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                    FINANCIAL REGULATIONS

                        Revised May 08



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                        FINANCIAL REGULATIONS

                            A.     INTRODUCTION

It is hoped that schools will find that this document offers practical guidance and
advice that will be useful and relevant and reflects the underlying principles
associated with good practice. The regulations will be updated from time to
time, and any suggestions from schools about how to improve its content,
format, or general usefulness, will be welcomed.

The Governing Body must formally adopt the Financial Regulations each
financial year and the fact recorded in the meeting minutes. Confirmation should
be made to the Local Authority confirming that the Governing Body has adopted
Financial Regulations and that the appropriate school staff are fully aware of the
Regulations (the form is to be signed by the Headteacher and Chair of

The City Treasurer and Executive Director Children‟s Services will jointly
investigate failures of financial control, including matters that involve, or may
involve, financial irregularity.

A.1     It has been the Local Authority‟s policy to encourage maximum
        delegation of resources and responsibilities consistent with the
        discharge of its statutory responsibilities. However, schools also have
        a duty to ensure the proper administration of their financial affairs and
        this document provides both policy and guidance in this area. The
        processes and procedures outlined in this document provide an overall
        framework that is related to the need to administer finances and public
        money in an orderly and efficient manner. It is a condition of the
        Scheme for Financing Schools that each school observes the
        regulations contained in this policy document.

A.2     The City Council‟s City Treasurer has a statutory responsibility for
        ensuring satisfactory financial administration and is the accounting
        officer for the Local Education Authority for the purposes of Section 151
        of the Local Government Act 1972. This responsibility remains even for
        schools with fully delegated status. Therefore, these regulations have
        to be consistent with the City Treasurer‟s statutory responsibilities. For
        the purposes of clarity the term “City Treasurer” where referred to in this
        document means the City Council‟s Head of Finance.

A.3   These regulations are not subject to amendment by individual schools.
      Only the City Treasurer, following approval, can undertake such
      amendment.      It will be open to a Governing Body to propose
      amendments to any financial procedures provided they are consistent
      with the statutory responsibilities of the City Treasurer and are
      submitted for his approval.

A.4   Each Governing Body is required to maintain for inspection within the
      school a copy of the regulations.

A.5   Wilful or persistent disregard of these Financial Regulations may
      result in the Executive Director Children‟s Services deciding to
      suspend a Governing Body‟s rights to delegated management.

                            B.      GENERAL

B.1    These Regulations apply to the Headteacher, Governing Body and all
       staff involved with the management of the school‟s delegated budget.
       The Regulations apply equally to the governing bodies of Aided
       Schools, except where there are overriding statutory provisions.

B.2    In order that the City Treasurer can fulfil the statutory obligations, a
       Governing Body is required to provide him with any information,
       documents or records relevant to the administration of the school.

B.3    The Governing Body must keep the Executive Director Children‟s
       Services and the City Treasurer informed of any matter that is likely to
       have significant financial consequences. Both the Executive Director
       Children‟s Services and the City Treasurer or their representatives,
       have the right to attend meetings of governors to give advice or report
       on relevant financial matters.

B.4    Reference to the Executive Director Children‟s Services and the City
       Treasurer includes those officers of their Directorate authorised to
       undertake the various functions concerned.

B.5.   Subject to provisions of the scheme, Governing Bodies of schools
       may spend budget shares for the purposes of their school. They may
       also spend budget shares on any additional purposes prescribed by
       the Secretary of State in regulations made under Section 50 of the
       School Standards & Framework Act (SSFA) 1998.



C.1    Local Management of Schools has conferred responsibilities and
       powers to individual schools within the City. It is the Local Authority‟s
       policy to encourage delegation of resources and responsibilities
       consistent with its statutory obligations. Under the School Standards
       and Framework Act 1998 (SSFA), schools will continue to receive
       additional responsibilities. With this additional responsibility, schools
       will also have a duty to abide in the management of their delegated
       budgets by the Authority's requirements on financial controls and
       monitoring, not only those in the scheme but also those requirements
       to be contained in more detailed publications referred to in the
       scheme and outside and compatible with it. The implementation of
       further delegation under Fair Funding has resulted in a significant
       reduction of financial resources that were held centrally by the Local
       Authority. The increase in delegated powers allows schools to extend
       the management of their own budgets in line with their own Governing
       Body policies. The purpose of this statement is to clarify the
       respective roles of Local Authority, Schools and Governing Bodies.

C.2    The respective roles of Local Authority‟s and institutions are laid down
       clearly in section 45 - 53 of the SSFA. Local Authority‟s are given
       specific powers to establish the basis for allocating resources to
       individual schools and set out the conditions and requirements that
       Governing Bodies must operate within. The Newcastle Scheme for
       Financing Schools contains specific information on this matter. In
       addition to this policy document further guidance is available from The
       Office for Standards in Education (OfSTED) “Keeping Your Balance”
       this publication provides a general overview on financial monitoring
       and is regarded as a model of good practice.

       The Newcastle Scheme for Financing Schools describes the Local
       Authority‟s powers to impose financial conditions relating to:

              arrangements for the management of delegated expenditure

              the keeping and audit of accounts and records

              the provision to the Local Authority of copies of accounts and
               records and other relevant documentation that may be required.

      These and other matters will form part of the City Council‟s financial
      regulations and standing orders that are only valid in so far as they
      are consistent with the School Financial Regulations.

C.3   The Secretary of State will expect such arrangements to observe the
      right balance between giving schools the freedom necessary to
      exercise their delegated authority, and maintaining due regard for the
      proper accountability for, and control over, the expenditure of public

      Section 48(1) SSFA prescribes regulations that state:

      Each local education authority shall prepare a scheme dealing with
      such matters connected with the financing of the schools maintained
      by the authority as are required to be dealt with in the scheme by or
      by virtue of:

      (a)   regulations made by the secretary of state; or

      (b)   any provision of this Part.

C.4   The City Treasurer remains the Officer designated by the Council for
      the purposes of Section 151 of the Local Government Act 1972, and
      remains responsible for ensuring the proper financial administration of
      all the Council‟s services and affairs.

The Role of The School & Governing Body

C.5   Following significant changes in legislation since the 1988 Education
      Reform Act, and accelerated by the School Standards and Framework
      Act 1998 responsibility for the majority of local authority education
      funding is delegated to Schools‟ Governing Bodies. The increasing
      size of budgets, and the range of services delegated to schools,
      places an ever-greater responsibility on school governors and
      managers to make effective arrangements for the discharge of school
      related funding.

      The fundamental principle of Fair Funding is that schools should be
      free to identify their own priorities and reflect these in their budgeting
      and spending. Along with this goes the responsibility for monitoring
      and budget management. It is absolutely clear that the monitoring of
      an individual school budget is the responsibility of the school and not
      the Local Authority. However, the Local Authority retains significant
      monitoring responsibilities.

      In order to exercise this function the school needs to ensure the

C.5.1   That its financial policies and procedures are consistent
        with the Local Authority‟s financial regulations and standing
        orders as and when amended and taking into account
        subsequent revisions to the Local Authority‟s Scheme for
        Financing Schools.

C.5.2   That it prepares both an educationally and financially viable
        budget, which represents an agreed statement of the
        wishes of the Governing Body either as a whole or of a
        delegated sub-committee.

C.5.3   That it has in place a system and an identified person to
        monitor on a regular basis the information provided by the
        Local Authority on expenditure.

C.5.4   That it has a system for reporting the progress of the
        budget to either a finance sub-committee or the whole
        Governing Body. Schools must keep sets of accounts in
        the prescribed format of the Local Authority and maintain
        internal budgetary control systems in order to produce
        accounts that will integrate with those for the Authority as a

C.5.5   The Consistent Financial Reporting (CFR) Regulations
        were laid before Parliament in February 2003 and came
        into force 1 April 2003. From 1 April 2003 all maintained
        schools are required to submit financial returns in the CFR
        framework of income and expenditure headings. Members
        of staff from the authority will continue to support schools
        with training and advice.

C.5.6    The Financial Management Standards in Schools (FMSiS)
        was added to the Scheme for Financing Schools in October
        2006 through directed revisions, which from January 2007
        requires that meeting the standard is now a legal
        requirement for schools, subject to the phasing that is
        determined locally. The phased timetable requires all
        schools to meet the FMSiS by March2010.
        The Section 151 Officer (Chief Finance Officer) is required
        to sign a declaration attached to the section 52 outturn
        statement at the end of each financial year, to the effect
        that relevant schools either meet the standard or are
        subject to appropriate action to ensure they meet the

C.6   The Budgeting Process – Governing Body Responsibilities

      C.6.1    The City Council is responsible for determining the Local
               Schools Budget and each school will be funded to the level
               of its budget share as allocated by the approved formula.

      C.6.2    Governing Bodies and Headteachers are responsible for
               developing and carrying out a School Development Plan,
               identifying the aims and the means of achieving their
               targets while having due regard to the likely available

      C.6.3    The Governing Body will prepare a budget in a format
               specified by the Executive Director Children‟s Services.
               The Executive Director Children‟s Services shall have the
               right to advise a Governing Body on the preparation of its

      C.6.4    A Governing Body shall approve the budget prior to the
               deadline date, which will be notified to the Governing Body
               by the Executive Director Children‟s Services. A copy of the
               approved budget will then be sent to the Executive Director
               Children‟s Services for monitoring purposes.

      C.6.5    Governing Bodies may plan for a deficit budget only in
               certain approved circumstances. These circumstances are
               outlined in the Newcastle Scheme for Financing Schools
               and must be in line with the framework of the Local
               Authority‟s Schools Balances Policy.

      C.6.6    The City Council shall be responsible for ensuring that
               Governing Bodies have sufficient information to enable
               them to monitor their budgets.

      C.6.7    It is the responsibility of the Governing Body to continually
               monitor expenditure, income and commitments against the
               budget to ensure no overspending occurs.

      C.6.8    Where the City Council identifies departure from the
               budgeted pattern of expenditure; it has the right to require a
               written explanation from the Governing Body. In addition it
               may advise the Governing Body to take appropriate
               corrective action.

      C.6.9    Governing Bodies will be responsible at the start of each
               financial year for formally approving levels of delegated
               authority to the Headteacher and other staff sufficient to
               facilitate the effective day to day running of the school's
               affairs. The Chair of Governors shall evidence this

                  delegation in writing and copies sent to the Executive
                  Director Children‟s Services and shall include virement
                  levels, contract spending limits and the authority to sign
                  orders and invoices.

 C7     The Council’s Policy for confidential reporting of concerns
        (“whistleblowing”) exists to:

        C.7.1     make employees feel confident to raise concerns and to
                  question and act upon concerns about practice;

        C.7.2     give employees avenues to raise concerns and receive
                  feedback on any action taken;

        C.7.3     guarantee that an employee will receive a response to his
                  or her concerns raised and that he or she is aware of the
                  process to follow if not satisfied;

        C.7.4     reassure an employee that he or she will be protected from
                  possible reprisals or victimisation.

        C.7.5     Please see section A.3 for full policy details

The Role of the Local Authority

 C.8    The Executive Director Children‟s Services and City Treasurer are
        required to produce the Local Authority‟s accounts in accordance with
        statutory requirements and Statements of Standard Accounting

        In order for schools to properly exercise their financial monitoring
        function, it is essential that the Local Authority provide appropriate
        guidance and support. Therefore, the Local Authority will provide or
        revise the following for schools:-

        C.8.1     Financial regulations and standing orders.

        C.8.2     Financial procedures in a range of areas including those
                  outlined in the Newcastle Scheme for Financing schools .

        C.8.3     Advice on Consistent Financial Reporting.

                  In addition, Local Authority officers will continue to provide
                  support to schools in the following areas of financial

                      Detailed briefings at major points in the financial year.

                     Advice and clarification of all aspects of budget

                     Oversight of budgets at the beginning of each
                      financial year.

                     Advice and support in the establishment of monitoring
                      arrangements for individual schools.

                     Training and support for the introduction of new
                      legislative financial measures e.g. Consistent
                      Financial Reporting.

                     Training, support and advice on e-government and
                      electronic financial reporting.

       It should be noted that some of the financial support the authority
       provides may be subject to a charge or form part of a service level

C.9    The Local Authority has two major roles in financial monitoring.

       C.9.1     To monitor the overall patterns of expenditure of the city
                 schools ensuring they meet the spending priorities of the
                 Executive Director Children‟s Services.       It may also
                 undertake more detailed surveys of a sample of schools in
                 order to find out why certain spending decisions have been

       C.9.2     The Local Authority also has a duty to be aware of schools
                 that are about to become, or are in budgetary difficulties.
                 This may have arisen either because of budget deficits or
                 because of a failure to manage its financial affairs correctly.
                 This does not mean that the Local Authority is responsible
                 for the monitoring of individual budgets, which, as
                 paragraph C.5 makes clear, is the responsibility of the

C.10   Schools may draw themselves to the attention of the Local
       Authority in a number of ways:-

           Local Authority Officers may become aware of difficulties either
            as a result of carrying out the support outlined in paragraph C.8
            or in their more general dealings with schools.

           Officers from Internal Audit may express concern as a result of a
            routine visit to a school.

           A Governing Body or a Headteacher may express concerns
            about financial matters in the school and seek advice from the
            Local Authority.

           Failure by the school to meet the FMSiS by due date.

C.11   In any situation where there is concern about a school, the Local
       Authority will respond in the following way:

       The matter will be brought to the attention of the lead officer for
       School Funding and Finance or the Head of Finance Children‟s
           The matter will be raised with the Executive Director Children‟s
            Services and the school will be notified immediately if it is
            decided to proceed with any formal enquiry.

           Information will be sought from officers of the Local Authority
            who have contact with the school.

           The lead officer for School Funding and Finance along with other
            relevant officers will meet the Headteacher and Governing Body
            in order to formulate a plan of action for the school.

           The lead officer for School Funding and Finance will monitor the
            implementation of this plan and report to the Executive Director
            Children‟s Services and Libraries.

           If, in the opinion of the Chief Finance officer and the Executive
            Director of Children‟s Services, action needs to be taken to
            safeguard the financial position of the local authority or the
            school, it may issue a notice of concern. Such a notice will set
            out the reasons and evidence for it being made and may place
            on the Governing Body restrictions, limitations or prohibitions in
            relation to the management of funds delegated to the school.
            The notice will clearly state what the requirements of the notice
            are and the way in which and the time by which such
            requirements must be complied with in order for the notice to be

C.12   In all such monitoring, it is the firm intention of the Local Authority to
       allow the school as far as possible, to find and be responsible for its
       own solutions. The aim of effective monitoring is to identify and deal
       with problems before they become serious. In the vast majority of
       cases, an action plan agreed between the Local Authority and the
       School is likely to address the problem. However, in the case of
       budget mismanagement in a wilful and persistent way, the Executive
       Director Children‟s Services has the ultimate power to withdraw the
       Governing Body‟s right to delegated management. These measures

       may be implemented in accordance with section 14 (1) of the SSFA.
       “Powers of Intervention” exercisable by the Local Authority, but more
       specifically Schedule 17 of the SSFA.

       Schedule 17 of the SSFA empowers an Local Authority, as an
       ultimate sanction, to suspend a Governing Body‟s right to a delegated
       budget where it appears to them that the Governing Body:-

       a)    has been found in breach of a substantial or persistent failure to
             comply with any requirements applicable under the scheme; or

       b)    is not managing the appropriation or expenditure of the sum put
             at their disposal for the purposes of the school in a satisfactory

             The conditions of specific requirements, notice by the Local
             Authority and right of appeal for the Governing Body are detailed
             in sections 14 – 19 of the SSFA 1998.

C.13   Where a maintained community or community special school has
       been the subject of an inspection and subsequently identified the
       school as being in need of special measures, consideration may be
       given under sections 14 – 19 of the SSFA 1998 to suspend the
       Governing Body‟s right to a delegated budget. The Local Authority
       may exercise this power on condition that:

       a)    the Secretary of State has not made a decision to transfer the
             school to an education association:

       b)    ten days have elapsed since the date of Secretary of State‟s
             acknowledgement of the Local Authority‟s statement of the
             action they propose to take in regard to the school.

C.14 In such cases, the Governing Body will not have the right of appeal to
     the Secretary of State against the suspension of delegation, until the
     school has received an inspection report which states that it is no
     longer in need of special measures.

Local School Bank Accounts - Guidelines


 C.15   Cheques should be ordered and controlled by a person not involved in
        the day-to-day operation of the account.

 C.16   Cheques should be stored securely and the details recorded in a
        control book. This should contain details of cheques in (range of
        cheque numbers and date received), cheques issued (range of
        cheque numbers and initials of both issuer and receiver). This control
        must be maintained and available for independent verification on a
        regular basis.

 C.17   Cheques should be crossed „account payee only‟.

        C17.1        Under no circumstances should be cheques be pre-signed

 C.18   Cheques must be signed by two signatories from a maximum of four
        nominated persons. Two prime signatories and two secondary
        signatures, this will ensure that at least one of the two primary
        signatories signs the cheques. None of which must be involved in the
        day to day operation of the account or the preparation of the cheque.
        Lists of authorised signatories and two sample signatures for each
        person should be forwarded to the Head of Finance Children‟s
        Services, who will notify the bank. Any changes to the authorised
        signatories list must be sent to the Head of Finance Children‟s

        C18.1         Authorised signatories must be employed at the school.

        C18.2    Authorised signatories must always ensure that the cheques
                 presented for their signature agree to the listing of the
                 cheques and the attached creditors‟ invoices. The cheque
                 list should be signed to this effect.

        C18.3    The authorised signatory should satisfy himself/herself, by
                 reference to the copy order and the invoice, that the
                 following checks have been performed:-

                      the invoice is a proper liability of the school;
                      the invoice has not been previously passed for payment;
                      the supplies or services being charged for have been
                       received/carried out;
                      the prices, calculations, trade discounts, other
                       allowances, credits or tax have been checked and are

C.19     Invoices or vouchers must be retained for each cheque drawn on the
         account. The invoice/voucher must be signed to verify that:

         C.19.1   the goods have been received and the orders marked with
                  the relevant cheque number to ease the reconciliation

         C.19.2   the prices on the invoice are in accordance with the order;

         C.19.3   the invoice has not already been paid (details of all
                  payments made should be recorded on copy orders);

         C.19.4   the calculations on the invoice have been verified and the
                  amount to be paid is correct;

         C.19.5   where appropriate, the goods have been recorded in the
                  inventory of equipment.

C.20     Invoices/vouchers must be presented to signatories for inspection at
         the time of signing the cheques.

C.21     Spoiled or cancelled cheques should be retained, and a record kept of
         the reason for the cancellation.

C.22     A record should be maintained of cheques returned in the post, with a
         note of the action taken (e.g. cheque cancelled, redirected to new

C.23     A formal procedure should be laid down to deal with the possibility of
         cheques not being received by, or being lost by the payee. The
         procedure should allow for „stops‟ being placed on cheques, the issue
         of replacement cheques, etc.

C.24     Direct debits, standing orders and debit card transactions will not be
         permitted. However, the ODPM National Procurement Strategy is
         looking at ways to introduce a procurement card or similar to deal with
         low level purchasing.

C.25     Bank statements should be retained chronologically in a file, they
         should be reconciled on receipt and evidence of this reconciliation be
         held for independent verification.


C.26     Official receipts must be issued for all income received, and these
         should be cross-referenced to the appropriate paying-in slip.

C.27     Income should be banked as soon as possible (not less than weekly),
         and must be banked intact, i.e. no deductions should be made from
         income to meet expenditure, prior to banking.

C.28   Paying-in slips should be numbered and completed in line with the
       manual of procedures introduced by the City Treasurer for the Cash
       Collection System.

C.29   Cheques received should be listed individually where possible and
       attached to the paying-in slip. The total number of cheques being
       paid in should be entered in the paying-in slip.

C.30   A formal procedure should be laid down to deal with the possibility of
       „bounced‟ cheques, in order to ensure that a replacement cheque or
       cash is obtained from the debtor.

C.31   Arrangements should be made for the safe banking of income through
       the cash in transit service.

