The Education (Grant-maintained Special Schools) (Finance) Regulations 1994

Statutory Instruments

1994 No. 2111

EDUCATION, ENGLAND AND WALES

The Education (Grant-maintained Special Schools) (Finance) Regulations 1994

Made

9th August 1994

Laid before Parliament

10th August 1994

Coming into force

1st September 1994

In exercise of the powers conferred on the Secretary of State by sections 81(2), 82, 83(1) and (2), 84(2) and (6), 94 and 301(6) of the Education Act 1993(1), the Secretary of State for Education hereby makes the following Regulations:

PART 1 GENERAL

Citation, commencement and application

1.—(1) These Regulations may be cited as the Education (Grant-maintained Special Schools) (Finance) Regulations 1994 and shall come into force on 1st September 1994.

(2) These Regulations apply in relation to the financial year beginning on 1st April 1994.

Interpretation

2.—(1) In these Regulations—

“the 1988 Act” means the Education Reform Act(2);

“the 1993 Act” means the Education Act 1993;

“financial year in question” means the financial year beginning in 1994;

“local education authority” in relation to any school means the local education authority by which the school was maintained immediately before it became a grant-maintained special school;

“preceding financial year” means the financial year beginning in 1993; and

“school” means a grant-maintained special school situated in England not being a school established in pursuance of proposals made by the funding authority under section 183 of the 1993 Act.

(2) The expressions listed in the left-hand column below are respectively defined by or (as the case may be) are to be interpreted in accordance with the provisions listed in the right-hand column in relation to those expressions—

aggregated budget	section 33(4)(b) of the 1988 Act
capital grants	section 83(1) of the 1993 Act
delegated budget	section 33(6)(b) of the 1988 Act
financial year	section 305(1) of the 1993 Act
general schools budget	section 33(4)(a) of the 1988 Act
maintenance grant	section 81(1) of the 1993 Act
relevant date	regulation 11(7)
relevant expenditure	regulation 9(3)
relevant percentage	regulation 5(2)
scheme	section 51(2)(a) of the 1988 Act(3)
school’s budget share	section 51(2)(b) of the 1988 Act
special purpose grants	section 82(1) of the 1993 Act.

(3) In these Regulations—

(a) references to a change in the characteristics of a school include, in particular, references to any change in the number of registered pupils thereat; and

(b) references to a school becoming a grant-maintained special school are references to a school becoming such a school under Part 2 of the Education (Grant-maintained Special Schools) Regulations 1994.

(4) For the purposes of these Regulations a school becomes a grant-maintained special school on the date of implementation of the proposals in respect of the school under Chapter II or IX of Part II of the 1993 Act.

(5) Unless the context otherwise requires, any reference in these Regulations to—

(a) a numbered regulation or Schedule is a reference to the regulation or Schedule in these Regulations so numbered, and

(b) a numbered paragraph is a reference to the paragraph so numbered in the regulation or Schedule in which the reference appears.

PART 2 MAINTENANCE GRANT

Determination of amount of maintenance grant

3.—(1) Subject to regulation 8, the amount of maintenance grant payable in respect of a school for the financial year in question shall be the sum of the amounts determined in respect of the school and the year in accordance with regulations 4, 5, 6(1) and (where applicable) 7.

(2) Where in the opinion of the funding authority precise calculation for the purpose of determining any of the amounts referred to in paragraph (1)—

(a) would be impracticable;

(b) would not significantly affect the amount; or

(c) would be disproportionately costly having regard to the complexity of the calculation and the likely effect on the amount,

paragraph (1) shall have effect as if it required the funding authority to determine as the amount of maintenance grant payable for the financial year in question such amount as appears to them to be fair and reasonable having regard in particular to the local education authority’s scheme.

4.  The funding authority shall determine an amount which appears to them to be equal to that amount of the school’s budget share for the financial year in question in respect of which, immediately before the school became a grant-maintained special school, sums had neither been deducted by the local education authority in accordance with their scheme nor made available pursuant to section 36(2) and (3) of the 1988 Act(4), or, if made available, had not been spent by the governing body of the school in exercise of their powers under section 36(5) of that Act.

