The Self-Governing Schools Grant and Recovery (Scotland) Regulations 1994

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for the method of determination of the amount of recurrent grant to be paid, the kinds of capital and special purpose grants which may be paid, and the manner of payment of such grants, by the Secretary of State to boards of management of self-governing schools incorporated under the Self-Governing Schools etc. (Scotland) Act 1989 (“the Act”). They also provide for exchange of information between education authorities and boards of management and provision of information by each to the Secretary of State in connection with the determination of the amount of recurrent grant in certain circumstances, and for the total amount which the Secretary of State may recover from education authorities in respect of recurrent grant paid to boards of management.

Recurrent grant is paid to meet expenditure on the normal running costs of the school; capital grant, to meet capital expenditure; and special purpose grant, to meet expenditure which is not capital expenditure and which the Secretary of State considers boards of management could not reasonably be expected to meet out of recurrent grant.

Determination of the amount of recurrent grant is covered by regulations 3 to 10.

For a self-governing school which is not a special school, the amount of recurrent grant is the aggregate of 3 amounts:

(1) an amount of school level expenditure determined by the Secretary of State in accordance with regulations 6 and 7;

(2) an amount determined by the Secretary of State in accordance with regulation 8 in respect of provision for the special educational needs of recorded pupils; and

(3) an amount determined by the Secretary of State in accordance with regulation 9, representing the school’s share of the education authority’s central expenditure attributable to school education.

Regulation 6 provides for the determination of the amount of school level expenditure for the first grant year. First, the Secretary of State determines an amount which he is satisfied fairly represents the amount of school level expenditure which it would have been appropriate for the education authority for the area in which the school is situated to incur in respect of the school in the base year (the last complete financial year before the school became self-governing). Schedule 1 describes what is meant by school level expenditure—basically, the net direct running costs of the school. Provision is made as to the information the Secretary of State must have regard to in making his determination. Under regulation 6(3), the Secretary of State then adjusts the amount he has determined in respect of the base year to bring it up to date for the first grant year. He adjusts the amount by such amount or amounts as appears or appear to him to be fair and reasonable to take account of certain matters, having regard again to certain information. The matters are—

(a) the extent to which the education authority’s expected total amount of school level expenditure in the first grant year in respect of the relevant category of school (primary or secondary) is greater or less than their expected total amount of such expenditure in the base year in respect of that category, and any circumstances appearing to him to be relevant to such increase or decrease; and

(b) any change in the circumstances of the school occurring during or since the base year or which it appears to the Secretary of State will be likely to occur before the end of the first grant year.

Regulation 7 provides for the determination of the amount of school level expenditure for each subsequent grant year. The Secretary of State determines the amount by updating for each subsequent grant year after the first grant year the adjusted amount obtained for the preceding grant year. The updating is done on a similar basis, to take account of the change in the authority’s expected total amount of school level expenditure for the relevant category of school between the preceding grant year and the relevant grant year and any circumstances appearing to the Secretary of State to be relevant to such increase or decrease, and of any change in the circumstances of the school for that period.

Regulation 8 provides for the determination for each grant year of an amount attributable to expenditure for the purpose of making provision in that year for the special educational needs of recorded pupils. The amount determined is the figure agreed between the education authority and the board of management, or determined by the Secretary of State, under section 27 of the Act as representing the estimated cost of such provision in that year.

Under regulation 9 and Schedule 2, the Secretary of State determines an amount which he considers it appropriate to allocate to the school of the expenditure (other than school level expenditure) which it would be appropriate for the education authority to incur in connection with their functions in relation to school education, including all expenditure appearing to be incurred specifically for those functions and other central expenditure a portion of which is reasonably attributable to school education.

For a self-governing school which is a special school, the amount of recurrent grant is determined in accordance with regulation 10. The amount of such grant determined by the Secretary of State for each grant year is the amount agreed between the education authority and the board of management, or determined by the Secretary of State, in accordance with section 27 of the Act as representing the estimated cost of the educational and other provision to be made in that year for the pupils in attendance at the school, and the estimated expenditure incurred or to be incurred for the purposes of the board of management’s other functions under section 7(1) of the Act (general running of the school).

Regulation 11 provides that where there is not available to the Secretary of State on the date specified in regulation 6(2) or (3), 7(1) or 9(2) sufficient information as will, in his opinion, allow him to determine an amount which any of those provisions requires him to determine, he may determine the amount on such basis as appears to him to be fair and reasonable, having regard to the information available to him on that date.

Regulation 12 provides for the apportionment of recurrent grant for schools which become self-governing other than at the beginning of a grant year. Regulation 13 provides for the revisal of the amount of recurrent grant for any grant year in the light of subsequent changes or extraordinary circumstances, or to correct errors.

Regulations 14 to 16 provide for the exchange of information between education authorities and boards of management and the provision of information by each to the Secretary of State for the purposes of reaching agreement and making determinations in accordance with section 27 of the Act.

Regulation 17 and Schedule 3 enable the Secretary of State to pay capital grants in respect of certain expenditure. Regulation 18 enables him to pay special purpose grants for expenditure of a class or description specified in Schedule 4.

Regulations 19 and 20 make provision as to payment of grant, and regulation 21 as to the right to set off overpayments against grant due.

Regulation 22 and Schedule 5 set out requirements, and empower the Secretary of State to determine other requirements of specified types, which he may impose on boards of management to whom he pays recurrent grant, capital grants or special purpose grants.

Section 28(1) of the Act empowers the Secretary of State to recover from the education authority which otherwise would be responsible for the management of the school sums in respect of the recurrent grant payable for any financial year to the board of management of a self-governing school. Regulation 23 specifies as the total amount which may be so recovered the amount of recurrent grant determined (and revised, where appropriate) in accordance with the Regulations. This amount is subject to adjustment to reflect any excess paid by the authority in previous financial years.