                       D.     ACCOUNTING

The following principles must be observed in the allocation of accounting
duties both to ensure the probity of the accounting transactions and to protect
the employees involved:

D.1     The Governing Body must keep an adequate control and record of all
        the financial transactions of the school, ensuring that the relevant
        policy guidelines on financial administration issued by the Local
        Authority are observed. The Governing Body is responsible for the
        maintenance of financial records in schools. The duration for retention
        is that described in section V of these regulations. All financial
        records and systems and any changes are subject to the approval of
        the City Treasurer and the Executive Director Children‟s Services.

D.2     The accounts maintained by the City Treasurer are the City Council‟s
        statutory accounts and the amount of a school‟s expenditure and
        income for a financial year will be determined solely by reference to
        the statutory accounts.

D.3     The following principles should be observed in connection with
        accounting systems, so far as is practicable:

        D.3.1     The duties of providing information regarding sums due to
                  or from the Council and of calculating, checking and
                  recording these sums, should be separated as completely
                  as possible from the duty of collecting or disbursing them.

        D.3.2     Staff charged with the duty of examining and checking the
                  accounts of cash transactions should not themselves be
                  engaged in any of these transactions.

        D.3.3     Every transfer of official money and unofficial money from
                  one employee to another shall be evidenced in an
                  appropriate record by the signature of the receiving
                  employee and retained for a period similar to that of cash

D.4     The Authority‟s scheme for the management of non-staff related costs
        through independent bank accounts is part of these Regulations and
        the procedures contained within it must be observed.

D.5     There must be no departure from the City Council's approved
        accounting procedures.

                       E.      INTERNAL AUDIT

E.1   The City Treasurer shall:

      maintain an adequate and effective system of internal audit of the
      accounting records and control systems of the Council. In order to
      satisfy this requirement he has to carry out a continuous audit and
      appraisal of all accounting and financial transactions, procedures and
      records and other operations involving the resources of the Council,
      as delegated to schools.

E.2   For such purposes, the City Treasurer or his representative is
      authorised to

          visit all schools
          have access to all records and documents
          require the production of cash, stores or any other property
           owned or held by the Council
          require and receive promptly such explanations as considered
           necessary concerning any matter under examination.

Access To School Funds

E.3   The Governing Body should notify the City Treasurer as soon as
      possible of failures in financial control, including matters that involve,
      or may involve, financial irregularity. The City Treasurer and the
      Executive Director Children‟s Services jointly shall investigate the
      matter. If an irregularity is disclosed that is deemed to be material by
      the City Treasurer, the matter will be reported by the City Treasurer to
      an appropriate City Council Finance Committee.

      Where evidence of fraud, misappropriation, or theft is discovered, the
      City Treasurer will decide, after consultation with the Executive
      Director Children‟s Services, whether to refer the matter to the Police.

E.4   Documents relating to the financial transactions of schools are
      required to be retained for audit purposes. In addition, HM Customs
      and Excise require financial documents to be retained for a minimum
      period of 6 years plus the current year. This includes:

                 Paid invoices
                 Paid cheques
                 Income invoice (copies)
                 Receipt books
                 Till rolls

           Official orders
           Imprest Account records and vouchers
           Dinner Registers
           Tender documentation

Where there is doubt concerning the length of time documentation is to
be retained advice should be sought from the Executive Director
Children‟s Services.

                 F.    BUDGETARY PROCEDURES

F.1   Making the Budget

      F.1.1 The Headteacher or a delegated sub-committee of the
            Governing Body should, before the beginning of each financial
            year, prepare estimates of expenditure and income for the
            consideration of the full Governing Body. Approving the budget
            may be delegated to the appropriate sub-committee, which has
            been established with clear terms of reference.

      F.1.2 The preparation and submission of data should be in
            accordance with the „Budget Cycle‟ below.

 Budget Cycle

          Preparation of School Development Plan identifying main aims
           and objectives to provide the basis for future budget plans.

           Submission of non-financial data (pupil numbers) in School
           Submission of Alternative Provision Census (Replaces form 8B)
           Change in use of premises notified to the Local Authority to
            enable amendments to the Asset Management Plan
           Staffing and resource requirements for the following year
           Respond to formal budget consultation exercise (if applicable)
           Newcastle Schools Forum prospective meeting.

           Preparation of indicative budget plans in line with the School
            Development Plan priorities for next financial year
           Medium Term Educational and Budget Plan (for next 3 years).
           Indicative revenue and standards fund budgets issued

           Respond to any issues relating to the second indicative budget
           Preparation of final budget plan.
           Confirmation of final revenue and standards fund budgets
           Adjustments of planned budgets as necessary.
           Renewal of annual contracts for staff where appropriate.
           Prepare new data files, electronic systems for the next financial
           Detail internal cash-limited budgets.

      Closedown of accounts/reimbursement of Imprest accounts.
      Ensure all accounts/charges have been paid and incomes for
       lettings etc. collected.

     Implement new budget
     Destroy     /    Dispose     by    confidential    means     any
     3 years - official orders/school fund records/school meal
     4 years - FAMIS tabulations.
     6     years    -    dinner    registers/invoices/cheques/income
      invoices/receipt books/ Imprest Account Records and Vouchers.


    Submit to Local Authority a Governing Body formulated and
     approved budget. (see F.1.4)
    Termly report on progress of budget to governors.
    Order resources for September - new furniture / equipment etc.
    Receive confirmation of outturn for last financial year.

      Assess new pupil numbers for September‟s budget review.


    Monitor spending levels for new academic year using summary
    Schools to advise School Business managers of any staffing
     changes for start of academic year.

Throughout the financial year schools will also receive information
relating to Section 52, Section 52 outturn and amendments to the
Scheme for Financing Schools.

F.1.3 Schools must not plan to spend in excess of their available

F.1.4 The form of the estimates presented to the Governing Body
      should be as prescribed by the Governors, but should contain
      information specified by the Executive Director Children‟s
      Services and the City Treasurer.

F.1.5 A copy of the estimates report (E3) must be supplied to both the
      Executive Director Children‟s Services and the City Treasurer

            not less than one week before consideration by the full
            Governing Body (in all cases no later than 30 June).

F.2   Controlling the Delegated Budget

      F.2.1 The Governing Body should make arrangements to ensure that
            actual expenditure does not exceed budgeted expenditure. This
            should include a report from the Headteacher or delegated sub-
            committee to the termly meeting of the full Governing Body on
            the progress of the budget.

      F.2.2 The Governing Body may delegate authority to incur budgeted
            expenditure.    This delegation may be limited by type of
            expenditure and/or monetary value. Schools will maintain a
            written record of their system for approving expenditure,
            including specimen signatures of the staff concerned.

      F.2.3 If it appears that budgeted expenditure may be exceeded, the
            Governing Body will, after consultation with the Executive
            Director Children‟s Services, inform the City Treasurer of the
            situation and their proposed action.

      F.2.4 The Local Authority‟s financial monitoring policy is contained as
            Section C to this document. It outlines in more detail the
            respective roles and responsibilities of the school and the Local

      F.2.5 If, at the end of a financial year the budget is overspent, the
            overspending will be deducted from the following year‟s budget.

      F.2.6 Any under spending will be carried forward. Interest will be paid
            on positive balances and debited on negative.

      F.2.7 Contributions may be made to a fund maintained by the City
            Treasurer as planned contingency to meet a proposed purpose
            in a future financial year. This fund will be credited with interest
            at a rate determined by the City Treasurer.

      F.2.8 Schools must not enter into any arrangement that involves a
            commitment of funds beyond the current year (leasing or other
            forms of credit) without the prior permission of the Executive
            Director Children‟s Services. Any school considering such an
            arrangement should consult the Executive Director Children‟s
            Services at an early stage in order that a full report might be
            prepared for the Governing Body and, if necessary, an
            appropriate cabinet.

      F.2.9 Where a Governing Body agrees in-year changes to approved
            estimates; these must be supplied to the Executive Director
            Children‟s Services and Accountant for Education and Libraries.

F.3   Final Accounts

      The Governing Body will comply with any instructions issued by the
      Executive Director Children‟s Services and the City Treasurer in
      respect of the preparation of final accounts for each year and will
      supply such information and explanations as the City Treasurer


Orders For Work, Goods And Services

     G.     Ordering


            The objective of this Regulation is to ensure that work, goods and
            are only ordered for the purposes of the school‟s business and that the
            resulting expenditure is within budget.

     G.1    Financial Control

            G.1.1 The purchase of all work goods and services shall be
                  undertaken at all times using an official order or through the
                  Local Authority electronic ordering system POPS.

            G.1.2 If your school uses blank order forms they are deemed
                  controlled stationery and shall be kept secure at all times.
                  Responsibility for the control of blank orders shall be with the

            G.1.3 Authority may be delegated to nominated staff to raise orders,
                  and incur expenditure.
                  It is suggested that all such nominated staff are designated
                  „budget holders” (i.e. are responsible for a specific element of
                  budget) and that delegated powers to raise orders are restricted
                  to this element of the school budget only.

            G.1.4 Each school shall maintain a list of staff duly authorised to sign
                  orders. It is recommended that designated budget holders do
                  not authorise orders that they have raised. A list should be
                  completed of all authorised staff and this list should be dated
                  and certified by an appropriate officer.

            G.1.5 Staff authorised to order work, goods and services should
                  ensure that they obtain the best possible deal and are advised to
                  consider the use of relevant purchasing organisations, including
                  the Council‟s own Purchasing Unit for this purpose. (see
                  regulation relating to Tendering and Contracts section H).

G.2   Raising an order

      G.2.1 All official copy orders must:
             contain text stating - Newcastle City Council
             state “Official Order”
             be numbered sequentially
             include the name and address of the school
             show the estimated cost of the items ordered
             cost code to be charged
             be completed by administrative staff
             signed by another authorised member of staff (blank orders
                 must not be signed in advance of completion)

      G.2.2 Except where a school uses the city council purchasing system
            POPS, all orders must be covered by an official order form.
            In exceptional circumstances where due to an emergency a
            verbal order is required, an official order number must be quoted
            to the supplier for use on all correspondence. The use of faxed
            orders must also be minimised. Where faxed orders are used
            they must state, “Fax – Official Order to Follow”.
            An official order in confirmation shall be forwarded to the
            supplier immediately afterwards, and noted accordingly.

      G.2.3 Where an order is cancelled or the order form damaged etc.
            then the copy order should be clearly marked to identify the
            reason the order was not issued. The copy order will then be
            retained on the audit file - if one exists, or on a dead file
            representing completed orders.

      G.2.4 A system where budget holders prepare a requisition and the
            school administrative officer completes the order is

      G.2.5 Where appropriate, completed orders shall be ruled off, (Z
            format), after the last entry to prevent the subsequent addition of
            unauthorised entries.

      G.2.6 A commitment record shall be maintained in order to satisfy the
            requirement of budgetary control. On no account shall orders be
            placed which commit expenditure over and above the budget

      G.2.7 Completed orders will be actioned in one of two ways depending
            upon whether the school uses the invoice agency for the
            payment of accounts or processes its own invoices.

            Invoice Agency Procedures

            a)    Top copy sent to supplier.

            b)   Second copy forwarded to Children‟s Services Accounts
            c)   Third copy retained in a „live‟ file in numeric order.
            d)   Third copy to “dead” file when invoice paid and shown on

            As all copies of the order are used there is no facility to retain an
            audit file.
            To overcome this live/dead file could be maintained on any
            computerised system in use with the third copy then being kept
            on an audit file.

            School Invoice Processing

            a)   Top copy to supplier.
            b)   Second copy retain in a live file in numeric order.
            c)   Third copy retained for audit purposes in numeric order by
                 batch number.

G.3   Receipt of Goods

      G.3.1 Goods must be checked to the accompanying delivery note
            immediately upon their receipt and the delivery note signed as
            an accurate record. In the event of any discrepancy the supplier
            must be notified immediately. Where a delivery note is not
            produced a Goods Received Note should be completed.

      G.3.2 Delivery details should be clearly marked and dated on the copy
            order held in the „live‟ file.
            Where the school uses the Schools Payment Support team the
            signed delivery note should be sent to the team - otherwise the
            delivery note should be retained and attached to the copy order.

      G.3.3 In the event of a delivery note not accompanying the delivery a
            goods received note should be completed in its place and dealt
            with in the same manner as a delivery note.

      G.3.4 Inventory records should be updated as appropriate as soon as
            possible following delivery of the goods.

      Payments of Accounts


            To ensure that payments are made only for works, goods and
            services received by the school and have been certified as such.

      G. 3.5 Where schools are using the Payment Support team suppliers
             should be requested to send invoices direct to the Children‟s
             Services Accounts Payable.
             Any invoices received at the school should be forwarded to the

      G. 3.6 Schools certifying their own invoices for payment should check

                 the goods have been received, have been examined, and
                  meet the required specification
                 work done or services rendered have been satisfactorily
                  carried out
                 the invoice is in accordance with the contract or order
                 the invoice is mathematically correct and due discounts are
                 payment has not previously been made
                 the payment is authorised
                 payment is timely to meet supplier/contractor terms of trade
                  and legislative requirements

             The copy order should be marked to show:
             - invoice number
             - date of invoice
             - amount of invoice
             - date passed for payment
             - amounts charged to expenditure codes if different to code
                 shown when the order was raised.
      G. 3.7 No commitments shall be entered into for goods, work or
             services for which the supplier or contractor requires payment in
             advance (except in the case of relevant periodical subscriptions).

      G. 3.8 Commitment records held by the school should be updated with
             details of actual expenditure. This should be undertaken at least
             monthly for reconciliation to expenditure tabulations.

      G. 3.9 Payment details should be shown on the copy order. Where
             payment covers all items on an official order and the payment of
             the invoice(s) has been reconciled with the expenditure
             tabulation, the copy order should be transferred from the „LIVE‟
             file to the dead file which represents actioned/paid.

G.4   Reimbursement of Expenses And Payment of Allowances


      To ensure that the reimbursement of allowances and expenses to staff
      is in accordance with the appropriate agreements and legislation

          Claims must include sufficient information to allow verification

          All allowances and expenses claimed must be shown on the
           relevant claim form
          All claim forms should be fully completed and approved for
          Payment will be made in accordance with procedures determined
           by the City Treasurer and will be based upon the appropriate
           rates at the time
          Expense claims should be supported by receipts wherever
          Travelling and subsistence payments will be made through the
           Payroll system and not paid from Petty Cash or any other source.

      (See separate guidance for making claims).

      Rates for the following allowances are to be found in the City
      Council‟s Personnel Policies Procedures and Practices (Section X):

          Retirement Gifts
          Overnight Stay Allowance
          Resettlement Scheme

G.5   Governors’ Expenses

      In accordance with Schedule 11 of the School Standards and
      Framework Act 1998, only allowances in respect of those purposes
      specified in regulations published by the Secretary of State may be
      paid to Governors from a school‟s delegated budget share. The
      payment of any other allowances is not permitted.

      Should the Secretary of State choose to pay expenses to additional
      Governors appointed to schools under special measures, the payment
      of these expenses should not be duplicated. Any claims for Governors
      expenses should be made in accordance with the procedures set out

                               H. CONTRACTS


     Schools are required to follow the set of procurement rules detailed
     within the document „Outside Bodies and Schools Procurement Rules‟
     but this section H (Contracts) provides a summary of such rules for
     ease of reference for Schools. The definition of the 'Chief Officer' within
     the full set of rules means the Head Teacher or other nominated officer
     as recorded by the School.

     This document is based upon Newcastle City Council‟s Procurement
     Procedure Rules but has been adapted for specific use by Schools.

     If there is a matter which needs clarifying within this Section H
     (Contracts), Schools should contact, in the first instance, the Children‟s
     Services Finance and Procurement Team within the Council

1.   Schools have freedom of discretion in their procurement matters but
     should take into account the need to ensure “best value”, consumer
     protection, compliance with legislation, transparency and the need to
     eliminate opportunities for fraud and corruption. Schools are
     encouraged to seek advice from the Finance and Procurement Section,
     Legal Services or Assistant General Manager, Procurement.

2.   Schools must abide by the Local Authority's Financial Regulations for
     Schools and Standing Orders Relating to School Governors‟ Contracts
     in procurement, tendering and contracting matters.
     Before entering into a contract, Governing Bodies are encouraged to
     check with the Local Authority that any such contract would not
     contradict the terms of an existing contract, which the Local Authority
     may have for the provision of similar goods or services and to
     safeguard potential financial detriment to the Local Authority and

3.   Although Governing Bodies are empowered under paragraph 3 of
     schedule 10 to the School Standards and Framework Act 1998 to enter
     into contracts, in most cases they do so on behalf on the Local
     Authority as maintainer of the schools and the owner of the funds in the
     budget share. Other contracts may be made solely on behalf of the
     Governing Body, when

     3.1    the Governing Body has clear statutory obligations – for
            example, contracts made by aided or foundation schools for the
            employment of staff or where the function has been transferred
            from the Local Authority to the school i.e. school meals; or

     3.2    the function does not fall within the scheme of delegation.

4.   We strongly recommend that all schools seek legal and HR advice on
     the application of the TUPE regulations particularly where staff working
     within the school already provides the service in question.

5.   Where schools participate in contracts administered by the Local

     5.1    Governing Bodies and Headteachers will be consulted about
            specifications where these are utilised.

     5.2    Terms and conditions of contracts will be varied during the
            period of the contract only where the provisions of a contract
            allow this.

     5.3    Schools will be bound to remain within the contract for the whole
            period of the contract, except where the terms and conditions of
            a contract expressly allow schools to opt out of that contract
            before the end of the contract term.

6.   Where schools administer their own contracts:

     6.1    They must do so in accordance with the Schools Financial

     6.2    They should be mindful of the associated guidance, which is
            issued to schools with the regulations.

     6.3    They should take advice on the application of the TUPE
            Regulations where the service in question is already provided by
            staff working within the school.

     6.4.   They may decide to opt for the most economically advantageous
            tender (balance of quality and price) or the lowest price but this
            must be set out in the tender documentation.

     Declaration of Interest

     The Education (School Government) Regulations 1989 (as amended in
     1991 and 1993) make provisions for governors to withdraw from
     meetings where they have a direct or indirect pecuniary interest in any
     proposed contract (pages 123-126 School Governors - A Guide to the
     Law 1994 edition, or pages 115-118 Aided and Special Agreement
     Schools or pages 111-114 Special Schools).

     Governors are strongly advised to make themselves aware of the legal
     provisions governing their conduct. An annual register is attached for
     governors and staff to declare any pecuniary interests.

     The following appendices are for reference:

   H1 Flowchart
   H2 Thresholds
   H3 Authorisation to negotiate
   H4 Annual Register of pecuniary interests.


                  Below £5000                Estimate the value of the

  Seek three quotations                                       £5,000 or above
  where appropriate and
confirm any successful oral
   quotation in writing.                  Check if the contract might be
                                          awarded under the terms of
                                          an     existing     framework
                                          agreement. – see PPR1.7

                                          Select the Procurement Route
                                                – see appendix 2

  Follow Minor Quotation                     Follow Written Quotation               Follow the Tender Route and
 Route and obtain at least                 Route and seek at least three             seek at least five Tenders
  three Minor Quotations                        Written Quotations                 (probably 5 if EU Rules apply)

Select firms to participate in             Select firms to participate in           Select firms to participate to
accordance with PPR 2.1 to                 accordance with PPR 2.1 to               accordance with PPR 2.1 to
             2.5                                        2.5                                      2.5

                                                                                   Comply with PPR 3.17 to 3.20
 Comply with PPR 3.10 to                  Comply with PPR 3.13 to 3.16             in seeking Tenders (which will
   3.12 in seeking Minor                   in seeking Written Quotations              include carrying out a risk
   Quotations (which will                 (which will include carrying out         assessment unless a PPR2.6
 include carrying out a risk                 a risk assessment unless a                   exemption applies)
   assessment unless a                      PPR2.6 exemption applies)
PPR2.6 exemption applies)

                                           Evaluate Written Quotations                 Evaluate Tenders and
Evaluate Minor Quotations                 and document the reasons for               document the reasons for
and confirm in writing the                selecting the successful firm.            selecting the successful firm.
 Minor Quotation from the                         See PPR 3.16                             See PPR 3.20.
successful firm. See PPR

                                             Ensure you have valid                   [[Consider application of
                                               authority from the                   mandatory standstill period
                                            Organisation to award the               where the EU Rules apply.
                                                    contract                              See PPR 6.5]]

                                            Award Contract and send
                                       Completion Statement to Children‟s
                                       Services Finance and Procurement
                                          if £5,000 or more – PPR6.7

     Please note references to PPR regulations can be found by visiting Outside Bodies and Schools
     Procurement Rules

   Total       Procurement                  Documentation                   Evidence for Audit                 School Information
   Value          Route                     Requirements                        Purposes

Under       SEEK AT LEAST            Use of official order required.    Must keep a written record   Schools are encouraged to use the NCC
£5,000      THREE                                                       of all quotations received   approved list of contractors. Selection of
            QUOTATIONS               Verbal quotations obtained         and of the reasons if less   companies not on the list is at the risk of
            A School must be         must be documented in writing      than 3 have been sought.     the governing body and school and against
            satisfied that good      as evidence that the                                            local authority advice.
            value for money is       procedures have been
            obtained                 followed.                                                       Quotations to be received and opened by
                                                                                                     the Headteacher or nominated person.