5.—(1) The funding authority shall determine the amount which is equal to the relevant percentage of the amount determined by the application of the following formula—

where

• A is the number of days in the financial year falling on or after the date on which the school becomes a grant-maintained special school;

• B is 365; and

• J is the amount of the school’s budget share for the financial year in question.

(2) In these Regulations the relevant percentage is the percentage determined in accordance with Schedule 1.

6.—(1) The funding authority shall determine the amount which is the sum of the amounts determined in accordance with paragraphs (4) to (7).

(2) The funding authority shall determine an amount in respect of the provision of school meals calculated by the application of the following formula—

where

• M is the number of registered pupils in receipt of free school meals at the school;

• F is the total of the local education authority’s planned expenditure for the financial year in question in providing meals to pupils in receipt of free school meals at relevant schools;

• P is the number of registered pupils in receipt of free school meals at relevant schools;

• S is the number of registered pupils at the school who bought meals at the school on a date in the preceding financial year determined by the funding authority;

• G is the total of the local education authority’s planned expenditure for the financial year in question on school meals, other than free school meals, at relevant schools and excluding expenditure to be met from any charges for such meals; and

• B is the number of registered pupils at relevant schools who bought meals at those schools on a date in the preceding financial year determined by the funding authority.

(3) In paragraph (2)—

“number of registered pupils” means the number of pupils on a school’s register on a date determined by the funding authority;

“planned expenditure” means the initial amount appropriated by the local education authority for meeting expenditure at all relevant schools excluding any such expenditure falling within their aggregated budget; and

“relevant schools” means all special schools maintained or formerly maintained by the authority required to be covered by a statement for the year under section 42 of the 1988 Act(5).

(4) The funding authority shall determine the amount calculated by the application of the following formula—

where

• C is the amount determined in accordance with regulation 6(2);

• F is 1.015, where the date of implementation of the proposals falls before 1st January 1995, and 1.02, where that date falls after 31st December 1994; and

• A and B represent the matters respectively denoted by those letters in regulation 5(1).

(5) The funding authority shall determine the amount which it appears to them, were the school maintained by the local education authority, could have been allocated for the purposes of the school in accordance with the authority’s scheme in respect of contingencies.

(6) Where the school provides education for junior pupils who have not attained the age of five years, the funding authority shall determine the amount (if any) in respect of such provision which they are satisfied is fair and reasonable having regard in particular to the extent to which, in their opinion, the cost of such provision ought to be met from the amount determined in accordance with regulation 4.

(7) The funding authority shall determine the amount (if any) which it appears to them, were the school maintained by the local education authority, could have been allocated for the purposes of the school in accordance with the authority’s scheme in support of expenditure of the kind referred to in section 11 of the Local Government Act 1966(6), in respect of posts approved by the Secretary of State for the purpose of making grants in respect of such expenditure, not being expenditure expected to be offset by income received as central government grants.

7.  Where in a financial year preceding the financial year in question the school had a delegated budget under the local education authority’s scheme, the funding authority shall determine the amount (if any) which it appears to them is equal to that amount of the school’s budget share for any financial year prior to the financial year in question in respect of which sums had neither been deducted by the local education authority in accordance with their scheme nor made available pursuant to section 36(2) or (3) of the 1988 Act, or if made available, were not spent by the governing body in exercise of their powers under section 36(5) of that Act.

Determination of amount of maintenance grant otherwise than under regulation 3

8.—(1) Notwithstanding the provisions of regulation 3, the funding authority may determine as the amount of maintenance grant payable in respect of a school for the financial year in question the sum of the amounts determined in accordance with regulations 9(7) and 10.

(2) The funding authority shall consult the local education authority and the governing body of the school before determining the amount of maintenance grant payable in respect of the school for the financial year in question in accordance with this regulation.

9.—(1) The funding authority shall determine an amount which is the sum of the amounts determined in accordance with paragraphs (2), (4) and (5), subject to any adjustment made in accordance with paragraph (6).

