Regulation 8(2)

SCHEDULE 1 DETERMINATION OF THE RELEVANT PERCENTAGE

1.  This Schedule applies for the purposes of determining the relevant percentage under regulation 8(1) or 16(4).

2.  The relevant percentage in respect of any primary or secondary school is the percentage determined for the school in accordance with paragraph 3 and in respect of any special school is the percentage determined for the school in accordance with paragraph 4. In determining the relevant percentage no account shall be taken of expenditure by the local education authority which is offset by income received other than as central grants or grant from any of the European Communities.

3.—(1) For the purposes of this paragraph, the funding authority shall determine the percentage which the amount determined in accordance with sub-paragraph (2) below is of the amount which appears to them to be equal to the amount of the local education authority’s aggregated budget for primary or secondary schools for the financial year in question included in accordance with regulation 3(a) of, and notes (3) and (8) or (4) and (8), as the case may be, in Schedule 1 to, the Education (School Financial Statements) (Prescribed Particulars etc.) Regulations 1995(1) (“the 1995 Regulations”), in Part 1 of the authority’s statement prepared under section 122(2) of the 1996 Act for that year (“the statement”), according as to whether the school is a primary school or a secondary school.

(2) The funding authority shall determine an amount by the application of the following formula—

where

• A is the amount of that part of the local education authority’s general schools budget for primary and secondary schools for the financial year in question included in accordance with regulation 3(a) of, and notes (3) and (44) or (4) and (44), as the case may be, in, Schedule 1 to the 1995 Regulations in Part 1 of the Statement which, in the opinion of the funding authority, would remain after deducting—

  (a)

  their aggregated budget for the year; and

  (b)

  the aggregate of the amounts referred to in paragraph 5.

• B is the number of registered pupils on a date determined by the funding authority at all primary schools or all secondary schools maintained or formerly maintained by the local education authority (according as to whether the school is a primary school or a secondary school) which are required to be covered by a statement for the financial year in question under section 122(2) of the 1996 Act; and

• C is the number of registered pupils on that date at all such schools whether primary or secondary.

4.—(1) For the purposes of this paragraph, the funding authority shall determine the percentage which the amount determined in accordance with sub-paragraph (2) below is of the amount of that part of the local education authority’s aggregated budget which is 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 1995 Regulations, in Part 1 of the authority’s statement prepared under section 122(2) of the 1996 Act for that year (“the statement”).

(2) The funding authority shall determine the amount remaining after the sum of the amount of the local education authority’s aggregated budget referred to in sub-paragraph (1) above and the aggregate of the amounts referred to in paragraph 5 is deducted from the amount of that part of the authority’s general schools budget which is for special schools for the financial year in question included, in accordance with regulation 3(a) of, and notes (5) and (44) in Schedule 1 to, the 1995 Regulations, in the statement.

5.—(1) The amounts referred to in paragraphs 3 and 4 are the amounts included in the statement, in accordance with regulation 3(a) of, and the relevant notes in Schedule 1 to, the 1995 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 (25);

(d) existing commitments to pay compensation for redundancy, dismissal or premature retirement of staff (40)(b);

(e) assessing pupils' special educational needs, making special educational provision for pupils with statements of special educational needs and reviewing such statements (13)(a) and (39);

(f) education welfare services (37);

(g) educational psychology services (38);

(h) provision for pupils of clothing, board and lodging and financial support (28);

(i) expenditure expected to be offset by income received as grant (41)(a)(i) and (b);

(j) provision of school meals and milk (26)(a) and (b);

(k) contingencies (31);

(l) expenditure of the kind referred to in section 11 of the Local Government Act 1966(2) not expected to be offset by income received as central government grants or grant from any of the European Communities (41)(a)(ii); and

(m) expenditure which is expected to be offset by income received from Her Majesty’s Chief Inspector of Schools in England (27); and

(n) provision of education at a school, other than a pupil referral unit, under section 19(1) of the 1996 Act.

(2) For the purposes of sub-paragraph (1) above “the relevant notes” means, in relation to each matter set out in items (a) to (m) in that sub-paragraph, note (5) and the note indicated in respect of that matter.

