Education Reform Act 1988

142 Delegation to governing body of management of institution’s budget share

(1) This section applies where in the case of any local education authority the authority’s financial provision for any institutions maintained or assisted by the authority is subject to regulation by a scheme.

(2) Subject to section 150(6) of this Act, in the case of any institution in respect of which financial delegation is required for any financial year under the scheme, it shall be the duty of the authority—

(a) in the case of an institution maintained by the authority, to put at the disposal of the governing body of the institution in respect of that year a sum equal to the institution’s budget share for that year; or

(b) in the case of an institution assisted by the authority, to make to the governing body in respect of that year a grant of such a sum;

to be spent for the purposes of the institution.

(3) Any sum which, in accordance with subsection (2)(a) above, is required to be put at the disposal of the governing body of an institution shall be put at their disposal at such times and in such manner as may be provided by or under the scheme.

(4) Payments in respect of any grant made in accordance with subsection (2)(b) above shall be made at such times and in such manner as may be so provided.

(5) In the case of any institution in respect of which financial delegation is required for any financial year, the authority may not—

(a) delegate to the governing body the power to spend any sum appropriated by the authority for the purposes of the institution in that year; or

(b) make to the governing body a grant of any such sum;

otherwise than as required under the scheme.

(6) Subject to section 150(7) of this Act, the governing body of any institution 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 or granted to them in respect of the institution’s budget share for any financial year as they think fit for the purposes of the institution; and

(b) may delegate to the principal, to such extent as may be permitted by or under the scheme and subject to any provision of the articles of government of the institution, their power under paragraph (a) above in relation to any part of that sum.

(7) The governors of an institution shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their power under subsection (6) above.