(2) The funding authority shall determine an amount which they are satisfied is equal to the amount of relevant expenditure incurred by the local education authority in respect of the school in the preceding financial year.

(3) Schedule 2 shall have effect for the purpose of determining the amount of relevant expenditure incurred by the authority in that year.

(4) The funding authority shall determine an amount which is equal to the relevant percentage of the amount determined in accordance with paragraph (2).

(5) The funding authority shall determine an amount in respect of the local education authority’s planned expenditure on the provision of school meals calculated by the application of the following formula—

where

• M, F, P, S, G and B represent the matters respectively denoted by those letters in regulation 6(2); and for the purposes of this paragraph the expressions used in regulation 6(2) shall have the meanings assigned to them by regulation 6(3).

(6) The sum of the amounts determined in accordance with paragraphs (2), (4) and (5) may be adjusted by such amount as the funding authority are satisfied is fair and reasonable having regard, in particular, to—

(a) any increase or decrease in the actual or planned level of spending of the local education authority in respect of the schools maintained by them occurring during or since the end of the preceding financial year, and

(b) any significant change in the characteristics of the school occurring as aforesaid or which it appears to the funding authority will be likely to occur before the end of the financial year in question.

(7) The funding authority shall determine the amount calculated by the application of the following formula—

where

• E is the amount determined in accordance with regulation 9(1);

• A and B represent the matters respectively denoted by those letters in regulation 5(1); and

• F represents the number denoted by that letter in regulation 6(4).

10.  The funding authority shall determine—

(a) where, if the amount of maintenance grant for the school were to be determined under regulation 3, an amount would be determined in respect of the school in accordance with regulation 7, that amount; and

(b) where, if the amount of maintenance grant for the school were to be so determined, an amount would be determined in respect of the school in accordance with regulation 6(7), that amount.

Relevant date

11.—(1) Subject to paragraphs (2)

and (3) and regulation 13, any amount required to be determined by the funding authority under these Regulations shall be determined on the information available to them on the relevant date.

(2) In paragraph (1), the relevant date means 1st September 1994 or, for the purposes of determining the amount of maintenance grant payable in respect of any school for the financial year in question, such other date as the funding authority may determine.

(3) The funding authority may, in any case where they consider it appropriate to do so, redetermine the relevant date.

(4) Where—

(a) the funding authority determine in accordance with paragraph (2) that, in respect of any school for the financial year in question, the relevant date should be a date other than 1st September 1994, or

(b) they redetermine the relevant date in accordance with paragraph (3),

they shall notify the governing body of the school and the local education authority in writing of that fact.

(5) Where there is not available to the funding authority on the relevant date sufficient information as will, in their opinion, allow them to determine any amount referred to in paragraph (1) they may determine the amount of maintenance grant payable in respect of the school on such basis as appears to them to be fair and reasonable having regard to the information available to them on the relevant date.

(6) The funding authority shall not take into account any information made available to them after the relevant date (but before the date of their determination) for the purposes of determining the amount of maintenance grant payable in respect of a school for the financial year in question.

(7) References in these Regulations to the relevant date are references to the date referred to in paragraph (2) unless the relevant date has been redetermined in accordance with paragraph (3) in which case it is a reference to that date as redetermined.

Adjustments

12.—(1) Without prejudice to paragraph (5), this paragraph applies where—

(a) after determining the amount of maintenance grant payable in respect of any school for the financial year in question in accordance with these Regulations it appears to the funding authority that, by reason of—

(i) any change in the characteristics of the school,

(ii) any change in the level of spending by the local education authority, or

(iii) any other change affecting the needs of the school,

the amount so payable should be revised; or

(b) the funding authority are satisfied that their determination of the amount of maintenance grant payable in respect of any school for the financial year in question was made in ignorance of, or was based on a mistake as to, some material fact, or was not in accordance with these Regulations.

(2) In any case to which paragraph (1) applies, the funding authority may redetermine the amount of maintenance grant payable in respect of the school for that year in accordance with these Regulations and, if the amount so redetermined is different from the amount previously determined, revise their determination accordingly.