Regulation 9

SCHEDULE 2 TRANSITIONAL FUNDING

1.—(1) This Schedule applies for the purpose of determining the amount of a school’s protected level of funding for the preceding financial year and the amount of its adjusted maintenance grant for the financial year in question (the amount by which the former exceeds the latter being the amount of the school’s transitional funding under regulation 9).

(2) References in paragraph 2 to a numbered regulation or Schedule are references to the regulation or Schedule in the 1997 Regulations bearing that number.

2.—(1) Subject to paragraph 5, the funding authority shall calculate the protected level of funding for the preceding financial year for each school according to the formula (a÷b)×c.

(2) For the purposes of the formula in sub-paragraph (1) and subject to sub-paragraph (4), “a”, in the case of a school whose maintenance grant was determined in the preceding financial year in accordance with Part 2 of the 1997 Regulations, other than in accordance with regulation 15, is the aggregate of the following amounts, in each case as last determined or redetermined in respect of the school before 16th December 1997 or, in the case of any special purpose grant, as paid in respect of the school before that date—

(a) the amount (Direct AMG) determined in accordance with regulation 6, 7, or 19;

(b) in the case of a school whose Direct AMG was determined in accordance with regulation 12, the amount which appears to the funding authority to be equal or approximate to the amount of the school’s budget share for that financial year;

(c) the amount (Central AMG) determined in accordance with regulation 8 (or that regulation as it has effect by virtue of regulation 10 (cash protection));

(d) the amount determined in accordance with regulation 11 (or that regulation as it has effect in accordance with regulation 20(1)) or regulation 20(2) (school meals);

(e) the amount determined in accordance with regulation 22 (contingencies) in respect of contingencies arising other than from increases in pupil numbers at the school during the course of that financial year;

(f) the amount determined in accordance with regulation 23 (nursery education);

(g) the amount added or deducted under regulation 32 (schools situated in the area of the authority which is not the area of the former maintaining authority);

(h) the amount added under regulation 33 (capital expenditure from the revenue account);

(i) the amount paid under paragraph 2(f) of Schedule 9 (expenditure for or in connection with the provision at the school of nursery education as defined in section 1 of the Nursery Education and Grant-Maintained Schools Act 1996).

(3) For the purposes of the formula in sub-paragraph (1) and subject to sub-paragraph (4) “a”in the case of a school whose maintenance grant was determined in the preceding financial year under regulation 15, is the aggregate of the following amounts, in each case as last determined or redetermined in respect of the school before 16th December 1997, or in the case of any special purpose grant, as paid in respect of the school before that date—

(a) the amount determined under regulation 15;

(b) the amount added under regulation 33 (capital expenditure from the revenue account);

(c) the amount paid under paragraph 2(f) of Schedule 9 (expenditure for or in connection with the provision at the school of nursery education as defined in section 1 of the Nursery Education and Grant-Maintained Schools Act 1996).

(4) For the purpose of determining the amounts referred to in sub-paragraphs (2) and (3) no account shall be taken of—

(a) funding for pupils with statements of special educational needs of a kind which the local education authority could have determined, by the application of the allocation formula in their scheme in relation to a comparable maintained school covered by the scheme, as part of such a school’s budget share for all or part of the preceding financial year, in so far as such funding or a corresponding percentage of such funding could not also have been so determined for the equivalent period in the financial year in question;

(b) regulations 9 and 17(b) (Section 11 funding);

(c) regulation 13 (apportionment of Central AMG);

(d) regulation 14 (apportionment of school meals funding);

(e) regulations 18 and 21 (apportionment of maintenance grant);

(f) regulation 22 (contingencies) in respect of contingencies arising from increases in pupil numbers at the school during the course of the financial year;

(g) regulations 17(a), 24, 25 and 26 (additions or deductions representing unspent sums from previous budget shares, budget deficits from previous years and deductions from current year’s budget share);

(h) regulations 27 and 28 (deductions representing excessive surpluses in previous years and excessive severance payments);

(i) regulation 31 (schools with wide age ranges).

(5) In the case of a school to which regulation 5(2) of the 1997 Regulations applied (precise calculation of maintenance grant impracticable etc.) the funding authority shall determine as the amount of “a” such amount as appears to them to be fair and reasonable having regard to the amount of maintenance grant which they determined in respect of the school in accordance with the 1997 Regulations and the provisions of sub-paragraphs (2) and (4) above.

