SCHEDULE 4Content of Financial Schemes

The matters referred to in regulation 26, being matters connected with the financing of schools maintained by a local authority, required to be dealt with in the local authority’s scheme are as follows:

20.  A provision under which–

(a)the authority may direct the governing body as to how to spend a surplus in the school balance for a funding period, if—

(i)in the case of a primary school the surplus is £50,000 or more, and

(ii)in the case of a secondary school or a special school the surplus is £100,000 or more;

(b)the authority may, if the governing body do not comply with such a direction, require the governing body to pay all or part of that surplus to the authority to be applied as part of their schools budget for the funding period in question.