(3) Subject to paragraph (4), paragraph (2) shall not enable the funding authority to revise their determination of maintenance grant so as to reduce the amount of grant payable in respect of the school concerned for the financial year in question.

(4) The funding authority may revise their determination of maintenance grant so as to reduce the amount payable where—

(a) that determination was made in ignorance of, or was based on a mistake as to, some material fact; and

(b) such ignorance or mistake was not attributable to an act or omission of the local education authority.

(5) Where it appears to the funding authority that, by reason of any extraordinary circumstances, the amount of maintenance grant determined in respect of a school for the financial year in question is insufficient to enable the governing body of the school adequately to carry out their functions with respect to the conduct of the school, they may redetermine the amount of maintenance grant payable in respect of the school for that year in accordance with paragraph (6), and revise their determination accordingly.

(6) Where the funding authority decide to redetermine the amount of maintenance grant by virtue of paragraph (5), they shall redetermine that amount by adding to it such amount as appears to them to be necessary for the purpose of enabling the governing body adequately to carry out their functions with respect to the conduct of the school.

(7) Where in accordance with this regulation the funding authority revise the amount of maintenance grant payable in respect of any school for the financial year in question they shall give notice thereof to the governing body of the school and to the local education authority.

(8) A determination which has been revised in accordance with this regulation may be further revised in accordance with this regulation and may be so further revised notwithstanding that the funding authority are satisfied that the revised determination was not made in accordance with these Regulations.

Application of relevant date provisions to a redetermination of the amount of maintenance grant

13.—(1) In its application for the purposes of any redetermination under regulation 12 of the amount of maintenance grant payable in respect of a school for the financial year in question, regulation 11 shall have effect subject to the following provisions of this regulation.

(2) Where the redetermination of maintenance grant under regulation 12(2) is made on one or more of the grounds specified in paragraph (1)(a) of that regulation the funding authority may take into account for the purposes of the redetermination any information received by them after the relevant date which relates to any of the reasons for making the redetermination.

(3) Where the redetermination of maintenance grant under regulation 12(2) is made on the grounds, specified in paragraph (1)(b) of that regulation, that the funding authority are satisfied that their determination was made in ignorance of, or was based on a mistake as to, some material fact, they may take into account any information received by them after the relevant date which relates to that fact.

(4) Where in accordance with paragraphs (2) and (3) any additional information is taken into account by the funding authority for the purposes of redetermining grant under regulation 12(2), they may take that information into account for the purposes of making any further redetermination under that regulation.

(5) Regulation 11 shall not apply where a redetermination is made by the funding authority in accordance with regulation 12(5) and (6).

Requirements which may be attached to payment of maintenance grant

14.—(1) The requirement set out in paragraph 1 of Schedule 3 is specified as a requirement which may be imposed by the funding authority on governing bodies to whom payments of maintenance grant are or have been made.

(2) The funding authority may determine, for the purposes of the application of section 84(1) and (2) of the 1993 Act to such governing bodies, any requirements referred to in paragraphs 2 to 4 of Schedule 3.

PART 3 CAPITAL AND SPECIAL PURPOSE GRANTS

Capital grants

15.—(1) Subject to paragraph (2), the funding authority may pay capital grants in respect of expenditure of a capital nature of a class or description specified in Schedule 4 incurred or to be incurred by the governing body of a school.

(2) In the case of a school which is established in a hospital paragraph (1) shall apply only in respect of expenditure of a class or description specified in paragraph 1(d) of Schedule 4.

Special purpose grants

16.—(1) The funding authority may pay special purpose grants in respect of expenditure of any class or description specified in Schedule 5 incurred or to be incurred by the governing body of a school—

(a) for or in connection with the educational purposes so specified; or

(b) in respect of any expenses so specified being expenses which it appears to the funding authority the governing bodies of schools cannot reasonably be expected to meet from maintenance grant.

(2) Special purpose grants may be paid on a regular basis in respect of expenditure of a recurrent kind or by reference to expenditure incurred or to be incurred on particular occasions or during any particular period.

