Regulatory Financial Framework

Under statutory legislation, schools have a right to delegated financial powers which allow them to run their day to day affairs independently from the Council. Legislation and Council policy provides a framework under which schools must operate.

The Schools Standards and Framework Act 1998 represents the primary legislation. From this, the Council has developed guidance and policies which are legally binding on schools.

The main document to set out the powers and responsibilities of schools is the PDF Scheme for Financing Schools (234kb). It is a statutory requirement for every Council, in consultation with its schools, to produce such a Scheme. All Schemes must be compatible with DfES guidance and are subject to approval by the Secretary of State

The main features of the Council's Scheme for Financing Schools are as follows:

Roles and responsibilities of schools

Financial controls
Banking arrangements
Treatment of surplus and deficit balances
Income
Charging of school budgets
Taxation
Insurance
Miscellaneous
Responsibility for repairs and maintenance
Community facilities

Other Council documents that govern the financial framework that schools need to operate within are:

Contract Regulations (142kb) which set out minimum standards to be followed in the award of contracts for the purchase of ANY goods or services.
Procurement Manual (569kb), which is a practical guide to the implementation of Contract Regulations and the adoption of best practice.
Financial Regulations (557kb), which apply to all school staff, and amongst other things governs the need for financial planning and budgetary control, duty to carry out audit, contracts and professional fee arrangements, income and assets.
Financial Management Handbook, which is a practical guide to the implementation of Financial Regulations and the adoption of best practice in finance related matters. This handbook can be accessed via the secure intranet

Should any schools fail to operate within the regulatory framework, then the Council has the power to suspend delegated powers and take over day to day operations.