                                                                                                     Headteacher can appoint successful
                                                                                                     contractor unless this is beyond the powers
                                                                                                     given by the Governing Body.

£5,000 to   OBTAIN AT LEAST          The selected Minor Quotation,      Schools must:-               Schools are encouraged to use the NCC
£20,000     THREE MINOR              if submitted orally, must be       1. keep a detailed written   approved list of contractors. Selection of
            QUOTATIONS               confirmed in writing. The          record of all Minor          companies not on the list is at the risk of
                                     successful firm must pass a        Quotations received orally   the governing body and school and against
            Quotations may be        risk assessment unless             and of the reasons for       local authority advice.
            obtained orally,         exempted under PPR 2.6. An         selecting the successful
            although the School      Order (attaching standard          firm;                        Quotations to be received and opened by
            may decide to seek       Terms and Conditions) or                                        the Headteacher or nominated person.
            three Written            Formal Contract shall be           2. Retain evidence of
            Quotations (if, for      placed with the successful         placing the Order and a      Headteacher or nominated person if
            example, there is a      firm.                              copy of the Terms and        authorised or Chair of Governors or
            detailed specification                                      Conditions.                  Finance Committee must approve.
            for the Contract).
                                                                                                     The decision must be reported to the
                                                                                                     Governing Body and recorded in the
                                                                                                     minutes of the meeting

  £5,000 to     SEEK AT LEAST       The successful firm must pass               Schools must:-          Schools are encouraged to use the NCC
 £20,000 (if   THREE WRITTEN             the risk assessment              1. keep a written record of   approved list of contractors. Selection of
  not Minor      QUOTATIONS          requirements unless exempt              the evaluation criteria    companies not on the list is at the risk of
Quotations)    Quotations must be           under PPR 2.6.                (unless awarded on price      the governing body and school and against
 or £20,000     sought by written                                           only) as well as keep a     local authority advice.
to £139,371        means and           An Order (attaching the             detailed written record of
    (if not      submitted by a          standard Terms and                the reasons for selecting     Quotations to be received and opened by
  Tenders)        certain date.       Conditions) may be placed               the successful firm;        the Headteacher or nominated person.
               Quotations must be      with the successful firm,
                 invited by, and    otherwise a Formal Contract is          2. retain a copy of the        Headteacher or nominated person if
                 returned to the       needed, before the firm               Formal Contract or            authorised or Chair of Governors or
               appointed person           commences work.                  evidence of placing the         Finance Committee must approve.
                within the school                                          Order and a copy of the
                                                                          Terms and Conditions; and        The decision must be reported to the
                                                                                                           Governing Body and recorded in the
                                                                            3. retain a completed                minutes of the meeting.
                                                                                 Summary of
                                                                                Received Form

£20,000 to      SEEK A MINIMUM          The complete list of             Schools must:-                   Contact Children‟s Services Finance
£139,371        OF FIVE TENDERS         documentation required to        1. carry out and evidence a       or Legal Services Procurement Team
(optional) or                           undertake the procurement is     scoring exercise which            for advice on the process to be
£139,371        Tenders must be         available from Children‟s        assesses the firms‟ Tenders       followed for tenders and the
and above       sought by means of      services Finance and             against the evaluation            appropriate documentation to be used.
(essential)     issuing an Invitation   Procurement and Legal            criteria (unless awarded on
                to Tender. Tenders      Services Procurement Team.       price alone) and keep a          The Council‟s code of procedure for
                must be returned to     Schools must seek approval       detailed written record of        the receipt, custody and opening of
                the Headteacher or      from the Legal Services          the reasons for selecting         competitive tenders must be followed.
                nominated person.       Procurement Team if the EU       the successful firm for at
                In all cases at this    Rules apply.                     least three months;              Potential contractors must be risk
                level of value                                                                             assessed before any tender can be
                schools should          The successful firm must pass    2. retain a copy of the           awarded.
                contact Finance and     the risk assessment              Contract and;
                Procurement and         requirements unless exempt                                        The evaluation process of the tenders
                Legal Services          under PPR 2.6.                   3. retain a completed             received must be clearly documented
                                                                         Summary of                        and take both cost and quality into
                                        There must be a Formal           Quotations/Tenders                consideration.
                                        Contract in place before the     Received Form;                   Schools should seek advice from
                                        firm commences work.                                               Finance and Procurement or Legal
                                                                                                           Services Procurement before signing
                                                                                                          Chair of Governors or Finance
                                                                                                           Committee must approve appointment
                                                                                                           of contractor.

                                                                                                          The decision of the Governing Body
                                                                                                           must be minuted.

                                             The firm must pass the risk                                        Please refer to appendix 1 for Directors
                                           assessment and there must be                                         Authorisation to Negotiate
                                                                                       Schools must:-
                                              contractual terms in place
                                                                                    1. retain a copy of a
                                             before the firm commences
                                                                                 completed Authorisation to
                                               work. Schools must first
                                                                                 Negotiate Form which has
                                             ensure that any negotiation
                                                                                     been signed by the
                    NEGOTIATION            with one firm complies with EU
Any Value of                                                                     Headteacher or nominated
                  WITH ONE FIRM             Rules (and seek legal advice
 £5,000 or                                                                       person (and Council‟s City
                 – follow PPR 3.21 to       to this end) and complete an
   more                                                                          Treasurer if a contract over
                         3.27.                Authorisation to Negotiate
                                                                                 £100,000) and evidence of
                                              Form. The firm with which
                                                                                  all procedures complied
                                            negotiation takes place must
                                              pass the risk assessment
                                                                                   2. retain a copy of the
                                            requirements unless exempt
                                                    under PPR 2.6.


1.      All limits are exclusive of VAT.

2.      Contracts should not be deliberately divided into a number of constituent parts to avoid compliance with the above.

3.      The European Union Advertising Thresholds detailed in the schools financial regulations should be followed without exception.

4.      Schools must ensure that there is a clear audit trail of their decisions.



                          TO NEGOTIATE A CONTRACT
                             (pursuant to PPR 3.22)

Please refer to Procurement Procedure Rules 3.21 to 3.27 before completing this
Certificate. It explains the limited circumstances where a contract can be negotiated
without competition and how this should be done.


This certificate evidences the fact that the Headteacher or nominated person of the
School named below has authorised under Procurement Procedure Rule 3.22 that
the Contract described below may be negotiated with the Contractor (defined below)
without obtaining quotations or formal tenders because s/he is satisfied that such
negotiation is in the best interest of the School.

Contract: [insert name or brief description of proposed contract]

Estimated contract value: [insert estimated value of contract]

Contractor: [insert name of contractor with whom negotiation is proposed]

Applying School: [insert name of School applying for this authorisation]

Application by: [insert name of Headteacher or nominated person]

Reasons for Proposed Negotiation
[The Applying School should provide here full and detailed reasons as to why it is
considered in the best interests to seek to negotiate terms of the Contract with the
Contractor instead of seeking at least three competitive quotations or five tenders].


Endorsement of Applying School

I confirm that the information set out above is accurate.

[[I also confirm that I have consulted [<name> from Children‟s Services Finance
and Procurement and <name> from Legal Services Procurement Team] who have
advised that such negotiation is permitted under the EU Public Procurement Rules
and it is therefore open to the appointed LA Delegated Officer given the reasons set
out above if s/he so chooses to conclude that it is in the best interests of the School
to negotiate the terms of the contract as proposed.]]

Signature of Applying School       …………………………………………………..

Date ……………………………………

               Authorisation of Head Teacher or Nominated Officer

I am satisfied that for the reasons set out above it is in the best interests of the
School to seek to negotiate the terms of the Contract with the Contractor instead of
obtaining competitive quotations or tenders. I accordingly authorise such
negotiations to proceed pursuant to Procurement Procedure Rule 3.22. My further
and separate written approval will be required to any contract terms which are
negotiated with the contractor.

Signature of Delegated Officer …………………………………………………


[Note: Where the estimated value of the contract is over £100,000, the written
approval of the City Treasurer of the Council is also required].

I approve the proposed negotiation of terms for the reasons given above.

Signature of City Treasurer …………………………………………………

Date ……………………………………


Note: A report detailing each contract of £5,000 or more in value which has been let
without formal competition will be submitted annually by the Chief Schools to the
Organisation‟s Annual Meeting under Procurement Procedure Rule 3.26.


     SCHOOL GOVERNING BODY: ………………………………………………

      Date: ……………………………………………………………………………

                      ALL GOVERNORS AND STAFF

Governors and staff should declare any links they have with local firms from which
the school may wish to buy goods or services. It is important for anyone involved in
spending public money to demonstrate that they do not benefit personally from
decisions that they make. Information may be added during the year due to changes
in circumstances for the persons involved or the goods/service purchased.

Please note:
Declaration of Interest: The Education (School Government) Regulations 1989
makes provisions for governors to withdraw from meetings where they have a direct
or indirect pecuniary interest in any proposed contract. The guidance for school
governors on this issue is contained in Chapter 4, Paragraph 3 of the Department for
Schools Children and Families Publication "A guide to the Law for School
Governors". The reference relates to Community Schools, Voluntary
Aided/Controlled and Special.

Governors are strongly advised to make themselves aware of this legal provision
governing their conduct.

  Name of Governor of       Description of link with any local      Signature
 School or Staff member                   firms

Signatory Chair of Governors: ………………………. ………

                             I. BEST VALUE

 Best Value
 Ensures that public money is spent wisely. Best Value is a duty placed on local
 authorities to secure continuous improvement regarding economy, efficiency and
 effectiveness in the way services are delivered.
 Although Best Value is not a statutory requirement for schools, Governing Bodies
 are required to set targets to raise standards. They are also expected to provide
 good quality schooling and spend public money wisely. When Governing Bodies
 submit their annual budget plans to their local authority they should include a brief
 Best Value Statement setting out the steps they will be taking to ensure that school
 expenditure reflects the Best Value principles.
 You will also need to be aware that during their inspection, Ofsted Inspectors
 'evaluate and report on how effectively the school applies Best Value principles in
 its management and use of resources'. (Handbook for Inspecting Schools, Ofsted,
 TSO, 1999.).
Click here if you want to know more about Best Value visit

 Value for Money.
 If the Best Value principles are applied, schools will achieve Value for Money (VfM)
 in their purchasing activity. VfM involves more than consideration of price but
 considers quality of outputs as well.
 Governors have a responsibility for submitting to the local authority a rolling best
 value plan which forms part of the financial management reporting system.
 The Government Accounting definition of VFM is 'the optimum combination of
 whole-life cost and quality (or fitness for purpose) to meet the user's requirement.'
 Ofsted Inspectors are expected to 'evaluate and report on how effectively the
 school applies Best Value principles in its management and use of resources"
 (Handbook for Inspecting Schools, Ofsted, TSO, 1999.

I.1   The Principles of Best Value and Schools

      Best Value is built on the principles of the “3Es”: Effectiveness, Efficiency and
      Economy they are often summarised as the “4 Cs”: Challenge, Compare,
      Consult and Compete. The following table provides a working explanation,
      alongside an exploration of how these might be interpreted in the school

I.2   Principles of Best Value - Interpretation in the school context


      Questioning the way services are delivered and asking if it is appropriate to be
      purchasing the service or undertaking the work themselves.

      In challenging the current service provision schools may consider whether the
      way in which they currently buy services most effectively meets their needs
      and/or whether it is the most economical way of purchasing the particular

      I.2.1   An example may be the purchase of curriculum advice in terms of an
              agreed number of days of consultancy that the school fails to make full
              use of because the consultant range of suppliers on a pay as you use
              basis may meet the school‟s needs more effectively

      I.2.2   In some situations schools will decide that they need to purchase a
              service from an external provider in order to release staff to undertake
              more appropriate professional tasks.

      I.2.3   An example would be where a curriculum co-ordinator or head of
              department is spending large amounts of time dealing with ICT issues
              which could be undertaken more effectively and cheaply by using a
              part-time technician.

      I.2.4   Challenge may result in schools determining that they can provide
              some of their own services rather than purchasing externally. Examples
              could include in-house provision of catering, financial administration,
              caretaking and cleaning as well as the provision of advice and
              consultancy through a network of schools using current practitioners,
              including advanced skills teachers.

      I.2.5   A school may also consider that it does not require a service at all. For
              example a school may decide to discontinue a subscription to a supply
              insurance scheme if insufficient use is being made of the scheme.

I.3   Compare:

      Comparing one school‟s way of obtaining a service, including costs, with
      those of similar schools.

      I.3.1   In most Local Authority‟s school managers have networks where
              comparisons of service provision may feature routinely in discussions.
              Schools can use their contacts (either formal or informal) to gather
              information on other ways of obtaining services, different suppliers,
              prices etc. The Audit Commission collects and publishes comparative
              data on schools‟ financial performance www.schools.audit-
     and many Local Authoritys publish detailed school
              profiles including contextualised school data, both financial and non-
              financial. This information allows individual schools to identify other
              schools with similar characteristics and to engage in benchmarking

I.4   Consult:

      Consulting relevant stakeholders to ensure that the service provided is
      relevant to their needs.

      I.4.1   The relevant stakeholders for school services could include: Teaching
              and support staff; pupils; parents; governors; the local community;
              professional associations and existing suppliers.

      I.4.2   Schools may wish to consult some/all stakeholders when reviewing or
              considering a service or supplier. For example pupils and parents could
              be consulted about aspects of school meals provision.

I.5   Compete:

      Testing the market place, including internal providers, to secure the best
      possible service at the best possible price.

      I.5.1   Where a service passes the challenge, i.e. that it is needed, schools
              need to decide how the service can best be delivered. They will need
              to compare potential suppliers and decide the most appropriate for the
              school. Schools might also wish to consider alternative means of
              accessing services including the use of a broker or joining or forming a


J.1     To ensure the proper use and safeguarding of assets owned by the
Council. This Regulation applies to all assets including cash, stocks, stores,
furniture, equipment, and vehicles that are owned by the Council and are in the
possession of schools.

      J.1.1 The Headteacher will be responsible for proper security of the above
            assets held by the school, including items purchased by the Parents‟
            Association or by gift.

      J.1.2 The use of assets should be restricted to authorised school business.

      J.1.3 Assets must be properly recorded and accounted for.

J.2   Inventories of equipment and furniture

      J.2.1 The Headteacher should maintain up to date inventories of all
            equipment and furniture. As a general guide anything costing over £100
            or expected to last longer than one year should be entered in the
            inventory. Items of a low value, consumable nature, need not be
            entered, e.g. stationery.

      J.2.2 Inventories should be in an approved format and show date of
            purchase, description of item, supplier, order number, serial number,
            location of equipment and date and signature of entry. Where
            equipment and furniture is provided from external funding sources or is
            leased this should be clearly shown in the inventory.

      J.2.3 Inventories should be checked at least once per year against physical
            items. Discrepancies should be investigated and pursued to a
            satisfactory conclusion. The Headteacher should report to the
            governing body where appropriate.

      J.2.4 Wherever possible, equipment and furniture should be effectively
            marked as the property of the school.

      J.2.5 On rare occasions the governors may approve the short-term loan of
            an item of equipment or furniture to another agent of the City Council.
            A loan record should be kept for this purpose (see Section on
            equipment loans).

      J.2.6 Where school employees are authorised to remove temporarily from
            the premises any item of equipment furniture, e.g. a computer for self-
            training purposes, this should be recorded in the loans record. Items of
            school property should not be removed from school premises without
            the appropriate delegated authority. The school should record any loan
            and update the record when the asset is returned. The position relating
            to insurance should be clarified and explained to staff concerned before
            any assets are taken off the school premises. If assets are on loan for
            extended periods or to a single member of staff on a regular basis, the
            situation may give rise to benefits-in-kind. This has implications both for
            tax purposes for the individual concerned and for the proper use of
            public funds. Loans should therefore be kept under review and advice
            sought from the school‟s auditors as appropriate.

      J.2.7 It should be established prior to a loan to a school employee or other
            agent either that:

            a)    the school‟s Balance of Risks insurance is in place to cover loss;
            b)    the borrower has his/her own insurance cover to give redress for

      J.2.8 Equipment Loans

            The following information must be included in any loans record.

                 Equipment on loan - a full description is required
                 Date of loan
                 Stockbook Reference (page number/line of stockbook entry)
                 Name of borrower
                 Reason for loan
                 Home address
                 Expected date of return (to be completed on commencement of
                 Date of equipment return
                 The borrower must sign for the loan of the equipment when taken
                  and when returned.

J.3   Disposal of Stores and Inventory Items

      J.3.1 Where the Headteacher deems an item of equipment or
      furniture irreparable then authority will be vested in the Headteacher to
      dispose of the item and amend the stock records accordingly. In these
      cases disposal will be final and not by sale to a third party. The
      Headteacher will report to the governors on such actions as they occur.

J.3.2 Where the Headteacher deems the school to have no further use for an
      item, but believes disposal of the asset may produce income for the
      school, a procedure should be followed which includes the following

      i)     Production of an inventory of items for sale.

      ii)    Public advertisement of the proposed sale. (This may be in the
             Children‟s Services electronic circular and/or in the public press).

      iii)   Sale takes place with suitable provision for income collection and
      iv)    Proceeds of sale are paid into school‟s budget.

       (N.B. Under no circumstances can proceeds be paid into school fund).
      The Governing Body will approve a plan for proposed sales in advance
      of the procedures being operated.

J.3.3 In the case of items leased by the school or authority, with the
      agreement of the Local Authority, disposal can only take place on the
      written authority of the City Treasurer.


K.1   The Imprest Account is a cheque account with the City‟s Bankers, which is
      available for the purpose of defraying petty cash expenses in circumstances
      when the use of an Official Order would be inappropriate.

      K.1.1 Expenditure made via the Imprest Account is a charge upon the
            school‟s budget. Charges will be coded to the budget when
            reimbursement claims are submitted.

      K.1.2 Imprest Accounts are subject to financial limits. These are:

                    Primary                     £1,000
                    Middle                      £1,500
                    Secondary Schools           £3,000

      K.1.3 Imprest Accounts must never be overdrawn.

      K.1.4 The Headteacher is responsible for ensuring that regular claims for
            reimbursement of the Imprest Account are made.

              A claim must be made at the end of the financial year to ensure that all
              expenditure is charged to the correct year of the school‟s budget.

              Regular claims should be made throughout the year to ensure that the
              account does not become overdrawn. The frequency of the
              reimbursements will depend upon the level of Imprest expenditure, but
              more than 2/3rds of the Imprest Account should not be spent without a
              reimbursement being made.

      K.1.5 An annual Certificate of Imprest must be completed by the school to
            comply with the District Auditor‟s requirement.

      K.1.6 The Headteacher is responsible for ensuring that any cash balance
            from this account shall be kept locked in a safe place and secure from
            unauthorised interference.

      K.1.7 No income received on behalf of the Council, relating to school budgets,
            shall be paid into an Imprest Account. Income is subject to a separate
            policy note.

    Petty Cash Imprest Accounts - Procedure

    K.2   A record shall be kept of every payment from the school‟s Imprest
          Account. A copy of the recommended format is included in the Imprest
          Reimbursement guidelines.

          K.2.1 Staff seeking reimbursement in cash of expenses incurred, must
                sign a receipt to acknowledge that they have been reimbursed in
                cash. This is not necessary when reimbursement claims are paid
                by cheque.

