Office of Public Sector Information
PART II continued CHAPTER V continued
(1) The provision to be included in a scheme for determining the budget share for a financial year of each school required to be covered by the scheme in that year shall require that share to be determined (and from time to time revised) by the application of the allocation formula under the scheme.
(2) For the purposes of this Part the “allocation formula” under a scheme is a formula laid down by the scheme for the purpose of dividing among all schools required to be covered by the scheme in any financial year the local education authority’s aggregated budget for the year.
(3) In subsection (2) “formula” includes methods, principles and rules of any description, however expressed.
(4) The allocation formula under a scheme—
(a) shall include provision for taking into account, in the case of each school required to be covered by the scheme in any financial year, the number and ages of registered pupils at that school on such date or dates as may be determined by or under the scheme in relation to that year, and
(b) may include provision for taking into account any other factors affecting the needs of individual schools which are subject to variation from school to school (including, in particular, the number of registered pupils at a school who have special educational needs and the nature of the special educational provision required to be made for them).
(5) The allocation formula shall, however, not include provision for taking into account persons provided with—
(a) part-time education suitable to the requirements of persons of any age over compulsory school age, or
(b) full-time education suitable to the requirements of persons who have attained the age of 19.
(6) A scheme shall provide for all amounts relevant to the determination of a school’s budget share under the scheme for a financial year to be determined initially before the beginning of that year.
(1) A scheme shall include provision for requiring, in the case of each school required to be covered by the scheme in any financial year, the delegation by the local education authority to the governing body of the management of the school’s budget share for that year.
(2) Any provision included in a scheme by virtue of subsection (1) is referred to in this Part as the “delegation requirement” under the scheme.
A scheme may provide for the management of a school’s budget share for any financial year to be delegated by the local education authority to the governing body of the school in a case where the delegation requirement under the scheme does not apply to the school in respect of that year.
(1) Any delegation under a scheme of the management of a school’s budget share shall be subject to such conditions as may be imposed by or under the scheme.
(2) Conditions so imposed may, in particular, relate to—
(a) the arrangements to be made for management of the expenditure of any sum made available to a school’s governing body in accordance with the scheme (and in particular for authorising expenditure, or transactions involving commitments to expenditure, to be met from any such sum);
(b) the keeping and audit of accounts and records with respect to such expenditure, and the keeping of records with respect to such transactions;
(c) the provision to the local education authority by the governing body of copies of accounts and records required to be kept by any condition imposed under paragraph (b); and
(d) the provision to the local education authority by the governing body of such other documents and information relating to the application of any sum falling within paragraph (a) as the authority may from time to time require.
(3) In subsection (1) “delegation” means delegation under any provision made by virtue of section 107 or 108.
(1) If a school comes within a scheme in a financial year falling within the scheme’s initial period, the delegation requirement under the scheme shall not apply to the school until a date specified in the scheme.
(2) For the purposes of this section a scheme’s “initial period” (subject to any order made under subsection (4)) is the period of three years beginning with the date of the coming into force of the scheme.
(3) Different dates may be specified under subsection (1) in relation to different schools or categories of school and in relation to schools coming within the scheme in different financial years or at different times within the same financial year; but—
(a) each date specified must coincide with the beginning of a financial year, and
(b) no date may be specified which falls after the beginning of the financial year next following the end of the scheme’s initial period.
(4) The Secretary of State may by order—
(a) substitute a date specified in the order for any date specified in a scheme under subsection (1) (including one specified by virtue of a previous order under this subsection), and
(b) extend any scheme’s initial period until a date specified in the order.
(5) For the purposes of this section a school—
(a) comes within a scheme in any financial year if that financial year is the first financial year in which the school is required to be covered by the scheme, and
(b) comes within the scheme—
(i) at the beginning of that year, if it is then a school required to be so covered, and
(ii) otherwise at the time falling within that year when it first becomes such a school.
(1) Subject to subsection (2) and to sections 112 and 113, the local education authority may revise the whole or any part of a scheme.