Requirements which may be attached to payment of capital or special purpose grants

17.—(1) The requirements set out in paragraph 1 of Schedule 3 and paragraph (2)

below are specified as requirements which may be imposed by the funding authority on governing bodies to whom payments of capital or special purpose grants are or have been made.

(2) The requirements referred to in paragraph (1) are—

(a) a requirement that any such payment shall be applied for the purpose of defraying expenditure in respect of which it was made and for no other purpose; and

(b) a requirement that such a payment shall be so applied before a date specified by the funding authority.

(3) The funding authority may determine for the purposes of the application of section 84(1) and (2) of the 1993 Act to such governing bodies as are referred to in paragraph (1)—

(a) any requirement referred to in paragraphs 2 to 4 of Schedule 3;

(b) any requirement formulated for the purpose of assisting the funding authority to be satisfied that a requirement imposed in accordance with paragraph (2) is being, or has been, complied with including, in particular, requirements as to the furnishing by the governing body of audited statements relating to expenditure in respect of which the grant has been paid together with such accounts, receipts, invoices and other information as the funding authority may require in order to verify the same; and

(c) any requirement as to the repayment, in whole or in part, of payments made to the governing body in respect of such grant if any other requirement imposed by the funding authority in accordance with this regulation subject to which the payments were made is not complied with.

(4) The funding authority may determine for the purposes of the application of that section to governing bodies to whom payments of special purpose grants are or have been made requirements as to the payment to the funding authority, if any conditions specified in the requirements are satisfied, of the whole or any part of the amount referred to in section 84(7) of the 1993 Act.

PART 4 RECOVERY OF AMOUNTS IN RESPECT OF MAINTENANCE GRANT FROM LOCAL EDUCATION AUTHORITY

Determination of amount to be recovered

18.  The total amount which the Secretary of State may recover by virtue of section 93 of the 1993 Act from a local education authority named in a determination under that section applying that section in respect of any school in relation to the financial year in question is the amount determined in accordance with these Regulations as the amount of the maintenance grant payable in respect of the school and financial year in question (as from time to time revised).

SCHEDULE 1 Regulation 5(2) THE RELEVANT PERCENTAGE

1.  Subject to paragraph 2, for the purposes of regulations 5(2) and 9(4) the relevant percentage in respect of any school is the percentage specified in the right-hand column of the following table opposite the reference in the left-hand column to the local education authority by which the school was maintained before it became a grant-maintained special school—