(6) For the purposes of the formula in sub-paragraph (1) and subject to sub-paragraph (7), “a”, in the case of a school whose maintenance grant was determined in the preceding financial year in accordance with Part 3 of the 1997 Regulations, is the aggregate of the following amounts, in each case as last determined or redetermined in respect of the school before 16th December 1997 or, in the case of any special purpose grant, as paid in respect of the school before that date—

(a) the amount of the school’s CFF share;

(b) the amount added to the CFF share in accordance with regulation 43(1)(c) (link to budgets);

(c) the amount added to the CFF share in accordance with regulation 44(1) and (2) (protected amount);

(d) the amount added to the CFF share in accordance with regulation 44(4) (special educational needs) but only if such funding or the corresponding percentage of such funding is also included in the authority’s scheme for the financial year in question;

(e) the amount added to maintenance grant in accordance with regulation 52 (deemed primary schools and deemed secondary schools);

(f) the amount added to maintenance grant in accordance with regulation 53 (error contingency amount for primary schools);

(g) the amount added to maintenance grant in accordance with regulation 57 (pupil number contingencies in the London Borough of Brent);

(h) the amount paid under paragraph 2(f) of Schedule 9 (expenditure for or in connection with the provision at the school of nursery education as defined in section 1 of the Nursery Education and Grant-Maintained Schools Act 1996).

(7) For the purpose of determining the amounts referred to in sub-paragraph (6) no account shall be taken of—

(a) revisions under regulation 50(9)(a) where regulation 50(2) (increases in pupil numbers) applies;

(b) regulations 45, 46 and 47 (deficits in previous financial years and deductions representing excessive surpluses in previous years and excessive severance payments).

3.  For the purpose of the formula in paragraph 2(1), “b” is

(a) the number appearing to the funding authority, having regard to the allocation formula in the local education authority’s scheme, to be the number of registered pupils at the school on 16th January 1997; or

(b) in the case of a special school, the number of places for which the school is funded under the authority’s scheme for the financial year beginning in 1997, or

(c) where proposals published under section 259 or 260 of the 1996 Act to make a significant change in the character of the school were—

(i) implemented wholly or partly in that financial year, and

(ii) not funded under regulation 22 or 50(9)(a) of the 1997 Regulations,

such number of pupils determined by the funding authority, having consulted the local education authority, being a composite number based on a proportion of the number of registered pupils at the school on 16th January 1997 and a proportion of the number which the funding authority estimate will be at the school at a later date in the financial year beginning in 1997 determined by them.

4.  For the purpose of the formula in paragraph 2(1), “c” is the number appearing to the funding authority, having regard to the allocation formula in the local education authority’s scheme, to be the number of registered pupils at the school on 15th January 1998 or, in the case of a special school, the number of places for which the school would be funded under the authority’s scheme for the financial year in question.

5.—(1) In the case of a special school which has places for both day and boarding pupils, the funding authority shall calculate the protected level of funding for the preceding financial year for the school according to the formula ((d÷e)×f)+((g÷h)×i), where d+g=a.

(2) For the purposes of the formula in sub-paragraph (1) above,

• “a” is the amount determined under paragraph 2(2), (3), (5) or (6) as the case may be;

• “d” is that part of “a” which the funding authority determine relates to places for day pupils at the school;

• “g” is that part of “a” which the funding authority determine relates to places for boarding pupils at the school;

• “e” is the number of places for day pupils for which the special school is funded for the preceding financial year;

• “h” is the number of places for boarding pupils for which the special school is funded for the preceding financial year;

• “f” is the number of places for day pupils for which the special school would be funded under the local education authority’s scheme for the financial year in question;

• “i” is the number of places for boarding pupils for which the special school would be funded under the local education authority’s scheme for the financial year in question.

