Company registration number: 05687000 Charity registration number: 1117739
The Toy Library Limited
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2021
Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
The Toy Library Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 9 |
| Independent Examiner's Report | 10 |
| Statement of Financial Activities | 11 to 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 to 25 |
The Toy Library Limited
Reference and Administrative Details
Trustees Marie Wilkinson Stephanie Brannigan Martin Rinvolucri Michelle Battlemuch Jaroslava Jajecznyk Melkorka Stiller-Magnusdottir Claire Leeming Senior Management Team Steve Parkinson, Service Director Principal Office Chris Firth Cottages Squires Avenue Nottingham NG6 8GG The charity is incorporated in England. Company Registration Number 05687000 Charity Registration Number 1117739 Solicitors Counterculture Partnership LLP Unit NH.204 E1 Business Studios 7 Whitechapel Road London E1 1DU Bankers HSBC Nottingham Clumber Street 26 Clumber Street Nottingham NG1 3GA Independent Examiner John O'Brien, employee of Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
Page 1
The Toy Library Limited
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
Trustees
Coralie Sunderland (resigned 2 September 2020)
Marie Wilkinson
Stephanie Brannigan Martin Rinvolucri Michelle Battlemuch Jaroslava Jajecznyk Melkorka Stiller-Magnusdottir Claire Leeming
Structure, governance and management
Nature of governing document
The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 25 January 2006 and most recently amended on 26 March 2018. It has no share capital and the liability of each member in the event of winding-up is limited to £1.
Recruitment and appointment of trustees
Each trustee is nominated and seconded before being elected by members at the Annual General Meeting. Trustees also welcome contributions from individuals with a commitment to the aims and vision of the Toy Library without taking on a formal commitment as a Trustee or Director. These “Management Committee members” take part in Board discussions but do not have voting rights when decisions are being taken. Typically serving 1-2 years as Committee members, this model has given members of the local community an opportunity to learn how the organisation operates, express their views as to its development as well as a period during which they gain confidence and understanding of the role. This has proved very effective as a long term and comprehensive induction process. In addition it is our policy to provide formal induction to the role of Trustee and provide training following an assessment of both the needs of individuals and the Board as a whole. Newly appointed trustees are invited to spend time with the Service Director and other senior staff in order to gain an understanding of the day to day work of the organisation.
The Service Director and Business Manager, both employees of the Toy Library, attend all board meetings and provide reports on operational activities as well as to answer questions and support decision making.
Page 2
The Toy Library Limited
Trustees' Report
Organisational structure
●The Toy Library Limited has a Board of up to ten Trustees elected from our membership or co-opted by the Board where there are vacancies between Annual General Meetings. The Board elects a Chairperson, Treasurer and Secretary from the elected Trustees. A Finance and Audit Sub-Group of the Board sets and scrutinises financial procedures and meets regularly to oversee ongoing finances and reports to the full Board.
●The Board is responsible for oversight and the strategic direction of the charity. It employs a Service Director who is responsible for operational decisions, management of all staff and ensuring the efficient and effective running of the charity.
●Trustees are provided with induction to the organisation on appointment training when a need is identified.
●Pay and remuneration of staff are set in line with comparable positions in similar fields locally.
Use of volunteers
We recruit, train and support volunteers to increase the delivery capacity of our workforce where appropriate and in order to improve the volunteers own access to training and employment.
Major risks and management of those risks
The Board of Trustees has established a risk management policy for which they have overall responsibility, with operational responsibilities delegated to senior staff. They recognise the need to be alert to risks but are not averse to taking reasonable risks as part of the delivery of services, particularly in play and other activities centred around children. The Board expect all staff and volunteers to consider risks involved in any activity and carry out risk assessments prior to delivery of services and activities.
A risk register is maintained covering the following categories: Governance and Management, Operational, Financial, Environmental, Legal & Regulatory, Technology, Human Resources, Funding and Reputation. This register is reviewed regularly by the Finance Sub Group. New or emerging risks are reported to the Management Committee as part of the Service Director’s Report which is presented at every Board meeting. In the event of an urgent risk arising, the Service Director will take appropriate action and report to the Chair as soon as possible.
The principal risks facing the Toy Library relate to:
a) maintaining organisational strength following a period of rapid growth,
b) maintaining its position and reputation as a catalyst for positive change,
c) ensuring that trustees, staff, and volunteers are equipped with the skills and tools needed to be effective in an increasingly complex and changeable environment.