Local Education Authority	%
AVON	17.6
BARKING AND DAGENHAM	26.8
BARNET	11.5
BARNSLEY	12.5
BEDFORD	8.8
BERKSHIRE	9.3
BEXLEY	10.9
BIRMINGHAM	9.7
BOLTON	8.3
BRADFORD	9.3
BRENT	13.1
BROMLEY	12.6
BUCKINGHAMSHIRE	11.5
BURY	8.3
CALDERDALE	6.2
CAMBRIDGESHIRE	7.1
CAMDEN	21.1
CHESHIRE	15.0
CITY OF LONDON N/A
CLEVELAND	14.8
CORNWALL	5.5
COVENTRY	8.7
CROYDON	10.7
CUMBRIA	12.0
DERBYSHIRE	11.2
DEVON	9.6
DONCASTER	11.2
DORSET	13.0
DUDLEY	18.3
DURHAM	12.5
EALING	9.0
EAST SUSSEX	14.2
ENFIELD	7.5
ESSEX	7.9
GATESHEAD	12.6
GLOUCESTERSHIRE	6.8
GREENWICH	10.2
HACKNEY	9.3
HAMMERSMITH & FULHAM	11.4
HAMPSHIRE	13.4
HARINGEY	9.4
HARROW	9.8
HAVERING	10.5
HEREFORD AND WORCESTER	12.3
HERTFORDSHIRE	6.0
HILLINGDON	12.5
HOUNSLOW	20.6
HUMBERSIDE	6.3
ISLE OF WIGHT	19.0
ISLES OF SCILLY N/A
Local Education Authority %
ISLINGTON	8.1
KENSINGTON AND CHELSEA	11.1
KENT	19.1
KINGSTON	18.5
KIRKLEES	14.7
KNOWSLEY	8.3
LAMBETH	11.4
LANCASHIRE	11.4
LEEDS	9.2
LEICESTERSHIRE	11.7
LEWISHAM	8.9
LINCOLNSHIRE	11.7
LIVERPOOL	17.7
MANCHESTER	7.7
MERTON	9.7
NEWCASTLE	11.9
NEWHAM	11.6
NORFOLK	13.9
NORTHAMPTONSHIRE	4.4
NORTHUMBERLAND	9.7
NORTH YORKSHIRE	10.5
NOTTINGHAMSHIRE	7.6
OLDHAM	24.7
OXFORDSHIRE	11.2
REDBRIDGE	17.9
RICHMOND UPON THAMES	12.2
ROCHDALE	11.0
ROTHERHAM	16.8
ST HELENS	10.7
SALFORD	9.1
SANDWELL	14.6
SEFTON	17.5
SHEFFIELD	10.7
SHROPSHIRE	9.8
SOLIHUL	10.5
SOMERSET	13.4
SOUTH TYNESIDE	17.2
SOUTHWARK	11.4
STAFFORDSHIRE	9.0
STOCKPORT	13.3
SUFFOLK	10.1
SUNDERLAND	13.2
SURREY	7.5
SUTTON	17.1
TAMESIDE	7.9
TOWER HAMLETS	9.6
TRAFFORD	13.6
WAKEFIELD	10.1
WALSALL	11.2
WALTHAM FOREST	6.5
WANDSWORTH	22.4
WARWICKSHIRE	12.3
WESTMINSTER	13.8
WEST SUSSEX	12.5
WIGAN	6.5
WILTSHIRE	8.8
WIRRAL	12.5
WOLVERHAMPTON	5.4

2.—(1) The relevant percentage for the purposes of regulations 5(2)

and 9(4) in respect of any school which, before becoming a grant-maintained special school, was maintained by North Tyneside Metropolitan Borough Council (“the Authority”) is the percentage which the amount determined in accordance with sub-paragraph (2) below is of the amount of the Authority’s aggregated budget for special schools for the financial year in question included, in accordance with regulation 3(a) of, and notes (5) and (8) in Schedule 1 to, the Education (School Financial Statements) (Prescribed Particulars etc) Regulations 1994(7)(“the 1994 Regulations”), in Part I of the Authority’s statement prepared under section 42(3) of the 1988 Act for that year (“the statement”).

(2) The funding authority shall determine the amount remaining after the sum of the amount of the Authority’s aggregated budget referred to in sub-paragraph (1) above and the aggregate of the amounts referred to in sub-paragraph (3) below is deducted from the amount of the Authority’s general schools budget for special schools for the financial year in question included, in accordance with regulation 3(a) of, and notes (5) and (40) in Schedule 1 to, the 1994 Regulations, in the statement.

(3) The amounts referred to in sub-paragraph (2) above are the amounts included in the statement, in accordance with regulation 3(a) of, and the relevant notes in Schedule 1 to, the 1994 Regulations, in respect of the following matters—

(a) capital expenditure (35);

(b) capital financing costs (36);

(c) provision of transport for pupils between home and school (31);

(d) existing commitments to pay compensation for redundancy, dismissal or premature retirement of staff (21)(b);

(e) assessing pupils' special educational needs, making special educational provision for pupils with statements of special educational needs and reviewing such statements (15)(a);

(f) education welfare services (13);

(g) educational psychology services (14);

(h) provision for pupils of clothing, board and lodging and financial support (19);

(i) expenditure expected to be offset by income received as grant (37)(a)(i) and (b);

(j) provision of school meals and milk (32)(a) and (b);

(k) contingencies (25);

(l) expenditure of the kind referred to in section 11 of the Local Government Act 1966 not expected to be offset by income received as central government grant (37)(a)(ii); and

(m) expenditure on the provision of education advisers and the inspection of schools which is expected to be offset by income received from Her Majesty’s Chief Inspector of Schools in England (12)(a).

