! Company Number: 5398529 OASIS COMMUNITY LEARNING REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2010 2 ~~d~ • ~ ~~u Company Limited by Guarantee Registration number: 5398529 (England and Wales) Charity registration number: 1109288. OASIS COMMUNITY LEARNING CONTENTS Page Reference and Administration Information 3 Report of the Directors 5 Independent Auditors' Report 12 Statement of Financial Activities 14 Income and Expenditure Account 15 Balance Sheet 16 Cash Flow Statement 17 Principal Accounting Policies 18 Notes to the Financial Statements 21 The following pages do not form part ofthe statutory financial statements: Detailed Income and Expenditure Account 42 2 L a i. OASIS COMMUNITY LEARNING REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISORS Directors The directors who served during the period were: Nick Bent Keith Dennis (appointed 07.10.10) Jonathan Dutton (resigned 10.09.09) John Fuller (resigned 14.12.09) Helen Glasspoole Ann Holt Tony Lowman Graham Mungeam Andy Simmonds John Whiter (appointed 14.12.09) Company Secretary Lyn Ransom Executive Group Founder Steve Chalke ChiefExecutive Officer Joy Madeiros Executive Director of Academies John Fuller Director of Education John Murphy Director of Finance Mark Orrell Director of ICT Dave Watson Director of Human Resources Colin Young Director of Governance Services Joe Dilger Registered Office 75 Westminster Bridge Road, London SE 1 7HS Company Registration Number 5398529 Charity Registration Number 1109288 Auditors Crowe Clark Whitehill. LLP St Bride's House 10 Salisbury Square LONDON EC4Y 8EH 3 OASIS COMMUNITY LEARNING REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISORS (continued) Bankers Barclays Bank PLC 1 Churchill Place London E14 5HP National Westminster Bank PLC 130 High Street Tonbridge Kent TN9 1 DE Solicitors Lewis Silkin 5 Chancery Lane, Clifford's Inn London EC4A 1131 4 I OASIS COMMUNITY LEARNING REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31s` August 2010. The Directors present their annual report together with the financial statements of the charitable company for the year ended 31 S` August 2010. The financial statements have been prepared in accordance with the accounting policies on pages 18 to 20 of the attached financial statements, and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006, and the requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities" as issued in March 2005 ('SORP 2005') STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution Oasis Community Learning ('the Company') is a company limited by guarantee with no share capital (registration no. 5398529) and a registered charity (registration no. 1109288). The charitable company's Memorandum and Articles of Association are the prime governing documents of Oasis Community Learning. The Articles, of Association require members of the charitable company to appoint not less than 3 Directors to be responsible for the statutory and constitutional affairs of the charitable company and the management of Oasis Community Learning. Members Liability Every member of the charitable company undertakes to contribute such amount as may be required (such amount not exceeding £10) to the assets of the company in the event of it being wound up while he or she is a member or within one year after he or she ceases to be a member, for the payment of the Company's debts and liabilities before he or she ceases to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of contributories amongst themselves. Directors The Directors are directors of the charitable company for the purposes of the Companies Act 2006 and trustees for the purposes of the charity legislation. The Directors, who were in office at 31't August 2010 and served throughout the year, except where shown, are listed on page 3. An induction programme is in place for new Directors which enables them to gain an understanding of the ethos, values and strategic direction of the Company, as well as the responsibilities of charity trustees. Directors are also encouraged to make visits to the Academies. 5 1 11 OASIS COMMUNITY LEARNING STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Responsibilities ofthe Directors Company Law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year. In preparing financial statements that give a true and fair view, the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departure 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 Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charitable company and which 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 to for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity ofthe charitable company's websites. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. The Directors confirm that so far as each of them is aware, there is no relevant audit information of which the charitable company's auditors are unaware. They have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. Organisational Structure Oasis Community Learning has established a unified management structure to enable its efficient running. The structure consists of 3 levels: the Board and its Committees; the Executive, and Academy Councils at each Academy. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels. The Directors are responsible for making major decisions about the strategic direction of the Company, ensuring that its aims are met and its ethos is maintained. Specifically, this includes setting general policy, adopting an annual plan and budget, monitoring the Company's financial and operational performance, making senior staff appointments and approving major investment programmes. 6 OASIS COMMUNITY LEARNING STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Organisational Structure (continued) The Executive is made up of the 9 members listed on page 3. It is responsible for implementing the policies laid down by the Directors and reporting back to them. The Academy Leadership Teams consist of the senior management at each Academy. These teams are responsible for the day to day operation of Oasis Community Learning Academies, in particular organising the teaching staff, facilities and students. A comprehensive scheme of delegated authority laid down by the Directors defines the various limits of financial commitment which can be incurred by the Executive. It also sets out how detailed financial management should be carried out in each Academy. Subsidiary Companies The Company has two subsidiary entities. Oasis IT Services Ltd is currently dormant. Oasis Education was incorporated on 6 September 2010 in order to run Oasis School Westbury, an independent school in Bristol. Connected Organisations The Company is closely associated with Oasis Charitable Trust, a company limited by guarantee and registered charity. The Company purchased services from Oasis Charitable Trust totalling £264,866 during the year ended 31 August 2010. These were all made at arm's length and included office rent and related service charges of £262,736. Risk Management The Directors have assessed the major risks to which Oasis Community Learning is exposed, in particular those relating to the development of new buildings, the opening of Academies, teaching, provision of facilities, and other operational areas of the Academies and their finances. The Directors have implemented a number of systems to assess risks that the Company faces, especially in relation to new buildings, in operational areas, (e.g. in relation to teaching, health and safety, bullying and school trips), and the control of finance. They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internal financial controls in order to minimise risk. Where significant financial risk still remains and it is practically possible, they have ensured they have adequate insurance cover. Oasis Community Learning has an effective system of internal financial controls and this is explained in more detail in the following statement. 7 OASIS COMMUNITY LEARNING STRUCTURE, GOVERNANCE AND MANAGEMENT (continued.) Statement on the system of internal financial controls As Directors,