Education (Northern Ireland) Order 1998 (N.I. 13)

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Statutory Instruments 1998 No. 1759
The Education (Northern Ireland) Order 1998 - continued

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PART VII
FINANCING OF SCHOOLS

CHAPTER I
FINANCING OF SCHOOLS BY BOARDS
Schemes for financing schools
Schemes for financing schools - introductory
     44. - (1) In this Chapter "scheme" means a scheme made (or treated as made), by a board under Article 46.

    (2) In this Chapter "board", in relation to a scheme, means the board which made (or is treated as having made) the scheme.

    (3) For the purposes of this Chapter -

(4) In relation to any scheme any reference in paragraph (3) to an amount is a reference to an amount determined (and from time to time revised) in accordance with the scheme.

(5) In this Chapter references to a school's budget share for a financial year include -

(6) The Department may by order subject to affirmative resolution substitute for references in this Chapter to a financial year references to such other period as may be specified in the order.

(7) Directions given under this Chapter by the Department -

Schools required to be covered by a scheme
45. - (1) For the purposes of this Chapter, a school is required to be covered by a scheme in any financial year if either -

(a) immediately before the beginning of that year it is a relevant school; or

(b) at any time during that year it becomes a relevant school (whether by virtue of being newly established as such a school or by virtue of becoming such a school where it was previously an independent school).

    (2) References in this Chapter to a relevant school in relation to a scheme made or to be made by a board are references to a grant-aided school situated in the area of the board, other than a special school or a school established in a hospital.

Duty of board to have scheme for financing schools
     46. - (1) Each board shall have a scheme prepared in accordance with this Chapter and submitted for the approval of the Department in accordance with Article 47.

    (2) The scheme shall provide for -

(a) the determination, in respect of each financial year of the board, of the budget share of each school required to be covered by the scheme in the year; and

(b) in the case of controlled and maintained schools, the delegation by the board of the management of a school's budget share for a financial year to the Board of Governors of the school where such delegation is required by or under the scheme.

Preparation and imposition of schemes
     47. - (1) A scheme prepared by a board under Article 46 shall be submitted to the Department on or before such date as the Department may direct.

    (2) In preparing a scheme under that Article a board shall take into account any guidance given by the Department as to the provisions it regards as appropriate for inclusion in the scheme.

    (3) The Department shall publish any guidance given by it for the purposes of this Article in such manner as it thinks fit.

    (4) Before preparing such a scheme a board shall consult -

(a) the Board of Governors of every relevant school;

(b) the Council for Catholic Maintained Schools; and

(c) such bodies or persons as appear to the board to represent the interests of the Boards of Governors of voluntary grammar schools and grant-maintained integrated schools.

(5) The Department may request a board to furnish such information in connection with any scheme submitted to the Department as the Department may require, including information as to the results of consultations under paragraph (4).

(6) Such a scheme shall not come into operation until it has been approved by the Department or until such date as the Department may, in giving its approval, specify; and the Department may approve such a scheme -

(a) either without modifications or with such modifications as it thinks fit after consulting the board concerned; and

(b) subject to such conditions as it may specify in giving its approval.

(7) If in the case of any board either -

(a) the board fails to submit a scheme as required by paragraph (1); or

(b) it appears to the Department that a scheme submitted by the board as required by that paragraph does not accord with any guidance given by it for the purposes of this Article and cannot be made to do so merely by modifying it, the Department may, after consulting the board and such other persons as it thinks fit, impose a scheme making such provision of a description required to be made by a scheme under Article 46 in relation to the financing by the board of relevant schools as it considers appropriate.

(8) A scheme imposed by the Department by virtue of paragraph (7) -

(a) shall be treated as if made under Article 46 by the board concerned; and

(b) shall come into operation on such date as may be specified in the scheme.

Replacement and variation of schemes
     48. - (1) Subject to the following provisions of this Article, a scheme may be replaced or varied by a subsequent scheme made under Article 46 by the board concerned.

    (2) Subject to paragraph (5), Article 47(2) to (6) shall apply for the purposes of a scheme replacing or varying a previous scheme.

    (3) A scheme prepared by a board under Article 46 which -

(a) replaces a previous scheme; or

(b) makes any significant variation of a previous scheme, shall be submitted to the Department for its approval.

