TEACH FIRST (a Company Limited by Guarantee)

REPORT AND ACCOUNTS

YEAR ENDED 31 AUGUST 2009

Company number 4478840 Charity number 1098294

TEACH FIRST (a Company Limited by Guarantee 4478840)

IN D EX

Year ended 31 August 2009

Page
General information Report of the Trustees Independent auditors' report Statement of financial activities (including income and expenditure Balance sheet Accounting policies Notes to the financial statements 2

4
10

account)

II 12 13 15

TEACH FIRST (a Company Limited by Guarantee 4478840) GENERAL INFORMATION

Year ended 3 I August 2009

Registered charity number Company registration number Patron Trustees Dame julia Cleverdon DCVO, CBE (chair) Dr. John Dunford aBE Dr. Steve Garnett Hilary Hodgson George lacobescu CBE Peter Lambert OBE Ric Lewis Stephen O'Brien CBE Vanessa Ogden Jo Owen John Rink Sarah Shillingford Vidhu Sood-Nicolls james Townsend Company secretary Chief executive officer Finance and audit committee Sarah Shillingford (chair) Dame Julia Cleverdon DCVO, CBE Alison Grieve Jo Owen Vidhu Sood-Nlcolls Peter Sullivan Property committee Ric Lewis (chair) Dame Julia Cleverdon DCYO, CBE George lacobescu CBE Ian Marcus National Advisory Council Dame Julia Cleverdon DCYO, CBE (chair) All the other Trustees shown above, and in addition: Prof. Mel Ainscow Tim Allan John Attree Gill Bal Ruth Carney Robert Crothers Rebecca Eastmond Dr. Steve Garnett Jania Geoghegan Max Haimendorf

1098294 4478840 HRH The Prince of Wales KG KT GCB OM PC ADC

Business in the Community Association of School and College Leaders salesforce.com (resigned 2 June 2009) Esmee Fairbairn Foundation Canary Wharf Group (resigned 10 September 2009) Business in the Community Tristan Capital Partners London First (resigned 2 June 2009) Mulberry School for Girls (appointed 22 September 2009) Mac Partnership Allen & Overy (retired) Deloitte Bardays Institute of Philanthropy (resigned 2 June 2009) Anesta Broad Brett Wigdortz

Deloitte Business in the Community Business in the Community Mac Partnership Bardays (appointed 5 February 2009) Citi

Tristan Capital Partners Business in the Community Canary Wharf Group (resigned 10 September 2009) Credit Suisse

Business in the Community University of Manchester Portland London First Wembley High Technology College, London jamie's Farm Clifford Chance JP Morgan salesforce.com HSBC King Solomon Academy, London

TEACH FIRST (a Company Limited by Guarantee

GENERAL INFORMATION

4478840)

(continued)

Year ended 31 August 2009

National Advisory Council (continued)

Prof. Sir Geoff Hampton Kirstie Hawkes Carrie Heiss Prof. Steve Hodkinson Charlotte Hogg Graham Holley Maggie Hughes Pam Jervis Lesley Lyon Neil Makin aBE John May Lou McCrimlisk Emily Miller Heath Monk Baroness Estelle Morris Stephen Nelson Tony Perry David Randel Jim Richardson Heather Roberts Andrea Sullivan John Tate David Thomlinson Baroness Jo Valentine Nat Wei Sir Michael Wilshaw Midlands Leadership Centre Procter and Gamble Newedge HSBC Global Education Trust Experian Training and Development Agency for Schools Kirkby Sports College, Knowsley Manning School for Girls, Nottingham Cadbury Foundation Young Enterprise UK Citi Institute of Philanthropy Futu re Leaders University of Sunderland Bacon's College, London liberal Democratic Party Credit Suisse Aston Manor School, Birmingham Lehman Brothers Foundation Europe BBC Accenture London First Absolute Return for Kids Hackney Learning Trust Barc1ays Bank pic I Churchill Place London EI4SHP

