
1 
These Regulations may be cited as the Education (Pre-Scheme Financial Statements) Regulations 1989 and shall come into force on 29th March 1989.
2 
In these Regulations:
 “the Act” means the Education Reform Act 1988;
 “authority” means local education authority and, in relation to such an authority, “the offices” means the education offices;
 “expenditure of a capital nature” has the meaning given to it by section 51 of the Act;
 “general expenditure amount” has the meaning given to it by section 50(5)(b) of the Act;
 “LMS Unit” means the Local Management of Schools Unit, whose address for authorities in England is the Department of Education and Science, Elizabeth House, York Road, London SE1 7PH, and for authorities in Wales is the Welsh Office, Cathays Park, Cardiff CF1 3NQ;
 references to the Annual Schools Census are references to the returns made by authorities to the Secretary of State under section 92 of the Education Act 1944 containing information as to the number of registered pupils at schools which they maintain;
 references to the budget statement and to the outturn statement are references to the statements required to be provided by virtue of section 50(1) and (6) respectively of the Act;
 references to relevant schools are references to schools required to be covered by a financial statement under section 50(4) of the Act; and
 references to specific grant are references to grants made by the Secretary of State or the European Economic Community to authorities in respect of the provision by them of specified services related to education in relevant schools.
3 
Expenditure of the following descriptions is prescribed for the purposes of section 50(5)(b)(iii) of the Act (other amounts to be deducted from the initial amount appropriated for meeting expenditure in respect of relevant schools, so as to arrive at the general expenditure amount) –
(a) expenditure on –
(i) central administration;
(ii) inspectors and advisers;
(iii) transport for pupils between home and school;
(iv) school meals and milk;
(v) costs to be incurred by the authority in respect of the dismissal or premature retirement, or for the purpose of securing the resignation, of any member of staff;
(vi) peripatetic and advisory teachers (where not falling within subparagraphs (a) (ii) above or (b) below); and
(vii) pupil support;
(b) expenditure falling to be taken into account in determining specific grant; and
(c) all other expenditure (other than expenditure of a capital nature) treated by the authority as not forming part of the direct costs of relevant schools.
4 

(1) The budget statement shall give particulars of the proportion of the amount referred to in section 50(5)(a) of the Act (the initial amount appropriated by the authority for meeting expenditure in the financial year in respect of all relevant schools) which is respectively attributable to primary, secondary and special schools.
(2) The budget statement shall give the following particulars of the amounts deducted under section 50(5)(b):
(a) the amount attributable to expenditure of a capital nature; and
(b) the amounts respectively attributable to expenditure of each description set out in regulation 3(a) and (b) above;
such particulars being given in such a way as to show both the total of such amounts and such proportion of those amounts as is respectively attributable to primary, secondary and special schools.
(3) The budget statement shall give a brief description of the basis on which the authority determine the share of the general expenditure amount for each relevant school and shall give particulars of the amount for each such school obtained by dividing that school’s share of the general expenditure amount by the number of full time equivalent pupils recorded in the Annual Schools Census for the January immediately preceding the financial year to which the statement relates (or by an estimate of the number of full time equivalent pupils in that month if the Annual Schools Census for that year is not available).
5 
If the particulars required to be given in the budget statement are not expressed in terms of the estimated actual expenditure which the authority consider is likely to be incurred, that statement shall also give the totals of –
(a) the general expenditure amount; and
(b) the initial amount appropriated for meeting expenditure in that year in respect of relevant schoolsin such terms.
6 
The outturn statement shall give particulars of the amount of expenditure actually incurred by the authority in the financial year to which it relates on all those matters on which particulars are required to be given in the budget statement (whether by virtue of the Act or of these Regulations).
6 

(1) Each authority shall make a copy of the budget statement available from 1st April in the financial year to which the statement relates for inspection at their offices at all reasonable times by the governing body and head teacher of any relevant school which they maintain and shall send a copy to the governing bodies of all such schools and to the LMS Unit by 30th April in the financial year to which it relates.
(2) Each authority shall send a copy of the outturn statement to the governing bodies of all relevant schools which they maintain and to the LMS Unit by 31st October in the year immediately following the financial year to which it relates.
Kenneth Baker
Secretary of State for Education and Science
3rd March 1989Peter Walker
Secretary of State for Wales
8th March 1989