School Standards and Framework Act 1998

Section 51.

SCHEDULE 15E+W Suspension of financial delegation

Suspension of financial delegation for mismanagement, etc.E+W

1(1)This paragraph applies where it appears to the [F1local authority] that the governing body of a school which has a delegated budget—E+W

(a)have been guilty of a substantial or persistent failure to comply with any delegation requirement or restriction, F2...

(b)are not managing in a satisfactory manner the expenditure or appropriation of the sum referred to in section 50(1) [F3or

(c)are not managing in a satisfactory manner any expenditure, or sums received, in the exercise of the power conferred by section 27 of the Education Act 2002 (power to provide community facilities etc.).]

(2)The authority may suspend the governing body’s right to a delegated budget by giving the governing body not less than one month’s notice of the suspension, unless by reason of any gross incompetence or mismanagement on the part of the governing body or other emergency it appears to the authority to be necessary—

(a)to give the governing body a shorter period of notice, or

(b)to give the governing body a notice suspending their right to such a budget with immediate effect.

(3)The notice must specify the grounds for the suspension, giving particulars—

(a)of any alleged failure on the part of the governing body to comply with any delegation requirement or restriction;

(b)of any alleged mismanagement on their part; and

(c)if applicable, of the basis upon which a period of notice of less than one month was given under sub-paragraph (2).

F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)A copy of the notice must be given to the head teacher of the school at the same time as the notice is given to the governing body.

F5(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In this paragraph “delegation requirement or restriction” means any requirement or restriction applicable, under or by virtue of the scheme or section 50(3), to the management by the governing body of the school’s budget share.

(8)Any notice given under this paragraph must be in writing.

Review of suspensionE+W

2(1)The [F1local authority] concerned—E+W

(a)shall review before the beginning of every [F6funding period] any suspension under paragraph 1 which is for the time being in force, unless the suspension took effect less than two months before the beginning of [F7that period]; and

(b)may review at any time any suspension under paragraph 1 which is for the time being in force, if they consider it appropriate to do so.

(2)For the purposes of any review under sub-paragraph (1), the authority shall give the governing body and the head teacher of the school an opportunity of making representations with respect to the suspension.

(3)If on the review the authority consider it appropriate to do so, they shall revoke the suspension—

(a)(in the case of a review under sub-paragraph (1)(a)) with effect from the beginning of the [F8funding period] next following the review; or

(b)(in the case of a review under sub-paragraph (1)(b)) with effect from such time before the beginning of the [F8funding period] next following the review as they may determine.

(4)The authority shall give the governing body and the head teacher notice in writing of their decision on the review.

F9(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeal against suspension or refusal to revoke itE+W

F103E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of suspension of right to delegated budgetE+W

4(1)During any period when a governing body’s right to a delegated budget is suspended under paragraph 1—E+W

(a)the [F1local authority]’s duty under section 50(1) shall not apply in relation to the school; but

(b)the authority may permit the governing body to take such decisions as to the spending of sums to be met from the school’s budget share as the authority consider appropriate.

(2)Where in accordance with sub-paragraph (1)(b) the governing body have decided that a particular sum should be spent, they shall, in spending that sum, comply with such reasonable conditions as the authority think fit to impose.

(3)The governing body may, to such extent as they may specify, delegate their powers in relation to that sum to the head teacher.