EDUCATION, ENGLAND AND WALES PART 1 GENERAL Citation, Commencement, and Extent 1 1 These Regulations may be cited as the Education (Grant-maintained Schools) (Finance) Regulations 1989 and shall come into force on 1st September 1989. 2 These Regulations extend to England only. Interpretation 2 1 In these Regulations, except where the context otherwise requires — “ the Act ” means the Education Reform Act 1988; and “school” means a grant-maintained school (within the meaning of that Act). 2 The expression “expenditure of a capital nature” has the meaning assigned to it by Schedule 5 to these Regulations. 3 The following table shows provisions defining or otherwise explaining expressions used in these Regulations (other than provisions defining or explaining an expression used only in the same regulation or Schedule), references in the second column thereof to sections and regulations being, respectively, references to sections of the Act and regulations of these Regulations — aggregated budget section 33(4)(b) allocation formula section 38(2). capital grant section 79(3)(b). change in the characteristics of the school regulation 3(8) financial year section 235(1). former maintaining authority sections 74(8) and 104(1)(i) and (6). general schools budget section 33(4)(a). incorporation date section 104(3). maintenance grant section 79(1). relevant expenditure regulation 3(3). scheme section 51(2)(a). school’s budget share section 51(2)(b). special purpose grant sections 79(3)(a). 4 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 GRANTS Determination of amount of maintenance grant — transitional provisions 3 1 This regulation applies for the purpose of determining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for a financial year other than one in respect of which the former maintaining authority are required to prepare a statement under section 42 of the Act (which provides for the publication of financial statements about schemes for the local management of schools), and is subject to regulations 5 and 6 below. 2 The Secretary of State shall determine an amount which he is satisfied represents, in relation to the financial year ending last before the incorporation date, the amount of relevant expenditure incurred by the former maintaining authority in respect of the school. 3 The reference in paragraph (2) above to relevant expenditure is a reference to the amount of expenditure incurred by the authority in that year in respect of the school on the heads or items specified in Schedule 1, but does not include any expenditure on the heads or items specified in Schedule 3. 4 a There shall be added to the amount so determined an amount which the Secretary of State is satisfied represents the school’s share, obtained by applying the formula in sub-paragraph (b) below, of the authority’s planned expenditure on centrally provided services. b That formula is: ( N × E ) ( T ) + ( M × F ) ( P ) + ( ( N − M ) ( T − P ) × G ) , where N is the number of registered pupils at the school; E is the total of the authority’s planned expenditure for the year at relevant schools on those heads or items described in sub-paragraph (a) above, other than planned expenditure on school meals; T is the number of registered pupils at relevant schools; M is the number of registered pupils in receipt of free school meals at the school; P is the number of registered pupils in receipt of free school meals at relevant schools; F is the total of the authority’s planned expenditure for the year in providing meals to pupils in receipt of free school meals at relevant schools; and G is the total of the authority’s planned expenditure for the year on school meals other than free school meals at relevant schools and excluding expenditure to be met from any charges for such meals. c In this paragraph, “expenditure on centrally provided services” means expenditure on the heads or items specified in Schedule 2 but excludes any expenditure on the heads or items specified in Schedule 3; “relevant schools” means all primary or all secondary schools maintained or formerly maintained by the authority required to be covered by a statement for the year under section 50 of the Act, according as to whether the school is a primary or secondary school: “planned expenditure” means the initial amount appropriated by the authority for meeting expenditure at all relevant schools; and “number of registered pupils” means the number of pupils on a school’s register on a date to be determined by the Secretary of State; 5 The amount determined in accordance with paragraphs (2) and (4) above may be adjusted by such amount as the Secretary of State is satisfied is fair and reasonable having regard to any increase or decrease in the actual or planned level of spending of the former maintaining authority in respect of the primary or secondary schools, as the case may be, maintained by them and any significant change in the characteristics of the school occurring (in either case) during or since the end of the financial year ending last before the incorporation date. 6 The sum of the amounts determined in accordance with paragraphs (2) and (4) above shall, subject to any adjustment made in accordance with paragraph (5) above, be the amount of maintenance grant payable to the governing body of the school for the financial year in respect of which the determination under this regulation is made. 7 Where there is not available to the Secretary of State (on a date determined by him and notified by him to the former maintaining authority) sufficient information as will, in his opinion, allow him accurately to determine the amounts referred to in paragraphs (2) or (4) above, or both, he may determine such amount or amounts as appears to him to be fair and reasonable having regard to any information which is available to him, and his determination shall have effect as if determined under paragraph (2) or (4), as the case may be. 8 References in paragraph (5) above and regulation 6(1), to any change in the characteristics of the school include, in particular, references to any change in the number of registered pupils thereat. Determination of amount of maintenance grant 4 1 This regulation applies for the purpose of determining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for a financial year in respect of which the former maintaining authority are required to prepare a statement under section 42 of the Act, and is subject to regulations 5 and 6 below. 2 The Secretary of State shall determine in relation to the financial year in question an amount which he is satisfied (on the information available to him on a date determined by him and notified by him to the former maintaining authority) that the former maintaining authority could have determined, by the application of their allocation formula in relation to a comparable maintained school covered by their scheme, as such a school’s budget share. 3 a There shall be added to the amount so determined an amount which, in relation to that year, the Secretary of State is satisfied (on the information available to him on a date determined by him) represents the school’s share of the amount set out in sub-paragraph (b) below determined by the application of the per capita formula, that is to say the proportion which the number of registered pupils at a comparable maintained primary or secondary school as the case may be bears to the number of registered pupils at all primary or secondary maintained schools required to be covered by the authority’s scheme as the case may be. b The amount referred to in sub-paragraph (a) is that amount remaining after deducting from the authority’s general schools budget for the year — i their aggregated budget for that year; and ii the authority’s expenditure on those heads or items specified in Schedule 3 (except to the extent that such expenditure falls within their aggregated budget). 