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Education Act 2002

Section 40: Amendments of Part 2 of School Standards and Framework Act 1998

119.This section introduces Schedule 3 which provides that governing body may not use the school’s budget share to finance any services they provide under the new power. The financial management of community services provided by governing bodies may be subject to requirements contained in the financial schemes prepared by LEAs under section 48 of the SSFA.

120.The Schedule also inserts a new section in the SSFA to provide cover by LEAs in cases where a third party has a claim arising from the provision of community services. The LEA may recover these costs from the school. However, these costs cannot be recovered from the school's budget share.

121.Where it appears to an LEA that a governing body are not managing their expenditure on community services satisfactorily, the LEA may suspend the governing body’s right to a delegated budget.

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