Bankers

Solicitors

Bates, Wells & Braithwaite LLP 2 - 6 Cannon Street London EC4M 6YH

Auditors

Dixon Wilson 22 Chancery Lane London WC2A ILS

Registered office

14 Heron Quay London

EI44JB

TEACH FIRST (a Company Limited by Guarantee 4478840) REPORT OF THE TRUSTEES

Year ended 31 August 2009

The Trustees present their repor-t and financial statements for the year ended 31 August 2009. The financial statements have been prepared in accordance with the accounting policies set out on pages 13 and 14 and comply with the charity's trust deed, the Charities Acts 1993 and 2006 and the Statement of Recommended Practice: Accounting and Reporting by Charities 2005. Teach First is a company limited by guarantee and is exempt from using the word limited under section 60 of the Companies Act 2006. Teach First became a registered charity on 2 July 2003. Members and guarantors The were year CBE liability of each guarantor in the event of winding up is limited to [I. At 31 August 2009, there 10 guarantor members (the trustees), with 3 other guarantor members resigning during the course of the - Dr. Steve Garnett, Stephen O'Brien CBE and James Townsend. Since 31 August 2009, George lacobescu resigned and Vanessa Ogden has been appointed.

Objects and activities The mission of Teach First is to address educational inspirational, effective teachers and leaders in all fields. disadvantage by transforming exceptional graduates into

Teach First works to achieve this as an independent charity by placing exceptional graduates who would not normally enter the teaching profession in challenging schools in five regions across the UK (London, the East and West Midlands, the North West and Yorkshire) to teach for a minimum of two years. To date, over 1.800 teachers have entered the classroom as Teach First participants. Through this experience and tailored leadership development training delivered in conjunction with its partner organisations, Teach First aims to build the leaders of the future who will lead their pupils to greater aspirations and achievements, and continue to stay involved in helping address educational disadvantage as Ambassadors (alumni). Funding for Teach First comes from a unique partnership between businesses. foundations, government and schools. These funders commit to training, mentoring, and supporting Teach First participants through structured summer institutes. internships and tailored business courses to ensure they are fully equipped for fast track careers in education and commerce. Over 80 businesses. as well as leading policy institutes. all major political parties. educationalists and many teaching unions support this programme. More information can be found at www.teachftrst.org.uk. Governance The Teach First Board of Trustees are the Directors of the charity. in accordance with the provisions of the Companies Act 2006. The appointment of new Trustees is made by resolution of the Board of Trustees. The policies and procedures adopted for the induction and training of new Trustees are tailored to their individual needs, commensurate with their experience, ensuring that they understand their obligations and possess a sufficient knowledge as to how to discharge them. The Board of Trustees meets at least three times a year and is responsible for directing all major strategic decisions of the charity. The Finance and Audit Committee is a sub-committee of the Board. responsible for the supervision of the financial matters of the charity. It meets at least four times per year and is

The Property Committee is a sub-committee of the Board and meets as and when required. responsible for the selection and fit-out of the new London offices.

This committee

is

The Teach First National Advisory Council consists of the Trustees and members of other supporting organisations of the charity (e.g. businesses, foundations, government) as well as head teachers from our participating schools. It reports to the Board of Trustees. The role of the council is to provide consultative support to the Board of Trustees and the Senior Leadership Team in the implementation of the charity's strategic objectives. The members of the National Advisory Council meet at least twice a year and their membership term is limited to three years, though this is renewable.

TEACH FIRST (a Company Limited by Guarantee 4478840) REPORT OF THE TRUSTEES

Year ended 3 I August 2009

Governance (continued) The day to day management of the charity is the responsibility of the Chief Executive Officer and the Senior Leadership Team. The Senior Leadership Team includes the leaders of each of the six departments: Graduate Recruitment, Leadership Development, Ambassadors (alumni), Research and Development, Operations and External Relations. Achievements and performance