(2) Section 104(2) shall apply in relation to the preparation by the authority of any revision under this section as it applies in relation to the preparation by the authority of a scheme.
(1) This section applies where the local education authority propose, in revising a scheme under section 111, to make a significant variation of the scheme.
(2) In such a case the authority—
(a) shall first consult every governing body and head teacher whom they are obliged to consult under section 104(3), and
(b) shall then submit a copy of their proposals to the Secretary of State for his approval.
(3) Where the proposals are so submitted, section 104(4) shall apply to the scheme as revised as it applies to a scheme prepared under section 103.
(4) The Secretary of State may by order specify what descriptions of variation are to be regarded as significant for the purposes of this section.
(1) This section applies where the local education authority propose to revise a scheme under section 111 and the revision is in their opinion a minor revision.
(2) In such a case the authority shall give the Secretary of State notice in writing of their proposal, giving brief particulars of the nature of the revision proposed to be made.
(3) If so required by the Secretary of State before the end of the period of two months beginning with the date on which he receives notice under subsection (2) of the authority’s proposal, the authority shall send to him a copy of the scheme as proposed to be revised.
(4) It shall be for the Secretary of State to determine whether or not any revision is a minor revision.
(5) In this section “minor revision” means a revision which does not make what would be a significant variation for the purposes of section 112.
(1) The Secretary of State may by a direction revise the whole or any part of any scheme as from such date as may be specified in the direction.
(2) Before giving such a direction the Secretary of State shall consult the local education authority and such other persons as he thinks fit.
In the following provisions of this Part—
(a) references to a school in respect of which financial delegation is required for a financial year under a scheme are to a school conducted by a governing body to whom the local education authority are for the time being required by or under the scheme to delegate the management of the school’s budget share for the year (and the governing body of such a school are said to have a right to a delegated budget for the year), and
(b) references to a school which has a delegated budget are to a school conducted by a governing body to whom a local education authority have for the time being delegated the management of the school’s budget share for a financial year in pursuance of a scheme (whether that delegation is required by the scheme or not).
(1) This section applies where a local education authority’s financial provision for county and voluntary schools is subject to regulation by a scheme.
(2) In the case of any county or voluntary school maintained by the authority in respect of which financial delegation is required for a financial year under the scheme, the authority shall put at the disposal of the governing body in respect of the year a sum equal to the school’s budget share for the year, to be spent for the purposes of the school.
(3) The times at which, and the manner in which, any such sum is put at the disposal of the governing body shall be such as may be provided by or under the scheme.
(4) Subject to section 125 (financial delegation apart from schemes) and section 489(2) (grants for education support and training), the authority may not delegate to the governing body of any school required to be covered by the scheme in a financial year the power to spend any appropriated amount otherwise than as required or permitted under the scheme; and for this purpose “appropriated amount” means a sum appropriated by the authority for the purposes of the school in that year.
(5) The governing body of a school which has a delegated budget—
(a) shall be entitled, subject to any provision made by or under the scheme, to spend any sum made available to them in respect of the school’s budget share for a financial year as they think fit for the purposes of the school, and
(b) may delegate to the head teacher, to such extent as may be permitted by or under the scheme, their power under paragraph (a) in relation to any part of that sum.
(6) In subsection (5) “the purposes of the school” does not include purposes wholly referable to the provision of—
(a) part-time education suitable to the requirements of persons of any age over compulsory school age, or
(b) full-time education suitable to the requirements of persons who have attained the age of 19.
(7) The governing body of a school which has a delegated budget shall not exercise their powers under subsection (5) to pay to governors any allowances other than travelling and subsistence allowances.
(8) The governors of a school shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their powers under subsection (5).
(1) Where it appears to the local education authority that the governing body of a school in respect of which financial delegation is required for the current financial year under a scheme—
(a) have been guilty of a substantial or persistent failure to comply with any requirements applicable under the scheme, or
(b) are not managing the appropriation or expenditure of the sum put at their disposal for the purposes of the school in a satisfactory manner,
the authority may suspend the governing body’s right to a delegated budget by giving them not less than one month’s notice of the suspension.