    (4) A scheme under Article 46 varying a previous scheme which is not required by paragraph (3)(b) to be submitted to the Department for its approval is referred to below in this Article as a "minor variation scheme".

    (5) Paragraphs (4) to (6) of Article 47 shall not apply in relation to a minor variation scheme and such a scheme shall come into operation on such date as is specified in the scheme.

    (6) The Department may give directions specifying what descriptions of variation are to be regarded as significant for the purposes of paragraph (3)(b).

    (7) Where a board proposes to make a scheme under Article 46 which in its opinion is a minor variation scheme, the board shall notify the Department in writing of its proposal, giving brief particulars of the nature of the variations proposed to be made by the scheme.

    (8) If so required by the Department before the end of the period of two months beginning with the date on which it receives notification under paragraph (7) of the board's proposal, the board shall send to the Department a copy of the board's proposed scheme.

    (9) It shall be for the Department to determine whether or not any variation proposed to be made by the scheme falls within any description of variation specified in directions under paragraph (6).

    (10) A scheme made under Article 46 may also be varied by a direction given by the Department, as from such date as may be specified in the direction.

    (11) Before giving such a direction the Department shall consult -

(a) the board concerned;

(b) the Council for Catholic Maintained Schools; and

(c) such bodies or persons as appear to the Department to represent the interests of the Boards of Governors of voluntary grammar schools and grant-maintained integrated schools.

Provision by a scheme for determination of budget shares

Calculation of board's aggregated budget
     49. - (1) The part of a board's general schools budget for a financial year which is available for allocation to individual schools under a scheme (and as such constitutes the board's "aggregated budget" for the year under the scheme) is the amount remaining after deducting from the amount of the board's general schools budget for the year the amount of any expenditure of the board in the year on excepted heads or items of expenditure.

    (2) In paragraph (1) "amount" means an amount determined (and from time to time revised) in accordance with the scheme.

    (3) In this Chapter "excepted heads or items of expenditure" means heads or items of expenditure which in accordance with the scheme fall to be left out of account in determining the board's aggregated budget for the year.

Application of the allocation formula
     50. - (1) The provision to be included in a scheme for determining the budget share for a financial year of each school required to be covered by the scheme in that year shall require that share to be determined (and from time to time revised) by the application of the allocation formula under the scheme.

    (2) For the purposes of this Chapter the "allocation formula" under a scheme is a formula laid down by the scheme for the purpose of dividing among all schools required to be covered by the scheme in any financial year the board's aggregated budget for the year.

    (3) In paragraph (2) "formula" includes methods, principles and rules of any description, however expressed.

    (4) The allocation formula under a scheme -

(a) shall include provision for taking into account, in the case of each school required to be covered by the scheme in any financial year, the number and ages of pupils who are, or who the board expects to be, registered at the school on such date or dates (whether before or during that year) as may be determined by or under the scheme;

(b) shall include provision for taking into account any factors affecting the particular needs of any class or description of school required to be covered by the scheme;

(c) may include provision for taking into account any other factors affecting the needs of individual schools which are subject to variation from school to school (including, in particular, the number of registered pupils at a school who have special educational needs and the nature of the special educational provision required to be made for them).

    (5) Notwithstanding anything in any other statutory provision (including any provision of the Education Orders), the allocation formula under a scheme may, in relation to a grammar school having a preparatory department, make special provision for the determination of the budget share of that school in so far as it relates to the preparatory department.

    (6) The special provision made by virtue of paragraph (5) may include provision the effect of which is that the budget share of the school, in so far as it relates to the preparatory department, is substantially less than it would have been but for that provision.

    (7) In paragraphs (5) and (6) "preparatory department", in relation to a grammar school, means that part of the school in which primary education is provided.

    (8) A scheme shall provide for all amounts relevant to the determination of a school's budget share under the scheme for a financial year to be determined initially before the beginning of that year.

Premature retirement compensation costs
     51. - (1) This Article applies in any financial year if -

(a) in the case of any board, the board's financial provision for relevant schools is subject to regulation by a scheme; and

(b) in accordance with that scheme, premature retirement compensation costs of the board in relation to members of the staff of relevant schools are not included in the board's aggregated budget for that year.