During the year under review, Teach First placed a total of 832 (2009 cohort: 480 beginning first year teaching in September; 2008 cohort: 352 starting in schools for their second year) teachers across the North West (Greater Manchester and Merseyside), London, the Midlands and Yorkshire. The 2009 cohort exceeded the target of 460 and was 23% higher than in the previous year, a result of an increase in the number of applications to Teach First and a more consistent quality level of applicants. 94% of last year's intake has stayed for their second year and 58% of the 2007 cohort are staying for a third year, which has exceeded expectations. 84% of the 2009 intake are teaching priority subjects in schools against the amended target of 70%. The priority subjects include Science, Maths, English, Modern Foreign Languages [MFL], Design and Technology, Information and Communication Technology [ICT], Music and Religious Education. T each First was ranked the 8th most prestigious graduate recruiter in the Times Top 100 Graduate Recruiter survey of 15,000 final year students, the highest ranking entry for a charity. In October 2009 the fifth Teach First intake graduated from the programme to become Teach First Ambassadors (alumni). These 213 new Ambassadors joined 633 Ambassadors from the first four cohorts. This year has seen the further development of the Teach First Ambassadors' programme, which aims to maintain the Ambassadors engaged with the Teach First mission through a high level of continued interest and commitment to help with the charity's activities. Further funding allowed us to grow not only numerically, but geographically. Alongside London and the North West, this year we were able to extend our reach across England further than ever before through the creation of two new regional offices. In January, the Midlands region divided, creating the East Midlands office serving Nottingham, Derby, Leicester and North Nottinghamshire, and the West Midlands office for schools in Birmingham, Coventry, West Bromwich, Walsall, Wolverhampton, Sandwell and Dudley. Also in January, we launched our Yorkshire region. The inaugural Yorkshire cohort of 40 participants began teaching in 20 schools across the region, in Leeds, Bradford, Sheffield, Wakefield, Barnsley and Doncaster. As well as increasing our presence in secondary schools, our pilot in London primary schools entered its second year, and we placed Ambassadors in Further Education Colleges for the first time. The primary pilot, supported by Procter & Gamble, grew from 10 participants in 2008 to place 27 additional Modern Foreign Language graduates in 23 primary schools. Our Teach First Colleges initiative, jointly developed by Teach First, London First and the Association of Colleges London, responds to the growing need for teachers and leaders in the Further Education (FE) sector. In its first year, we placed two Ambassadors into colleges in London, with the prospect of broadening this next year. Teach First was awarded the national initial teacher training contract in May to come into effect from I September 2009, enabling the charity to work with its university partners to manage and coordinate the initial teacher training of our participants. It enables us to look more holistically at the relationship between initial teacher training and the Teach First leadership development programme. It is the first time a non-university institution has been awarded such a contract.

TEACH FIRST (a Company Limited by Guarantee REPORT OF THE TRUSTEES

4478840)

Year ended 3 I August 2009

Future developments Teach First's "2012 Mission Impact" strategy has been approved by the Teach First trustees as the charity's strategic plan spanning the next three years. It consists of four main areas to strengthen Teach First's work towards achieving its mission: I. Teach First will work towards achieving sustainable growth in its intake and leadership development programme while improving consistency and quality. Teach First's goal is to recruit 850 new participants for its 2013 cohort, making the programme one of the largest graduate recruiters in the UK. In 2009-20 I0, Teach First aims to recruit 620 new teachers. It is aimed that at least 70% of the new teachers will teach priority (shortage) subjects. Teach First grew to Yorkshire in 2009, expanded its Midlands activities by creating separate East and West Midlands regions and is planning to expand further to the North East and Humberside in future years. As it grows, Teach First will ensure that the competency level of its intake in terms of teaching and leadership is not diminished. Teach First will work towards building one of the most effective graduate leadership development programmes in the UK, which enables its teachers to maximise their impact on their pupils' educational achievement, aspirations and access to opportunities. This will develop into measurable goals that each participant will work towards in order to help them lead their pupils' achievements to the highest level. Teach First will work towards ensuring its Ambassadors (alumni) are mobilised, equipped and inspired to address the Teach First mission as leaders in all fields, through programmes such as: Teach On (to support Ambassadors to become school leaders), and soclal change initiatives (to support Ambassadors who have left education to work towards the Teach First mission through social entrepreneurship), school governorship, policy, mentoring pupils, supporting participants and other avenues. Teach First aims to be a continuously improving, professional, efficient, stable and sustainable organisation, through raising adequate funds from charitable sources; ensuring our stakeholders gain value from their relationship with Teach First; increasing positive awareness of the Teach First brand and reputation; providing timely and accurate financial and management reporting; and enabling Teach First employees to have access to the resources, information and professional development opportunities they need in order to do their job effectively.

2.

3.

4.

The Department for Children, Schools and Families, and the Training and Development Agency for Schools (TDA), with the support of the Prime Minister and the Opposition, has agreed to support Teach First in achieving these goals over the coming years. A contract which outlines the first three years of this support has been signed with the TDA.

TEACH FIRST (a Company limited REPORT OF THE

by Guarantee

4478840)

TRUSTEES

Year ended 31 August 2009

Statement

of the Board of Trustees'

responsibilities Report and the financial

The members of the Board of Trustees are responsible for preparing the Trustees' statements in accordance with applicable laws and regulations.