Objectives and activities
Objects and aims
“The objects for which the Company is formed shall be to advance the education and development of children by the provision of childcare and play related services and equipment and educating parents as to the importance of play.”
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The Toy Library Limited
Trustees' Report
Our aims and objectives were developed in response to the severe social and economic disadvantage present in the community of Bulwell from which we grew and continue to both serve and represent. The area is widely regarded as one of the most disadvantaged communities in Nottingham. The Indices of Deprivation 2015 show that 10 of the 11 Super Output Areas (SOA's) are in the worst 10% nationally for Multiple Deprivation, Income deprivation, Education and Skill deprivation (for which two SOA's are in the worst 100 nationally), and Income deprivation affecting children. Our focus on children and families arose because we were founded by parents who knew how hard it is to bring up children in challenging circumstances and sought to provide support and help. Bulwell continues to be an area where children find it a struggle to achieve educationally many begin school already considerably behind their peers in terms of their developmental outcomes.
Our activities, listed below, concentrate on families and their children from birth to the age of 13 years. We engage with children before they begin school and then during, after school and holiday periods. Through this we seek to complement and support the endeavours of local schools with whom we work in partnership.
Public benefit
The Toy Library Limited (previously named Bulwell Community Toy Library) has been operating for almost 40 years. It was established by local people who knew how hard it can be to raise children in difficult circumstances. The project continues to draw on the experience and energy of local parents who support it by volunteering as well as helping to run it as committee members. Our work is available to all children and families in this area.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Objectives, strategies and activities
Our purpose
We believe that every child benefits from belonging to a family and every family benefits from belonging to a community. Our purpose is to work alongside and support children, families and communities to develop, grow and thrive together through play.
Strategies
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Our aim is to improve the life chances and opportunities available to children in Bulwell and in doing so directly further our legal purpose;
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Our long term aim is that the children of Bulwell will no longer be disadvantaged by low aspirations and poor opportunities to succeed in the field/s of their choice;
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Our short/medium term strategy is to extend our reach to enable more children and families in Bulwell to benefit from our services.
Our strategic objectives are to:
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●Provide opportunities for children to learn and develop through play;
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●Encourage parents and other adults to appreciate the benefits of play;
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●Deliver services that are person and child centred;
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●Promote creativity and raise aspirations in Bulwell;
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●Bring people together for mutual learning and support;
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●Provide services to other organisations that enhance their work;
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●Promote the benefits of outdoor and natural play.
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The Toy Library Limited
Trustees' Report
In pursuing these objectives we operate with the following values and practices:
| COMMUNITY Working alongside people Valuing the building of relationships Never giving up on anyone |
INTEGRITY Demonstrating trustworthiness Being open & accessible Behaving with respect at all times |
|---|---|
| ENTERPRISE Pioneering new ways to succeed Entrepreneurial |
CONFIDENCE/EXPERTISE High aspirations Being courageous |
Activities
Pre-School children
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Small Steps Big Changes. This is a significant citywide programme funded by The National Lottery following a competitive process from which only five of the 152 applicants were successful. This aims to improve child development outcomes (speech and communication, social and emotional development and nutrition) for children in four wards of the city by intensive, universal services for families with children from conception to age four. We gained a contract to deliver a Family Mentor Service in Bulwell. This entails intensive home visiting support and operating ten group sessions per week. This requires the employment of 15 (FTE) employees and is the most financially significant service, however the scale of this and universal reach allows us the greatest opportunity to further our objectives. This contract was re-tendered in 2020 upon which we were successful in gaining the contract for a further period of five years from September. We previously operated this service as part of a consortium covering both Bulwell and Aspley. For this second opportunity those wards were commissioned separately and we were successful in gaining it in our own name for the Bulwell ward. Our Family Mentors have worked with over 467 children this year.
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Group sessions for parents with pre-school children in parts of Bulwell not within the SSBC area. This also includes woodland groups.
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A Mobile Creche Service. This is a trading activity through which we provide creches to enable parents with young children to access training, conferences and other events such as weddings. This has proved very popular and successful, income gained from this activity goes to sustaining our charitable services where grant income has decreased. One staff member coordinates a team of sessional staff that to deliver this service and most of these workers are local people and ex-service users. This service was badly affected by the Covid 19 pandemic in this year, no creches took place and our creche workers were furloughed throughout the period.