          K.2.2 Vouchers (till receipts/paid invoices) shall be obtained, wherever
                possible, as evidence of expenditure. They must be obtained in all
                cases where VAT has been charged, in order that the VAT can be
                reclaimed on the school‟s behalf. VAT is dealt with in detail in the
                “VAT - Guidance for Schools” booklet.

          K.2.3 Schools are now even more likely to find themselves subject to scrutiny
                by HM Customs and Excise and Inland Revenue. The reclaiming of
                VAT without the proper level of receipt to support the claim may result
                in the Authority being fined. This would be the amount of VAT
                reclaimed plus lost interest. This cost would be subsequently charged
                to the school‟s budget. It is therefore essential that no payments for
                services should be made to an individual from a school Imprest
                Account. This rule is a direct result of the new taxation regulations.

          K.2.4 Simply, if a school is charged VAT on a purchase, but the receipt does
                not contain all the required information, the school should demand from
                the supplier a legitimate tax invoice so that VAT can be reclaimed. The
                supplier is obliged to provide one and will face financial penalties from
                Customs and Excise if he/she fails to do so. (S55 HM Customs &
                Excise Note 700).

Imprest Reimbursement

    K.3   The System

          The system is based on direct reimbursement from Exchequer Services to the
          school‟s bank account by completion of a simple pro-forma imprest
          reimbursement request. Once completed it must be sent to the Payments
          Section, Exchequer Services. (This is on the bottom of each form).

          The system is detailed below.

          Stage 1

          Schools should continue to keep a record of all expenditure met from the
          imprest account. This should be kept in the format shown on Appendix K.1
          (attached) in accordance with the instructions outlined thereon.

Stage 2

Establish the VAT element of any payments made. Enter this in column 6.
This is important as any VAT paid can be reclaimed from Customs and
Excise. Failure to do this will also result in higher costs being charged to the
school‟s budget as it will include VAT, which would not normally be charged
there. School‟s can only reclaim VAT if they have a legitimate tax invoice at
the rate of VAT being charged. What constitutes a tax invoice is detailed in
the booklet “VAT, Guidance for Schools”.

Subtract any VAT (column 6) from the gross cost (column 5) to arrive at the
net cost to the school (column 7). This net figure can then by allocated to the
appropriate budget sub-codes (columns 8 - 12).

Stage 3

When it has been decided that reimbursement is required, add up all columns
5 - 12. This will give you the total figures, which will be used later in the
process. (These are shown on Appendix K.1 as Total Costs).

N.B. 1.     The total of all columns 8 - 12, i.e. £73.12; £13.65; £50.88; £52.30
            and £4.40 should agree with the total column (7) i.e. £194.35. If
            they do not, then a mistake has been made.

       2.   The totals of columns 6 and 7 should, when added together, equal
            total of column 5.

Stage 4

Complete the Imprest Reimbursement Form (SIRF1) as set out below.

Date                 Enter the date when completing this document

Payee                Enter the name and address of the school.

Imprest A/C No.      Enter the Bank Account Number of your school‟s Imprest.

Paybill Authorisation Box Leave blank.This is for completion by the paybills

      Petty Cash

      Reconciliation     This is important as it will help the school to identify any
                         errors that may have made and it will therefore ensure that
                         the claim and the records are correct. N.B. Do not ever
                         invent figures to make it balance.

      Cash in Hand       Enter the total cash being held for Imprest Account purposes
                         at the time of the reconciliation. It may be that it adds up to
                         £10.32 for illustrative purposes.

      Balance at Bank Enter the balance as at the date and time of the
                      reconciliation. This may not be straightforward as a bank
                      statement may not be readily available at that date. A
                      school, however, calculate what it should be using the
                      following simple reconciliation (figures used are for
                      illustrative purposes only).

Balance as per latest available statement
Add Credits paid in since then (previous claims)                                301.80

Deduct cheques written since then e.g.             000137             5.35
                                                   000138             7.13
                                                   000139            20.00
                                                   000140            11.10
                                                   000141             5.35
                                                   000142            30.00       78.93
Balance at Bank                                                                 787.08

Reimbursement claim as below Enter total gross cost calculated at stage 3 and
                             shown at bottom of column 5 i.e. £202.60 on
                             Appendix K.1.

                                 N.B. This would give a petty cash reconciliation as
                                 illustrated in Appendix K.2.

Amount of Imprest held           Enter total amount of Imprest advance £1,000 /

Certified for Payment            To be signed by the person responsible for
                                 making/preparing the claim once that person is
                                 satisfied that the claim is correct.

Authorised signatory      This signature must be present and will usually be
                          that of a senior person at the school designated for
                          this purpose. It can also only be a person so notified
                          to the Payment Section as an Authorised Signatory.
                          This gives the payment and debit the necessary
                          expenditure heads.

Coding Grid

System reference number   Leave blank

Supplier Reference        Enter IMPREST

Supplier Number           Leave blank - this is for Exchequer Services use.

DIR / Div code            each school has their own Dir / Div code, if you are
                          unaware of your school codes these code can be
                          obtained from Exchequer payments section. This
                          grid must be completed

Invoice receipt date      This is the date of the claim

Payment due date          Enter the date the payment should be made. This
                          will usually be a few days after the date at the top of
                          the form to allow it time to get to the Civic Centre

Gross amount              Total amount of payment including VAT

VAT                       Enter the total amount of VAT to be reclaimed (figure
                          arrived at in column 6 Appendix K.1 - i.e. £8.25).

Description               Anything that will help identify the amount on the
                          expenditure tabulations up to 26 characters. A
                          description of what the expenditure relates to, for
                          example Imprest - January claim.

Amount                    Enter on each line the amount, net of VAT, that is to
                          be debited to the school‟s expenditure codes
                          (columns 8 -12). Keep VAT amounts separate from
                          non-VAT amounts as shown in the completed grid
                          using the figures in Appendix K.1.

Code - Main               Enter the main code for the school 1E???

Code - Sub                Enter the sub code relating to the type of
                          expenditure. These have been provided for all

Capital project                Only complete if the expenditure relates to a capital

Job Code 1                     Standards fund only

VAT Code                       There are only be 3 codes that should be used

                               0 = Zero rated/exempt payments ... VAT = 0

                               2 = Standard rate goods @ 17½%

                               8 = any payments made to other Local Authorities
                               where VAT is again NIL for the school‟s purposes.

The remainder of the coding grid do not affect the school for this process and
therefore should be left blank.

Stage 5                        The claim form must be authorised, take a copy for
                               information and send the original to the address on
                               the bottom of the form. Attach and file the school‟s
                               copy with the expenditure record and vouchers
                               which must be retained for at least 4 years to allow
                               checks to be undertaken by both Audit and customs
                               and excise.

Stage 6                        Back to stage 1 for the next claim.

K.3.1 Batch Control Document

1.    This document must be attached to the front of the school‟s reimbursement
      claim. It acts as a control document during process and also acts as a
      reference in case of future queries. Its completion should be as follows:
      PL system batch number               Leave blank

      Financial year                     Leave blank

      Accounts payable reference         Leave blank

      Directorate batch description      Name of School

      Directorate batch Number           An individual reference within a given
                                         range.      This identifies the batch
                                         containing the claim and is used as a
                                         reference during both data processing
                                         and in case of queries. This should be 6
                                         characters long and start with the three
                                         numbers of the school‟s code followed by
                                         001, 002, 003 etc. Batch numbers should
                                         run consecutively.

No of Docs.                         Should always be 1.

Total gross amount                  Total amount of the claim.

Total VAT amount                    Total VAT amount in claim

Completed by                        Should be the name of person completing
                                    the claim, not the authorised budget
                                    holder unless they are undertaking the

The remainder of the form is for Exchequer Staff and therefore should be left

                                                                                                              APPENDIX K.1


Date    Name of Firm   Vouch     Items      Gross    Less         Net Cost   Postage   General     BSA     Pupil   Misc
                         er    Purchased    Cost     VAT                               Repairs            Travel
                       Numb                                                                               Expend
                                              £         £            £          £         £         £       £       £
 (1)         (2)        (3)       (4)        (5)       (6)          (7)        (8)       (9)       (10)    (11)    (12)

       Fenwick Ltd.     1      Keys         5.35     .80       4.55                     4.55
       City Pets        2      Pet Food     7.13    1.06       6.07                              6.07
       Post Office      3      Stamps      20.00        -     20.00          20.00
                        4      Pupil       25.10        -     25.10                                       25.10
       Bookless Ltd.    5      Fruit and    1.60        -         1.60                           1.60
       Post Office      6      Stamps      10.00        -     10.00
                        7      Pupil       23.30        -     23.30                                       23.30
       Fenwick          8      Keys         5.35     .80       4.55
       Cambridge        9      Exam        10.80        -     10.80                              10.80
       Univ. Press             Papers
       Post Office      10     Stamps       3.12        -         3.12        3.12
       J.T. Dove        11     Cement       1.80     .27          1.53                           1.53
       Fenwick Ltd.     12     Tiles       10.50    1.56          8.94                           8.94
       E. Hall          13     Wood-       11.10    1.65          9.45                           9.45
       Co-operative     14     Laundry      4.40        -      4.40                                                4.40
       Post Office      15     Stamps      10.00        -     10.00          10.00
       City Pets        16     Pet Food     8.80    1.31       7.49                              7.49
       Fenwick          17     Keys         5.35     .80       4.55                     4.55

D. Eblett Ltd.   18   Newspape    5.00     -          5.00                   5.00
                 19   Pupil       3.90     -          3.90                            3.90
Post Office      20   Stamps     30.00     -      30.00      30.00

TOTAL COSTS                      202.60   8.25    194.35     73.12   13.65   50.88   52.30   4.40


Column 1 -     Date                The date on which the payment was made – this
                                   should agree with the date on any receipt or

Column 2 -     Name of Firm        The name of the person, company, from where
                                   the purchase was made.

Column 3 -     Voucher Number      All receipts must be numbered and kept in
                                   numerical order, they must also be entered
                                   numerically on the form.

Column 4 -     Items Purchased     A brief description of what has been purchased.

Column 5 -     Gross Cost          The total cost of the purchase.

Column 6 -     VAT                 The VAT element of the total cost.

Column 7 -     Net Cost            The total cost less the VAT element.

Column 8-12 -                      Analysis over the various expenditure heads
                                   which, will subsequently be charged with the total
                                   cost of the purchase. It may be an appropriate
                                   aide-memoir to add the relevant sub code to the
                                   top of the column (will assist when completing the
                                   pro-forma reimbursement form eg Postage.

Whenever possible a VAT receipt for any expenditure must be obtained (only the
net amount i.e. cost - VAT, will be charged to your expenditure codes and the
VAT is reclaimed by the Authority). The treatment of VAT is dealt with in detail in
the “VAT - Guidance for Schools” booklet


L.1   Governors Responsibilities

      L.1.1 In accordance with the provision of the Schools Standards Framework
            Act 1998, and Governing Bodies of Schools with delegated budgets are
            responsible for many of the employment functions previously
            undertaken by the Local Authority such as appointments, dismissals,
            grievance and disciplinary issue.

      L.1.2 By virtue of the Schools Standards Framework Act 1998, Governing
            Bodies are responsible for determining the number of staff to be
            employed in their school, their duties and rates of pay subject to the
            statutory minimum. The Local Authority must appoint any person the
            Governing Body so recommends, unless the person fails to fulfil one of
            the requirements relating to qualifications, health and physical capacity
            or conduct.

      L.1.3 It is a requirement of the Act that the Executive Director Children‟s
            Services shall give advice to or be consulted by Governing Bodies on a
            range of employment related issues. In response to this requirement a
            Manual of Personnel Practices and Procedures has been prepared.

      L.1.4 The manual is designed to support Governing Bodies with their
            responsibilities and the Codes of Practice included in the manual have
            been the subject of consultation with the Associations and Trade
            Unions representing staff in school.

      L.1.5 It is recommended that the advice, guidance and procedures contained
            in the manual are adopted and followed by school governors

      Please refer to following table for subject specific information relating to
            human resources.

                          FOR SCHOOLS


Section       Name         Ref                       Title
          Delegation of    A1    Delegation of Employment Related
   A      Employment             Functions
   B      Appointment      B1    Code of Practice on Recruitment and Selection
          of Employees           for Schools
                           B2    Code of Practice on the Disclosure of Criminal
                                 Convictions for Schools
                           B3    Guidance on the Recruitment and Employment
                                 of Disabled Persons for Schools
                                 Guidelines for School Governing Bodies on the
                           B4    Appointment of Head Teachers and Deputy
                                 Head Teachers

   C      Official         C1    Code of Conduct for Education Service Staff
          Conduct                Employed in Schools
                           C2    Policy for Confidential Reporting of Concerns
                                 (“whistleblowing”) for Staff
                           C3    Guidance on Preventing Abuse of Trust
                           C4    Guidance on Conduct [in relation to children
                                 and students]
   D      Termination of   D1    Scheme for Early Retirement and Stepping
          Employment             Down and Actuarially Reduced Benefits
                           D2    Code of Practice on Redeployment
                           D3    Guidelines for Governing Bodies - Managing
                                 Redundancies in School
                           D4    Model Staffing Review Policy for Voluntary
                                 Aided Roman Catholic Church Schools

   E      Leave of         E1    Leave of Absence
          Absence          E2    Maternity Leave Provisions
   F      Salary and       F1    Model Pay Policy for Schools

   G      Absence          G1    Code of Practice and Guidance for Managing
                           G2    Absences
                                 Model Policy on Managing the Effects of
                                 Alcohol or Drug Misuse by Employees
   H      Equal            H1    Equal Opportunities in Employment– Strategic
          Opportunities    H2    Aims
                           H3    Harassment and Bullying
                                 Standards for Racial Equalities in
                           H4    (Commission for Racial Equalities)

                                           Model Policy Statement on Equal
                                           Opportunities in
                                           Employment for Roman Catholic Schools

      I           Employee           I1             Model Dismissal Procedure
                  Relations          I2              Model Disciplinary Procedure
                                     I3      Detailed Guidance on the Conduct of
                                             Disciplinary Investigations in Schools

                                     I4             Annex - Education Staff and Child
                                                    Protection: Staff Facing an Allegation
                                                    of Abuse - Guidelines on the Practice
                                                    and Procedure

                                     I5             Guidelines for Head Teachers for
                                                    Handling Complaints involving Supply

                                     I6             Model Grievance Procedure
                                                    Addendum to Grievance Procedure
                                                    (for post termination grievances)

                                     I7             Collective Disputes Procedure

                                     I8             Model Capability Procedure

                                     I9             Guidance on Format of Staff Appeals

                                     I10            Dismissal Hearing Format

                                     I11            Time Off and Facilities for Trade
                                                    Union Officials

The following sections from the corporate policy manual have been excluded:
overtime and other premium payments, payment of expenses (resettlement,
interview), current rates of allowance.

Updated:         8 April 2002

L.2       Supply Teaching
          L.2.1 Copies of the form required for the payment of supply teachers are shown in
                Appendix L2

                                                                                                                                            APPENDIX L 2

                          Newcastle City Council – Supply Teaching Return

                          School: ___________________________________              Month: _____________________       Exp. Code: ______________________
Please ensure the form is completed in capital letters, is correctly coded, authorised and forwarded to the civic centre by the deadline date
(see overleaf).

Up to 5 hours enter hours: over 5 hours enter  for session

Week       Emp      Name               Mon     Tue     Wed     Thu    Fri    Sat    Sun    Teachers              £        Ele    Exp code Comments
Ending     Ref                                                                             signature             P        m      Main sub

TOTAL                      OF
TOTAL                      OF

HEADTEACHER/AUTHORISED SIGNATORY: .........................................................................................DATE: ………………….

L.2.2    Details of how to complete the form are shown on the reverse side of the form.


    SCHOOL NAME – Enter the name of the school submitting the return.

    CALENDER MONTH – Enter the month the report refers to.

    SCHOOL EXPENDITURE CODE – Enter the appropriate school expenditure

    WEEK ENDING – Enter the Sunday date at the end of the week in which the
     supply teacher is employed by the school.

    EMPLOYEE REFERENCE – It is essential to enter the employee reference
     number in this column so that payments can be made. If no employee
     reference number is available, enter the supply teachers home address in the
     comment column.

    NAME – Enter the name of the teacher the report is being completed for.

    MONDAY TO SUNDAY – Enter the number of hours/sessions against the
     appropriate day. Supply teachers are paid an hourly rate for the first five
     hours worked in each / any school. Please indicate partial hours in minutes,
     i.e. 15,30 or 45. For any work over five hours a supply teacher receives a
     daily rate and this should be indicated by entering a  against the appropriate
     day. Hours should be rounded up to the nearest quarter of an hour.

    TEACHERS SIGNATURE – The teacher must sign the form at the end of the
     week or as soon as the period of employment ceases, if this is less than a
     complete week, for the hours/sessions worked.

    SHADED AREA – Please do not make any entries in the shaded area of the

    TOTAL OF HOURS – Total down the daily hours in the 7 columns.

    TOTAL OF SESSIONS – Total down the daily sessions in the 7 columns.

    HEADTEACHER/AUTHORISED SIGNATORY – The form must be authorised
     for payment by the Headteacher or other officially authorised signatory. The
     form must also be dated when signed.

    In order that payment can be guaranteed the form must be forwarded in time
     to reach the payroll section by the due deadlines as notified by Children‟s

                         AND SUBSISTENCE

Employees should refer to the section X of the Personnel Policies, Procedures &
Practices Manual for all matters relating to this subject. As the travel allowance and
subsistence rates change frequently it is not appropriate to include them within this
document. All schools and services have been provided with a copy of the HR
Manual. However, should you have any queries they should be directed to your
nominated HR officer. Alternatively you can visit the website\hrs

All employees making claims for expenses will be required to certify that the claim is
valid and that the relevant expenditure has been incurred. Employees must be ready
to show receipts if so required by the department.

                                N.     INCOME

N.1   General

      N.1.1 The Governing Body should establish a charging policy for the supply of
            goods or services.

      N.1.2 The Headteacher is responsible to the Governing Body for accounting
            for all income due and cash collected as set out in the Governing
            Body‟s charging policy.

N.2   Receipts

      N.2.1 The school should issue official, pre-numbered receipts or maintain
            other formal documentation for all income collected.

      N.2.2 Receipts, tickets and other records of income should be securely

N.3   Cash Collection

      N.3.1 A remittance register should be maintained to record all income
            received by post.

      N.3.2 Income collections should not be used to meet any expenditure or for
            the encashment of personal cheques.

      N.3.3 Transfers of money between staff should be signed for.

      N.3.4 All cheques received should be noted on the reverse with the
            appropriate receipt number or a reference to the debt being paid, and
            sufficient details to identify the payer.

      N.3.5 Where payment is made by cheque, cheque guarantee cards should be
            examined to verify identification and the reference number entered on
            the reverse of the cheque.

N.4   Security

      N.4.1 Cash and cheques should be locked securely away to safeguard
            against loss or theft.

      N.4.2 Cash should not be held in excess of the insurance level of the safe,
            strong room in use at the school. Sufficient banking deposits should be
            made to keep the level of cash holding within the prescribed limits. It
            should be regarded as good practice to arrange the removal of all cash
            from the school premises over the duration of any term and half term

      N.4.3 Collection of income from schools is effected by Neighbourhood
            Services Cash-in-Transit service.

      A schedule for collections is arranged on an annual basis by Neighbourhood
      Services Facility Services.

N.5   Debtors

      N.5.1 All income due to the school for the supply of goods or services should
            be collected promptly. Income should be collected in advance of the
            provision of the goods or service. (i.e. before a letting takes place). If
            this is not deemed appropriate the reason must be clearly documented
            and approved.

      N.5.2 Where invoices are required to be raised for the collection of income
            they should be issued promptly.

N.6   Banking

      N.6.1 The school should reconcile the sums collected to the sums
            deposited at the bank. Bank paying-in slips must clearly show the
            split of cash and cheques. Cheques should be identifiable by
            reference to the receipt number and names of the drawers and
            cash by reference to receipt numbers.