UK company law requires the Board of Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. 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 company and of the income and expenditure for that year. In preparing those financial statements, the Board of Trustees are required to: select suitable accounting policies and then apply them consistently: make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business; state whether applicable accounting standards have been followed. They are responsible for keeping adequate accounting records, which are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement as to disclosure of information to auditors

Each trustee confirms that so far as they are aware, there is no relevant audit information which has not been made available to the company's auditors and that they have each taken all the steps that they ought to have taken as the company's Trustees to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. Public benefit The Trustees, having regard to the public benefit guidance published by the Charity Commission in accordance with section 4 of the Charities Act 2006, consider that the purpose and activities of the charity satisfy the requirements of the public benefit test set out in section 3 of the same act. Risk management policy

The Trustees are responsible for the management of risks. The Trustees assisted by the Chief Executive Officer have considered the risks across all activities of Teach First. This review has identified the key risks to which Teach First is exposed as being the continuing motivation of graduates to participate in the scheme, the reputation of Teach First in maintaining the high quality standard that is expected of the scheme, the reputation of Teach First in demonstrating significant positive impact and the continued financial support from business, foundations and government. Systems and procedures have been put in place to manage these risks, which are reviewed regularly throughout the year. Financial review

Review of transactions and financial position

The results for the year for Teach First show a surplus of 1,682,463 (2008" 113,697) in unrestricted deficit of I 17,000 (2008 - deficit 66,059) in restricted funds. Reserves policy The charity regards its free reserves as being represented by the net current assets of its unrestricted funds. At 31 August 2009 free reserves were I,845,709 (2008 " 226,902), representing three months of unrestricted expenditure, excluding gifts in kind (2008 - 0.9 months). funds and a

TEACH FIRST (a Company Limited by Guarantee 4478840)

REPORT OF THE TRUSTEES

Year ended 31 August 2009

Financial review (continued)

The charity holds these funds to provide working capital to finance its day to day operations and to provide safeguard against a downturn in support of activity that could lead to expenditure exceeding income. The charity by retaining aims to maintain these reserves a proportion of its unrestricted over time at a level in excess income each year. of 3 months of unrestricted expenditure a

Aclmowledgements
Teach First would like to acknowledge founders and co-chairs Stephen O'Brien CBE and George lacobescu CBE who stood down as a Trustees of the charity. As our earliest supporters, both Stephen and George have been instrumental in helping Teach First grow from an idea into the organisation it is today. We are grateful for their contributions and their commitment to the mission. Furthermore, Teach First would like to acknowledge Dr. Steve Garnett and James Townsend who stood down as Trustees, for their contributions and their continued support. Teach First would also like to acknowledge all of the businesses and other institutions that have given the organisation funding and in kind support throughout the year. The charity would also like to acknowledge our Founding Ambassadors for their continued support - Lord Andrew Adonis, Dame Mary Richardson and Rona Kiley.

Most notable

among the financial donors

are: The Garfield Weston Foundation The Goldman Sachs Foundation Hewitt Associates HSBC Institute of Engineering and Technology Learning Skills Council The Mercers' Company Procter & Gamble UBS

Accenture Barclays Capita! Breakthrough Social Investment Fund Cheshire Employer & Skills Development Group CfBT Education Trust Credit Suisse Citi Foundation Deloitte Department for Children, Schools and Families Esrnee Fairbairn Foundation Experian

Teach First would also like to acknowledge the financial support from the Training Schools of 4,539,000 for expansion and the I ,0 16,995 that is passed on directly costs of participants. Other financial donors include:

and Development Agency for to schools for the mentoring

Arup Bentley Capital International Cadbury City of London The Dulverton Trust EdComs Edison Learning UK Ernst & Young Financial Services Authority Freshfields Bruckhaus Deringer The Haberdashers' livery Company

Hammonds LLP HSBC Private Bank NM Rothschild The Rank Foundation RM Shell Steve Garnett Transport for London The Venture Partnership Foundation The Westminster Foundation & Grosvenor William Shelton Educational Charity

Trusts

TEACH FIRST (a Company Limited by Guarantee

REPORT OF THE TRUSTEES

4478840)

Year ended 31 August 2009

Acknowledgements

(continued)

Most notable among the in kind donations are: Canary Wharf Group pic's donation of office space; Clifford Chance's donation of pro bono legal support and meeting rooms; Jo Owen's provision of leadership training; salesforce.com's donation of software and support. Approved by the Board of Trustees and signed on behalf of the Board