Page 5
The Toy Library Limited
Trustees' Report
School-age Children
-
Out of school provision. We operated two grant funded projects one working with children aged 5-13 years in a local commuity venue and Our Next Steps project, funded by The National Lottery, Reaching Communities Fund, working with children aged 9-13 years in order to support them during at period of multiple transitions. Both of these services were severely curtailed by the Covid 19 pandemic restrictions; however, we swiftly shifted our support to online services, telephone support and the delivery of 'play activity packs' to family homes in order to provider resources and ideas for children to carry out at home. This was an extremely difficult time for families in Bulwell, many living in small accommodation without gardens. We were also able to support the community alongside other voluntary sector organisations in delivery of groceries, prescriptions etc.
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We also operate community play sessions for school aged children in a number of areas outside Bulwell across North Nottingham. These have been funded by the NCC Area Based Grants programme. These services suffered similar restrictions to those above and responded in the same way in order to maintain support to families.
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We gained additional funding from The National Lottery to carry out targeted support work in outdoor venues for young people experiencing the most severe difficulties in coping with the lockdown. This utilised our woodland which offered the safest but also the most therapeutic environment.
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Woodland activities. A medium sized woodland near our base provides an ideal venue for forest school and other types of play activities for children of all ages. We utilise this for a wide range of provision, both for local children and as a venue to offer services to schools and childcare providers. Whilst this work has been restricted due to the pandemic, it has also offered the best opportunities to offer services where restrictions have allowed due to being outdoors. In addition, we also organised a number of 'treasure trails' and light shows through the woodlands and invited families to visit independently with their children.
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At Christmas 2020 we turned our base into an 'advent calendar' with windows being lit up each day throughout December. This became a much appreciated source of interest and delight for the community.
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The total number of children and young people engaged through the above activities (in addition to the Family Mentor Service) this year have been 1022.
The activities listed above align directly with our strategic objectives and contribute consistently to our Charitable Objects. This year they also reflect significant progress against our short/medium term strategy in that our delivery of the Family Mentor Service for the Small Steps Big Changes programme has extended our reach. We are now able to offer intensive support to all families with children aged 0-4 years.
Performance
In order to measure and monitor our performance towards achieving our objectives we carry out the following:
Activity
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Record number of group sessions run under all categories of service.
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Record number of individual children and adults attending group sessions.
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Record the number of attendances at group sessions.
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Record activities delivered at group sessions.
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Record all home visits undertaken.
Impact
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We produce regular case studies to track the qualitative changes that take place in the lives of the children and families with whom we work.
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We are developing a consistent process by which to measure the social impact that our activities lead to and to demonstrate the difference our work is making.
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The Toy Library Limited
Trustees' Report
Achievements and performance
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As reported last year we continue to deliver a Family Mentor Service in Bulwell for the Small Steps Big Changes programme. We now hold this contract in our own name for a further period of five years. Our team of 15 Family Mentors have been trained and are carrying out regular home visits and running 10 group sessions per week and the total number of children engaged in Bulwell has now exceeded 800. Our performance against the contractual requirements remains very strong.
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We have been commissioned to provide play work services across the north of Nottingham city. - Our Next Steps Project, funded by the National Lottery Community Fund, has been noted to be both innovative and highly effective.
During this year overshadowed by the Covid 19 Pandemic, we have demonstrated agility and determination in shifting and maintaining our support to families in Bulwell throughout as this message from a local family shows:
“Where would Bulwell families be without their toy library. You have helped so many families and the community, we can always rely on you. You helped us though lock down popping round to make sure we are all OK and coping with things and bringing activities around for our children to do which they loved and look forward to receiving. You are all amazing and Bulwell needs you! Love you all xxxxx”.
Financial review
Gaining a four-year contract to continue our successful Small Steps Big Changes Family Mentor service until March 2025 has stabilised the financial position of The Toy Library’s biggest funding stream for the next four years. This in turn will enable us to further develop and deliver quality outcomes for local children and families.
Significant events affecting financial performance:
Like many charities across the UK, the dramatic consequences of the Covid 19 pandemic affected Toy Library activities across the board, including financial operations. The sudden restriction of commercial creche services was an immediate drop in unrestricted income, and together with the curtailing of all delivered play services, resulted in a period of uncertainty. staff rose to the challenge and new ways of working were quickly developed. The pressure on individual staff was eased by accessing the Government’s Covid 19 Job Retention Scheme from March 2020 until September 2021. Retaining quality staff for a better tomorrow became a priority. The support and vision of established funders at this difficult time is gratefully acknowledged and served to ease the financial impact of lockdown restrictions.