(2) The notice shall specify the grounds for the proposed suspension, giving particulars—
(a) of any alleged failure on the part of the governing body to comply with any requirements applicable under the scheme; and
(b) of any alleged mismanagement on their part.
(3) A copy of the notice shall be given to the head teacher of the school at the same time as the notice is given to the governing body.
(4) Where the authority have given a notice under subsection (1) to a governing body, they may suspend the governing body’s right to a delegated budget before the expiry of the period of notice if it appears to them to be necessary to do so by reason of any gross incompetence or mismanagement on the part of the governing body or other emergency.
(5) If the authority exercise their power under subsection (4), they shall immediately give to the Secretary of State written notification of their action and the reasons for it.
(6) During any period when a governing body’s right to a delegated budget is suspended under this section, the authority’s duty under section 116(2) shall not apply in relation to that governing body.
(1) The local education authority concerned shall review before the beginning of every financial year any suspension under section 117 which is for the time being in force.
(2) For the purposes of the review the authority—
(a) shall give the governing body and the head teacher of the school an opportunity of making representations with respect to the suspension, and
(b) shall have regard to any representations made by the governing body or head teacher.
(3) If on the review the authority consider it appropriate to do so, they shall revoke the suspension.
(4) The authority shall give the governing body and the head teacher written notification of their decision on the review.
(5) The revocation of a suspension on a review under this section shall take effect from the beginning of the financial year next following the review.
(1) A governing body may appeal to the Secretary of State against—
(a) the imposition of any suspension under section 117; or
(b) any refusal of a local education authority to revoke any such suspension on a review under section 118.
(2) On an appeal under this section, the Secretary of State—
(a) may allow or reject the appeal; and
(b) shall have regard, in making his determination, to the gravity of the default on the part of the governing body and the likelihood of its continuing or recurring.
(1) The Secretary of State may by regulations require or authorise schemes to cover maintained special schools.
(2) Sections 107(1), 108 and 110 shall not apply to schools required to be covered by a scheme by virtue of regulations under subsection (1).
(3) Regulations under subsection (1) may require or authorise schemes to include provision for requiring the local education authority concerned to delegate to the governing body of a maintained special school the management of the school’s budget share for the year—
(a) in the case of all schools required to be covered by a scheme in any financial year by virtue of the regulations; or
(b) in the case of such schools required to be covered by a scheme in any financial year by virtue of the regulations as the Secretary of State may direct.
(4) The Secretary of State may by regulations—
(a) make in any of the following, namely—
(i) any provisions of this Chapter, and
(ii) sections 136 to 141, Schedule 14 and paragraphs 2 and 18 to 24 of Schedule 19 (which make provision in relation to the staffing of schools with delegated budgets etc.),
such amendments as appear to him to be required in consequence of any provision made in regulations under subsection (1); and
(b) provide that any scheme shall have effect with such modifications as appear to him to be appropriate in consequence of any provision so made.
A scheme shall be published in such manner as may be prescribed—
(a) on its coming into force, and
(b) on such subsequent occasions as may be prescribed.
(1) This section applies where a local education authority’s financial provision for county and voluntary schools is subject to regulation by a scheme.
(2) Before the beginning of each financial year, the authority shall prepare a statement of the financial provision they plan to make in that year for county and voluntary schools maintained by them.
(3) Part I of Schedule 11 has effect in relation to the contents of a statement under subsection (2).
(4) After the end of each financial year, the authority shall prepare a statement containing such information with respect to the following matters as may be prescribed—
(a) the planned financial provision in that year specified in the statement prepared by the authority under subsection (2);
(b) expenditure actually incurred in the year for the purposes of all schools required to be covered by the scheme; and
(c) expenditure actually incurred in the year which was incurred, or is treated by the authority as having been incurred, for the purposes of each such school.