(4) For the purposes of sub-paragraph (3) above “the relevant notes” means, in relation to each matter set out in sub-paragraphs (a) to (m) in that sub-paragraph, note (5) and the note indicated in respect of that matter.

Regulation 9(3)

SCHEDULE 2 RELEVANT EXPENDITURE

1.  Subject to paragraph 2, the following heads or items of expenditure are to be included for the purposes of determining in accordance with regulation 9(2) the amount of relevant expenditure incurred by the local education authority in the preceding financial year:

(a) 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;

(b) expenditure on books, stationery and other educational equipment for use at the school;

(c) expenditure on telephones and postage for the purposes of the school;

(d) examination fees incurred in relation to registered pupils at the school;

(e) expenditure relating to the school premises, including in particular—

(i) heating and lighting;

(ii) caretaking and cleaning; and

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

(f) any other expenditure treated by the authority as forming part of the direct costs of the school.

2.  The heads or items of expenditure referred to in paragraph 1 are not to be included for the purposes of determining the amount of relevant expenditure to the extent that they fall within any of the following descriptions of expenditure, namely—

(a) expenditure treated by the local education 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 local education authority in respect of compensation for premature retirement of persons formerly employed by them to work at a school maintained by them, where the decision to credit a period of service for the purposes of payment of compensation for premature retirement was made before 1st April in the preceding financial year; and

(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) education welfare officers and educational psychologists where the expenditure is incurred in connection with the performance of a duty or the exercise of a power by the local education authority which is to be performed or exercised by them both in relation to pupils at schools maintained by them and in relation to pupils at grant-maintained schools; and

(v) additional support provided to schools specifically for pupils with statements of special educational needs in accordance with those statements where the expenditure was not included in the authority’s aggregated budget for the year;

(f) expenditure in respect of the provision of education under section 298 of the Education Act 1993;

(g) expenditure offset by income received from Her Majesty’s Chief Inspector of Schools in England;

(h) expenditure of the kind referred to in section 11 of the Local Government Act 1966 in respect of posts approved by the Secretary of State for the purpose of making grants in respect of such expenditure, not being expenditure expected to be offset by income received as central government grants.

Regulations 14 and 17

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 1988 Act or the 1993 Act or the instrument or 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; and

(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 funding authority; and

(g) examinations by persons authorised by the funding authority 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 funding authority think fit.

Regulation 15

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;

used or intended to be used for the purposes of a school.

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

Regulation 16

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 grants for education support and training are for the time being payable to local education authorities by virtue of regulations made under section 1 of the Education (Grants and Awards) Act 1984(8);

(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 trainees 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;

provided that where such costs are incurred for such purposes and 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 funding authority 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 funding authority 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 costs incurred by the school in respect of Value Added Tax;

(iv) insurance of the school premises;

(v) meeting any urgent need of the school which in the opinion of the funding authority was occasioned by circumstances outside the control of the governing body;

(vi) the school becoming a grant-maintained special school, 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 date of implementation of the proposals in respect of the school; and

(vii) the implementation of that part of the curriculum for the school falling outside the curriculum referred to in section 2(1) of the 1988 Act; 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 1988 Act(9).

Eric Forth

Minister of State,

Department for Education

9th August 1994

Explanatory Note

(This note is not part of the Regulations)

The provisions of Chapter VI of Part II of the Education Act 1993 (funding of grant-maintained schools) apply, with certain modifications, to grant-maintained special schools by virtue of regulation 23 of the Education (Grant-maintained Special Schools) Regulations 1994 (as substituted by regulation 11 of the Education (Grant-maintained Special Schools) (Amendment) Regulations 1994).

These Regulations accordingly provide for the determination by the Funding Agency for Schools of amounts of maintenance grant and the payment by them of capital and special purpose grants for grant-maintained special schools situated in England which were formerly special schools maintained by local education authorities. They also prescribe the total amount recoverable by the Secretary of State under section 93 of the 1993 Act from local education authorities in respect of the maintenance grant paid to such schools (regulation 18). The Regulations apply in relation to the 1994-95 financial year.

