Toy Library Federation of New Zealand Incorporated Performance Report For the year ended 31 March 2017

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Pierce Flynn
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1 Performance Report Taranaki Toy Library

to Join 7 Volunteering 8 Financial Information: Statement of Financial Performance 9 Statement of Financial Position

2 Performance Report Contents Non-Financial Information: Page President's Report 1 Entity Information 2 Board and Staff Profiles 3 Sponsors and Supporters/Partners 4 Statement of Service Performance 5 The LINK Newsletter 6 Reasons to Join 7 Volunteering 8 Financial Information: Statement of Financial Performance 9 Statement of Financial Position 10 Statement of Cash Flows 11 Statement of Accounting Policies 12 Notes to the Performance Report Audit Report 17-19

President's Report The Toy Library Federation of New Zealand s (TLFNZ) primary role is to support new and existing not for profit Toy Libraries, offering information and support on all aspects of

3 President's Report The Toy Library Federation of New Zealand s (TLFNZ) primary role is to support new and existing not for profit Toy Libraries, offering information and support on all aspects of running a toy library and the value of play. This year the Board continued to utilise the facilities at Christchurch Community House (CCH) for two face to face meetings. We have refined the storage of records and assets located at CCH and are grateful for the ongoing support of CCH and its staff. Board meetings during the year via Google hangout continued to be an appropriate platform for connecting Board members dispersed across the country. The three part-time staff based in Christchurch, Ohope and Oamaru have also been utilising this meeting software which helped with the smooth induction of our new office administrator and facilitates regular communication. We are pleased to have had Contact Energy come on board and support toy libraries with a special electricity package. We are thankful to the Lottery Grants Board who continues to support both TLFNZ and toy libraries across the country. Work towards consistent branding started with the development of a style guide and a refresh of logos and colours. This led to certificates for TLFNZ and for toy libraries, along with thank you cards and other marketing material having a more consistent look and being easily available for toy libraries to use alongside their own logo. Membership roundels and brochures were also part of the package. This new style guide will be implemented gradually across all marketing material. Promotion of toy libraries via Facebook was used successfully before Christmas and this digital medium will become more important in the future, particularly as it is relatively inexpensive and has a wide reach. Toy Express This service continues to offer toy libraries the power of bulk buying. Ordering via the website has steadily increased which has made for more efficient processes. Freight increases after the Kaikoura earthquakes sadly were inevitable. We are grateful for the support of our suppliers and the relationships that we have with them and welcome this year s new suppliers to the team. In November 2016, Toy Express attended the Product Safety and Compliance for Toys Conference held in Auckland. Knowledge and information about toys, product recalls, spare parts, storage and packaging ideas are all part of the Toy Express service to member toy libraries. Looking Ahead It is with interest that play based learning has become a focus in many primary schools in order to support children becoming critical, creative and innovative thinkers. Toy libraries in New Zealand were established 30 years ago based on the very idea that Play is the Way. Toy libraries continue to play an important part in ensuring that children start their play based learning journey from birth through school and beyond. The sustainability of toy libraries goes hand in hand with the concept of environmental sustainability. We play a part in helping to reduce the amount of landfill and plastic waste generated from unwanted toys. Collaboration with councils and other groups will be a sustainable way forward for all. This will be the last report I write and I would like to thank all those at TLFNZ that I have worked alongside in the past 6 years. They are passionate supporters of toy libraries, generously giving their time and skills. I look forward to watching TLFNZ and toy libraries continue to be part of New Zealand communities. Ester Romp President Page 1

Entity Information "Who are we?", "Why do we exist?

and playful interaction as essential to optimal educational, physical, psychological, social and cultural development of the child Charitable Objectives Assist in establishment of, and support and

aspects of safe use, manufacture and distribution of toys and educational aids Foster and encourage co-operation between toy libraries to assist them in furthering objectives Establish and conduct

needs of families Raise and/or allocate money for educational/charitable purposes within NZ STRUCTURE Membership Categories Full Member Life Member Friends of TLFNZ Composition of Volunteer Board 6-9

National Co-ordinator - Toy Buyer for Toy Express MAIN SOURCES OF CASH AND RESOURCES Lotteries Community Grant Membership Subscriptions MAIN METHODS TO RAISE FUNDS Bulk application to Lottery Grants