(2) Premature retirement compensation costs of a board in relation to a member of the staff of a relevant school shall not be met from the budget share of that school, except in pursuance of, and in accordance with the terms of, a direction under paragraph (3).

(3) Where there appears to a board to be good reason to do so in relation to any school, the board may direct that -

(a) a specified amount shall be deducted from the budget share of the school in any single specified financial year; or

(b) a specified amount shall be deducted from the budget share of the school in each financial year for such period (not exceeding 10 years) as may be specified, in respect of premature retirement compensation costs of the board in relation to a member of the staff of the school; and in this paragraph "specified" means specified in a direction under this paragraph.

    (4) Before giving a direction under paragraph (3) in relation to a Catholic maintained school, the board shall consult the Council for Catholic Maintained Schools.

    (5) The amount or (in a case falling within sub-paragraph (b) of that paragraph) the total amount to be deducted from the budget share of a school in pursuance of a direction given under paragraph

    (3) in relation to a member of the staff of a school shall not exceed such amount as appears to the board to represent the cost, capitalised as of the date on which the direction is given, of discharging the board's liability to pay premature retirement compensation to, or in respect of, that member of staff.

    (6) In relation to a controlled or maintained school, sub-paragraph (5) of paragraph 7 of Schedule 2 applies for the purposes of paragraph (3) of this Article as it applies for the purposes of sub-paragraph

    (4) of that paragraph.

    (7) In this Article -

     "member of staff" includes former member of staff;

     "premature retirement compensation" means compensation under Parts III and IV of the Teachers' (Compensation for Redundancy and Premature Retirement) Regulations (Northern Ireland) 1991;

     "premature retirement compensation costs of a board", in relation to any person, means the costs incurred or to be incurred by the board in paying premature retirement compensation to, or in respect of, that person.

Financial delegation in respect of controlled and maintained schools

Provision by a scheme for financial delegation
     52. - (1) A scheme shall include provision for requiring, in the case of each controlled or maintained school required to be covered in any financial year by the scheme, the delegation by the board to the Board of Governors of the school of the management of the school's budget share for that year.

    (2) Any provision included in a scheme by virtue of paragraph (1) is referred to in this Chapter as the "delegation requirement" under the scheme.

    (3) Where a new controlled or maintained school is established and is required to be covered by a scheme, then if apart from this paragraph the delegation requirement would apply in relation to that school, that requirement shall not apply in relation to the school until such date as may be specified in the scheme in relation to the school.

    (4) In the following provisions of this Chapter -

(a) references to a school in respect of which financial delegation is required for a financial year under a scheme are to a controlled or maintained school managed by a Board of Governors to which the board is for the time being required by or under the scheme to delegate the management of the school's budget share for the year (and the Board of Governors of such a school is said to have a right to a delegated budget for the year); and

(b) references to a school which has a delegated budget are to a controlled or maintained school managed by a Board of Governors to which a board has for the time being delegated the management of the school's budget share for a financial year in pursuance of a scheme.

Conditions as to delegation
53. Any delegation under a scheme of the management of a school's budget share shall be subject to such conditions -

(a) as may be imposed by the scheme; or

(b) as may be imposed under the scheme by the board with the approval of the Department.

Effect of financial delegation
     54. - (1) This Article applies where a board's financial provision for relevant schools is subject to regulation by a scheme.

    (2) In the case of any controlled or maintained school in respect of which financial delegation is required for a financial year under the scheme, the board shall put at the disposal of the Board of Governors in respect of the year a sum equal to the school's budget share for the year, to be spent for the purposes of the school.

    (3) The times at which, and the manner in which, any such sum is put at the disposal of the Board of Governors shall be such as may be provided by or under the scheme.

    (4) A board may not delegate to the Board of Governors of any controlled or maintained school required to be covered by the scheme in a financial year the power to spend any appropriated amount otherwise than as required under the scheme; and for this purpose "appropriated amount" means a sum appropriated by the board for the purposes of the school in that year.

