The scheme for financing schools sets out the financial relationship between the Local Authority and the maintained schools that it funds. It contains requirements relating to financial management, and associated issues, binding to both the LA and schools.
The scheme applies to all community, voluntary aided, voluntary controlled, foundation, community special or foundation special schools and pupil referral units (PRUs) maintained by the LA.
The DfE requires Local Authorities to publish schemes of financing schools which set out the financial relationship between them and the schools they maintain.
Any proposed revisions to the scheme will be subject to a consultation with the Governing Boards and head teachers of all maintained schools before being submitted to Schools Forum for approval.
The scheme covers:
- Financial control including: monitoring reporting; accounting policies and year end procedures; budget planning; efficiency and value for money; audit; purchasing, tendering and contracting requirements; and the Schools Financial Value Standards (SFVS)
- Installments of the budget share, banking arrangements and treasury management
- Treatment of surplus and deficit balances arising in relation to budget shares
- Income including that from: lettings; fees and charges; fundraising; sale of assets
- Charging of school budget shares outlining in what cases the LA may charge a school without the consent of the Governing Board
- Provision of services and facilities by the LA
- Private Finance Initiative (PFI)
- Miscellaneous including: liability of governors; special educational needs; safeguarding; data protection; teachers pensions; redundancy/early retirement costs
- Responsibility for repairs and maintenance
- Power to provide community services
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