      N.6.2 Bank deposits should be made at least weekly except that
            whenever receipts in hand exceed £250 they shall be banked

      N.6.3 All income should be banked intact and promptly into the
            appropriate bank account.

                  O.     DATA PROTECTION IN SCHOOLS


O.1   Today, information about individuals is a valuable and important commodity.
      In Children‟s Services the handling of information is a daily routine and proper
      controls over the use of this information is of obvious importance. The Data
      Protection Act provides the framework for these controls and constitutes two
      main purposes.

            To regulate how personal information can be used.

            To safeguard the rights of the individual on whom personal information
             may be held.

      Data Protection legislation does not, as is commonly thought, restrict the
      legitimate use of personal information. It does, however, ensure that both the
      uses and users of this information are registered and that the subjects of
      personal information have a right of access to this information.

      Each organisation or individual who processes information, either in electronic
      or paper form, has a legal duty to register their use of this information with the
      Information Commissioner, formerly the Data Protection Registrar.
      Notification with the Commissioner must be made annually. It is a legal
      offence to process information on identifiable individuals without this

      This guidance note explains in more detail the need for notification and the
      principals to which Data Protection legislation adheres.

O.2   Definitions

      Data Protection is jargon led. Some of the key definitions are given below.

      O.2.1 Data Controller is the individual or organisation who controls the
            contents and use of a collection of personal data. The data controller
            can exercise the control, either alone or jointly or in common with other
            persons. This term comprises not only living individuals but also
            companies and other corporate and incorporate bodies.

             In Children‟s Services, each individual school should be considered a
             data controller. The need to register both the head teacher and
             governing body of a school separately has been removed and, hence,
             a single notification can be made. Distinct responsibilities, however,
             remain for key individuals and groups within a school environment.
             Some of these are outlined in section below.

      O.2.2 Personal Data means information recorded in a managed filing system,
            including computer and paper records, about living, identifiable

      O.2.3 Data Subject refers to the individual about whom personal data is held
            by the data controller.

      O.2.4 Data Processing is the obtaining, holding or the carrying out of a set of
            operations on personal data, including organising, adapting, altering,
            storing, retrieving, consulting, using, sharing, transmitting, making
            available, disseminating, aligning, matching, erasing or destroying.

      O.2.5 Notification refers to the process, required for all data controllers, to
            inform the Information Commissioner of their personal data processing.
            This process was called registration under the previous Data Protection

      O.2.6 Sensitive Personal Data are items of information on racial or ethnic
            origin, political opinions or affiliations, religious beliefs, Trade Union
            membership, physical or mental health, sexual orientation, (alleged)
            commission of criminal acts and proceedings for any (alleged) criminal
            offence. Access to these data is only allowed under very specific rules,
            including having the express permission of the data subject, being
            required by law to process the data for employment reasons or needing
            to process the information to protect the vital interests of the data
            subject or another.

O.3   Who Might Be A Responsible For Personal Information In A School

      Guidance notes provided by the Information Commissioner offers the
      following definitions:

      O.3.1 An examination of relevant education law shows that the local
            education authority, the governing body and the head teacher each
            have a duty in law for certain functions connected with the day to day
            operation of the school.        For example, the Pupil Registration
            Regulations 1956 require the governing body to ensure an admission
            register and an attendance register are kept whereas the responsibility
            for providing an annual report to parents on each pupil‟s achievements
            is placed on the head teacher by the Education (Individual Pupils‟
            Achievements) (Information) Regulations 1990.

O.3.2 If personal data are held by the authority, the governing body or the
      head teacher in support of the discharge of one of their individual legal
      duties it follows that they control the contents and use of that personal
      data and are therefore the data user. If, for example, the head teacher
      holds details of pupils‟ annual reports on computer it cannot be said
      that it is either the governing body or the authority who ultimately
      control the contents and use of the personal data and that the head
      teacher is merely acting in his or her capacity as an employee on their
      behalf. Rather the data are held by the head teacher to enable them to
      discharge their legal duty and it is they rather than either the authority
      or the governing body who controls the contents and use. This makes
      the head teacher the data user.

O.3.3 Not all personal data held by either the governing body or the head
      teacher will necessarily be in support of one of their individual legal
      duties. The head teacher will hold data in support of functions for
      which they do not have a legal duty but which for day to day
      management purposes are delegated to them by the authority or the
      governing body. In these cases the authority or governing body will still
      retain a legal duty and will ultimately control the contents and use of
      any personal data with the head teacher acting as its
       employee or agent. The authority or governing body will be the data
      user. Similarly where the authority delegates‟ day-to-day responsibility
      for its legal duties to the governing body the authority will remain the
      data user.

O.3.4 For example, a head teacher might well have day-to-day responsibility
      for maintaining attendance registers. However, it will remain the duty,
      in law, of the governing body to ensure the registers are kept and the
      head teacher will be acting as their agent in the discharge of this duty.
      The governing body will ultimately control the contents and use of any
      personal data held in this connection and it is the governing body rather
      than the head teacher who will be the data user.

O.3.5 Each school will need to consider ways in which it uses personal data
      and determine for itself who is the data user for the different uses. It is
      however possible to identify for the authority, the governing body and
      the head teacher broad areas of work where if personal data are held
      each is likely to be the data user:

O.3.6 Local Authority

           Staff records (teaching and non-teaching) held in the school on
            behalf of the authority to enable it to fulfil its duties in connection
            with operation of the payroll, appointment of staff, etc.

           Supplier and contractor records where these are held in the
            school in connection with spending a budget delegated by the

      O.3.7 Governing Body

                Admission and attendance registers (as required by The Pupils‟
                 Registration Regulations 1956).

                Curricular records of pupils (as required by the Education
                 (Schools Records) Regulations 1989).

                Records of cases where the National Curriculum has been
                 modified or disapplied to individual pupils (to enable statistical
                 returns to be made to the authority as required by the Education
                 (School Curriculum and Related Information) Regulations 1989).

                Public examination entry details for pupils (in connection with
                 duties under Section 117 of the Education Reform Act 1988).

                Staff records (teaching and non-teaching) that go beyond those
                 required to enable the authority to fulfil its duties.

                Supplier and contractor records where these are held in
                 connection with spending the school‟s own funds.

      O.3.8 Head Teacher

                Results of assessments made under the National Curriculum
                 assessment arrangements (in furtherance of the duty under
                 Section 10(2) of the Education Reform Act 1988 to secure
                 implementation of the National Curriculum).

                Annual reports to parents on pupils‟ achievements (as required by
                 the Education (Individual Pupils‟ Achievements) (Information)
                 Regulations 1990.

                Disciplinary records of pupils (in connection with the duty related
                 to discipline in Section 22 of the Education (No. 2) Act 1986).

                Teaching projects where pupils record personal details on

O.4   How To Register Under The Data Protection Act

      O.4.1 Whilst the Local Authority provides administrative assistance, it is the
            responsibility of each governing body and head teacher to ensure that
            they are registered. It is a criminal offence under the Data Protection
            Act 1998 to hold personal data on computer without being registered
            (unless the personal data are exempt). Registered data users must
            comply with the eight data protection (as at O.5).

      O.4.2 Notifications for all schools have been undertaken and registration
            documentation should already be maintained in school. Copies are
            maintained within Children‟s Services should they be required. Each
            registration clearly specifies the purposes for which the data user holds
            personal data.

             If you feel that there may be an area of data not registered when it
            should be, please contact the Local Authority for advice. Notification
            renewal will be due once per year and the Education Directorate will be
            issued with a reminder of this near to the time. The renewal will be
            processed centrally and the school informed and subsequently charged
            for the renewal registration.

      O.4.3 Exemptions from the need to register under the Data Protection Act
            exist in certain areas, including:

                 Data controllers who process personal data only for staff
                  administration (including payroll), advertising, marketing and
                  public relations (for their own business) and accounts.
                 Some not for profit organisations.
                 Data controllers processing personal data for personal, family or
                  household affairs, including for recreational purposes.
                 Data controllers maintaining a public register.

O.5   The Eight Data Protection Principles

      Personal data held by data users must be:

           Fairly and lawfully processed;
           Processed for limited purposes;
           Adequate, relevant and not excessive;
           Accurate;
           Not kept longer than necessary;
           Processed in accordance with the data subject's rights;
           Secure;
           Not transferred to countries without adequate protection.

O.6   The Rights Of The Individual

      Individuals have the right to have access to personal data held on them and to
      the correction or deletion of this data if found to be inaccurate or illegally held.
      The Data Protection Act also sets out specific rights for school children
      regarding educational records. Parents also have a right of access to this

      O.6.1 Pupil Rights

             All pupils, regardless of age, have a right of access to their school pupil
             records, which should be requested in writing to the head teacher. A
             response should be made within 15 school days.

             Exemptions, in exceptional circumstances, can be made where the
             disclosure of the personal data may cause harm to the physical or
             mental health of a third party, may hinder the prevention, detection or
             prosecution of a crime or may identify a third party, not including

             Should a pupil be likely to be unable to understand the information
             provided, for example on grounds of age, the parent may request
             access on their behalf.

      O.6.2 Parents Rights

             In addition of right of access to personal data held on their children on
             behalf of these children, parents have additional rights of access on
             their own behalf. Parents only have individual rights of access to data,
             which makes up part of the official record. Rights of redress, for
             example the correction of inaccurate data, are only available if access
             is given on behalf of the child.

                        P.     LAND AND BUILDINGS

P.1   Under Section 238 of the 1993 Education Act all governing bodies of Local
      Authority maintained schools, except temporary governing bodies,
      automatically became corporate bodies from l January 1994.

P.2   Transfer of Land or Other Property

      From the date of incorporation, all land or other property rights and liabilities
      attributed to the Governing Body before that date automatically transferred to
      the new incorporated governing body.

      Section 238 defined land and property „attributable to‟ the Governing Body as
      land or other property which was held by or on behalf of former governors in
      their capacity as governors.

      Example of property attributable to the Governing Body may be funds or an
      item of equipment or land given to the Governing Body by a benefactor.

P.3   Local Authority’s Land

      The Local Authority‟s land, other property rights and liabilities were not
      transferred to incorporated bodies.

      Similarly, land, buildings or other property held by the local authority for the
      school (or in the case of a voluntary school, by a trustee body) continue to be
      held by these bodies.

P.4   Lettings, Permanent Use of Space in School Buildings by Others and
      Disposal of Land and Buildings.

          A school letting involves the temporary use of a room, playing fields,
           gym, swimming baths or other school spaces. An example would be, the
           Brownies use the school hall every Tuesday night. This responsibility is
           delegated to the school governors to manage in line with the school‟s
           own lettings policy, procedures, and charges.

          Where a Community School wishes to allow the permanent use of any
           school space it must be agreed with the Local Authority as owners of the
           land and buildings. A formal agreement is usually put in place to protect
           the school‟s interests in the matter. An example would be letting a room
           to a community group. The Local Authority would normally arrange a
           formal agreement by liaising with professionals in other City Council
           Directorates. The Children‟s Services Directorate Premises Manager will
           assist should this be necessary.

   In relation to all Community School‟s the Local Authority is the owner of
    the land and buildings. The disposal of any land or buildings will be
    undertaken by the Local Authority in line with corporate procedures and
    policies relating to the disposal of public assets. The Council has a legal
    duty to obtain the best market value for any of its assets. The proceeds
    may be entirely or partly used to repay corporate debt in line with
    directions from the Executive Director Children‟s Services and the City


Q.1   Governing Bodies cannot withdraw any Local Authority resources for deposit
      in any private fund, or in any other account not officially approved by the City

      Q.1.1 Whilst Governing Bodies may use leasing arrangements made by or
            with the approval of the City Treasurer, they may NOT use borrowing,
            leasing or hire purchase to supplement their budget.

      Q.1.2 Governors may not raise money by securing any legal charge upon the
            buildings or property of the Local Authority.

      Q.1.3 A Governing Body will only be allowed to borrow money from an
            external source after seeking approval in writing from the Secretary of
            State. The Executive Director Children‟s Services must be notified in
            writing of such intent ten working days before submission of the request
            to the Secretary of State. The Governing Body in these circumstances
            has to plan and conduct its affairs to remain solvent. Any school
            proposing to take this course of action is strongly advised first to
            consult with the Executive Director Children‟s Services and City

      Q.1.4 Schools must not borrow to finance a revenue deficit either through a
            bank overdraft or other means, and must demonstrate good financial
            management by accurately forecasting their cash position.

                                R.1   INSURANCE

R.1.1 The City Treasurer shall effect all insurance cover in consultation with other
      Directors where necessary. Schools have discretion in some areas that are
      detailed in the attached guidance notes.

R.1.2 Directors shall give prompt notification to the City Treasurer of all new
      insurable risks indicating the amount of potential loss arising from them and of
      any alterations that may affect existing risks.

R.1.3 The City Treasurer shall annually, or at such other period as he may consider
      necessary, review all insurance in consultation with other Directors as

R.1.4 The City Treasurer shall keep a register of all insurance effected by the
      Council and the property and risk covered thereby.

R.1.5 All claims upon insurance in respect of insured risks shall be made by the City
      Treasurer, and the Director concerned shall notify the City Treasurer promptly
      giving full particulars of all occurrences giving rise to claims in order that he
      may ensure that all sums due under the policies are paid to the Council.

R.1.6 Any monies due and received from insurers shall be made payable to the City
      of Newcastle upon Tyne and forwarded to the City Treasurer.

R.2   Insurance - Guidance Note

The “Insurance for Schools - A summary for Governors and Headteachers”
document provides comprehensive insurance information.

The Local Authority has arranged insurance for all schools centrally in respect of the
following: -

R.2.1 Building and Contents

      The Local Authority has arranged insurance cover on the building/parts of
      building for which it is responsible under the maintenance agreements against
      catastrophe risks (i.e. those risks likely to cause the most severe loss namely
      fire, lightning, explosion, earthquake and aircraft), and meets the cost of other
      damage from its own fund.

      Cover has also been arranged in respect of those perils mentioned above on
      all school contents with the exception of religious artefacts where such are not
      actively used in the teaching of children.

      Voluntary aided schools are owned by voluntary bodies, which are able to
      reclaim 90 % of the costs from the Government.

      There is a 10 % retained liability for which the individual school / Governing
      Body is responsible. The changes to percentage liability become effective
      from April 2002

R.2.2 Public Liability

      Scope of Cover

      This centrally arranged policy protects the Local Authority, the Governing
      Body and school employees against their legal liability for accidental bodily
      injury, illness or disease to third parties (i.e. persons other than employees
      such as pupils or members of the public) or accidental loss or damage to third
      party property arising out of the Local Authority‟s/school‟s usual activities.

      Public liability insurance operates for any school activity anywhere in the UK,
      and does not place particular restriction on certain activities. Obviously
      schools are required to exercise normal professional care and common sense
      judgement, according to all the circumstances.

      The Governing Body and Local Authority are jointly insured by the policy in
      relation to the educational and extra curricular activities of the school. The
      Diocese have arranged additional cover in respect of religious activities and
      contingent liability as owners of the premises.

R.2.3 Employers Liability

      Whilst the Local Authority is exempted in the legislation from the requirement
      to insure it has nevertheless arranged a policy of insurance to cover its
      liabilities and Governing Bodies are jointly insured.

      This is important in respect of the voluntary aided schools where the
      Governing Body is in fact the employer and is not exempt from the
      requirements of the Employers Liability (Compulsory Insurance) Act 1969. A
      current certificate of insurance should be exhibited in all voluntary schools.

      The insurance protects the Local Authority and school against claims not only
      for injury arising in the course of employment but also illness/disease claims
      which are employment related.

R.2.4 Officials and Governors Indemnity

      This centrally arranged policy provides cover in respect of the legal liability of
      the Local Authority/school for financial losses suffered by a third party due to a
      negligent act, error or omission committed by administrative and clerical staff
      or governors in pursuit of their duties.

R.2.5 Money

      The Local Authority has arranged cover centrally for losses of official school
      funds, comprising money, cheques, postal orders, etc. The limits applied to
      specified locations are set out in the Insurance for Schools document.

R.2.6 Fidelity Guarantee

      The Local Authority has arranged fidelity guarantee insurance to provide
      cover in respect of the loss of money/property for which the school is
      responsible as a result of fraud or dishonesty on the part of the school‟s
      employees or governors.

R.2.7 Personal Accident

      The school employees, including staff at voluntary schools, (but not
      Governors) are covered by the Local Authority against permanent
      disablement as a result of an accident or assault during the course of their

R.2.8 Motor Vehicle

      The City Council has arranged comprehensive motor insurance on vehicles
      belonging, leased or hired to the Local Authority or school.

      Where such vehicles are under a maintenance agreement with or hired
      through Neighbourhood Services the premium is charged as part of
      Neighbourhood Services service charge/hire fee.

      However, if vehicles are operated independently of Neighbourhood Services
      the school must ensure that details of the vehicle are held by the Insurance
      Manager at the Civic Centre who will make a direct charge for the insurance

R.2.9 The Insurances of Schools booklet also lists various insurances that schools
      may wish to consider purchasing.

      It is up to the Governing Body/ Headteacher to identify the risks involved and
      decide upon the level of cover required, after accounting for the costs

Optional Cover includes:

-    Balance of Risks
-    Deterioration of Stock (freezer contents, etc.)
-    Consequential loss
-    Third Party Hirer insurance (in respect of letting)
-     Professional Indemnity
-     Governors Personal Accidents
-    Supply cover for staff
-     School Journey Insurances
-    Legal Expenses Policy.

Further details of these policies are shown in the Insurance for Schools
booklet and assistance/advice is available for the Authority‟s Insurance Officer
who can arrange for quotation for optional insurance cover.

                 S.     SCHOOL MEALS ADMINSTRATION

The standard cost of meals for pupils and adults is agreed each year by the City
Council. If a school wishes to apply a variation to the agreed City Council price for
paid meals then an appropriate Governing Body Committee must seek approval. The
Governing Body decision must receive endorsement by the Executive Director
Children‟s Services and City Treasurer.

Please note as from April 2004 administration related functions to support the school
meals services were transferred to Neighbourhood Services.

                         TRADITIONAL MEALS SERVICE

S.1   Part A - Income Statement

      Income statement should reflect monies for paid school meals, pupils and
      adults, regardless of whether the meals were taken on this day, ie if a parent
      pays in advance for meals, the amount paid should be included in the income
      statement. Similarly, if a meal is taken but not paid for, no money should be
      included. If meals are paid for retrospectively, they should be included when
      the money is actually received.

      S.1.1 Cash Paid To Bank

             This should reflect the actual money banked that week, even if some of
             the money had been received the previous week. For example, if you
             bank Wednesday, then your cash paid to bank will include monies paid
             to school from the previous Thursday and Friday.

      S.1.2 Part B – Meals Statement (Meal Numbers)

             The information required in this section relates to the actual number of
             pupils and adults taking a meal. This information will be used to
             calculate charges and make payments on your behalf to the Service
             Provider for meals provision at your school.

             The number of free school meals recorded on any day should not
             exceed the number of those identified as entitled on the free meal

All adult meals provided (free or paid) should be recorded in the respective grids.
                  It is a discretionary decision for a school whether they provide free
                   adult meals. However, in some cases, for certain staff the
                   provision of a free mid-day meal forms part of the employment
                   conditions of service.

      S.1.3 Part C - Balance Statement

                  Schools should maintain records of the arrears or overpayments
                   of individual pupils, and such records must be capable of
                   reconciliation to the number of meals ordered and income actually
                   received. This section provides a reconciliation mechanism and is,
                   therefore, considered as good practice.

                  The figures to be entered in this section should be calculated as

             a)    Total Cash Due

             The total cash due is calculated using the totals information recorded in
             Part B - Meals Statement.

             1.     Total Paid Pupils x cost of meal                    =    £
             2.     Total Paid Adults x cost of meal                     =   £

             Total Cash Due = 1 + 2                                      =   £

             b)    Less Cash Received

             This refers to the total cash received calculated in Part A of the form
             and should include any monies paid in advance and outstanding
             monies received from previous weeks.

