School Finance

Section 52

Local Authorities ( LA ) are required under section 52 of the Schools Standards and Framework Act 1998 to prepare a budget statement before the beginning of each financial year for that year (i.e. by 31 March).  After the end of the financial year, they are required to prepare an outturn statement.

The size of the schools budget and the amount allocated depends on decisions taken by the LA before the beginning of each financial year. Budget statements are a means of informing schools and the public general about the funding plans of the LA . Outturn statements show how the money was actually spent.

You can view budget and outturn Section 52 statements for the following years:

 

Budget statements

 

Outturn statements

 

Schools Finance Guide

The Schools Finance Guide (PDF 1.77MB) is designed to compliment the Financial Management Standard in Schools.

This document provides guidance and examples of good practice on:

  • financial issues
  • accounting processes
  • the production of school policies
  • risk and insurance
  • procurement
  • a number of other issues

 

Scheme for Financing Schools

As prescribed within Section 48 of the Schools Standards and Framework Act 1998, each Local Authority must have a Scheme for Financing Schools (PDF 505KB), which defines the financial relationship between the authority and the schools in its area. Schemes cover items such as banking, accounting and audit arrangements.

Periodically, the Secretary of State (via the Department for Children Schools and Families) will provide Local Authorities with updated guidance on what should be included within these schemes through directed revisions. Each Local authority must update their scheme adhering to these guidelines, whilst using the flexibiltiies available to them to recognise local requirements.