JULIA CLEVERDON

Chair of the Board I" December 2009

TEACH FIRST (a Company INDEPENDENT Year ended 3 I August 2009

Limited by Guarantee AUDITORS'

4478840) REPORT

INDEPENDENT

AUDITORS'

REPORT TO THE MEMBERS OF TEACH FIRST

We have audited the financial statements of Teach First for the year ended 31 August 2009 which comprise the Statement of Financial Activities, the Balance Sheet, the Accounting Policies and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the company's members, as a body, ill accordance with sections 495 and 496 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity'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 anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors company for the purposes of company law) responsibilities for preparing the accordance with applicable law and United Kingdom Accounting Standards Practice) and for being satisfied that the financial statements give a true and Responsibilities. in accordance with relevant legal and regulatory requirements and

The Trustees' (who are also the directors of the Annual Report and the financial statements in (United Kingdom Generally Accepted Accounting fair view are set out in the Statement of Trustees'

Our responsibility is to audit the financial statements International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006. We also report to you whether in our opinion the information given in the Trustees' Annual Report is consistent with those financial statements. In addition we report to you if, in our opinion, the charity has not kept adequate accounting records, if the charity's financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustees' remuneration specified by law are not made. We read the Trustees' Annual Report and consider misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements give a true and fair view of the state of the charity's affairs as at 31 August 2009 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice the financial statements have been prepared in accordance with the Companies Act 2006; and ~~at~n the Trustees' Annual Report is consistent with the financial statements. the implications for our report if we become aware of any apparent

Jonathan Sutton (Senior statutory auditor) For and on behalf of Dixon Wilson, Statutory Auditor 22 Chancery Lane, London WC2A I LS n D: c- 2009

10

TEACH FIRST (a Company Limited by Guarantee 4478840) STATEMENT (INCLUDING OF FINANCIAL INCOME AND ACTIVITIES EXPENDITURE

ACCOUNT)

Year ended 31 August 2009

Note Incoming resources Incoming resources from generated Voluntary income Government grants for schools TDA expansion grant Corporate contributions and other grants Donations in kind funds

Unrestricted funds

Restricted funds

Total 2009

Total 2008

1,016,995 4,590,000 1,323,573 340,953 6,254,526 211,667 1,228,662

16

1,016,995 4,590,000 1,535,240 340,953 7,483,188

811,662 400,000 1,440,980 267,000 2,9/9,642

Activities for generating funds School fees Awards ceremony 1,890,399 1,890,399 Investment income Bank interest receivable Total incoming resources from generated funds Other incoming resources Total incoming resources Resources expended Charitable activities Education Governance costs Total resources expended Net income I (outgoings) Reconciliation of funds 281,104 1,963,567 117,000 398,104 1,963,567 350,466 398,104 for the year on charitable activities 3 6,284,670 263,295 6,547,965 1,682,463 1,345,662 (117,000) 1,345,662 7,630,332 263,295 7,893,627 1,565,463 4,234,873 161,883 4,396,756 47,638 8 53,901 8,198,826 31,602 8,230,428 1,228,662 1,228,662 53,901 9,427,488 31,602 9,459,090 15,943 4,425,528 18,866 4,444,394 1,890,399 1,890,399 1,362,832 127,111 1,489,943

Accumulated funds brought forward at I September 2008 Accumulated funds carried forward

There are no recognised gains or losses for the current year or prior year other than as stated in the statement of financial activities and accordingly no statement of recognised gains or losses has been presented. All activities are continuing and there are no movements in total funds other than the result for the year, therefore no reconciliation of movements in shareholders' funds is presented.