(5) A statement under this section shall be prepared in such form, and published in such manner and at such times, as may be prescribed.
(6) The authority shall furnish—
(a) the governing body of each school required to be covered by the scheme in any financial year, and
(b) the governing bodies of—
(i) such grant-maintained schools in the authority’s area, and
(ii) such grant-maintained special schools mentioned in section 104(3)(c),
as may be prescribed,
with a copy of each statement prepared by the authority under this section in relation to that year or, in such circumstances as may be prescribed, with such part or parts of it as may be prescribed.
(7) A governing body provided with a statement under subsection (6) shall secure that a copy of it is available for inspection (at all reasonable times and free of charge) at the school.
(1) This section applies where a local education authority’s financial provision for county and voluntary schools is subject to regulation by a scheme.
(2) The authority shall, if directed to do so by the Secretary of State, require the Audit Commission for Local Authorities and the National Health Service in England and Wales to make arrangements in accordance with section 29(1)(d) of the [1982 c. 32.] Local Government Finance Act 1982 for certifying such statement or statements prepared by the authority under section 122 of this Act as may be specified in the directions; and for the purposes of section 29(1)(d) of that Act any statement under section 122 of this Act shall be treated as a return by the authority.
(3) The arrangements made by the Audit Commission in pursuance of subsection (2) shall include arrangements for sending a copy of any such statement or statements as so certified to the Secretary of State.
(4) Directions given under subsection (2) may relate to any local education authority or to local education authorities generally or to any class or description of such authorities.
(1) A local education authority shall prepare, in respect of each financial year during the whole or any part of which they maintain one or more relevant special schools, a statement of the financial provision initially planned by them in respect of the year for that school or those schools.
(2) For the purposes of this section a “relevant special school” is any special school other than one in relation to which (by virtue of any provision made by regulations having effect under section 120) information is required to be included in a statement prepared by the authority in respect of the year under section 122.
(3) Part II of Schedule 11 has effect in relation to the contents of a statement under subsection (1).
(4) After the end of each financial year in respect of which a local education authority are required to prepare a statement under subsection (1), they shall prepare a statement containing such information in respect of—
(a) expenditure actually incurred in the year for the purposes of all the schools required to be covered by the statement under subsection (1), and
(b) expenditure actually incurred in the year which was incurred, or is treated by the authority as having been incurred, for the purposes of each such school,
as may be prescribed.
(5) Where only one school is required to be covered by the statement under subsection (1), the reference in subsection (4)(a) to all the schools is a reference to that school and subsection (4)(b) does not apply.
(6) A statement prepared under this section shall be prepared in such form, and published in such manner and at such times, as may be prescribed.
(7) The authority shall provide the governing body of any school required to be covered by a statement under subsection (1) in respect of a financial year with a copy of each statement prepared by the authority under this section in relation to that year.
(8) A governing body provided with a statement under subsection (7) shall secure that a copy of it is available for inspection (at all reasonable times and free of charge) at the school.
(1) In respect of any period during which a county, voluntary or maintained special school does not have a delegated budget, the local education authority shall make available a sum of money which (subject to subsection (2)) the governing body of the school are to be entitled to spend at their discretion during that period—
(a) on books, equipment and stationery; and
(b) on such other heads of expenditure (if any) as the authority may specify or as may be prescribed.
(2) In spending that sum the governing body shall comply with such reasonable conditions as the authority think fit to impose.
(3) The governing body may, to such extent as they may specify, delegate their powers in relation to that sum to the head teacher.
(4) Before making any regulations for the purposes of subsection (1), the Secretary of State shall consult—
(a) such associations of local authorities as appear to him to be concerned; and
(b) any local authority with whom consultation appears to him to be desirable.
Schedule 12 has effect for the purpose of applying the other provisions of this Chapter in relation to new schools.
(1) For every county, voluntary and maintained special school there shall be an instrument (known as the articles of government) in accordance with which the school is to be conducted.
(2) The articles of government shall be made by order of the local education authority.