             N.B. The total should not include monies that have been collected in
                  the previous week but not banked.

             c)    Balance = (a) Total Cash Due minus (b) Less Cash Received.

             d)    Balance b/fwd from previous week

             As suggested, this refers to any balances that may have been carried
             forward from the previous week‟s SM3 return.

           e)   Less Debtors Raised

           As per the notes detailed below, the figure recorded here should
           identify any owed monies that you have been unable to recover
           successfully and have requested the Authority to undertake the debt
           recovery process. No figure should be recorded without completing a
           debt recovery pro-forma or letter giving full details, which should be
           attached to the SM3 form.

           f)   Balance to c/fwd

           = The sum of the calculation (c) + (d) - (e).

S.1.5 Cash Collection

     Arrangements for cash collections from schools.

      In order to ensure that the service operates efficiently, schools should note
     the following:

     a)    Cash should be ready for collection at the arranged time. Delays
           caused by cash collection personnel waiting or returning at a late time
           create a “knock on” effect and may even invalidate the stringent
           insurance requirements which are set to protect the security personnel
           and the cash.
     b)        Schools should notify Neighbourhood Services security of all
           variations to normal collection dates, using the amendment form.
           Although the minimum notice required for amendment is listed on
           forms, as much notice as possible would be appreciated. In urgent
           cases arrangements can be made by contacting Neighbourhood
           Services Security. As long as the verbal instruction is confirmed in
           writing as soon as possible. Although a certain amount of flexibility is
           inbuilt, schools that do not comply cannot be guaranteed collections,
           especially at the end of term.

                       CASH CAFETERIA MEALS SERVICE

S.2   The form is in two parts:

      Part A - Paid Meals Income, is to be completed by the Service Provider Unit
      Manager / Cashier;
      Part B - Paid Meal Numbers / Free Meals Totals, should be completed by the
      School Administrator.

S.2.1 Part A - Paid Meals Income

     The SM3 form should be provided to the Cashier/Unit Manager at the end of
      each lunch period for completion of the relevant boxes.

     At the end of each week, the Cashier / Unit Manager will sign the form in the
      appropriate space to verify the amount of cash received.

S.2.2 Part B - Paid Meal Numbers

     The information should be completed and verified by the Cashier / Unit
      Manager of the Service Provider. Body.

     For the purpose of calculating the number of paid meals, the total income
      received should be divided by the standard meal price and the totals entered
      into the relevant grids in Part B.

      For example:

      Paid Pupils £160.00 / standard meal price = number of pupil meals
      Paid Adults £25.00 / standard meal price = number of pupil meals

S.2.3 Part B - Free Meals

     The administration of free meals is a joint responsibility between schools and
      the Local Authority. The procedures operated by schools for applications for
      FSM and the issuance of free meal tickets or tokens will continue under the
      current procedures.

     At the end of the lunch period, the cashier will hand over the tickets /tokens
      received (which should equal the number indicated on the cash register
      reading) and the figures entered into the form in the relevant boxes, these
      figures should be totalled at the end of the week.

     Every ticket / token surrendered to the cashier will entitle the pupil or adult to a
      free meal. If the total cost meal is above the standard meal price, the
      difference must be paid in cash.

     If a pupil presents no free meal ticket or the cash equivalent, the issue must
      be referred to the school office.

    It is recognised that it is often very difficult to refuse a child a mid-day meal.
     For ease of administration and payment of the meal, it is recommended that
     the school adopt a local policy to cover such eventualities. Monies should be
     recovered from the parent through existing debt recovery procedures as
     outlined below.

S.2.4 Debt Recovery

    Following five non-payments in respect of school meals provided, a first letter
     should be sent to the parent home address notifying them of the amount due.
     A further copy should be given to the child to hand deliver, which will act as a
     precaution against denial of receipt. If no response is received, a subsequent
     letter (updating the amount outstanding if necessary) should be sent.

    If no response is received and non-payment continues, a third and final letter
     of notice should be sent to the parent notifying them of the amount owed; and
     that alternative arrangements must be made for lunch provision if monies are
     not forthcoming or an agreed payment plan established, and that the Authority
     will be notified to pursue the debt. Suggested letters are attached should you
     wish to use them. Please set your own deadlines for replies from parents.

    To notify the Authority of the need to raise an invoice for the amount owed,
     you should complete a debt recovery pro-forma and attach this to the SM3
     form for return at the end of the week. The amount on the debt recovery form
     should be entered on form SM3 under debtors raised and deducted from the

                                                                       APPENDIX S.1

                       SPECIMEN LETTER ONE AND TWO

Dear Parent,

I am writing to inform you that during the past week your
____________________________ has been provided with school meals for which
no payment has been received. The meals were served on the dates set out below:

      1.2.07   to     5.2.07 =    5 meals     @      Standard price       =

       8.2.07 to     13.2.07 =    5 meals @ Standard price         =

I would be grateful if the outstanding arrears could be paid in full by……………... (set
a reasonable notice period).

We must insist that any further meals required are paid for. Should you have a
problem with arranging payment in full please contact the school immediately with a
view to negotiating a settlement.

Yours sincerely,

Note: To Headteacher/School Administrative Officers
      If no response is gained by this communication please action letter No. 3
      Specimen attached.

                                                                       APPENDIX S.2

                               SPECIMEN LETTER THREE

Dear Parent,
We have not yet received a reply to our letter dated ………………regarding
outstanding arrears for school meals.

The meals provided but not paid for are set out in detail below:

       1.2.07       to      5.2.07       =      5 meals       @      Standard price =
       8.2.07       to     13.2.07       =      5 meals       @      Standard price =
      15.2.07       to     20.2.07       =      5 meals       @      Standard price =

TOTAL:              £

The outstanding arrears of £….. must be paid in full by………..(set a reasonable
notice period).

 If payment is not received by the above date, we must insist that you make
alternative arrangements for lunchtime, by either collecting your child and taking
him/her home for lunch or providing a suitable packed lunch. The school will no
longer be responsible to provide a mid-day meal. If no attempts are made to clear
this debt we have no other option than to hand over the matter to City Treasurer‟s
debt recovery section. This action will result in further charges being applied to your
outstanding balance as the debt process progresses.

Optional text to insert

The outstanding money owed to the school will have an impact on our school budget
and may seriously affect the financial position of our school. We are required to pay
our service provider for every meal taken and have now entered into a deficit
position due to this non-payment.

PFI Schools and Schools with Private Catering Contractors

It is essential that SM3 data continues to be provided to the Local Authority for pupil
free meals as this will inform the school budget process, the data supplied to us will
ultimately be reflected in your final budget allocation.

Schools must ensure that their contractors are aware of this obligation and insert the
requirement into any SLA or contract detail.

                          T.     VOLUNTARY FUNDS


T.1.1 Voluntary Funds enable Head Teachers to encourage activities in school
      which are outside the curriculum or which are not covered by the normal
      provision in their financial estimates. They often provide schools with a
      substantial additional source of finance. Although such funds are not public
      money they nevertheless require proper standards of financial stewardship to
      be applied.

      Where an employee of the Council operates an unofficial fund or funds as part
      of their duties, the Executive Director Children‟s Services is to be informed, in
      writing, by the Governing Body, of all unofficial funds in School. A pro-forma
      registration form will be sent to schools at the start of each financial year. The
      Headteacher should, therefore, ensure that there is a safe and efficient
      system for the custody and control of voluntary funds under the control of the
      Governing Body. This would include:

          The appointment of a Treasurer and Independent Auditor (i.e. someone
           who is not involved in the normal day to day administration of the Fund)
          Having proper accounting procedures (for both income and expenditure)
          An annual audit of the accounts
          Three signatures on cheques
          The submission of annual accounts, and report, to the Governing Body
          The immediate reporting of any suspected irregularities to the Executive
           Director Children‟s Services
          Establishing adequate fidelity guarantee insurance
          Separating voluntary funds and related records from official monies

T.1.2 All monies received must be acknowledged by the issue of an official receipt,
      or entry in a register. Transfers of money should be evidenced.

T.1.3 All monies should be banked promptly and held securely prior to banking.
      Banking must be intact, i.e. no cash is to be kept in hand from receipts, and
      payments must not be made out of cash received. The cashing of personal
      cheques is prohibited.

T.1.4 Only crossed “account payee” cheques must be used and the name of the
      account must be clearly written or stamped on each one.

T.1.5 The account must have a minimum of 3 authorising signatures, cheques must
      be signed by the Head Teacher and by either of two other members of the
      staff notified to the bank for the purpose. If at all possible the person
      responsible for maintaining the school fund records should not be one of the
      cheque signatories.

T.1.6 Every payment should be substantiated by an acceptable voucher eg invoice.
      If an invoice cannot be obtained, a record showing the amount, date and
      particulars of the payment must be made. The Head Teacher should initial
      each voucher / payment record to certify that he or she approves the purpose
      and amount of the payment.

T.1.7 A Cash Book / Ledger should be maintained of all items of income and
      expenditure. This needs to be reconciled upon receipt of bank statements

T.1.8 The amount of cash in hand should be minimised and held securely. Payment
      should be made in cash only for very small amounts.

T.1.9    The Governing Body shall ensure that the funds are audited within three-
        months of the end of the accounting year, by persons independent of the
        administration of the funds. A copy of the audited accounts should be retained
        at the school and made available for inspection if required

T.1.10 The audited accounts of unofficial funds should be presented to the
      Governing Body and be included by the Governing Body in their report to the
      Annual Parents Meeting. The City Treasurer and the Executive Director
      Children‟s Services shall have access to any records relating to such funds.

School Fund - Charitable Status

T.2     School Fund
        The school fund comprises those sums of money that have been voluntarily
        donated to, or collected by, the school.
        The fund can also comprise income generated by the supply of goods and
        services, for example, income from a uniform shop, tuck shop or after-school
        care services where a charge is made. (A separate trading account would be
        preferable for these latter types of funds even if the income generated is put to
        a charitable purpose, advice should be sought from the Local Authority on this

        The school fund can include sums of money such as:

            unsolicited gifts and donations

            “school subscriptions”

            responses to appeals made by the school, or on its behalf

            covenanted donations

            fundraising income (for example the proceeds of any sponsorship
             undertaken by the children).

        In essence the school fund is a fund containing other than official monies from
        the Local Authority.

T.3   Charitable Status of Fund

      There is no statutory definition of what a charity is. The types of charity that
      are recognised by law have evolved through case law.

      The law has accepted that there are four “heads” or purposes of charity. One
      of these is recognised as “the advancement of education”.

      Clearly the school fund is primarily used for what the law would consider
      charitable purposes. This can include the provision of equipment and facilities
      at the school, the establishment of prize funds and scholarships, and funds to
      provide extra-curricular activities of an educational or recreational purpose.

T.4   Registration Of Charities

      If the School Fund meets one of the following criteria then it is a mandatory
      requirement that it be registered with the Charity Commissioners:

      1.     If the fund has a gross income of more than £1000 from any source per
      2.     If the organisation has a permanent endowment;
      3.     If the School Fund own/occupy any property.

      Schools will need to apply to the Charity Commissioners for registration. (See
      Appendix I).

      A school can choose to register voluntarily even if the school fund does not
      meet the mandatory requirements. There is a small amount of initial
      administrative work involved in registering a charity but the advantages of
      registration are:

          various fiscal concessions;

          the Rules under which the school fund must operate as a charity will
           clearly define what the purposes of the fund are and how the fund is to
           be administered;

          the school fund, as a charity, could accept donations made by covenant
           which means that the fund could claim back tax on these donations;

          the school fund could apply to other educational charities for donations.

      Once registered an organisation is conclusively presumed to be a charity.
      The particulars of each registered charity are recorded on the Central Register
      of Charities, which is open to inspection by the public.

T.5   Setting Up A New Charity

      A charity needs to be established by the completion of a formal governing
      instrument. This instrument will set out the purposes of the charity and how it
      is to be run.

      The first step is to decide upon the type of structure that will be most suitable
      for the school fund. The possibilities are as follows:

      1.   Trust;
      2.   Company (normally limited by guarantee rather than shares);
      3.   Unincorporated association;
      4.   Body incorporated by Royal Charter.

      The Charity Commission urge people to seek legal advice at an early stage
      about the type of legal structure most suited to the organisation and the
      content of the governing document. The Commission staff are always
      available to give informal advice where required.

      There are advantages and disadvantages to all of the above types of
      structure. In relation to a school fund a trust or unincorporated association is
      likely to be suitable.

      An unincorporated association has certain advantages over other types of
      organisation, the chief being its flexibility since it is possible to tailor the
      governing instrument to fit the individual case. Such an association is
      governed by a constitution of Rules.

      It is important to note that the trustees/members of any charitable school fund
      may incur personal liability whilst administering the fund. This will only be a
      problem where the administrators act dishonestly or negligently and most
      risks can be covered by suitable insurance.

T.6   Legal Advice

      Legal advice should be sought at an early stage in order to ascertain:

      1.     Whether the School Fund meets the mandatory requirements for

      2.     What sort of governing instrument should be drafted and what it should

      3.     To discuss any other practical and legal issues around registration.

T.7   PTA/Friends of the School

      The school may sometimes receive donations from the above associations.
      Such donations are to be treated in the same way as a donation from any
      other source. It is up to the individual associations to decide whether they
      wish/need to register as a charity. There is comprehensive information
      available in relation to PTA‟s which can be found on website:

T.8   General

      T.7.1 The Council does not accept any responsibility for “Unofficial Funds”.

      T.7.2 The Fund administrator(s) shall keep under regular review the operation
            of a need for any Unofficial Fund for which they responsible and should
            report at least once a year to the Headteacher, (order in any case
            where the Headteacher is the fund administrator to the Governing

      T.7.3 In any case where an Unofficial Fund is to be closed any monies
            standing to the credit of the Fund not reasonably capable of distribution
            in accordance with the objects of the Fund shall be transferred to such
            other purposes as may be approved by the Governing Body.

            The application for registration should be made to:
            The Secretary, Charity Commission, 2nd Floor, 20 Kings Parade,
            Queens Dock Liverpool L3 4DQ. Information on the Charities
            Commission can be found on website:

            A standard questionnaire must be completed (Form RO96B) and sent
            together with two copies of the governing document.

            A copy of a model-governing instrument (either a Trust Deed or a set of
            Rules), which has been agreed, by the Charity Commission and the
            Inland Revenue can be obtained from either:

                              The Secondary Heads Association,
                                       130 Regent Road,
                                            LE1 7PG
                           (A set of Rules suitable for a school fund);


             The National Association of Head Teachers,
                          1 Heath Square,
                            Bolton Road,
                          Haywards Heath,
                           West Sussex,
                             RH16 1BL
              (A Trust Deed suitable for a school fund).

Further information from your School Business Manager or School
Funding and Finance Officer may be able to support a school with their
legal and financial responsibilities.

The following procedures should be used in the setting-up of any school fund
Purpose of the Fund
The school fund exists to provide additional materials and opportunities to enhance
the learning experiences of children. The fund is used to provide items over and
above those provided for through the school‟s delegated budget.
Examples of Uses
Expenditure may be used for the following purposes:
      Subsidy of school educational visits

      Refreshments for children‟s parties

      Fund raising activities (e.g. raffles)

      Classroom materials and equipment

      Lunchtime games/toys, children‟s disco and entertainment

      Sale of sweatshirts

      School tuck shop
The official title of the school fund is…………………………………………………...
The fund is administered by………………………………………………., who holds the
position of…………………………………………….at the school.
The day to day management of the fund is the responsibility of the Headteacher
although overall responsibility for the fund lies with the Governing body.
Example for Committee
A Fund Committee exists, comprising the Headteacher, senior staff and a Governor,
to decide on spending priorities and fund raising needs. This Committee meets on a
termly basis.
For expenditure under £………, the agreement of the Headteacher is sufficient. For
purchases over £………… but below £……………, the approval of the Fund
Committee must be obtained whereas for purchases over £…………., the approval
of the Governing Body must be obtained.

The school fund is banked in a ………………………….Bank Current Account.
Cheque signatories are the Headteacher, Deputy and Bursar, two from three.
The fund has a financial year end of………………………………….., an outturn
summary of income and expenditure, and a statement of balances, is prepared by
the Fund administrator no later than May 31 following the end of the previous
financial year.
The financial statements are audited by……………………………, who is / are an
independent with a financial background. They are considered to be suitable to audit
the fund.
Audited accounts are presented to the Governing Body each year for formal
approval, in accordance with the Scheme for Financing Schools and the School
Financial Regulations. The facts of this should be minuted.
Authorised signatories
1 ……………………………..
2 …………………………….
3 …………………………….
4 ……………………………

Prepared by……………………….., Headteacher

Approved by the Governing Body on ...............................................

                        U.     SECURITY OF PREMISES


U. 1   The Headteacher is responsible for maintaining proper security at all times for
       all buildings, stocks, stores, furniture, equipment, cash, etc. under his or her

U. 2   They shall consult with the Neighbourhood Services Facility Services where
       there are concerns with physical security in or around the school building or
       where it is considered that special security arrangements are necessary.

U. 3   Key holders of safes and similar receptacles are responsible for the safe
       custody of those keys at all times. The loss of any such keys must be
       reported to the Head teacher immediately. (See Section U.2)

U. 4   The Headteacher will limit the number of authorised key holders in such a way
       as to be consistent with the efficient discharge of the school‟s functions.

U. 5   The Headteacher will keep an up to date list of authorised key holders.

U.6    Security Of Keys - Guidance Note

       A locked building, room, store or cupboard is only as secure as its key. If the
       key is lost or illicitly copied, security is immediately compromised until the lock
       is changed. Rigorous key control, especially in relation to sensitive areas is
       therefore of the highest importance.

       U.6.1 Classification of Keys

              Keys may be classified as:

              Access Keys

              These keys allow entry to a building from the outside and should be
              issued only to members of staff with a work-related requirement to
              enter the building at time when it is closed, or with a duty to open or
              close the school. One set of these keys has been copied by the school
              and is held at Neighbourhood Services Security.

              The Headteacher should ensure that the access and gate keys held by
              Neighbourhood Services are kept up to date and replaced when
              necessary. These keys allow Neighbourhood Services Security to gain
              access to the alarm panel in the case of an alarm activation or

      General Keys

     Give access to all areas within the school but not to the school itself.
     These should be issued only to members of staff whose duties demand
     comprehensive access throughout the premises.

      Departmental Keys

     Give access to specific sections of the building. These should be
     issued only to the heads of Directorate, their deputies and, if applicable,
     their authorised nominees.

      Individual Keys

     Give access to a particular room only. These should be issued to the
     prime user of the room, whether it be a classroom or a high-security

U.6.2 Issue of Keys

     Keys should be issued to staff only on the basis of demonstrable work-
     related necessity. They may be issued:

         permanently, where the holder requires regular, frequent and long
          term access;
         or temporarily, where the user requires occasional, infrequent

     a)   An inventory of permanently issued keys should be prepared and
          kept up to date. Temporarily issued keys should be logged in and
          out in a separate register, which may be maintained on a
          departmental basis. Staff should be instructed not to make copies
          of keys without authority. Master keys should not be copied on
          any account.       The handling of keys by pupils should be
          discouraged. All duplicate keys, or keys not issued, should be
          locked in a safe; the spare key for this safe should, of course, be
          retained in an alternative secure place.

     b)   Duplicate keys should be identified only by an alpha-numeric
          code, the meaning of which should be lodged in a separate
          secure place.

     c)   Keys to sensitive areas should be issued only to authorised staff,
          who should sign for them. It should be clearly stated and
          understood at the time of issue that:

          the recipient is responsible for the safe-keeping of the key, which
          is not to be passed to a third party without permission.

    U.6.3 Lost Keys

         All members of staff should be required to report the loss of any key
         immediately. An assessment must then be made of:

             the circumstances of the loss and the likelihood of the key being
              used improperly;

             the need for the lock, or locking mechanism, to be changed,
              based on the circumstances of the loss and the key‟s level of

         In most cases, it will be usual for locks to be changed whenever a
         building key or secure store key is lost, or if there is reasonable cause
         to suspect that the key was stolen.

          In the case of an access or gate key Neighbourhood Services Security
         will require a replacement. See U.2.1 (paragraph 1) above.

    U.6.4 Cleaning Staff

         The caretaker should be responsible for giving access to the cleaning
         staff. Cleaners should not, in the normal course of events, hold keys.
         They should be instructed not to leave access doors open whilst
         cleaning is in progress.