II

TEACH FIRST (a Company Limited by Guarantee

BALANCE SHEET

4478840)

At 31 August 2009

Note

2009

2008

Fixed assets
Tangible assets

II

117,858

54,202

Current assets
Debtors Cash at bank and in hand 12 3,272,285 4,817,553 8,089,838 1,982,425

542,540
2,524,965

Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Net assets

13

(6,244,129)

(2,181,063) 343,902 398,104 398,104

--1,845,709 1,963,567 1,963,567

Funds
Restricted Unrestricted income income 1,963,567 1,963,567

117,000 281,104 398,104

The financial statements on pages II to 20 were approved signed on its behalf by;.

by the Board of Trustees

on

I" December

2009 and were

JULIA CLEVERDON Chair of the Board

12

TEACH

FIRST (a Company Limited by Guarantee 4478840) POLICIES

ACCOUNTING

Year ended 3 I August 2009

Liability of members The company is limited by guarantee and has no share capital. The Memorandum of Association provides that every member, as defined by Clause 3 of the Articles of Association, is liable to contribute a sum not exceeding I in the event of the company being wound up while he or she is a member. At 31 August 2009 there were 10 members (2008 - 2). Accounting policies The financial statements are prepared in accordance with the Statement of Recommended Reporting by Charities" published in March 2005 and applicable Accounting Standards. Basis of preparation The financial statements are prepared under the historical cost convention. Accounting period The financial statements cover the year ended 31 August 2009. 31 August 2008. Incoming resources All income is recognised in the statement of financial activities when Teach First has entitlement to the income and there is reasonable assurance of receipt. School fees are accounted for in the year to which they apply. School fees invoiced in the year that relate to a subsequent financial accounting year, are carried forward and shown as deferred income. Resources expended All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity, Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources. Support costs include the control functions and include staffing and the associated costs of supporting, monitoring and evaluating the work of the charity. Such costs have been allocated between charitable activities and governance costs on the basis of staff time. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of the charity. Overheads and other salaries are allocated between expense headings on the basis of staff costs. Governance costs are those incurred in connection with the management of Teach First's assets, organisational administration and compliance with constitutional and statutory requirements. Fund accounting Funds receivable in relation to specific projects are restricted for use in those activities only, and all other funds received are considered unrestricted funds, for the general purposes of the charity. Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the time of transaction. Monetary assets held and liabilities outstanding at the year end are translated at the rates ruling at the balance sheet date. Any adjustments resulting are taken to the statement of financial activities accordingly. The comparative amounts cover the year ended Practice "Accounting and

13

TEACH FIRST (a Company ACCOUNTING Year ended 31 August 2009

Limited by Guarantee POLICIES

4478840)

Tangible fixed assets Tangible fixed assets are stated at their purchase price, together with any incidental costs of acquisition. Tangible fixed assets donated to the company are valued by the directors at a reasonable estimate of their value to the company. The benefit is recognised in the income and expenditure account in the year in which the assets are received. Provision for depreciation is made so as to write off the cost or valuation of tangible fixed assets, less any residual value, on a straight line basis over the expected useful economic lives of the assets concerned. Depreciation is charged from the month of purchase, and none in the year of disposal. The annual rates used for this purpose are: Computer equipment - 331/3% Equipment, fixtures and fittings - 20% Leases Payments under operating leases are charged to the income and expenditure account on a straight line basis. Donations in kind Donations in kind represent the cost of donated services and facilities received during the year valued at the price which the charity would pay in the open market.

14

TEACH FIRST (a Company NOTES TO THE

Limited

by Guarantee

4478840) STATEMENTS

FINANCIAL

Year ended 3 I August 2009

I.

Analysis of charitable

funds Brought forward Incoming resources 1,016,995 107,000 Resources expended 1,016,995 107,000 Transfers Gains and losses Carried forward

Analysis of fund movements Restricted funds

Government grants Leadership Development - The Goldman Sachs Foundation Participant Support - City of London Higher Education Access Programme - CfBT 117,000 Unrestricted Total Restricted Government funds: grants Funds 281, 104 398,104

10,000

20,000

30,000

191,667 1,228,662 8,230,428 9,459,090

191,667 1,345,662 6,547,965 7,893,627 1,963,567 1,963,567

Government grants received in the current year represent grants received from the Department for Children, Schools and Families, which are passed on immediately to schools who participate in the Teach First scheme. Amounts are held in a non-interest bearing bank account until they are passed to participating schools. Accordingly, Teach First receives no benefit from these funds and treats these as restricted funds. Leadership development and participant support

The purpose of the leadership development and participant support fund is to encourage better quality Teach First teaching tailored to low-income pupils' needs in London, Greater Manchester, Merseyside and the Midlands. The fund is used to attract, train and support Teach First teachers, encourage their involvement as ambassadors in challenging secondary schools in these areas and equip them with basic business management and leadership skills. These skills can be deployed in their classrooms and in a wider school context for the benefit of the broader school community. Higher Education Access Programme for Schools (HEAPS)