(3) The articles of government—
(a) shall contain such provisions as are required by this Chapter or by any other enactment; and
(b) shall not contain any provision which is inconsistent with any provision made by or under this Act or any other enactment.
(4) The articles of government shall comply with any trust deed relating to the school.
(1) Before making an order under section 127, a local education authority shall consult the governing body and the head teacher of the school concerned.
(2) Before making an order under section 127 in respect of a voluntary school, a local education authority shall also—
(a) secure the agreement of the governing body to the terms of the proposed order; and
(b) have regard to the way in which the school has been conducted.
(3) Where the governing body of a county, voluntary or maintained special school make a proposal to the local education authority for the alteration of the provision made by the articles of government for the school, the authority shall consider their proposal.
(4) Where a local education authority—
(a) propose to make an order under section 127 but cannot secure any agreement required by subsection (2), or
(b) refuse, in the case of a voluntary school, to make such an order in response to a proposal of a kind mentioned in subsection (3),
the authority or (as the case may be) the governing body may refer the matter to the Secretary of State.
(5) On a reference to him under subsection (4), the Secretary of State shall give such direction as he thinks fit having regard, in particular, to the status of the school as a controlled, aided or (as the case may be) special agreement school.
(6) Where it appears to the Secretary of State—
(a) that an order, or proposed order, under section 127 is in any respect inconsistent with the provisions of any trust deed relating to the school, and
(b) that it is expedient in the interests of the school that the provisions of the trust deed should be modified for the purpose of removing the inconsistency,
he may by order make such modifications in the trust deed as appear to him to be just and expedient for that purpose.
(7) References in this section to an order, or proposed order, under section 127 are references to an order, or proposed order, under that section embodying or varying the articles of government for a school.
(1) During any period when a school has a delegated budget under such a scheme as is mentioned in section 101(1), any provisions of the articles of government of the school which are inconsistent with the operation during that period of any provisions of Chapter V or of the scheme shall be of no effect to the extent of the inconsistency.
(2) If a school’s articles of government contain any provisions to which subsection (1) applies (“inconsistent provisions”), the local education authority shall amend the articles so as to include in relation to each inconsistent provision the statement required by subsection (3).
(3) The statement shall specify—
(a) the inconsistent provision,
(b) the provision of Chapter V or of the scheme with the operation of which it is inconsistent (the “overriding provision”), and
(c) the extent of the inconsistency,
and shall indicate that, during any period when the school has a delegated budget, the inconsistent provision is superseded by the overriding provision to the extent of the inconsistency.
(4) Any amendment required by subsection (2) shall be made within the period of five years beginning with the date on which begins the financial year in which the school first has a delegated budget under the scheme.
(5) Any such amendment shall be made by order under section 127; but section 128 shall not apply in relation to an order made under section 127 by virtue of this subsection.
The articles of government for a county, voluntary or maintained special school shall provide for the conduct of the school to be under the direction of the governing body, but subject—
(a) to any provision of the articles conferring specific functions on a person other than the governing body, and
(b) to any provision (other than a provision of the articles) made by or under this Act or any other enactment.
Regulations may make provision as to the circumstances in which, in any case where—
(a) any provision made by or under Chapter IV or this Chapter requires the governing body of a county, voluntary or maintained special school to be consulted before a particular step is taken by the local education authority or the head teacher, and
(b) the authority or head teacher require to take that step as a matter of urgency but are unable to contact the chairman or vice-chairman of the governing body,
the authority or (as the case may be) the head teacher may proceed without consulting the governing body.
(1) Where a county, voluntary or maintained special school is organised in two or more separate departments, each with a head teacher, any provision made by or under this Act which confers functions on or in relation to the head teacher of the school shall have effect as if each department were a separate school.
(2) Subsection (1) does not apply where the school’s articles of government provide otherwise.
(1) A county, controlled, special agreement or maintained special school shall have a complement of teaching and non-teaching posts determined by the local education authority.
Education Act 1996