    (5) The Board of Governors of a school which has a delegated budget -

(a) shall be entitled, subject to any provision made by or under the scheme, to spend any sum made available to it in respect of the school's budget share for a financial year as it thinks fit for the purposes of the school; and

(b) may delegate to the principal, to such extent as may be permitted by or under the scheme, its power under sub-paragraph

(a) in relation to any part of that sum.

(6) The members of the Board of Governors of a school shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their powers under paragraph (5).

Suspension of financial delegation for mismanagement, etc.
55. - (1) Where it appears to the board, in the case of any school in respect of which financial delegation is required for the current financial year under a scheme, that the Board of Governors of the school -

(a) has been guilty of a substantial or persistent failure to comply with any requirements or conditions applicable under the scheme; or

(b) is not managing the appropriation or expenditure of the sum put at its disposal for the purposes of the school in a satisfactory manner, the board may suspend the Board of Governors' right to a delegated budget by giving the Board of Governors (subject to paragraph (4)) not less than one month's notice of suspension.

(2) Any notice under paragraph (1) shall specify the grounds for the proposed suspension, giving particulars of any alleged failure on the part of the Board of Governors to comply with any requirements or conditions applicable under the scheme and of any alleged mismanagement on its part.

(3) A copy of the notice shall be given to -

(a) the principal of the school;

(b) the Department; and

(c) where the school is a Catholic maintained school, the Council for Catholic Maintained Schools, at the same time as the notice is given to the Board of Governors.

    (4) A board may suspend the right mentioned in paragraph (1) of any Board of Governors to which it has given notice under that paragraph before the expiry of the period of notice if it appears to the board to be necessary to do so by reason of gross incompetence or mismanagement on the part of the Board of Governors or other emergency.

    (5) A board may withdraw a notice given under paragraph (1) at any time before the expiry of the period of notice.

    (6) If the board exercises its power under paragraph (4) or (5), it shall immediately give written notification of its action and, in the case of action under paragraph (4), of the reasons for it to -

(a) the Board of Governors and principal of the school;

(b) the Department; and

(c) where the school is a Catholic maintained school, the Council for Catholic Maintained Schools.

(7) During any period when a Board of Governors' right to a delegated budget is suspended under this Article, the duty of the board under Article 54(2) shall not apply in relation to that Board of Governors.

Review of suspension
56. - (1) It shall be the duty of the board concerned -

(a) to review before the beginning of every financial year any suspension under Article 55 which is for the time being in force;

(b) for the purposes of that review, to afford -

(2) The board shall give -

(a) the Board of Governors concerned;

(b) the principal of the school concerned;

(c) the Department; and

(d) where that school is a Catholic maintained school, the Council for Catholic Maintained Schools, written notification of its decision on any such review.

(3) The revocation of a suspension on a review under this Article shall take effect as from the beginning of the financial year next following the review.

Appeal against suspension or refusal to revoke it
57. - (1) A Board of Governors shall be entitled to appeal to the Department against -

(a) the imposition of any suspension under Article 55; or

(b) any refusal of a board to revoke any such suspension on a review under Article 56.

(2) On an appeal under this Article, the Department -

(a) may allow or reject the appeal; and

(b) shall have regard, in making its determination, to the gravity of the default on the part of the Board of Governors and the likelihood of its continuing or recurring.

Financial delegation: staff
58. - (1) The following matters in relation to staff at controlled and maintained schools with delegated budgets, namely -

(a) the determination of staff complements;

(b) the regulation of conduct and discipline of staff;

(c) the suspension and dismissal of staff; and

(d) the making of payments in respect of dismissals or resignations of staff, shall be subject to Schedule 2.

(2) A scheme may provide for applying this Article and Schedule 2 in relation to persons employed to work -

(a) partly for the purposes of school activities and partly for the purposes of non-school activities (that is to say, activities, other than school activities, carried on on the school premises and wholly or mainly under the management or control of the Board of Governors of the school); or

(b) solely for the purposes of non-school activities, as if all such activities were school activities.

Financing by boards of special schools

Prepared 26 August 1998

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You are here: BAILII >> Databases >> Northern Ireland Orders in Council >> Education (Northern Ireland) Order 1998 (N.I. 13) URL: http://www.bailii.org/nie/legis/num_orders/1998/19981759(05).html