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Section 48.

SCHEDULE 14 Local education authority schemes: approval, imposition and revision

Approval or imposition of schemes by Secretary of State

1 (1) A scheme prepared by a local education authority under section 48(1) shall be submitted to the Secretary of State on or before such date as he may by order direct, whether—

(a) generally; or

(b) in relation to that authority or to any class or description of local education authorities to which that authority belongs.

(2) In preparing such a scheme a local education authority shall take into account any guidance given by the Secretary of State, whether—

(a) generally, or

(b) in relation to that authority or to any class or description of local education authorities to which that authority belongs,

as to the provisions he regards as appropriate for inclusion in the scheme.

(3) Before preparing such a scheme the local education authority shall consult—

(a) where this sub-paragraph applies in relation to any time before the appointed day—

(i) the governing body and the head teacher of every school maintained by the authority as a county, voluntary or maintained special school (within the meaning of the [1996 c. 56.] Education Act 1996), and

(ii) the governing body and the head teacher of every grant-maintained or grant-maintained special school (within the meaning of that Act) in the area of the authority; and

(b) where this sub-paragraph applies in relation to any time on or after the appointed day, the governing body and the head teacher of every school maintained by the authority (within the meaning of this Chapter);

and in paragraph (a)(i) “every school” includes any new school (within the meaning of Part II of the [1996 c. 56.] Education Act 1996).

(4) Such a scheme shall not come into force until it has been approved by the Secretary of State or until such date as he may, in giving his approval, specify; and the Secretary of State may approve such a scheme—

(a) either without modifications or with such modifications as he thinks fit after consulting the authority concerned; and

(b) subject to such conditions as he may specify in giving his approval.

(5) If in the case of any local education authority either—

(a) the authority fail to submit a scheme as required by sub-paragraph (1), or

(b) it appears to the Secretary of State that a scheme submitted by the authority as required by that sub-paragraph does not accord with any guidance given by him for the purposes of this paragraph and cannot be made to do so merely by modifying it,

he may, after consulting the authority and such other persons as he thinks fit, impose a scheme making such provision of a description required to be made by a scheme under section 48 as he considers appropriate.

(6) A scheme imposed by the Secretary of State by virtue of sub-paragraph (5)—

(a) shall be treated as if made under section 48 by the local education authority concerned; and

(b) shall come into force on such date as may be specified in the scheme.

(7) 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.

Revision of schemes

2 (1) A local education authority may, in accordance with this paragraph, revise the whole or any part of the scheme prepared by them under section 48(1).

(2) Section 48(1) and paragraph 1(2) shall apply in relation to the preparation by the authority of any revision under this paragraph as they apply in relation to the preparation by the authority of a scheme.

(3) As regards any proposed variation of the scheme, the authority—

(a) shall first consult every governing body and head teacher whom they are obliged to consult under paragraph 1(3), and

(b) shall then submit a copy of their proposals to the Secretary of State for his approval.

(4) Where the proposals are so submitted, paragraph 1(4) shall apply to the scheme as revised as it applies to a scheme prepared under section 48.

(5) 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.

(6) Before giving such a direction the Secretary of State shall consult the local education authority and such other persons as he thinks fit.

Section 51.

SCHEDULE 15 Suspension of financial delegation

Suspension of financial delegation for mismanagement, etc.

1 (1) This paragraph applies where it appears to the local education authority that the governing body of a school which has a delegated budget—

(a) have been guilty of a substantial or persistent failure to comply with any delegation requirement or restriction, or

(b) are not managing in a satisfactory manner the expenditure or appropriation of the sum referred to in section 50(1).

(2) The authority may suspend the governing body’s right to a delegated budget by giving the governing body not less than one month’s notice of the suspension, unless by reason of any gross incompetence or mismanagement on the part of the governing body or other emergency it appears to the authority to be necessary—

(a) to give the governing body a shorter period of notice, or

(b) to give the governing body a notice suspending their right to such a budget with immediate effect.

(3) The notice must specify the grounds for the suspension, giving particulars—

(a) of any alleged failure on the part of the governing body to comply with any delegation requirement or restriction;

(b) of any alleged mismanagement on their part; and

(c) if applicable, of the basis upon which a period of notice of less than one month was given under sub-paragraph (2).

(4) The notice must also inform the governing body of their right to appeal against the suspension under paragraph 3 and of the time within which such an appeal may be brought.

(5) A copy of the notice must be given to the head teacher of the school at the same time as the notice is given to the governing body.

(6) The authority shall send a copy of the notice to the Secretary of State.

(7) In this paragraph “delegation requirement or restriction” means any requirement or restriction applicable, under or by virtue of the scheme or section 50(3), to the management by the governing body of the school’s budget share.

(8) Any notice given under this paragraph must be in writing.

Review of suspension

2 (1) The local education authority concerned—

(a) shall review before the beginning of every financial year any suspension under paragraph 1 which is for the time being in force, unless the suspension took effect less than two months before the beginning of that year; and

(b) may review at any time any suspension under paragraph 1 which is for the time being in force, if they consider it appropriate to do so.

(2) For the purposes of any review under sub-paragraph (1), the authority shall give the governing body and the head teacher of the school an opportunity of making representations with respect to the suspension.

(3) If on the review the authority consider it appropriate to do so, they shall revoke the suspension—

(a) (in the case of a review under sub-paragraph (1)(a)) with effect from the beginning of the financial year next following the review; or

(b) (in the case of a review under sub-paragraph (1)(b)) with effect from such time before the beginning of the financial year next following the review as they may determine.

(4) The authority shall give the governing body and the head teacher notice in writing of their decision on the review.

(5) If—

(a) the review was conducted under sub-paragraph (1)(a), and

(b) the authority’s decision is to refuse to revoke the suspension,

the notice must inform the governing body of their right to appeal against the refusal under paragraph 3 and of the time within which such an appeal may be brought.

Appeal against suspension or refusal to revoke it

3 (1) A governing body may appeal to the Secretary of State against—

(a) the imposition of any suspension under paragraph 1 of their right to a delegated budget; or

(b) any refusal of a local education authority to revoke any such suspension on a review under paragraph 2(1)(a).

(2) An appeal under this paragraph must be brought within the period of two months beginning with the date on which the governing body receive the authority’s notice under paragraph 1(2) or 2(4), as the case may be.

(3) But if the authority’s notice failed to comply with paragraph 1(4) or 2(5), such an appeal may be brought at any time before the end of the period of two months beginning with the date on which the governing body are informed by the authority in writing of their right of appeal under this paragraph.

(4) On an appeal under this paragraph, 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.

(5) Where the Secretary of State allows an appeal under this paragraph, the suspension of the governing body’s right to a delegated budget shall be revoked from a date determined by the Secretary of State.

Effect of suspension of right to delegated budget

4 (1) During any period when a governing body’s right to a delegated budget is suspended under paragraph 1—

(a) the local education authority’s duty under section 50(1) shall not apply in relation to the school; but

(b) the authority may permit the governing body to take such decisions as to the spending of sums to be met from the school’s budget share as the authority consider appropriate.

(2) Where in accordance with sub-paragraph (1)(b) the governing body have decided that a particular sum should be spent, they shall, in spending that sum, 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.