Amounts of maintenance grant consist of the following elements—

(a) the amount remaining unspent when the school becomes a grant-maintained special school of its budget share for the year under its former maintaining authority’s scheme for the local management of schools (regulation 4);

(b) the percentage specified in Schedule 1 of the proportion of the school’s budget share for the year reflecting the period of the year for which the school is a grant-maintained special school (regulation 5);

(c) amounts in respect of—

(i) the provision of school meals (regulation 6(2) and (4));

(ii) contingencies (regulation 6(5));

(iii) (where applicable) nursery education (regulation 6(6));

(iv) the employment of staff to make special provision for pupils belonging to ethnic minorities (regulation 6(7)); and

(v) (where applicable) the surplus on the school’s budget share for any year whilst the school was subject to the former maintaining authority’s local management scheme (regulation 7).

The Funding Agency may alternatively determine amounts of maintenance grant by reference to the amount spent by the former maintaining authority on the school in the 1993-94 financial year and the authority’s planned provision for school meals for the 1994-95 financial year, adjusted for relevant changes and apportioned to reflect the period of the financial year for which the school is a grant-maintained special school (regulations 8 and 9). Where applicable, amounts for the employment of staff to make special provision for pupils belonging to ethnic minorities and the surplus on the school’s budget share for any year before the school became a grant-maintained special school are to be added (regulation 10).

Determinations are to be made by reference to the information available to the Funding Agency on 1st September 1994 or another date determined by them (regulation 11). Adjustments may be made to the amount of maintenance grant determined for a school to take account of subsequent changes or to correct errors (regulation 12).

The kinds of capital grants which may be paid to a school are specified. These are restricted in the case of a special school established in a hospital (regulation 15 and Schedule 4). The purposes for which special purpose grants may be paid are specified (regulation 16 and Schedule 5). The Regulations also specify requirements which may be imposed by the Funding Agency on governing bodies to whom maintenance, capital or special purpose grants are paid under the Regulations (regulations 14 and 17 and Schedule 3).

(1)

1993 c. 35. Sections 81 to 95 apply to grant-maintained special schools and their governing bodies by virtue of regulation 23 of the Education (Grant-maintained Special Schools) Regulations 1994, S.I. 1994/653, as substituted by regulation 11 of the Education (Grant-maintained Special Schools) (Amendment) Regulations 1994, S.I. 1994/1231. For the meaning of “regulations” see section 305(1) of the 1993 Act.

(2)

1988 c. 40.

(3)

Section 51(2)(a) is amended by section 274(4) of the Education Act 1993.

(4)

Section 36 is amended by section 12(6) of the Further and Higher Education Act 1992 (c. 13) and section 307 of, and paragraph 125 of Schedule 19 to, the Education Act 1993.

(5)

Section 42 is amended by sections 275(1) and 307(3) of, and Schedule 21 to, the Education Act 1993. Special schools maintained by local education authorities are required to be covered by statements under section 42 in respect of the financial year beginning in 1994 and subsequent financial years by virtue of regulation 2 of the Education (Application of Financing Schemes to Special Schools) Regulations 1993, S.I. 1993/3104.

(6)

1966 c. 42 as substituted by section 1(1) of the Local Government (Amendment) Act 1993 (c. 27). Section 11 is extended by section 211 of the Education Reform Act 1988 (to which there are amendments not relevant to these Regulations) which is applied to grant-maintained special schools by regulation 42(1) of, and the Schedule to, the Education (Grant-maintained Special Schools) Regulations 1994.

(7)

S.I. 1994/323.

(8)

1984 c. 11. Section 1 is amended by section 278 of the Education Act 1993. The current Regulations are the Education (Grants for Education Support and Training) Regulations 1994 (S.I. 1994/612).

(9)

The current Regulations are the Education (Grants) (Travellers and Displaced Persons) Regulations 1993 (S.I. 1993/569).