Policy on reserves
We aim to build up reserves in order to be prepared for unforeseen circumstances. We aim to hold an appropriate level of running expenses in reserves, nominally three months running costs, and have appropriate redundancy reserves in place.
At the end of the financial year, total net assets of £137,908 (2020: £123,094) were held including a redundancy reserve of £6,519. A balance of £126,332 (2020: £109,469) is held in Restricted Funds.
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The Toy Library Limited
Trustees' Report
Plans for future periods
Aims and key objectives for future periods
Our plans are summarised below:
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Having grown in size, reach and capacity recently we continue to work to consolidate our position and ensure that we remain effective and efficient in providing our services and activities.
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The Covid 19 pandemic has been challenging for all. Our community in Bulwell has been severely affected and children and young people in particular have suffered by missing educational opportunities (heightened by lack of access to IT resources) and the essential social development usually experienced through school and local play opportunities. Our primary task is to support the recovery from this in every way possible. Towards this we will be seeking continuation funding for all of our services for which previous funding streams have ended. Our community have never needed us more.
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The Trustees examine and assess the progress and growth made recently with regard to our relationship with the local community and the concept of “optimum size.” This is based on their awareness of the benefits of being small scale and accessible as set against the benefits of operating as a larger organisation. Their aim is to strike a balance in order to maximise our capacity and impact without threatening our relationship and trust with local people.
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We will continue to provide sector leadership in the fields of play work and family services. Particularly in the light of current and expected reductions in local authority services.
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The Toy Library Limited
Trustees' Report
Statement of Trustees' Responsibilities
The trustees (who are also the directors of The Toy Library Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
The annual report was approved by the trustees of the charity on 7 December 2021 and signed on its behalf by:
......................................... Stephanie Brannigan Trustee
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Page 9
The Toy Library Limited
Independent Examiner's Report to the trustees of The Toy Library Limited
Independent examiner’s report to the trustees of The Toy Library Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member and Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
......................................
John O'Brien MSc, FCCA, FCIE, employee of Community Accounting Plus Fellow of the Association of Charity Independent Examiners
Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
Date:.............................
Page 10
The Toy Library Limited
Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Investment income 4 Total Income Expenditure on: Charitable activities 7 Total Expenditure Net (expenditure)/income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 18 |
Unrestricted funds £ 69,991 9,814 - 79,805 (81,854) (81,854) (2,049) (2,049) 13,625 11,576 |
Restricted funds £ - 724,575 - 724,575 (707,712) (707,712) 16,863 16,863 109,469 126,332 |
Total 2021 £ 69,991 734,389 - 804,380 (789,566) (789,566) 14,814 14,814 123,094 137,908 |
Total 2020 £ 48,629 825,671 2 |
|---|---|---|---|---|
| 874,302 | ||||
| (834,978) | ||||
| (834,978) | ||||
| 39,324 | ||||
| 39,324 83,770 |
||||
| 123,094 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for the period is shown in note 18.