    U.6.5 Suiting

         Suiting is the name given to the system wherein one key gives access
         to more than one room. In its ultimate form, a single key will open
         every door in the school. Whether, and to what degree, suiting is
         appropriate will depend upon the circumstances of individual schools
         but in most cases the system is best implemented on a departmental

         Suiting has the advantage of reducing the number of keys on issue and
         the disadvantage that the loss of one key compromises a greater
         number of rooms. On no account should the keys to a secure store
         form part of any suite.



                           RETENTION OF RECORDS

V.1 Financial records including documentation relating to contracts for work done,
services and supplies shall not be disposed of other than in accordance with
arrangements approved and amended from time to time by the City Treasurer, Type
of Record Retention Period

      Unless otherwise specified the period is the current financial year and number
      of complete financial years as stated below

      Record Type                              Minimum Period of Retention

             Paid invoices                     Six years plus current year
             Paid cheques                      Six years plus current year
             Income invoice copies             Six years plus current year
             Receipt books                     Six years plus current year
             Till Rolls                        Six years plus current year
             Payrolls                          Six years plus current year
             Timesheets                        Three years plus current year
             Official Orders                   Six years plus current year
             School Fund Records               Three years plus current year
             School Meals Returns              Three years plus current year
             Dinner Registers                  Six years plus current year
             Tender Documentation              Six years plus current year
             FAMIS Tabulations                 Four years plus current year
             Imprest Account Records           Six years plus current year
              and Vouchers

      V.1.1 The Headteacher is the officer responsible for ensuring secure storage
            of retained documents.

V.2   Schools are required to maintain a records schedule listing the records that
      they create, hold or destroy to conform with the Freedom of Information Act
      2000. As some of these records are of sensitive nature or contain pupil
      names and contact information, specific guidance around the retention of
      these records needs to be followed. The schedule should also show how long
      the records are kept and what is done with them when they are of no further
      administrative use.
      In addition, schools hold information on pupils and in doing so must follow the
      requirements of the 1998 Data Protection Act. This means that data held
      about pupils must only be used for specific purposes that are allowed by the

In order for a school to meet its obligations under the Freedom of Information
Act and Data Protection Act, it is essential that records are managed
effectively. The reasons for this are detailed below:
   We have to be able to find information when it's requested.
   Information should not be kept for longer than necessary.
   For further information contact Information & Communication Section,
    Children‟s Services.
V.2.1 Records management guidelines
Legislation dictates on periods of record retention of files, these can change
as new laws come into force. An update guidance for schools can be found at
the following link.

Other legislation links that are helpful are the Data Protection and FOI Act.
These links are:-

V.2.2 School Closures

If a school is due to close then the records that are currently held by the
school must be recognised as part of the closure project plan. Records within
schools are the schools responsibility, and therefore their retention following
closure must be organised by the school or those carrying out closure project.

Pupil records should follow the individual pupil, so if the pupil is being
transferred to another school the record should be sent to the new school and
then becomes their responsibility.

Finance, pupil or other records which are not being passed to a new school
will ultimately become the responsibility of the Local Authority but the Local
Authority can only accept records that are lawfully within their retention period
and are in order and recorded.

V.2.3 Condition of files

Pupil Records will be eventually retained by the Children‟s Services Record
Centre. Therefore batch sheets (appendix 1) need to be completed before
they can be taken by the records centre. This should again be work that is
calculated into the school closure project plan. There is no resource for this to
be completed for schools within the local authority.

The batch sheets must be accurate and accompany the correct files in order
for the records centre to be able to take these records.

Files must be in good condition in a file which will hold any loose papers
securely. If papers are loose within files and are able to be mislaid easily the
files cannot be accepted by the local authority until this has been rectified.

Files should only contain information which is required by legislation to be
kept. Again guidance around this can be found on toolkit on the Records
Management Society (RMS) website.

Files should be identified and classed with the type of files they are and
should be split into categories of pupil files and non-pupil files. The files will
be treated differently for retention by the local authority, so therefore it is
essential that these are kept separate by school prior to transferral to the local

The minimum of information we expect to be collected from the files, and
recorded onto a database, spreadsheet or paper forms accompanying the
files are:-

      Type of Record i.e financial, pupil etc.
      Name of pupil (where applicable)
      DOB (where applicable)
      Start of Retention Period (to be identified from RMS guidance)
      Length of retention. (you can use the number of years or retention
       codes can be supplied to use from local authority)
      What the physical file is? (paper file, ring binder etc, this is for
       identification and easy recognition of files.

     LOCATION                 SERVICE AREA       BATCH NO.        OFFICER (Name of person completing        DATE
                          Appendix 1    RECORDS
                          TO:           FORM

                                TO BE COMPLETED BY ORIGINATING OFFICE

      For RecordsRECORDS
                 Centre Use    (SURNAME       OF     CODE          CODE         OR OTHER    RETENTION     &
                  CENTRE         FIRST)      BIRTH                           CLIENT NUMBER.            FORMAT
                                                                                  CROSS                 (eg „1
                                                                               REFERENCE               cardfile‟)
1.                                                    CS

2.                                                    CS

3.                                                    CS

4.                                                    CS

5.                                                    CS

6.                                                    CS

7.                                                    CS

8.                                                    CS

      9.                                                        CS

      10.                                                       CS

       Two copies of this form should accompany each batch of records                 RECORDS CENTRE USE ONLY
                        passed to the Records Centre:
       Retain one copy at Records Centre                                  DATE OF             RECEIVED
       Returned one copy to originating office and retain on site         RECEIPT:            BY:

                               W.      HOSPITALITY

W.1   A modest amount of entertainment is a normal part of public life, but you must
      not risk undermining public confidence or allow it to appear that you could be
      improperly influenced in the way you carry out your duties. Hospitality is
      sometimes offered to representatives of the City Council and can be accepted
      at official level if that is reasonable. In these cases, only Directors (or those
      acting for them) should go.

      You must be particularly careful if you are offered hospitality by someone who
      wants to do business with us or to get a decision from us. It is important to
      avoid any suggestion of improper influence. You should accept an offer of
      hospitality only if you genuinely need to go to an event to receive or give
      information or represent us. You should only accept offers to go to social or
      sporting occasions if these are part of the life of the community or we should
      be seen to be represented.

       If you turn down hospitality you should do this politely and explain our rules
      on hospitality.

      You must use form CCE.8 to obtain your director's approval before accepting
      offers of hospitality. This is not required if the hospitality is of token value (eg
      the offer of a single drink). The Chief Executive and Directors are not required
      to obtain prior authorisation but must nonetheless declare acceptance of

      W.1.1 The context of local management of schools places certain
            responsibilities upon school employees and governors in relation to the
            giving and acceptance of hospitality in discharge of their duties.

      W.1.2 This policy seeks to preserve the integrity or independence of
            employees and governors, and thereby the school, in the question of
            hospitality. This is particularly relevant where potential suppliers of
            goods or services are involved.

      W.1.3 In giving or receiving hospitality employees and governors should have
            regard to the construction that could be placed upon their actions by
            the parent body, members of the public, auditors or representatives of
            the Local Authority.

             Receipt or provision of hospitality should be capable of justification in
             the public domain and should be defensible under public scrutiny.

      W.1.4 Acceptance of minor items used at work, e.g. diaries, stationery, pens
            is deemed to be reasonable. Acceptance of high value items is not

W.1.5 Acceptance of lunches or dinners should be treated with caution where
      the provision cannot be regarded as modest or reasonable.
      Acceptance of alcohol is not recommended on any occasion.

W.1.6 Whilst recognising that the formula funded budget delegated to schools
      does not include an element for the provision of hospitality, it is
      acknowledged that in certain circumstances light refreshments or
      lunches may need to be provided for guests of the school.

      The Governing Body in approving the annual budget may decide to set
      aside a modest level of funding for such provision. Where no budget
      provision is agreed no expenditure is to be incurred. When budget
      provision is agreed it should be allocated to an appropriate sub-code so
      that it is clearly identifiable for this purpose.

W.1.7 The offering of alcohol on occasions when the school is providing
      hospitality is not recommended.

W.1.8 Hospitality at staff functions including retirements and leaving events
      should be provided by personal contribution not from the school

W.1.9 Centrally held funding exists to provide gifts on the occasion of
      retirement of employees with significant service to the Local Authority.
      The use of the school budget to provide additional gifts is not


                                                     Offers of Hospitality

    Employee‟s Full Name:                    .................................................................... ……………...

    Job Title: ...............................................................           Grade: .................................

    Directorate and Section: .................................................................................... ……

    As required in paragraph 13 of the Council‟s Code of Conduct*, I give details of an
    offer of hospitality:

    Details of hospitality offered: ....................................................................................


    Date Offer Made: .......................................................................................................

    Name and address of person making offer:



    Reasons for proposing to accept the offer:



    Signature: .............................................................             Date:

        Please send the completed form to your Director, (or in the case of the Chief
                Executive or Directors, to the Head of Democratic Services)

    * Director‟s Authorisation: .............................................                Date: ................................

*                 Approval required prior to acceptance for all employees except the Chief
                                   Executive or Directors.

     Paragraph 13 (Hospitality) says that:
    You must use form CCE.8 to obtain your director‟s approval before accepting offers of hospitality. This is not
    required if the hospitality is of token value (eg the offer of a single drink). The Chief Executive and Directors are
    not required to obtain prior authorisation but must nonetheless declare acceptance of hospitality.

                      X.     TRAINING AND SUPPORT

X.1   General

      Open information has always been the key to Fair Funding. The basis of
      delegation is that schools should be enabled into self-managing units but in
      practical terms, the scale and complexity of information management dictates
      the necessity for an enabling framework of support and training.

X.2   Newly appointed Headteachers – Financial Training

      An induction programme is provided for all new Headteachers. The
      programme contains an element of financial training and is designed to give
      practical advice and support to assist newly appointed Headteachers through
      the early stages of their headship.

X.3   Financial Support

      The purpose of the Scheme for Financing Schools is to bring about an
      equitable allocation of resources between schools, based on prescriptive
      methods and objectively measured criteria. Within Newcastle Local Authority,
      schools with the same characteristics and same number of pupils should
      receive the same level of resources under the formula. This is clearly detailed
      in the Scheme for Financing Schools and the annual Section 52 Statements
      that detail the actual unit cost allocation for each financial year.

      X.3.1 The Local Authority will consult with schools on any revisions to the
            schemes as required in SSFA so that any proposals, if significant, can
            be submitted to the Secretary of State by 31 December to seek
            approval before the end of the financial year.

            Newcastle Local Authority provides schools with information about the
            reasons for proposed changes and their anticipated effect. In the case
            of new formula factors, information about various options is provided
            and how the factors will operate. Each school is requested to indicate
            their choice of options and a report on the consultation is presented to
            Executive Director Children‟s Services. The Local Authority makes
            presentations for Headteachers and governors so that schools have the
            opportunity to discuss the details before making any decisions.

      X.3.2 Each school covered by the Scheme for Financing Schools must be
            funded at the level of its budget share.

            Newcastle Local Authority intend to provide schools with indicative
            budget allocations in February and a final budget before 31 March of
            each year so that schools may make plans for the next financial year.
            Support and advice is given to individual schools on the data and the
            simplified formula making up the allocation.

            Support and training is provided for senior management staff and
            governors by the following services.

                 Finance and Procurement - School Funding and Finance.
                 Education Finance - School Business Managers
                 Governor Training - Governor Services
                 Financial Software Packages - Education IT Support

X.4    Management Information Systems

       The success of schools in being able to cope with the responsibility of
      delegation relies heavily on effective management information systems.
      Schools all have SIMS software in place to support management,
      administration and financial processes. Systems are in place to produce
      reports and statutory returns in relation to the School Census, attendance,
      assessment and finance. The majority of schools use SIMS FMSIS for
      financial management, some secondary schools use Sage financial products.
      Access to the Local authority‟s financial management system (FAMIS) will be
      made available to all schools to assist in their financial monitoring procedures.



Y.1   Newcastle City Council is required to ensure that a sub-contractor is
      registered with the Inland Revenue before entering into any contract for
      construction work. This includes building repairs, painting and decorating the
      internal or external surfaces of any building or structure, fitting of playground
      equipment and the installation of power lines and telecommunication
      distribution systems (when not using pre-existing cable ducting). With effect
      from 1 August 1999, the Inland Revenue made the following two important
      changes to the above scheme:

      The small payments exemption limit has been raised from £250 to £1000.
      This means that the scheme must be adhered to when the labour and profit
      on materials element of the work is greater than £1000. See relevant section
      on “Checks to be made on Sub-Contractors” below.

      Only sub-contractors who have registered with the Inland Revenue are
      entitled to payment for work carried out under the scheme.

      If the labour and profit on materials element of the work being carried out is
      above £1000 and the school‟s sub-contractor is not registered then the school
      is not allowed to pay him – even if the work has been completed.

      This scheme applies to all schools, i.e. both mainstream and voluntary aided,
      irrespective of how the work is funded – whether from the school‟s budget or

      The Inland Revenue is subjecting the scheme to more rigorous controls and
      the penalty for non-compliance could be as much as £3000. Also, the Local
      Authority / school is liable for any tax, which has not been deducted correctly.

Checks To Be Made On Sub-Contractors

Y.2   Schools must adhere to the following checks before arranging for any work to
      be carried out:

      Decide whether the work falls within the Construction Industry Scheme (CIS).

      Prior to any construction work being undertaken where the £1000 limit is
      exceeded, the school must ensure that the sub-contractor holds a CIS4
      registration card, CIS5 or CIS6 certificate.

      If the labour and profit on materials element of the estimate is greater than
      £1000, it will be necessary to check the original credentials of the sub-
      contractor to ascertain what information the City already holds on that
      particular sub-contractor.

      If no details are held or the document has expired, you will need to see the
      original card or certificate.

      A photocopy of the document should be taken, certified as a true likeness and
      passed to Children‟s Services Accounts Payable. If the sub-contractor that the
      school wishes to use is not registered with the Inland Revenue, then the
      school must not use them.

      If the work is outside the scope of the CIS or the estimate does not exceed
      £1000, then payment can be made as normal. Under no circumstances
      should contracts be divided into smaller projects to overcome the threshold

Method of Payment to Sub-Contractors

Y.3   Due to the need to account for sub-contractors‟ tax centrally, all invoices
      payable to sub-contractors, where the labour and profit on materials element
      exceeds £1000, must be passed to the Children‟s Services Accounts Payable,
      together with written authorisation for payment. If the invoice does not clearly
      show the labour /materials split, the school will need to ask the sub-contractor
      to provide this detail. Accountancy Section will ensure that the tax is correctly
      accounted for and will pay the invoice. The Accountancy Section will then
      invoice the school for the amount payable excluding VAT.

                        REMISSIONS POLICY


It is the responsibility of the governing body to formulate and review a policy on
charges. Governors have discretion over what charges they make for pupils‟
activities. It should reflect any special circumstances for the school. The governing
body must also prepare a remissions policy and set out the circumstances in which
they would remit all or part of the charges.

Z.1   The Authority is required by Section 110 of the Education Reform Act
      1988 to determine policies for:

              making charges for school activities which are permitted by Section 109
               of the Act (its “charging policy”) and

              remitting such charges (its “remissions policy”).

Z.2   Charging Policy

      Z.2.1 Optional Extras

               Z.2.1.1       Section 106 of the Act confirms the principle that
                             education provided by any maintained school for its
                             registered pupils should be free of charge if it takes place
                             during school hours.

               Z.2.1.2       Where education is provided for registered pupils outside
                             school hours and is not required as part of a syllabus for
                             a prescribed public examination or specifically to fulfil
                             statutory duties relating to the national curriculum or
                             religious education, such education is defined by Section
                             109 of the Act as an “optional extra” and charges may be
                             made. (Where an activity takes place partly during and
                             partly outside school hours, it will be deemed to take
                             place wholly during or wholly outside school hours in
                             accordance with the provisions of Section 107 of the Act).

               Z.2.1.3     Any charges made may not exceed the cost of the optional
                           extra, and may include an appropriate element for:

                           Z.       a pupil‟s travel costs;

                           Z.       a pupil‟s board and lodging costs;

                         Z.       materials, books, instruments or other

                         Z.       non-teaching staff costs;

                         Z.       entrance fees to museums, castles,
                                         theatres, etc;

                         Z.       insurance costs;.

                         Z.       teaching staff costs, including the cost of
                                         travel and board and lodging, where a
                                         teacher/instructor has been engaged
                                         specifically for the purpose of providing the
                                         activity. (The cost of any teachers employed
                                         by the Authority under a contract of
                                         employment may not be included).

              Z.2.1.4    The cost of an optional extra should be determined on the
                         basis of the cost to each individual pupil participating in the
                         activity. The amount of any charge shall be payable by the
                         parent of the pupil concerned although participation in any
                         optional extra must be subject to parental agreement.

              Z.2.1.5    Every governing body shall determine a policy on charges
                         for any optional extra.

      Z.2.2 Board and Lodging

              Z.2.2.1    In all instances where a school activity involves pupils in
                         nights away from home, a charge will be levied to meet the
                         cost of board and lodging, except in those cases where the
                         remissions policy is application (see paragraphs 4.1 and

Z.3   Public Examinations

      Z.3.1     Whilst Section 106 of the Act prohibits charging for prescribed public
                examinations for which registered pupils are prepared at school,
                where a pupil is entered for a prescribed public examination for
                which he/she has not been prepared by the school (eg where a pupil
                has received private tuition for the examination or where an
                examination re-sit is undertaken without further preparation since the
                occasion of the first examination entry) the cost of the examination
                entry shall be passed on to the parents.

      Z.3.2     A charge may be made for the entry fee if a pupil, with his/her
                parents‟ agreement, is entered for a non-prescribed public

      Z.3.3    If a pupil fails without good reason to complete the examination
               requirements for any public examination (prescribed or otherwise) for
               which an entry fee has been paid or is liable to be paid, then the fee
               can be recovered from the parent. Failure to complete the
               examination requirements might include failure to complete course
               work and/or failure to sit the final examination(s).

      Z.3.4    Where a parent asks for examination results to be re-scrutinised, the
               charge made by the examining body for this service will be passed
               on to the parent.

Z.4   Remissions Policy

      Z.4.1    Section 100 of the Act requires that pupils whose parents are in
               receipt of income support or family credit may not be charged for
               board and lodging for participation in a residential visit which forms
               part of the curriculum for a prescribed public examination or is
               provided specifically to fulfill statutory duties under the national

      Z.4.2     In respect of other optional extra activities, governing bodies should
               give consideration to the use of funds at their disposal, in
               accordance with powers vested in them by Section 109 of the Act, to
               subsidise the activity and remit charges in full or in part to pupils
               participating whose parents are in receipt of income support.

Z.5   Voluntary Contributions

      Z.5.1 The existence of policies on charging and remission of charges does
            not prohibit voluntary contributions being sought for the benefit of any
            school or in support of any school activity.

      Z.5.2 In making a request or invitation for voluntary contributions it must be
            made clear that there is no obligation to contribute and that registered
            pupils at the school will not be treated differently according to whether
            or not their parents have made any contribution.

Z.6   Activities arranged by Third Parties

      None of the provisions of these policies will apply in those instances where a
      third party levies a charge direct on parents in return for services provided in
      accordance with the terms of Section 118 (4) of the Act.


School Companies
The Education Act 2002 provides the power for schools to form or join school
companies for certain purposes. Statutory guidance is being produced by the
Department for Schools Children and Families and will be forwarded when
available. In all cases permission must be sought from the Local Authority before a
school forms or joins a school company.

 Any governing body of a maintained school with a delegated budget can form a
company. Schools wanting to form a company together need not be within the same
Local Authority boundaries nor need they be engaged in teaching the same age
range. However, schools will need permission from their Local Authority to join a

Companies providing education services can also become members of school
companies, as long as education or the provision of goods or services ancillary to
education is „a significant proportion of their business‟.

Individuals are permitted to be members of school companies. Certain categories of
people are not allowed to be members of a school governing body - for example, –
bankrupts, those with criminal convictions, disqualified directors, those prohibited or
restricted from teaching or working with children. These restrictions are extended to
prevent those individuals from becoming members of a school company.