4 Entity Information "Who are we?", "Why do we exist?" Legal Name: Toy Library Federation of New Zealand Incorporated Entity Type: Registered Charity Registration Number: CC44320 PURPOSE OR MISSION Principle Objective Actively promote play, playthings and playful interaction as essential to optimal educational, physical, psychological, social and cultural development of the child Charitable Objectives Assist in establishment of, and support and promote formation of toy libraries throughout NZ Support and encourage development and maintenance of high standards of service in all toy libraries Investigate and disseminate information on all aspects of safe use, manufacture and distribution of toys and educational aids Foster and encourage co-operation between toy libraries to assist them in furthering objectives Establish and conduct seminars and educational opportunities promoting TLFNZ objectives Gain and maintain recognition for toy libraries as important resource catering for developmental, educational, emotional and cultural needs of families Raise and/or allocate money for educational/charitable purposes within NZ STRUCTURE Membership Categories Full Member Life Member Friends of TLFNZ Composition of Volunteer Board 6-9 members AGM to elect Chairperson, Treasurer and Secretary Sub-committees can be appointed by the Board Operational Structure Operations are managed by 3 part-time staff - National Administrator - National Co-ordinator - Toy Buyer for Toy Express MAIN SOURCES OF CASH AND RESOURCES Lotteries Community Grant Membership Subscriptions MAIN METHODS TO RAISE FUNDS Bulk application to Lottery Grants Board RELIANCE ON VOLUNTEERS AND DONATED GOODS/SERVICES Volunteer Board provides strategic direction and undertakes key projects Community Law provides free legal advice Volunteering New Zealand provides ad hoc advice to the Board CONTACT DETAILS Registered Office Christchurch Community House 301 Tuam Street Christchurch Phone office@toylibrary.co.nz support@toylibrary.co.nz toyexpress@toylibrary.co.nz Website Toy Library Federation of NZ Page 2

Board & Staff Profiles Volunteer Board Ester Romp President Ester is a member of the Pahiatua Toy Library and became involved with toy libraries when her children

Lyn Zeederberg Treasurer Lyn is a member (and previous Treasurer) of the Wakatipu Toy Library in Queenstown.

Lyn studied in South Africa and moved to Queenstown in December 2009. Board member since 2014.

She enjoys all things Health & Safety related. She has been involved with Toy Libraries since 2008. Board member since 2016.

A firm believer in the value of play the Toy Library has connected Jane and her two children with an exciting range of toys, people and opportunities within the

Board member since 2012. Amanda is a member of the Geraldine Toy Library.

Amanda Taylor Miriam Watson Miriam is a member of the Rangiora Toy library. She recently shifted to Christchurch from Levin.

Trudi Amos Trudi is a member (and previous Chairperson) of the Lower Hutt Toy Library.

As a mum to a toddler who loves visiting the toy library, and is now a registered toy tester, being a Board member is Trudi's way of helping to ensure toy

Part-Time Staff Cheryl Comfort National Coordinator (from May 2016) Cheryl lives in Christchurch and looks after TLFNZ marketing and communications including the

5 Board & Staff Profiles Volunteer Board Ester Romp President Ester is a member of the Pahiatua Toy Library and became involved with toy libraries when her children were small and found it a perfect fit for the family. Ester remains passionate about Toy Libraries being accessible in communities. Board member since Lyn Zeederberg Treasurer Lyn is a member (and previous Treasurer) of the Wakatipu Toy Library in Queenstown. She is a Chartered Accountant with 6 years audit experience and over 10 years experience in financial accounting. Lyn studied in South Africa and moved to Queenstown in December Board member since Teri Black Secretary Teri lives in Invercargill with her husband and two daughters. Teri was the Office Administrator for TLFNZ before joining the Board. She enjoys all things Health & Safety related. She has been involved with Toy Libraries since Board member since Jane Marshall Jane has been a member of Temuka & Districts Plunket Toy Library since A firm believer in the value of play the Toy Library has connected Jane and her two children with an exciting range of toys, people and opportunities within the community. Board member since Tara Mallon Tara is a member of the Otaki Toy Library. Tara totally endorses the Play is the Way" philosophy. Board member since Amanda is a member of the Geraldine Toy Library. She is passionate about libraries being sustainable and connecting with their communities. Board member since Amanda Taylor Miriam Watson Miriam is a member of the Rangiora Toy library. She recently shifted to Christchurch from Levin. She is a teacher with a passion for promoting the value of play. Board member since Trudi Amos Trudi is a member (and previous Chairperson) of the Lower Hutt Toy Library. Trudi has a business management background and brings extensive strategic planning, HR, and change management skills to the Board. As a mum to a toddler who loves visiting the toy library, and is now a registered toy tester, being a Board member is Trudi's way of helping to ensure toy libraries are around for many many more years. Board member since Part-Time Staff Cheryl Comfort National Coordinator (from May 2016) Cheryl lives in Christchurch and looks after TLFNZ marketing and communications including the website, facebook page and group and LINK newsletter. Cheryl also helps to support toy libraries. Cheryl started with TLFNZ in May 2016 and has experience with a number of not-for-profit organisations. (17 hours per week) Pam Pearce Toy Buyer Pam lives in the sunshine capital of New Zealand Whakatane, and started her role as Toy Buyer in Pam was a member of the Whakatane Community Toy Library for 5 years and undertook various roles on their committee for 3 years. The Toy Library provided a fantastic opportunity for her family to access toys they might not have been exposed to otherwise. (20 hours per week) Helen Reeves National Administrator (from Sep 2016) Helen lives in Oamaru and has two small children. She has a background in office administration, and started her role as National Administrator in September She looks after all things related to Xero and invoicing etc. (13 hours per week) Page 3