Page 11
The Toy Library Limited
Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
These are the figures for the previous accounting period and are included for comparative purposes
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Investment income 4 Total income Expenditure on: Charitable activities 7 Total expenditure Net (expenditure)/income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 18 |
Unrestricted funds £ 48,629 50,017 2 98,648 (123,526) (123,526) (24,878) (22,813) (47,691) 61,316 13,625 |
Restricted funds £ - 775,654 - 775,654 (711,452) (711,452) 64,202 22,813 87,015 22,454 109,469 |
Total 2020 £ 48,629 825,671 2 |
|---|---|---|---|
| 874,302 | |||
| (834,978) | |||
| (834,978) | |||
| 39,324 - |
|||
| 39,324 83,770 |
|||
| 123,094 |
Page 12
The Toy Library Limited
(Registration number: 05687000) Balance Sheet as at 31 March 2021
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand 14 Creditors: Amounts falling due within one year 15 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds 18 Unrestricted income funds Unrestricted funds Total funds 18 |
2021 £ 19,021 43,676 145,003 188,679 (69,792) 118,887 137,908 126,332 11,576 137,908 |
2020 £ 17,325 41,093 100,445 |
|---|---|---|
| 141,538 (35,769) |
||
| 105,769 | ||
| 123,094 | ||
| 109,469 13,625 |
||
| 123,094 |
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 11 to 25 were approved by the trustees, and authorised for issue on 7 December 2021 and signed on their behalf by:
......................................... Marie Wilkinson Trustee
Page 13
The Toy Library Limited
Statement of Cash Flows for the Year Ended 31 March 2021
| Note Cash flows from operating activities Net cash income Adjustments to cash flows from non-cash items Depreciation Investment income 4 Working capital adjustments Increase in debtors 13 Increase in creditors 15 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 4 Purchase of tangible fixed assets 12 Net cash flows from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March Reconciliation of net cash flow to movement in net funds Increase in cash Net funds at 1 April 2020 Net funds at 31 March 2021 |
2021 £ 14,814 6,627 - 21,441 (2,583) 34,023 52,881 - (8,323) (8,323) 44,558 100,445 145,003 44,558 100,445 145,003 |
2020 £ 39,324 4,385 (2) |
|---|---|---|
| 43,707 (28,305) 3,719 |
||
| 19,121 | ||
| 2 (7,498) |
||
| (7,496) | ||
| 11,625 88,820 |
||
| 100,445 | ||
| 11,625 88,820 |
||
| 100,445 |
All of the cash flows are derived from continuing operations during the above two periods.
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The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
1 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
The Toy Library Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The financial statements have been prepared on a going concern basis.
The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Page 15
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500.00 or more are initially recorded at cost.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate | |
|---|---|---|
| IT equipment | 33.3% on a straight line basis | |
| General equipment | 20.0% on a straight line basis | |
| Motor vehicles | 20.0% on a straight line basis |
The cost of land included in the balance sheet but not depreciated is £10,000.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those grants for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Pension costs charges in the Statement of Financial Activities represent the contributions payable by the charity during the year.
2 Income from donations and legacies
| Grants, including capital grants; Government grants Grants from companies |
Unrestricted funds General £ 60,555 9,436 69,991 |
Total 2021 £ 60,555 9,436 69,991 |
Total 2020 £ 37,900 10,729 |
|---|---|---|---|
| 48,629 |
3 Income from charitable activities
| Grants & donations Sales & fees |
Unrestricted funds General £ - 9,814 9,814 |
Restricted funds £ 724,575 - 724,575 |
Total 2021 £ 724,575 9,814 734,389 |
Total 2020 £ 775,654 50,017 |
|---|---|---|---|---|
| 825,671 |
Page 17
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
4 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits 5 Grants & donations Groundworks The National Lottery Community fund Nottingham City Care Partnership (SSBC) Nottingham City Council (Early Years) Bestwood Partnership Children in Need Youth Endowment fund Castle Cavendish HMRC JRS Grant Terracycle 29 May 1961 Charity Local Councillors Sundry grants and donations 6 Net incoming/outgoing resources |
Unrestricted funds £ - - - - 35,774 - - - 24,281 - - 500 9,436 69,991 |
Total 2021 £ - Restricted funds £ 186,159 144,779 292,349 30,130 6,226 18,582 16,170 27,000 - 180 3,000 - - 724,575 |
Total 2020 £ 2 |
|---|---|---|---|
| Total £ 186,159 144,779 292,349 30,130 42,000 18,582 16,170 27,000 24,281 180 3,000 500 9,436 |
|||
| 794,566 | |||
Net incoming resources for the year include:
Depreciation of fixed assets
| 2021 £ 6,627 |
2020 £ 4,385 |
|---|---|
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The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
7 Expenditure on charitable activities
| Cleaning Depreciation Equipment, repairs & renewals Events & activities Forestry & environmental Hospitality & refreshments Insurance Legal & professional Marketing & promotion Grant payments to partner organisation Overhead recharges Payroll service Premises maintenance & utilities Printing, publicity & promotions Publications, subscriptions & affiliations Recruitment Room hire Staff clothing Staff expenses Staff training Stationery & office costs Telephone, postage & internet Volunteer expenses Wages, NI & pension Van costs Utilities |
Unrestricted funds General £ 1,184 6,627 612 5,380 4 107 4,836 10,884 40 - (102,744) 430 (359) 574 - - - 50 142 459 4,698 13,134 8 131,908 927 2,953 81,854 |
Restricted funds £ 1,924 - 5,750 17,044 2 154 - 9,887 - 14,245 102,744 - 1,110 525 - - - 335 1,659 92 3,171 7,771 11,345 529,059 75 820 707,712 |
Total 2021 £ 3,108 6,627 6,362 22,424 6 261 4,836 20,771 40 14,245 - 430 751 1,099 - - - 385 1,801 551 7,869 20,905 11,353 660,967 1,002 3,773 789,566 |
Total 2020 £ 1,944 4,385 5,917 19,366 15 1,353 3,961 60,608 - - - 300 12,074 - 108 144 16,157 2,396 9,915 3,937 7,642 20,387 46 664,323 - - |
|---|---|---|---|---|
| 834,978 |
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The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
8 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
9 Fees payable to independent examiner
During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows:
| Independent examination 10 Staff costs The aggregate payroll costs were as follows: Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2021 £ 1,450 2021 £ 599,339 31,886 29,742 660,967 |
2020 £ 1,450 |
|---|---|---|
| 2020 £ 602,818 32,781 28,724 |
||
| 664,323 |
The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:
| Average number of employees | 2021 No 52 |
2020 No 52 |
|---|---|---|
28 (2020 - 27) of the above employees participated in the Defined Contribution Pension Schemes.
