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

Regulation 22

SCHEDULE 5 REQUIREMENTS WHICH MAY BE IMPOSED IN RESPECT OF RECURRENT GRANT, CAPITAL GRANTS OR SPECIAL PURPOSE GRANTS

PART 1

1.  In the case of any grant paid to them in accordance with these Regulations, a requirement that the board of management shall secure, so far as their powers extend, that the school is managed in accordance with any requirements imposed by or under any enactment including, in particular, any imposed by or under the Act or the scheme of government for the school.

2.  In the case of capital and special purpose grants paid to them in accordance with these Regulations, a requirement that the board of management shall secure that any such grants are used only for the purposes for which they are paid.

3.  In the case of recurrent grant paid to them in accordance with these Regulations, a requirement that such grant shall be used solely for the purposes of the school, and that the amount of such grant for a self-governing school which is not a special school which is attributable to expenditure for the purpose of making provision for the special educational needs of recorded pupils in attendance at the school shall be used solely for the purpose of making such provision.

4.  In the case of any grant paid to them in accordance with these Regulations, a requirement that where, in respect of any financial year, any overpayment of grant is made to the board of management (including an overpayment due to the aggregate amount of payments made for that year in respect of recurrent grant exceeding the amount determined in accordance with these Regulations as the amount payable for that year, or to a reduction of the amount payable for that year following on revisal by the Secretary of State of his determination of that amount in accordance with these Regulations) a sum equal to the amount of overpayment shall be repayable to the Secretary of State by the board.

5.  In the case of any grant paid to them in accordance with these Regulations, a requirement that, without prejudice to the requirement specified at paragraph 4 in respect of recovery of overpayment of grant, the board of management shall, at the request of the Secretary of State, repay to him so much of any such grant as has not been used for the purpose for which it was paid, except that—

(a) the board of management shall be entitled to retain out of recurrent grant two separate amounts, namely—

(i) a reserve fund of a sum not exceeding at any given time 10%, and

(ii) a sum not exceeding at any given time 2½%,

of the total amount of such grant paid in respect of the most recent grant year (excluding from such total amount any overpayment of such grant for that year); and

(b) in the case of special purpose grants, no such repayment shall be required where such grant was paid to meet any liability of the board of management in respect of Value Added Tax.

6.  In the case of any grant paid to them in accordance with these Regulations, a requirement that the board of management shall repay to the Secretary of State such amount as after consultation with them, he may require, in the event of their failing to comply with any requirement imposed by him in accordance with these Regulations.

7.  In the case of recurrent grant or capital grants paid to them in accordance with these Regulations, a requirement that, without prejudice to section 7(2)(b) of the Act (Secretary of State’s written consent required for disposal of land by board of management), the board of management shall notify the Secretary of State of the disposal or alteration of use of land which has been acquired or improved wholly or partly, directly or indirectly, with the assistance of such grant and repay to him such sum as, after consultation with them, he may require, regard being had by him, in particular, to the proportion which the grant paid bore to the total cost of acquisition or improvement and to the amount of the free proceeds of disposal or value of the land at the time of disposal.

PART 2

8.—(a) In the case of recurrent grant paid to them in accordance with these Regulations, requirements with respect to—

(i) the purpose for which the board of management may retain the sum mentioned at paragraph 5(a)(i), and the use to which such sum shall be put; and

(ii) an increase in the sum which the board may so retain; and

(b) in the case of capital and special purpose grants so paid, a requirement that any such grant is used before such date as the Secretary of State may specify in relation to it.

9.  In the case of any grant paid to them in accordance with these Regulations, requirements as to the taking out of insurance by the board of management, including, without prejudice to that generality, in relation to their property, members, staff and third parties.

10.  In the case of any grant paid to them in accordance with these Regulations, a requirement that the board of management shall obtain the written consent of the Secretary of State to the disposal of an asset other than land with a value exceeding such amount as the Secretary of State may, from time to time, specify, which has been acquired or improved wholly or partly, directly or indirectly, with the assistance of such grant, notify the Secretary of State of such disposal of such asset and repay to him such sum as, after consultation with them, he may require, regard being had by him, in particular, to the proportion which the grant paid bore to the total cost of acquisition or improvement and to the amount of the free proceeds of disposal or value of the asset at the time of disposal.

11.  In the case of any grant paid to them in accordance with these Regulations, requirements with respect to the adoption of proper and prudent financial procedures and the maintenance of proper accounts by the board of management including, without prejudice to that generality, requirements as to—

(a) the appointment by the board of management of a person who will be responsible to them for the proper administration of their financial affairs;

(b) the accounting systems and methods to be adopted by the board of management and the form of their accounts and supporting records;

(c) internal financial controls including, in particular, requirements as to the procedures to be adopted with respect to the receipt and disbursement of money by the board of management; and

(d) the signature and publication of the board of management’s annual accounts.

12.  In the case of any grant paid to them in accordance with these Regulations, requirements as to audit, inspection and availability of the board of management’s annual accounts, including, without prejudice to that generality, requirements as to—

(a) the procedure to be adopted in appointing and replacing auditors;

(b) the qualifications the auditors are to possess;

(c) the duration of auditors' appointments;

(d) the frequency of audits;

(e) the functions which are to be performed by the auditors in respect of the school;

(f) the inspection of accounts and supporting records on request by any person authorised by the Secretary of State;

(g) examinations by persons authorised by the Secretary of State or the Comptroller and Auditor General into the economy, efficiency and effectiveness with which the board of management have used their resources in discharging their functions; and

(h) access to the audited accounts by parents of pupils in attendance at the school and by other members of the public.

13.  In the case of any grant paid to them in accordance with these Regulations, any requirement formulated with a view to the Secretary of State satisfying himself that the board of management are complying or have complied with any other requirement imposed by him in respect of such grant including, without prejudice to that generality, requirements as to the provision by the board to the Secretary of State of such information, in such form, as the Secretary of State may require.

14.  In the case of any grant paid to them in accordance with these Regulations, such further requirements relating to the conduct of the school’s financial affairs as the Secretary of State thinks fit.