HEAPS receives its funding from CfBT Education Trust that delivers the Young Gifted & Talented Programme on behalf of the DCSF. HEAPS funding specifically relates to the City GATES aspect of the National City Challenge initiative that will finish in March 20 10. The purpose of the HEAPS programme is to improve progression by academically gifted students from Teach First partnering schools to the UK's leading universities through mentoring and coaching by Teach First Ambassadors and a series of university focused events. Unrestricted funds:

Unrestricted funds are received from a range of donors and supporters. These include businesses and charitable foundations and government departments and agencies. In particular, Teach First has received significant financial support provided by the Training and Development Agency for Schools, which has provided 4,590,000 (2008 400,000) of expansion grant funding.

15

TEACH FIRST (a Company

Limited by Guarantee FINANCIAL

4478840)

NOTES

TO

THE

STATEMENTS

Year ended 31 August 2009

2.

Analysis of group net assets between

funds

Unrestricted

Restricted funds

Total 2009
3,272,285 4,817,553 (6,244,129) 1,845,709 117,858 1,963,567

Total 2008 1,982,425 542,540 (2,181,063) 343,902 54,202 398,104

Fund balances at 31 August 2009 are represented Debtors Cash at bank and in hand Creditors

by: 3,272,285 4,817,553 (6,244,129) 1,845,709

Fixed assets

117,858 1,963,567

3.

Charitable

activities: analysis of charitable

expenditure

Direct charitable expenditure

Support costs

Total

Unrestricted Restricted funds funds

2009 Total

2008 Total

Cost incurred for charitable activities

Graduate recruitment 1,400,266 680,000 2,080,266 2,080,266 2,080,266

1,108,563 1,700,476 523,401 811,662 4,144,102 90,771

Participant leadership and development Ambassadors' programme 2,320,498 706,766 1,070,582 435,225 3,391,080 1,141,991 3,254,080 950,324 137,000 191,667 3,391,080 1,141,991

Funds passed to participating schools (see note I)

1,016,995 5,444,525 2,185,807

1,016,995 7,630,332 6,284,670

1,016,995 1,345,662

1,016,995 7,630,332

Teach First Awards Ceremony

5,444,525 2,185,807 7,630,332 6,284,,670 1,345,662 7,630,332

4,234,873

16

TEACH FIRST (a Company Limited by Guarantee NOTES TO THE FINANCIAL

4478840) STATEMENTS

Year ended 31 August 2009

4.

Allocation of support costs and overheads

The breakdown of support costs and how these were allocated between governance and charitable activities is shown in the table below: Cost type Salaries and staff costs Premises cost and rent Printing and postage Audit and accountancy IT consultancy fees and development costs Professional fees and charges Travel and subsistence Office management Depreciation External relations Total allocated 846,329 322,119 25,354 24,188 342,765 15,142 26,291 362,966 46,663 437,285 2,449,102 263,295 Governance 101,811 38,750 3,050 24,188 41,234 1,822 3,163 43,664 5,613 301,531 13,320 23,128 319,302 41,050 437,285 2,185,807 pro rata to staff time as shown in the 680,000 1,070,582 435,225 2,185,807 Staff time Staff time Staff time Staff time Staff time Charitable activities 744,518 283,369 22,304 Basis of apportionment Staff time Staff time Staff time

The total support cost attributable to charitable activities is then apportioned table below: Total costs Graduate recruitment Participant leadership development Ambassadors' programme Total allocated

5.

Governance

costs

2009 263,295

2008 161,883

Governance costs (note 4)

6.

Trustee board

No member of the Board of Trustees received any remuneration during the year. One Trustee was reimbursed expenses totalling 19,778 (2008 - (338) during the year, in respect of office, travel and subsistence costs.

17

TEACH FIRST (a Company Limited by Guarantee 4478840) NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 August 2009

7.

Employees

2009 3,477,944 301,737 317,997 4,097,678

2008 1,619,846 171,825 266,435 2,058,106 1,978,089 80,017 2,058,106 Number 51

Wages and salaries Employers' national insurance costs Other staff costs

Representing - salary costs of activities in the furtherance of the charity's objects Governance costs - salaries (note 4)

3,995,867 101,811 4,097,678 Number

The average number of employees during the year was Number of employees whose remuneration following salary bands: 60,000 - 70,000 70,000 - 80,000 90,000 - 100,000 100,000 - I 10,000

86

paid during the year, including annual performance award, was in the 2009 2 I I I 2008 2

o
I

Employer pension contributions paid in respect of these employees amounted to 17,985 (2008 - 8,207).