6 Sponsors & Supporters/Partners SPONSORS SUPPORTERS / PARTNERS Page 4

7 Statement of Service Performance "What did we do?", When did we do it?" OUTCOMES National promotion of toy libraries and "Play is the Way" philosophy Network maintained to facilitate toy library support Committee members of toy libraries kept informed Member toy libraries supported to continue operating OUTPUTS # of toy libraries: Members of TLFNZ Applicants for bulk Lottery grant Using bulk insurance The LINK monthly newsletter (see p 6) TLFNZ Toy Libraries (see feedback below) 354 members (2016: 238) Regional Events Toy Library Federation of NZ 1,235 (2016: 966) Community Impact 21,329 children (2016: 18,917) 11,044 families (2016: 10,880) 2 (Napier, Auckland) (2016: 4) FEEDBACK Sample of responses to December 2016 survey of toy libraries: Q: What benefits or services does your library appreciate from TLFNZ? Help/advice with Toy Buying, helping us communicate with other toy libraries in NZ through Facebook page, general information/guidance we receive through the Link newsletters. Benefits of sharing information mean we don't have to do everything from scratch. Group insurance scheme. Resources - stickers, banner hire, etc. Advice on legal matters that we may not be aware of e.g. changes to Health and Safety Legislation. Knowing help is just a phone call or away. Fun and Games Toy Library Fundraising ideas seen on the FB page. Carterton Toy Library Q: Name one positive experience or benefit you have had by your association with toy libraries. Great to see families who can't afford to buy toys having access to good quality resources for their young people to play with. CCS Disability Action Toy Library - Waikato Our highest user phoned me especially to thank me for purchasing the toys she had just hired, she was really impressed with how much fun the kids had, had with them. Kept them amused for hours and were suitable for all her grandkids aged 3-9. Waimate Toy Library Page 5

8 The LINK Monthly Newsletter via MailChimp ed via MailChimp March 2017 LINK ed to 511 recipients (2016: 589) Page 6

Toy libraries throughout New Zealand stock a huge range of toys, games, puzzles and dress ups

9 Reasons to Join Reasons for toy libraries to be members of TLFNZ Play is a child's work and toys are the tools of play. Toy libraries throughout New Zealand stock a huge range of toys, games, puzzles and dress ups which will help your children develop their imagination, encourage sharing and also teach them the skills they need to improve their reading and maths once they are at school. Page 7

Volunteering A significant issue facing TLFNZ and many toy libraries throughout New Zealand is a lack of volunteers; and yet there are numerous benefits to be had by volunteering one's time and/or

10 Volunteering A significant issue facing TLFNZ and many toy libraries throughout New Zealand is a lack of volunteers; and yet there are numerous benefits to be had by volunteering one's time and/or money. Volunteering Opportunities within TLFNZ Volunteers are always welcome to join the Board of TLFNZ which meets face to face in Christchurch in August and February along with three to four virtual meetings via Google Hangout. Contact president@toylibrary.co.nz for further information TLFNZ also has a givealittle page for those who prefer to volunteer in a financial sense. > search for TLFNZ Volunteering Opportunities within toy libraries Toy libraries are always on the lookout for committee members and volunteers to help out with library duties, raising awareness and fundraisers - no job is too big or too small. Check out for a nearby toy library. Benefits of Volunteering Volunteering provides 4 ways to feel healthier and happier: 1. Volunteering connects you to others 2. Volunteering is good for your mind and body 3. Volunteering can advance your career 4. Volunteering brings fun and fulfilment to your life Refer to for the full article on Volunteering and its Surprising Benefits. What a Legend! Peggy Mercer has been with the Manawatu Toy Library for 40 years - what a superb effort and such dedication to the community. The smile says it all... Page 8

