(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.