8.

Net income for the year

2009

2008

Net income for the year is arrived at after charging: Depreciation Auditors' remuneration - audit Operating lease charges Other incoming resources: Includes other donations, other event income and other sundry income 46,663 10,000 159,924 31,602 27,559 9,000 25,187 18,866

9.

Taxation

Teach First is a registered charity under the Charities Act 1993 and as such is exempt from tax on its income and gains to the extent that such income and gains are applied for charitable purposes.

10.

Pension contributions

Teach First contributes to defined contribution pension policies for its qualifying employees. Employer contributions payable for the year amounted to 63,382 (2008 - 31,432), of which 16,304 (2008 - 9,226) was outstanding at the balance sheet date.

18

TEACH FIRST (a Company limited NOTES TO THE

by Guarantee

4478840) STATEMENTS

FINANCIAL

Year ended 31 August 2009

I I.

Tangible fixed assets Computer equipment

Equipment, fixtures and fittings

35,084

Total 167,894 110,319 278,213

Cost At I September 2008 Additions Disposals At 31 August 2009 Depreciation At 1 September 2008 Charge for the year Disposals At 31 August 2009 Net book value At 31 August 2009 At I September 2008 The fixed assets are held for use by the charity. 109,388 41,261 8,470 12,941 117,858 54,202 91,549 42.192 133,741 22,143 4,471 26,614 113,692 46,663 160,355 132,810 110,319 243,129

35,084

12.

Debtors

2009

2008

Trade debtors Other debtors Accrued income Prepayments 3,140,466 51,985 33,104 46,730 3,272,285

1,773,279 8,486 140,427 60,233 1,982,425

13.

Creditors: amounts falling due within one year

2009

2008

Trade creditors Other creditors including taxation and social security Accruals Deferred income 270,550 1,760,085 628,589 3,584,905 6,244,129

159,689 394,598 83,477 1,543,299 2,181,063

19

TEACH FIRST (a Company

NOTES TO THE

Limited

by Guarantee

4478840)
STATEMENTS

FINANCIAL

Year ended 31 August 2009

14.

Financial commitments
existing at 31 August 2009 or 31 August 2008.

There were no capital commitments The company was committed

to making the following payments during its next year in respect of operating leases:

2009 Land and buildings

Leases which expire: Within one year Within two to five years After five years 3,300 170,020 585 9,617

2008 Land and buildings Other

Other

18,584
3,417

1,726

--Subsequent to the year end, Teach First entered into leases for new office premises at 4 More London, SE I. These are for a term up to August 2016. The financial rental commitment on these premises is approximately 600,000 per annum over the period of the lease.

15.

Related party transactions

between the charity and related parties, together with their relationships with the charity, are set out below:

Transactions

During the current year the charity paid 44,426 (2008 - 30,820) in relation to the provision of administrative support by Canary Wharf Group pic, of which George lacobescu CBE was also a director. The charity also paid 2,000 in fees to Deloitte, of which Sarah Shillingford is a Partner. The charity has also recognised a donation in kind of 128,783 (2008 62,000) in relation to the provision of office space by Canary Wharf Group pic. The charity has also recognised a donation in kind of 20,000 in relation to training services provided by Jo Owen.

16.

Donations in kind
donations in kind received:

2009

2008

Corporate

Venue and events services Training services Premises and professional services IT services

80,674 35,750 165,369 59,160 340,953

74,000 57,000 102,000 34,000 267,000

17.

Funding agreement

disclosures

Listed below are those funds that were received during the year which are required to be disclosed under the terms of their funding agreements and have been applied in accordance with the terms thereof. These are not all and not necessarily the largest of the funds received, all of which have contributed to the activities undertaken during the year.

Fund provider
Training and Development Training and Development Training and Development Training and Development Agency for Schools Agency for Schools Agency for Schools Agency for Schools

Purpose of the funds

Start-up costs for expansion to Liverpool - 2nd year Start-up costs for expansion to Yorkshire, Leeds & Bradford, I" year, one of wo Program expansion grant, I" year, one of three 2008/2009 mentoring costs for schools with Teach First, first year participants

2009
100,000 360,000 4,130,000 1,016,995 5,606,995

20