The Education (Grant-maintained Schools) (Finance) Regulations 1992

Regulations 10(3)(b) and 15(4)

SCHEDULE 1 EXCLUDED HEADS OR ITEMS OF EXPENDITURE

The following heads or items of expenditure are excluded for the purposes of determining an amount under regulation 10(3)(b) or (as the case may be) determining in accordance with regulation 15(4) the amount of relevant expenditure incurred by the former maintaining authority—

(a) expenditure treated by the former maintaining authority as expenditure of a capital nature;

(b) expenditure in respect of the repayment of the principal of, the payment of interest on and the discharge of any financial obligation in connection with, any loan raised to meet expenditure of a capital nature;

(c) expenditure which is offset by income received as central government grant in support of specific expenditure;

(d) expenditure required to meet the liabilities of the former maintaining authority in respect of compensation for premature retirement of—

(i) persons formerly employed by them to work at a school maintained by them; or

(ii) persons formerly employed by the governing body of a school maintained by them, the purposes of payment of compensation for premature retirement was made before 1st April 1992;

(e) expenditure on the following items and on any necessary administrative costs associated therewith—

(i) transport of pupils between home and school;

(ii) the provision of clothing for pupils;

(iii) the granting of scholarships, exhibitions, bursaries or other allowances to pupils over compulsory school age, to enable pupils to take advantage of educational facilities without hardship to themselves or their parents;

(iv) expenditure on education welfare officers and educational psychologists;

(v) expenditure on additional support provided to schools specifically for pupils with statements of special educational needs in accordance with those statements.

Regulation 15(4)

SCHEDULE 2 HEADS OR ITEMS OF EXPENDITURE FOR THE PURPOSE OF DETERMINING “RELEVANT EXPENDITURE”

The following heads or items of expenditure are to be included when determining “relevant expenditure” for the purposes of regulation 15 except to the extent that any such expenditure falls within any description of expenditure listed in Schedule 1:

1.  Salaries of, and other costs attributable to, staff employed to work wholly or partly at the school other than staff employed in the provision of school meals.

2.  Expenditure on books, stationery and other educational equipment for use at the school.

3.  Expenditure on telephones and postage for the purposes of the school.

4.  Examination fees incurred in relation to registered pupils at the school.

5.  Expenditure relating to the school premises, including in particular—

(a) heating and lighting;

(b) caretaking and cleaning;

(c) rent, rates, non-domestic rates, water rates and charges for the supply of water or the provision of sewerage services;

(d) insurance; and

(e) repairs and maintenance.

6.  Any other expenditure treated by the authority as forming part of the direct costs of the school.

Regulations 20 and 23

SCHEDULE 3 REQUIREMENTS WHICH MAY BE ATTACHED TO PAYMENT OF MAINTENANCE GRANTS AND SPECIAL PURPOSE GRANTS

1.  A requirement that the governing body shall secure, so far as their powers extend, that the school is conducted in accordance with any requirements imposed by or under any enactment including, in particular, any imposed by or under the Act or the instrument of articles of government for the school.

2.  Requirements with respect to the maintenance of proper accounts including, in particular, requirements as to—

(a) the appointment by the governing body of a person who will be responsible to them for the administration of their financial affairs;

(b) the accounting systems and methods to be adopted by the governing body and the form of their accounts and supporting records;

(c) internal financial controls including, in particular, requirements as to the procedures to be adopted with respect to the receipt and disbursement of money by the governing body;

(d) the publication of the governing body’s accounts.

3.  Requirements as to audit and inspection of the governing body’s accounts, including, in particular, requirements as to—

(a) the procedure to be adopted in appointing and replacing auditors;

(b) any qualifications the auditors are to possess;

(c) the duration of auditors' appointments;

(d) the frequency of audits;

(e) the functions which are to be performed by the auditors in respect of the school;

(f) the inspection of accounts and supporting records on request by any person authorised by the Secretary of State; and

(g) examinations by persons authorised by the Secretary of State or the Comptroller and Auditor General into the economy, efficiency and effectiveness with which the governing body of the school have used their resources in discharging their functions.

4.  Such further requirements relating to the conduct of the school’s financial affairs as the Secretary of State thinks fit.

Regulation 21

SCHEDULE 4 EXPENDITURE OF A CAPITAL NATURE

1.  Expenditure of a capital nature is expenditure on, or in connection with,—

(a) the acquisition, reclamation, improvement or laying out of any land;

(b) the acquisition, construction, enlargement, improvement, repair or demolition of any building, wall, fence or other structure, or any playground or other hard-standing;

(c) the laying out of playing fields and other facilities for social activities and physical recreation; or

(d) the provision of any furniture, plant, machinery, apparatus, vehicles, vessels and equipment;

2.  In paragraph 1 above “building” includes any fixtures and fittings affixed to a building.

Regulation 22

SCHEDULE 5 EXPENDITURE IN RESPECT OF WHICH SPECIAL PURPOSE GRANTS MAY BE PAID

1.  In this Schedule—

“eligible training” means—

(a)

the training or further training as teachers of persons other than qualified teachers who are employed by the governing body of a school; and

(b)

the further training of any qualified teacher who is employed by the governing body of a school; and

“trainee” means a person undergoing eligible training in respect of whom special purpose grant is being paid under these Regulations.

2.  The expenditure in respect of which special purpose grants may be paid is—

(a) expenditure for or in connection with any of the purposes relevant to schools for which education support grants are for the time being payable by virtue of regulations made under section 1 of the Education (Grants and Awards) Act 1984(1);

(b) expenditure for or in connection with the training of any teacher or other member of the staff of a school including, in particular, expenditure on—

(i) tuition fees, examination fees and residential and other charges payable in respect of eligible training;

(ii) travelling, subsistence and other incidental expenses of a trainee;

(iii) that part of the remuneration of persons whose employment is necessary to free the trainee for training which relates to the period during which their employment is so necessary; and

(iv) the cost of providing (including the provision of premises), planning, co-ordinating, monitoring and evaluating eligible training; for other purposes special purpose grant shall be payable only in respect of such proportion of those costs as is attributable to the provision, planning, co-ordinating, monitoring or evaluation of eligible training;

(c) expenditure in respect of expenses which it appears to the Secretary of State the governing bodies of schools cannot reasonably be expected to meet from maintenance grant being expenses incurred or to be incurred for or in connection with—

(i) any structural survey which the Secretary of State has required to be carried out in respect of any building used for the purposes of the school;

(ii) the dismissal (whether by reason of redundancy or otherwise) or for the purpose of securing the resignation of any person who is or was a member of the staff of the school, and the premature retirement of such a person;

(iii) any liability of the school in respect of Value Added Tax;

(iv) insurance of the school premises;

(v) meeting any urgent need of the school occasioned by circumstances outside the control of the governing body; and

(vi) the school’s acquisition of grant-maintained status and the transfer to the governing body of the responsibility for the conduct of the school, where those expenses are incurred within 12 months of the incorporation date; and

(d) expenditure of a class or description relevant to schools and for or in connection with the purpose for which grants are for the time being payable by virtue of regulations made under section 210 of the Act(2).

Kenneth Clarke

Secretary of State for Education and Science

6th March 1992

(1)

1984 c. 11; see the Education Support Grant Regulations 1990 (S.I. 1990/2518, amended by S.I. 1991/2943).

(2)

See the Education (Grants) (Travellers and Displaced Persons) Regulations 1990 (S.I. 1990/306, amended by S.I. 1991/131).