Contributions to the employee pension schemes for the year totalled £29,742 (2020 - £28,724).
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £59,286 (2020 - £58,707).
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
Page 20
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
12 Tangible fixed assets
| 12 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Land and buildings £ 10,000 - 10,000 - - - 10,000 10,000 |
General equipment £ 14,933 - 14,933 13,011 1,482 14,493 440 1,922 |
Motor vehicles £ - 3,995 3,995 - 799 799 3,196 - |
IT equipment £ 16,816 4,328 21,144 11,413 4,346 15,759 5,385 5,403 |
Total £ 41,749 8,323 |
| 50,072 | |||||
| 24,424 6,627 |
|||||
| 31,051 | |||||
| 19,021 | |||||
| 17,325 |
Included within the net book value of land and buildings above is £10,000 (2020 - £10,000) in respect of freehold land and buildings and £Nil (2020 - £Nil) in respect of leaseholds.
13 Debtors
| Trade debtors Prepayments Other debtors |
2021 £ - 41,990 1,686 43,676 |
2020 £ 5,850 8,976 26,267 |
|---|---|---|
| 41,093 |
14 Cash and cash equivalents
| 14 Cash and cash equivalents | ||
|---|---|---|
| Cash on hand Cash at bank |
2021 £ 195 144,808 145,003 |
2020 £ 250 100,195 |
| 100,445 |
Page 21
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
15 Creditors: amounts falling due within one year
| 15 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other taxation and social security Other creditors |
2021 £ 60,129 7,923 1,740 69,792 |
2020 £ 25,213 8,816 1,740 |
| 35,769 |
16 Charity status
The charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
17 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ Designated £ 19,021 - 54,595 7,752 (69,792) - 3,824 7,752 Unrestricted funds General £ Designated £ 17,325 - 19,636 12,433 (35,769) - 1,192 12,433 |
Restricted funds £ - 126,332 - 126,332 Restricted funds £ - 109,469 - 109,469 |
2021 Total funds £ 19,021 188,679 (69,792) |
|---|---|---|---|
| 137,908 | |||
| 2020 Total funds £ 17,325 141,538 (35,769) |
|||
| 123,094 |
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The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
18 Funds
| Unrestricted funds General Core Costs Designated Redundancy Reserve Contingency fund Total Unrestricted funds Restricted funds Wonder Woods Barker's Wood & Sycamore Aboretum Playdays Capability Building Family Mentors programme Riverside Playback Toy box ABG 29May1961 Next Steps (Big Lottery) QMC Playdays Total restricted funds Total funds |
Balance at 1 April 2020 £ 1,192 11,200 1,233 12,433 13,625 16,677 2,245 5,000 4,500 - 7,280 15,946 32,113 2,574 3,000 17,824 2,310 109,469 123,094 |
Incoming resources £ 79,805 - - - 79,805 - 5,628 - 16,170 459,744 24,808 - 30,130 40,136 3,000 144,779 180 724,575 804,380 |
Resources expended £ (81,854) - - - (81,854) (20,823) (5,628) (500) (16,674) (389,454) (32,088) (15,341) (60,173) (37,310) (1,600) (128,121) - (707,712) (789,566) |
Transfers £ 4,681 (4,681) - (4,681) - - - - - - - - - - - - - - - |
Balance at 31 March 2021 £ 3,824 6,519 1,233 |
|---|---|---|---|---|---|
| 7,752 | |||||
| 11,576 | |||||
| (4,146) 2,245 4,500 3,996 70,290 - 605 2,070 5,400 4,400 34,482 2,490 |
|||||
| 126,332 | |||||
| 137,908 |
Page 23
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
| Unrestricted funds General Core Costs Designated Redundancy Reserve Contingency fund IT Reserve Total unrestricted funds Restricted funds Wonder Woods Barker's Wood & Sycamore Aboretum Playdays Capability Building Family Mentors programme Riverside Playback Toy box ABG 29May1961 Next Steps (Big Lottery) QMC Playdays Total restricted funds Total funds |
Balance at 1 April 2019 £ 48,883 11,200 1,233 - 12,433 61,316 - - - - - (2,713) - - - - 25,167 - 22,454 83,770 |
