Financial responsibilities are clear and safeguards are in place.

Managing a toy library’s money is a shared responsibility. While the treasurer prepares reports and keeps records, the whole committee must understand the finances and make decisions together. Good financial management protects the toy library and ensures it can continue supporting families.

Key safeguards include having two people approve payments, keeping clear financial delegations, and setting limits and procedures for petty cash or debit cards. An independent person should review the accounts before the AGM. Committees should regularly review simple financial reports such as the budget, balance statements, spending updates and grant expenditure.

These reports help keep everything running smoothly and support strong, transparent governance. Depending on how your toy library is set up, you may also have extra reporting requirements, such as reporting to your state regulator or the ACNC.

Although most people managing or spending your toy library’s money will always have the toy library’s best interests at heart, it is important to have clear expectations and guideline in place to protect everyone.

Basic safe guards:

• Two people are required to approve all payments.

• Accounts are audit by an independent person prior to our AGM.

• Financial delegations are written down and followed. (Delegation policy and schedule below)

• Limits and procedures for petty cash, debit cards and credit cards are in place. (Financial management policy and procedure below)

  
  

The management committee are jointly responsible for managing the finances of the toy library, it does not just fall on the treasurer. The treasurer usually presents financial reports at committee meetings. It is important that these reports are easily understood by all the committee members as all committee members are responsible for keeping a check on the financials.

Recommended reports to present at committee meetings include

• Statement of Balance

• Budget variance

• Major expenditure items (e.g. from grants)

Annual financial reports

• Profit and Loss (income and expenditure) - Shows all income received and expenses paid for the year, resulting in a surplus or deficit.

• Balance Sheet  - reports what the organisation owns (assets), owes (liabilities) and the net asset position at year-end.

• Statement of Cash flow - tracks how cash moved in and out across operations, investing and financing. (Smaller toy libraries may not do this formally, but it is very useful for cash planning.)

• Notes to the Financial Statements - explains accounting policies and provides additional detail (e.g. breakdown of grants, liabilities, commitments).

• Annual treasurer’s reports/financial overview - a plain-English explanation of the years’ financial performance, key changes and any risks.

Reporting may seem like a burden but it’s a great opportunity to keep your administrative requirements in order.

In addition to presenting reports to your committee there are different reporting requirements depending on how your toy library is set up and which state you are based. You can find out more information here financial reporting. If you are registered as a charity you will need to report to the ACNC you can view further information HERE.

Moving money online – going cashless - https://docs.google.com/presentation/d/1-dozPO87Ttoi7BaXau_hX-uojmuoHtaT/edit?usp=drivesdk&ouid=103318549143518623859&rtpof=true&sd=true- needs updating