Financial information for school governors

Scheme for financing schools

This scheme sets out the financial relationship between us as the local authority and the maintained schools that we fund.

The scheme contains requirements relating to financial management and associated issues, binding on both us and on the schools.

The scheme is updated annually.

Accounting for extended schools

What is an extended school?

An extended school is one that provides a range of services and activities often beyond the school day to help meet the needs of its pupils, their families and the wider community.

What are the accounting rules?

The accounting rules for extended schools, which stem from the Education Act 2002, apply to all activities organised by the school outside school hours. The fundamental rule is that such activities must be self-financing and must not receive funding from a school's budget share. Consequently they need to be accounted for separately within the Financial Management System (FMS).

It also follows that there will be a separate balance at the year-end for extended school activities and that Governors should receive separate financial reports for the budget share and for other activities.

Community facilities

All staff employed on providing community facilities must be on the payroll with proper contracts and on comparable terms to the school staff. Job descriptions must be written and the correct pay evaluated.

Please note that the following transactions do not count as the provision of community facilities by the school:

1. provision of study support*
2. lettings of school premises (without staff other than the caretaker)
3. provision of community facilities by hirers of school premises, provided they are independent of the school and the school does not bear any financial risk

(*Study support is defined as learning activity outside normal lessons which young people take part in voluntarily. Study support covers many different activities. Its purpose is to improve young people's motivation, build their self-esteem, help them to become more effective learners and above all it aims to raise achievement.)

Further information

Further information can be found in GOV.UK's Extended schools and services publication series and Department of Education section of the National Archives.