11 Statement of Financial Performance "How was it funded?" and "What did it cost?" Actual Budget Actual Note $ $ $ Revenue Donations, fundraising and other similar revenue 1 34,526 40,000 34,060 Fees, subscriptions and other revenue from members 1 23,419 25,000 24,613 Revenue from providing goods or services 1 155, , ,757 Interest, dividends and other investment revenue 1 2,526 4,000 5,303 Other revenue Total Revenue 215, , ,814 Expenses Volunteer and employee related costs 2 55,450 61,670 49,323 Costs related to providing goods or services 2 129, , ,871 Administration and overhead costs 2 9,314 14,756 11,817 Audit fees 4,078 3,500 4,000 Lease and rental expense 2 5,302 5,368 8,332 Depreciation 987 1,430 1,451 Other expenses Total Expenses 204, , ,155 Surplus for the year 10,975 2,806 12,659 Page 9

12 Statement of Financial Position "What the entity owns?" and "What the entity owes?" As at Assets Actual Actual Note $ $ Current Assets Bank accounts and cash 3 281,849 65,277 Debtors and prepayments 3 14,342 18,857 Inventory 1,846 3,794 Investments 3 58,834 56,806 Other current assets Total Current Assets 357, ,087 Non-Current Assets Property, plant and equipment 4 1,094 1,674 Total Non-Current Assets 1,094 1,674 Total Assets 358, ,761 Liabilities Current Liabilities Creditors and accrued expenses 3 36,962 22,475 Income received in advance 3,533 - Unused donations and grants with conditions 3 193,700 11,173 Total Current Liabilities 234,195 33,648 Total Liabilities 234,195 33,648 Total Assets less Total Liabilities (Net Assets) 124, ,113 Accumulated Funds Accumulated surplus 5 124, ,113 Total Accumulated Funds 124, ,113 For and on behalf of the Members: Ester Romp President Lyn Zeederberg Treasurer Date: 24 July 2017 Page 10

13 Statement of Cash Flows "How the entity has received and used cash" Actual Actual $ $ Cash Flows from Operating Activities Cash was received from: Donations, fundraising and other similar receipts 54,767 26,708 Fees, subscriptions and other receipts from members 25,543 19,514 Receipts from providing goods or services 158, ,838 Interest, dividends and other investment receipts 2,668 8,204 Funds administered on behalf of members 162,002 11,173 Net GST 28, Cash was applied to: Payments to suppliers and employees (213,325) (212,934) Net Cash Flows from Operating Activities 219,007 14,254 Cash flows from Investing and Financing Activities Cash was applied to: Payments to acquire property, plant and equipment (407) (243) Purchase of investments (2,028) (2,189) Net Cash Flows from Investing and Financing Activities (2,435) (2,432) Net Increase / (Decrease) in Cash 216,572 11,822 Opening Cash 65,277 53,455 Closing Cash 281,849 65,277 This is represented by: Bank Accounts and Cash 281,849 65,277 Page 11

14 Statement of Accounting Policies "How did we do our accounting?" Basis of Preparation Toy Library Federation of New Zealand Incorporated has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future. Amalgamation of Toy Express division Toy Express is the toy buying division for Toy Library Federation of New Zealand (TLFNZ). It is not a separate legal entity. In prior years, Toy Express had been reported separately as a standalone division. As from 1 April 2015, Toy Express was amalgamated with TLFNZ for reporting purposes pursuant to the requirements of the new Accounting Standards. Goods and Services Tax (GST) All amounts are recorded exclusive of GST, except for Debtors and Creditors which are stated inclusive of GST. Income Tax Toy Library Federation of New Zealand Incorporated is wholly exempt from New Zealand income tax as a registered charity having fully complied with all statutory conditions for these exemptions. Bank Accounts and Cash Bank accounts and cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with original maturities of 90 days or less. Revenue from Donations, Fundraising and Other Similar Revenue Donations are recognised as and when they are received. Revenue from Fees, Subscriptions and Other Revenue from Members Membership subscriptions are recognised on an accrual basis. Revenue from Providing Goods or Services Toy sales are recognised at the time the goods are dispatched to the customer. Volunteer and Employee Related Costs Volunteer and employee related costs are recognised on an accrual basis as services are provided to TLFNZ. Tier 2 PBE Accounting Standards Applied (if any) The TLFNZ Board has not adopted any Tier 2 PBE Accounting Standards in the preparation of these accounts. Changes in Accounting Policies There have been no changes in accounting policies during the financial year. Page 12