4 The sum of the amounts determined in accordance with paragraphs (2) and (3) above shall be the amount of maintenance grant payable in respect of the school for the financial year in respect of which the determination under this regulation is made. 5 Subject to paragraph (6) below, references in this regulation to a maintained school are references to a school maintained by the former maintaining authority concerned, and references to a comparable maintained school are references to such a school, any characteristics of which relevant for the purposes of any formula of a kind referred to in paragraph (2) are identical to any such characteristics of the grant-maintained school and are references (in particular) to a school — a the number of registered pupils in each age group at which is identical to the number of such pupils in each age group at the grant-maintained school; and b any other factors affecting the needs of which (including in particular, the number of registered pupils at the school who have special educational needs and the nature of the special educational provision required to be made for them) are identical to any other factors affecting the needs of the grant-maintained school. 6 For the purposes of this regulation, it is to be assumed that a comparable maintained school is covered by the former maintaining authority’s scheme whether or not such a school is in fact covered by their scheme. 7 References in this regulation to any formula (other than references to the per capita formula) include references to any methods, principles and rules of any description however expressed. Apportionment of maintenance grant 5 In the case of any school which acquires grant-maintained status otherwise than at the beginning of a financial year, the annual amount of maintenance grant payable to the governing body of the school for the first such year shall be apportioned in accordance with the following formula — A × B × F C where — A is the number of days in the financial year falling on or after the incorporation date of the school; B is the amount of maintenance grant determined in accordance with (as the case may be) regulation 3 or 4 above; C is 365; and F bears the value ascribed to it in the Table below according to the incorporation date of the school — where incorporation date 1 April – 31 July F=1.0 1 August – 31 December F=1.015 1 January – 31 March F=1.02. Adjustments 6 1 Where, after determining the amount of maintenance grant payable in respect of any school for any financial year (or any part of such a year) in accordance with these Regulations, it appears to the Secretary of State that, by reason of any change in the characteristics of the school or the level of spending by the former maintaining authority, or otherwise, the amount so payable should be revised, he may redetermine the amount of such grant payable in respect of the school for that year (or any part of thatyear) in accordance with these Regulations and, if the amount so redetermined is different from the amount previously determined, revise his determination accordingly and give notice thereof to the governing body of the school and to the former maintaining authority. 2 A determination which has been revised in accordance with paragraph (1) above may be further revised in accordance with that paragraph. Requirements which may be attached to payment of maintenance grant 7 1 The requirements set out in Schedule 4 are specified as requirements which may be imposed by the Secretary of State on governing bodies to whom payments in respect of maintenance grant are or have been made. 2 Those requirements also include such requirements relating to the conduct of the school’s financial affairs as may be determined by the Secretary of State and set out in a financial memorandum delivered to the governing body of the school. Power to pay capital grant 8 The Secretary of State may pay capital grant in respect of expenditure of a capital nature incurred or to be incurred by the governing body of a school. Meaning of “expenditure of a capital nature” 9 For the purposes of regulation 8, the reference to expenditure of a capital nature is a reference to expenditure of a class or description specified in Schedule 5. Power to pay special purpose grants 10 1 The Secretary of State may pay to the governing body of any school grants (to be known as special purpose grants) in respect of expenditure of any class or description specified in Schedule 6 incurred or to be incurred by them — a for or in connection with educational purposes of any class or description so specified; b in making any provision (whether of educational services or facilities or otherwise) of any class or description so specified which appears to the Secretary of State to be required for meeting any special needs of the population of the area served by the school; or c in respect of expenses of any class or description so specified being expenses which it appears to the Secretary of State 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 special purpose grants 11 1 The requirements set out in Schedule 4 and in paragraph (2) below are specified as requirements which may be imposed by the Secretary of State on governing bodies to whom payments in respect of special purpose grants are or have been made. 2 a Such requirements relating to the conduct of the school’s financial affairs as may be determined by the Secretary of State and set out in a financial memorandum delivered to the governing body of the school; b 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; c a requirement that such a payment shall be so applied before a date specified by the Secretary of State; d requirements imposed with a view to the Secretary of State satisfying himself that any requirement imposed in accordance with paragraph (b) or (c) above is being, or has been, complied with including, in particular, requirements as to the furnishing by the governing body of audited statements in respect of expenditure in respect of which the grant has been paid together with such accounts, receipts, invoices and other information as he may require in order to verify the same; and e requirements 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 him in accordance with this regulation subject to which the payments were made is not complied with. PART 3 RECOVERY OF AMOUNTS IN RESPECT OF MAINTENANCE GRANT FROM FORMER MAINTAINING AUTHORITY Determination of amount to be recovered 12 1 Subject to paragraph (2) below, the total amount which the Secretary of State may recover from the former maintaining authority of a school in respect of any financial year by virtue of section 81(1) of the Act 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). 2 The amount which would otherwise fall to be determined in accordance with paragraph (1) above as the total amount recoverable from a former maintaining authority by virtue of subsection (1) of section 81 of the Act in respect of any school for any financial year may be reduced by an amount not exceeding the amount outstanding in respect of any excess amount recovered from the authority under that section in respect of any previous financial year.