Incoming resources £ 95,648 - - 3,000 3,000 98,648 40,015 10,570 10,500 28,530 382,855 51,642 18,760 92,916 28,045 3,000 106,511 2,310 775,654 874,302 |
Resources expended £ (120,526) - - (3,000) (3,000) (123,526) (23,338) (8,325) (5,500) (24,030) (382,855) (41,649) (2,814) (83,616) (25,471) - (113,854) - (711,452) (834,978) |
Transfers £ (22,813) - - - - (22,813) - - - - - - - 22,813 - - - - 22,813 - |
Balance at 31 March 2020 £ 1,192 11,200 1,233 - |
|---|---|---|---|---|---|
| 12,433 | |||||
| 13,625 | |||||
| 16,677 2,245 5,000 4,500 - 7,280 15,946 32,113 2,574 3,000 17,824 2,310 |
|||||
| 109,469 | |||||
| 123,094 |
Page 24
The Toy Library Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
The specific purposes for which the funds are to be applied are as follows:
• The Next Steps fund received money from the National Lottery Reaching Communities Fund and enabled us to provide opportunities for children aged 9-13 years in Bulwell as they go through a number of life transitions;
• The Family Mentoring fund received money from the National Lottery Community Fund via payments from Groundwork Greater Nottingham with which it delivers a family mentoring service in Bulwell;
• The Toybox Fund received money from Nottingham City Council as part of its Early Years funding for free places for 2, 3 and 4 year olds in nurseries and schools;
• The Riverside fund received money this year from BBC Children in Need and Boots Charitable Trust to support the management and delivery of after school and school holiday services for children aged 5 to 13 years old in Bulwell;
• The Barker’s Wood & Sycamore fund received money this year from the Small Steps Big Changes Innovation Fund for the provision of woodland play and discovery in nature for children at weekends;
• The Wonder Woods fund received money from the Arts Council England to fund activities involving arts in the woods. At the end of March 2021 there was a negative balance on this fund, this is because the final grant payment was received after the year-end;
• The Arboretum Playdays fund received money from Nottingham City Council to run play activity days;
• The Capability Building project received funding from the Youth Endowment Fund to establish a project team which will equip the Toy Library with tailor-made tools with which to evaluate and evidence project performance across the organisation;
• The Playback project received Heritage Lottery funding to work with people of all ages in capturing their memories and experiences of childhood play including oral histories, photographic records, a free community exhibition and the development of a legacy archive for future generations;
• The ABG funding is the Area Based Grant received to deliver play sessions to children and families in the Bulwell area;
• The QMC Play sessions funding from Terracycle will be put towards play projects in the next financial year;
• The 29 May 1961 Charity funds are also for play projects continuing in the next financial year.
The transfer from the Redundancy Designated fund to the General fund was a decision of the trustees to adjust the balances on each of their designated funds.
19 Premises
The Premises, which was originally a City Council Community Centre, was purchased by the Toy Library in 2006 for £10,000, however, there exists a covenant which restricts the sale of the property. If the property is sold, leased or disposed of, the Toy Library will pay the City Council 90% of the open market value. At present the property is insured for £200,000.
The value of £10,000 is included on the balance sheet but not depreciated.
20 Related party transactions
There were no related party transactions in the year.
Page 25