15 Notes to the Performance Report Note 1 : of Revenue Revenue Item $ $ Donations, fundraising and other similar revenue Lotteries Community grant * 34,222 33,400 Donations/koha from the public Sponsorship in kind (Community Post) Total 34,526 34,060 Grants received on behalf of member toy libraries These grants were received on behalf of member toy libraries and were not recorded as revenue by TLFNZ Lotteries Community grant * 157, ,600 TG Macarthy grant 9,750 7,800 * The total Lotteries Community grant received was $197,500 excluding GST (2016: $190,000 excluding GST). Revenue Item Fees, subscriptions and other revenue from members Fees and subscriptions from members 23,419 24,613 Total 23,419 24,613 Revenue Item Revenue from providing goods or services Revenue from sales to members 147, ,296 Administration fees 5,387 7,190 Sale of stationery 1,762 2,030 Banner rental Regional registrations Toy box rental to members Commission rebate Total 155, ,757 Revenue Item Interest, dividends and other investment revenue Interest 2,526 5,303 Total 2,526 5,303 Page 13

16 Notes to the Performance Report Note 2 : of Expenses Expense Item $ $ Volunteer and employee related costs Salaries and wages 47,254 47,191 ACC levies Employee allowance Contractor costs 4,134 - Staff expenses 68 9 Board meeting costs 3,543 1,714 Total 55,450 49,323 Expense Item Costs related to providing goods or services Expense Item Administration and overhead costs Expense Item Lease and rental expense Cost of sales - toys 112, ,363 Cost of sales - stationery 764 3,461 Freight 11,355 11,934 Regional meeting costs 4,528 2,113 Total 129, ,871 Advertising 1,324 3,846 Bank fees Computer costs Insurance Office expenses 6 18 Postage Printing & stationery 2,183 1,466 Subscriptions 1,400 1,638 Telephone & internet 1,215 1,125 Travel - domestic 1,007 1,471 Website 1, Total 9,314 11,817 Rent & outgoings - CCH * 3,174 2,519 Rent - Bower Ave - 2,945 Rent - Storage Rent - Toy Express (home office) 1,300 1,375 Photocopier lease Total 5,302 8,332 * CCH rent is net of a 50% subsidy received from Christchurch Community House Te Whakaruruhau Ki Otautahi Trust. Expense Item Other expenses General expenses Loss on disposal of fixed assets - 6 Total Page 14

17 Notes to the Performance Report Note 3 : of Assets and Liabilities Asset Item $ $ Bank accounts and cash Cheque account balance 9,379 1,154 Savings account balance 272,051 63,694 Debit cards Total 281,849 65,277 Asset Item Debtors and prepayments Accounts receivable 6,048 8,172 Prepayments 7,311 7,798 Accrued income 983 1,125 GST receivable - 1,762 Total 14,342 18,857 Asset Item Investments Term deposits > 90 days 58,834 56,806 Total 58,834 56,806 Asset Item Other current assets Holiday pay taken in advance Total Liability Item Creditors and accrued expenses Liability Item Unused donations and grants with conditions Trade and other payables 5,945 18,475 Accrued expenses 4,000 4,000 Bonds held 50 - GST payable 26,967 - Total 36,962 22,475 Grants yet to be used by toy libraries 12,922 8,538 Grants yet to be used by TLFNZ 20,525 - Unused grant to be returned by TLFNZ 5,778 - Grants yet to be allocated to toy libraries * 154,475 2,635 Total 193,700 11,173 * The Lotteries grant for the new year was received in March 2017 and allocated to toy libraries in April Page 15

18 Notes to the Performance Report Note 4 : Property, Plant and Equipment Opening Carrying Amount Purchases Sales/Disposals Current Year Depreciation and Impairment Closing Carrying Amount Asset Class 2017 Computers (including software) 1, ,068 Office equipment Total , Computers (including software) 2, ,451 1,674 Total ,451 1,674 Note 5: Accumulated Funds Description $ $ Opening Balance 113, ,454 Surplus/(Deficit) 10,975 12,659 Transfer to Reserves - - Transfer from Reserves - - Closing Balance 124, ,113 Note 6: Commitments and Contingencies Commitment Explanation Timing $ $ Commitments to lease or rent assets Rent - shared premises at CCH Less than 1 year 2,069 2,069 Photocopier Less than 1 year years Total 2,483 3,311 Contingent Liabilities and Guarantees There are no contingent liabilities or guarantees as at balance date. Note 7: Related Party Transactions There were no significant transactions or transactions not at arms length involving related parties during the financial year. Note 8: Events After the Balance Date There were no events that have occurred after the balance date that would have a material impact on the Performance Report. Page 16

New Financial Reporting for Small Charities. Welcome to our webinar session! A webinar for accountants. Things to note before we begin

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