Employees of maintained schools‟ governing bodies and of Local Authoritys are
excluded from being members of the company as private individuals. Schedule 1 of
the Regulations sets out the groups of individuals who are excluded from
membership of school companies

Local Authority consent to membership

 A maintained school‟s governing body needs permission from its local education
authority before it can become a member of a school company (section 12(1)
Education Act 2002). In considering applications from governing bodies to join or
form a company, an Local Authority will take account of the financial and managerial
capability of the schools concerned. The circumstances in which an Local Authority
can refuse to give permission are limited and prescribed in Part II of the Regulations.
They are where a school:


    has weak management or finances and joining a company may prevent the
     school from addressing these weaknesses;

    has been at fault for a previous insolvency of a school company; has belonged
     to a school company which failed to act in accordance with the regulations
     within the last 3 years.

Section 12 of the act also prevents a school governing body from joining a school
company if its school‟s delegated budget has been suspended.

A school that has been refused permission to join a company and thinks this
decision is unfair can complain to the Secretary of State by using the right of
complaint schools have already against Local Authoritys acting unreasonably. Since
they are formed as independent schools, Academies and CTC‟s will not need an
Local Authority‟s permission to join school companies.

Full Service and extended school facilities

The Education Act 2002 gave school governors the power to provide facilities or
services for their local community. Schools intending to exercise the power have a
duty to consult with the Local Authority before starting provision and to have regard
to any advice given.

Full details of the formal consultation procedure and the information required are
shown in “Application of the Scheme to the Community Facilities Power.
Details can be found in the Newcastle Scheme for Financing Schools.

EC Late Payment Directive
The Late Payment of Commercial Debts (Interest) Act 1998 requires debts to
suppliers to be paid within 30 days of receiving the goods/service or invoice
(whichever is the later). The supplier must receive a cheque, or the funds must clear
in their account, by the 30th day. Suppliers are permitted to charge interest at the
base rate +8% on late payments. Further guidance is available from Children‟s
Services Account Payable.


The following procedures should be used in the setting-up of any school fund
Purpose of the Fund
The school fund exists to provide additional materials and opportunities to enhance
the learning experiences of children. The fund is used to provide items over and
above those provided for through the school‟s delegated budget.
Examples of Uses
Expenditure may be used for the following purposes:
      Subsidy of school educational visits

      Refreshments for children‟s parties

      Fund raising activities (e.g. raffles)

      Classroom materials and equipment

      Lunchtime games/toys, children‟s disco and entertainment

      Sale of sweatshirts

      School tuck shop

The official title of the school fund is…………………………………………………...
The fund is administered by………………………………………………., who holds the
position of…………………………………………….at the school.
The day to day management of the fund is the responsibility of the Headteacher
although overall responsibility for the fund lies with the Governing body.

Example for Committee
A Fund Committee exists, comprising the Headteacher, senior staff and a Governor,
to decide on spending priorities and fund raising needs. This Committee meets on a
termly basis.
For expenditure under £………, the agreement of the Headteacher is sufficient. For
purchases over £………… but below £……………, the approval of the Fund
Committee must be obtained whereas for purchases over £…………., the approval
of the Governing Body must be obtained.
The school fund is banked in a ………………………….Bank Current Account.
Cheque signatories are the Headteacher, Deputy and Bursar, two from three.

The fund has a financial year end of………………………………….., an outturn
summary of income and expenditure, and a statement of balances, is prepared by
the Fund administrator no later than May 31 following the end of the previous
financial year.
The financial statements are audited by……………………………, who is / are an
independent with a financial background. They are considered to be suitable to audit
the fund.
Audited accounts are presented to the Governing Body each year for formal
approval, in accordance with the Scheme for Financing Schools and the School
Financial Regulations. The facts of this should be minuted.
Authorised signatories
1 ……………………………..
2 …………………………….
3 …………………………….
4 ……………………………

Prepared by……………………….., Headteacher

Approved by the Governing Body on ...............................................


The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 473

The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 474

This constitutes a local protocol and not part of the statutory code of conduct for
members under the Local Government Act 2000. It has to be read in conjunction
with the statutory code (Part 5.2A)
This is the Council‟s policy intended to encourage and enable employees to raise
concerns within the City Council without fear of victimisation, subsequent discrimination
or embarrassment.
Statutory Sources
Public Interest Disclosure Act 1998
The original version of this protocol was approved by Personnel Committee on 21 June
1999. This current version was approved by City Council on 10 January 2007.
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 475
1.1 This policy reflects the Council‟s commitment to good practices, to valuing
staff and seeking continuous improvement in service delivery.
1.2 Employees are often the first to realise that there may be something
wrong within the City Council. However, they may not express their
concerns because they feel that speaking up would be disloyal to their
colleagues or to the City Council. They may also fear harassment or
victimisation. In these circumstances it may be easier to ignore the
concern rather than to report what may just be a suspicion of malpractice.
1.3 The City Council is committed to the highest possible standards of
openness, probity and accountability. In line with that commitment we
expect employees and others that we deal with who have concerns about
any aspect of the City Council‟s work to come forward and voice those
concerns. It is recognised that most cases will have to proceed on a
confidential basis.
1.4 This policy document makes it clear that you can do so without fear of
victimisation, subsequent discrimination or disadvantage. The policy is
intended to encourage and enable employees to raise concerns within
the City Council rather than overlooking a problem or „blowing the whistle‟
1.5 The policy applies to all employees and those contractors working for the
City Council on City Council premises, for example, agency staff, builders,

drivers. It also covers suppliers and those providing services under a
contract with the City Council in their own premises, for example homes.
The Council will seek to ensure that as part of its procurement processes
this Policy is brought to the attention of such external contractors,
suppliers and service providers (described in this policy as “Contractors”).
1.6 These procedures are in addition to the City Council‟s complaints
procedures, grievance procedure, Policy on Fraud and Corruption and
other statutory reporting procedures applying to some directorates.
1.7 This policy has been discussed with the relevant trade unions and
professional organisations and has their support.
2.1 This policy aims to:
make you feel confident to raise concerns and to question and act
upon concerns about practice;
give you avenues to raise your concerns and receive feedback on
any action taken;
guarantees that you receive a response to your concerns and
ensures that you are aware of the process to follow if you are not
reassure you that you will be protected from possible reprisals or
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 476
2.2 There are existing procedures in place if you have a grievance relating to
your own employment or consider that you are being harassed due to
your race or sex or age, or if you are concerned about health and safety
risks, including risks to the public as well as to other employees. Indeed
you are under a legal obligation (as notified to you in Corporate and
Directorate health and safety policy statements), to report to your
supervisor or manager any work situation which you consider to
A danger to the health and safety of yourself, fellow employees or
members of the public; or
A shortcoming in the Authority‟s arrangements for health and
2.3 If you are reluctant to raise such health and safety concerns with your
supervisor or manager, or if you have raised them and are concerned
about the response, then arrangements exist for you to raise the health
and safety concerns with the Authority‟s Health and Safety Section based
in the Organisational Development Division of Chief Executive‟s Office
and/or with Health and Safety Representatives from the relevant trade
This policy is intended to cover concerns that fall outside the scope of
other procedures. These include:
conduct which is an offence or a breach of law;
disclosures related to miscarriages of justice;
health and safety risks, including risks to the public as well as other
damage to the environment;
the unauthorised use of public funds;
fraud and corruption;
sexual or physical abuse of clients;
any attempt to prevent disclosure of any of the above, or
other conduct which gives you cause for concern.

2.4 Thus any serious concerns that you have about any aspect of service
provision or the conduct of your staff or members of the City Council or
others acting on behalf of the City Council can be reported under this
policy. This may be about something that:
makes you feel uncomfortable in terms of known standards, your
experience or the standards you believe the City Council
subscribes to; or
is against the City Council‟s Standing Orders and policies; or
falls below established standards of practice; or
amounts to improper conduct.
2.5 This policy supplements and does not replace the corporate complaints
procedure, or the grievance procedure and other procedures established
to deal with aspects of harassment i.e. sexual, racial and age
harassment, and with health and safety concerns.
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 477
3.1 Harassment or Victimisation
The City Council is committed to good practice and high standards and
aims to be supportive of its employees.
The City Council recognises that the decision to report a concern can be
a difficult one to make. However uncovering malpractice will be doing a
service to the Authority You will be doing your duty to your employer and
those for whom you are providing a service.
The City Council will fulfil its responsibility to ensure that you are NOT
harassed, victimised or otherwise disadvantaged when you raise a
concern. Any allegation concerning an employee who engages in any
form of victimisation or harassment against you as a result of your raising
a concern will be the subject of a thorough investigation and disciplinary
action will be taken if the case is proved.
Allegations by an employee who is the subject of disciplinary
investigations or proceedings concerning the conduct of those
proceedings can only be raised through the disciplinary appeals
3.2 Confidentiality
All concerns will be treated in confidence wherever possible and every
effort will be made to preserve your anonymity if you so wish. You may
need however to come forward as a witness, but if you wish to be
supported by a representative of your choice then this would be available
to you.
3.3 Anonymous Allegations
This policy encourages you to put your name to your allegation whenever
Concerns expressed anonymously are much less powerful but they will
be considered so far as is possible or practicable by the City Council.
3.4 Untrue Allegations
If you make an allegation in good faith, but it is not confirmed by the
investigation, no action will be taken against you. If however, you make
an allegation maliciously or for personal gain, disciplinary action may be
taken against you.
4.1.1 Procedure for City Council Employees
As a first step, you should raise concerns with your immediate manager
or their manager. This depends on the seriousness and sensitivity of the
issues involved and who is suspected of the malpractice, For example if

you believe that your immediate manager or their managers are involved,
you should approach your Director. The manager receiving notification of
concerns under this policy will inform the Head of Legal Services that a
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 478
confidential report has been received and provide a copy. If the concern
relates to financial irregularities or failures of financial controls the
manager receiving the report must immediately notify the Chief Internal
4.1.2 Concerns may be raised verbally or in writing. If you make a written
report please use the attached pro-forma. Reports should be sent to your
immediate manager or their superior or to the Director and a copy sent to
the Head of Legal Services.
4.1.3 Procedure for Contractors
As a first step, you should normally raise concerns with your manager,
who will then inform the lead council officer who is dealing with the
particular contract. If you do not have a manager, you should raise your
concerns direct with the lead council officer. This depends on the
seriousness and sensitivity of the issues involved and who is suspected of
the malpractice. For example, if you believe that your manager or the
lead council officer is involved, you should approach the Head of Legal
Services at the City Council direct. Otherwise, the lead council officer
receiving notification of concerns under this Policy will inform the Head of
Legal Services that a confidential report has been received and provide a
copy. If the concern relates to financial irregularities or failures of
financial controls the lead council officer receiving the report will also
immediately notify the Chief Internal Auditor.
4.1.4 Concerns may be raised verbally or in writing. If you make a written
report you should, if possible, make it using a similar report form to the
attached pro-forma. A copy of any report you send to your manager or
lead council officer should also be sent to the Council‟s Head of Legal
Services for monitoring purposes.
4.2 The Head of Legal Services is responsible for the maintenance and
operation of this policy and will monitor how the complaint is handled and
ensure that the requirements of this policy are fulfilled.
4.3 The earlier you express the concern the easier it will be to take action.
4.4 City Council employees can obtain advice and guidance on how matters
of concern may be pursued from the Head of Organisational
Development, Room 13, Civic Centre, ext 25200. City Council employees
and Contractors can get confidential, independent advice from the charity
Public Concern at Work on 0207 404 6609. Their website is at
You may wish to consider discussing your concern with a colleague first
and you may find it easier to raise the matter if there are two (or more) of
you who have had the same experience or concerns.
4.5 You can invite your trade union or professional association representative
or a friend to be present during any meetings or interviews in connection
with the concerns you have raised.
4.6 Concerns can be raised through your trade union.
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 479
5.1 The City Council will respond to your concerns, and it will be necessary to
investigate your concerns but this is not the same as either accepting or
rejecting them.

5.2 Within 3 working days of a concern being raised, you will be sent a
written response:
acknowledging that the concern has been received;
indicating how we propose to deal with this matter;
giving an estimate of how long it will take to provide a final
telling you whether any enquiries have been made;
supply you with information on staff support mechanisms.
The Head of Legal Services will be sent a copy of this response.
5.3 Where appropriate, matters raised may:
be investigated by management, internal audit, or through the
disciplinary process;
be referred to the police or other statutory agencies;
be referred to the external auditor.
5.4 In order to protect individuals and those about whom concerns are raised,
initial enquiries will be made to decide whether an investigation is
appropriate and, if so, what form it should take. Concerns or allegations
which fall within the scope of specific procedures (for example, child
protection or discrimination issues) will normally be referred for
consideration under those procedures.
5.5 Some concerns may be resolved by agreed action without the need for
investigation. If urgent action is required this will be taken before any
investigation is conducted.
5.6 The amount of contact between the individual considering the issues and
you will depend on the nature of the matters raised, the potential
difficulties involved and the clarity of the information provided. If
necessary, the investigating officers, will seek further information from
5.7 Where any meeting is arranged, and this can be off-site if you so wish,
you can be accompanied by a trade union or professional association
representative or a friend.
5.8 The City Council will take steps to minimise any difficulties which you may
experience as a result of raising a concern. For instance, if you are
required to give evidence in criminal or disciplinary proceedings the City
Council will arrange for you to receive advice about the procedure.
5.9 The City Council accepts that you need to be assured that the matter has
been properly addressed. Thus, subject to legal constraints, we will
inform you of the outcomes of any investigation.
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 480
6.1 The Head of Legal Services (as Monitoring Officer) has overall
responsibility for the maintenance and operation of this policy. That
officer maintains a record of concerns raised and the outcomes (but in a
form which does not endanger your confidentiality) and may report as
necessary to the Council, but in such a way that your confidentiality will
be preserved.
6.2 It is the responsibility of any manager/director who receives a
whistleblowing report to:
Copy the original report immediately to the Head of Legal Services. The
initial written response to the person raising the concern must also be
copied to the Head of Legal Services. In addition any further responses
must be copied to the Head of Legal Services who must as soon as
possible also be informed of the outcome(s) of any investigation and any
actions instigated as a result.

7.1 This policy is intended to provide you with an avenue within the City
Council to raise concerns. The City Council hopes you will be satisfied
with any action taken. If you are not satisfied with the outcome of your
confidential report you can write to the Chief Executive and ask for the
investigation and outcome to be reviewed. If you remain dissatisfied, and
you feel it is right to take the matter outside of the City Council, you may
wish to take advice from your trade union, your local Citizens Advice
Bureau, any of the external agencies listed in paragraph 7.4 below, or
your legal advisor on the options that are available to you.
7.2 One possibility is that you may wish to rely on your rights under the Public
Interest Disclosure Act 1998. This Act gives you protection from
victimisation if you make certain disclosures of information in the public
interest. The provisions are quite complex and include a list of prescribed
persons outside of the City Council who can be contacted in certain
circumstances. You should seek advice on the effect of the Act from the
persons referred to above.
7.3 If you do take the matter outside of the City Council, you should ensure
that you do not disclose information where you owe a duty of
confidentiality to persons other than the Council (e.g. service users) or
where you would commit an offence by making disclosure. In order to
ensure that you do not make any such disclosures you may want to check
the position with the Head of Legal Services.
7.4 External Contacts
If for any reason you do not wish to use the internal arrangements set out
above, or require additional support and advice, a list of external agencies
is given below.
(This is not exhaustive. A fuller list is available in The Public Interest
Disclosure(Prescribed Persons)(Amendment) Order 2003 – see
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 481
Audit Commission for England and Wales
Tel 020 7828 1212
Public interest disclosure line 0845 0522 646
Commission for Social Care Inspection
Tel 0845 015 0120
Environment Agency
Tel 08708 506 506
Food Standards Agency
Tel 020 7276 8000
General Social Care Council
Tel 020 7397 5100
Health and Safety Executive
Tel 08701 545500
Housing Corporation
Tel 0845 230 7000
Information Commissioner

Tel 01625 545 745
Occupational Pensions Regulatory Authority
Tel 01273 627600
Public Concern at Work
Tel 020 7404 6609
Standards Board for England
Tel: 0161 8175300
If you are a member of a Trade Union you can also contact them for
advice and support. The main local contacts for the City Council are: -
Unison 0191 211 6980
GMB 0191 232 1400
NUT 0191 389 0999
NAS/UWT 0191 419 6920
Amicus 0191 230 2110
Advice about your rights is also available from: -
Citizens Advice Bureau (Newcastle City) 0191 232 0832
Newcastle Law Centre 0191 230 4777
The Newcastle Charter 2007
Part 5.3A - Whistleblowing Page 482
The City Council is committed to the highest possible standards of openness, probity
and accountability. In line with that commitment we expect employees and others that
we deal with who have concerns about any aspect of the City Council‟s work to come
forward and voice those concerns. It is recognised that most cases will have to proceed
on a confidential basis. If you wish to make a report please use this pro-forma.
1 Background and history of the concern (giving the relevant dates).
2. The reasons why you are particularly concerned about the situation.
(Please attach additional sheets if necessary)
3. You are encouraged to put your name to this report. Concerns expressed
anonymously are much less powerful but they will be considered so far as is
possible by the City Council. If you feel able to, please give your name and
details below.
Directorate (if applicable): .........................................................................................................
Address: ...................................................................................................................................
Contact Telephone Number:…………………………… Date …………………………….


The Council spends approximately £350m (2007/08) every year on contracts with
external organisations for goods, works and services. We need to make sure that
our contractual activity is consistent with our obligations under equality legislation.

Most external organisations we contract with do not have the same legal obligations
as us, so we must make sure we build equality considerations into each stage of our
procurement process. This will ensure that we meet our legal obligations regardless
of who carries out our functions.

Ultimately, when considering equality issues in procurement, our aim is to make sure
that public money is not spent on practices that lead to unlawful discrimination, but
instead is used to support and encourage equality of opportunity and good
community relations.

Who is responsible for procurement in the Council?

The Corporate Procurement Team in the Chief Executive‟s Office provides and
advice and guidance and acts as a „Gatekeeper‟ to ensure the Procurement
Procedure Rules are followed.

Anyone who carries out procurement is required to follow the Council‟s Procurement
Procedure Rules which apply to:

a) the purchase of goods, materials and related services
b) the execution of works; or
c) the provision of other services (including consultancy).

The rules state that when procuring goods, materials, works or services, officers
must always have regard to and seek to implement a number of general principles
including the need to ensure and demonstrate true and fair competition, without
unlawful discrimination.

What does the Equality Standard say about procurement?

The Equality Standard for Local Government is the framework we use to help us to
mainstream equality and meet our legal responsibilities. The revised Equality
Standard includes these requirements:

   Seek to ensure that the corporate equality policy and objectives are incorporated
    in partnership and contractual arrangements engaged in by the authority

   Review of services should include the procurement function and all contracted
    services and partnership arrangements

   For agencies delivering services on behalf of the local authority, include within
    contracts a requirement to deliver an effective and appropriate service, fairly and
    without unlawful discrimination.

   Require contractors to supply monitoring reports on service delivery and take up

   Monitoring procedures are applied across contracts and partnerships

   Effective systems are in place for managing equality across contracts and

In summary, we must demonstrate that an effective contract management system is
in place and that it takes account of equality issues.

What are our legal duties in relation to equality and procurement?

The Council has three statutory equality duties. These duties relate to race, disability
and gender equality.

The duties require us not only to avoid discriminating but to actively promote race,
gender and disability equality and to tackle discrimination when carrying out public
functions. These duties apply to all public functions – including those carried out
through procurement.

If you require any advice regarding this matter please contact:

Finance and Procurement Children‟s Services 211 5349

Social Inclusion and Equality Team, Chief Executive‟s Office, 232 8520 ext. 27132

Corporate Procurement Team, Chief Executive‟s Office, 232 8520 ext. 26937

Annex 5

                              SCHOOLS FINANCIAL

School Name:………………………………………………………………………………


Chair of Governing Body:…………………………………………………………………

We the Governing Body of the above school acknowledge that we have access in
electronic form to the Newcastle Schools Financial Regulations May 08 and confirm
that they have been adopted at a Governing Body meeting and the facts of this

Date of meeting:……………………………………………………………………………

Please return this form to:

Children’s Services, Finance & Procurement, Room 416, Civic Centre.