6.—(1) Subject to sub-paragraphs (2) and (3), the funding authority shall determine as the adjusted maintenance grant for each school for the financial year in question an amount which is the aggregate of the following amounts—

(a) the amount (Direct AMG) determined in accordance with regulation 6 or 7;

(b) the amount (Central AMG) determined in accordance with regulation 8;

(c) the amount determined in accordance with regulation 11 (school meals);

(d) the amount determined in accordance with regulation 22 (contingencies) in respect of contingencies arising other than from increases in pupil numbers at the school during the course of that financial year;

(e) the amount determined in accordance with regulation 23 (nursery education);

(f) the amount added or deducted under regulation 32 (schools situated in the area of the authority which is not the area of the former maintaining authority);

(g) the amount added under regulation 33 (capital expenditure from the revenue account);

(h) the amount paid under paragraph 2(f) of Schedule 6 (expenditure for or in connection with the provision at the school of nursery education as defined in section 1 of the Nursery Education and Grant-Maintained Schools Act 1996).

(2) For the purpose of determining the amounts in paragraph (1) no account shall be taken of—

(a) funding for pupils with statements of special educational needs of a kind which the local education authority could have determined, by the application of the allocation formula in their scheme in relation to a comparable maintained school covered by the scheme, as part of such a school’s budget share for all or part of the financial year in question, in so far as such funding or a corresponding percentage of such funding could not also have been so determined for the equivalent period in the preceding financial year;

(b) regulation 10 (Section 11 funding);

(c) regulation 22 (contingencies) in relation to increases in pupil numbers at the school during the course of the financial year;

(d) regulations 24, 25 and 26 (additions or deductions representing unspent sums from previous budget shares, budget deficits from previous years and deductions from current year’s budget share);

(e) regulations 27 and 28 (deductions representing excessive surpluses in previous years and excessive severance payments);

(f) regulation 31 (schools with wide age ranges).

(3) In the case of a school to which regulation 4(2) of these Regulations applies (precise calculation of maintenance grant impracticable etc.) the funding authority shall determine as the amount of the adjusted maintenance grant such amount as appears to them to be fair and reasonable having regard to the amount of maintenance grant which they determined in respect of the school under these Regulations and the provisions of sub-paragraph (2) above.

Regulation 16(3)

SCHEDULE 3 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 16(2) the amount of relevant expenditure incurred by the maintaining 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 amount of relevant expenditure incurred by the maintaining local education authority in the preceding financial year does not include the aggregate of the amounts referred to in paragraph 5 of Schedule 1.

Regulations 38 and 41

SCHEDULE 4 REQUIREMENTS WHICH MAY BE ATTACHED TO PAYMENT OF MAINTE NANCE, CAPITAL 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 1996 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 39

SCHEDULE 5 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 acquisition, installation or replacement 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 “building” includes any fixtures and fittings affixed to a building.

Regulation 40(1)

SCHEDULE 6 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 484 of the 1996 Act(3);

(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 have 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 acquisition by the school 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 date of implementation of the proposals in respect of the school;

(vii) the implementation of that part of the curriculum for the school falling outside the curriculum referred to in section 352(1) of the 1996 Act;

(viii) the transfer of land to trustees to be held on trust for the purposes of the school pursuant to section 296 of the 1996 Act;

(ix) a contract for the provision of property and services to, or for the purposes of, the school, where the provision of the services is linked to and dependent upon the provision of the property; and

(x) payment of employer’s contributions to the appropriate pension fund under the Local Government Pension Scheme Regulations 1995(4);

(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 488 of the 1996 Act(5);

(e) expenditure in respect of expenses which it appears to the funding authority the governing bodies of primary schools with fewer than 180 registered pupils cannot reasonably be expected to meet from maintenance grant being expenses incurred or to be incurred for or in connection with—

(i) the procurement of professional advice for the purposes of the school; and

(ii) staff absences; and

(f) expenditure for or in connection with the provision at the school of nursery education as defined in section 1 of the Nursery Education and Grant-Maintained Schools Act 1996(6).

Stephen Byers

Minister of State,

Department for Education and Employment

26th March 1998

(1)

S.I. 1995/208.

(2)

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 (c. 40) to which there are amendments not relevant to these Regulations.

(3)

The current Regulations are the Education (Grants for Education Support and Training) (England) Regulations 1998 (S.I. 1998/656).

(4)

S.I. 1995/1019.

(5)

The current Regulations are the Education (Grants) (Travellers and Displaced Persons) Regulations 1993 (S.I. 1993/569; amended by S.I. 1995/543).

(6)

1996 c. 50.