 -
Street Outreach - 26,013 26,013 - -
Birth Registration 3,466 15,611 19,077 - -
Child Protection Systems Strengthening - - 17,108 17,108 -
Capacity Building - - 14,411 14,411 -
India
From Street to School NE Delhi 42,179 - 42,179 - -
SURE - - 19,389 19,389 -
STRIPE - 20,000 59,670 39,670 -
Emergency Appeal 2,661 - 2,982 321 -
Capacity Building - - 864 864 -
Jaipur – Twinkling Stars 1,385 67,820 20,388 - 48,817
Kenya
Safe From the Streets - - 12,267 12,267 -
Nione - - 116,082 116,082 -
Innovation - - 5,223 5,223 -
Capacity Building - - 10,641 10,641 -
Nepal
The Bridge - - 49,121 49,121 -
Making Children Visible - 43,751 43,751 - -
SAFE - - 1,466 1,466 -
Capacity Building - - 14,565 14,565 -
Capacity Building - - 3,459 3,459 -
Sierra Leone
Education for SCC - - 7,534 7,534 -
Pikin for Learn - - 81,016 81,016 -
Innovation - - 1,858 1,858 -
Capacity Building - - 9,050 9,050 -
Total Restricted Funds 49,691 455,638 980,431 523,919 48,817
Unrestricted Funds
Designated Funds
International Programme 306,566 - 160,264 172,727 319,029
Administration & IT 16,500 - - 40,000 56,500
Marketing & Fundraising Investment 30,000 - 30,000 60,000 60,000
Total Designated Funds 353,066 - 190,264 272,727 435,529
General Funds 551,093 1,656,119 826,181 (796,646) 584,385
Total Unrestricted Funds 904,159 1,656,119 1,016,445 (523,919) 1,019,914
TOTAL FUNDS 953,850 2,111,757 1,996,876 - 1,068,731
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THE TOYBOX CHARITY – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022
45
## Notes to the Accounts – continued
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 in future Financial Years.
## 14. Analysis of net assets between funds
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General Designated Restricted Total
Unrestricted Funds
£ £ £ £
Intangible Fixed Assets - - - -
Tangible Fixed Assets 12,540 - - 12,540
Current Assets 638,907 435,529 48,817 1,123,253
Current Liabilities (67,062) - - (67,062)
Net assets at the end of the year 584,385 435,529 48,817 1,068,731
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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 2022 there were outstanding contributions of £4,513 (2021: £4,622).
## 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 to reduce the risk that the charity faces should the value of Sterling decline over the next 12 months.
At 30th June 2022, 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
14/09/2022 75,000 1.3531 14/09/2022 4,000,000 153.84 15/09/2022 750,000 103.47
14/09/2022 25,000 1.3400 14/09/2022 2,000,000 152.09 15/09/2022 2,600,000 99.77
15/09/2022 35,000 1.4014 15/12/2022 6,500,000 153.86 15/12/2022 3,600,000 100.74
14/12/2022 75,000 1.3519 06/03/2023 5,000,000 153.02 15/03/2023 3,600,000 101.67
14/03/2023 75,000 1.3509
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## 18. Contingencies
The Trustees have confirmed that there were no contingent liabilities which need to be disclosed (2021: nil).
Challenge House, Sherwood Drive, Bletchley, Milton Keynes, Buckinghamshire, MK3 6DP T: 01908 360050 E: info@toybox.org
www.toybox.org.uk
Charity number: 1084243 Company number: 03963000