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NORFOLK’S SCHEME FOR FINANCING SCHOOLS

2013/14

Lisa ChristensenDirector of Children’s ServicesCounty HallMartineau LaneNorwichNR1 2DL

Date of issue April 2013 Page 1 Scheme for Financing Schools

NORFOLK’S SCHEME FOR FINANCING SCHOOLS

LIST OF CONTENTS

Section 1. INTRODUCTION1.1 The funding framework1.2 The role of the scheme1.2.1 Application of the scheme to the Authority and maintained schools1.3 Publication of the scheme1.4 Revision of the scheme1.5 Delegation of powers to the Headteacher1.6 Maintenance of Schools

Section 2. FINANCIAL CONTROLS2.1.1 Application of financial controls to schools2.1.2 Provision of financial information and reports2.1.3 Payment of salaries; payment of bills2.1.4 Control of assets2.1.5 Accounting policies (including year-end procedures)2.1.6 Writing off of debts2.2 Basis of accounting2.3 Submission of budget plans and financial forecasts2.4 Efficiency and

Value for Money2.5 Virement2.6 Audit: General2.7 Separate external audits2.8 Audit of voluntary and private funds2.9 Register of business interests2.10 Purchasing, tendering and contracting requirements2.11 Application of contracts to schools2.12 Central funds and earmarking2.13 Spending for the purposes of the school2.14 Capital spending from budget shares2.15 Notice of concern2.16 Schools Financial Values Standard (SFVS)2.17 Fraud2.18 School Companies

Section 3. INSTALMENTS OF BUDGET SHARE; BANKING ARRANGEMENTS3.1 Frequency of instalments3.2 Proportion of budget share payable at each instalment3.3 Interest clawback3.3.1 Interest on late budget share payments3.4 Budget shares for closing schools3.5 Bank and building society accounts3.5.1 Restrictions on accounts3.6 Borrowing by schools3.7 Other provisions3.7.1 Keeping Your Balance


3.7.2 Accounting for Private/Voluntary Funds3.7.3 Payment for delegated services bought back and or other financial transactions

carried out by the Authority

Section 4. THE TREATMENT OF SURPLUSES AND DEFICIT BALANCES ARISING IN RELATION TO BUDGET SHARES4.1 Right to carry forward surplus balances 4.2 Restrictions on carrying forward surplus balances4.3 Interest on surplus balances4.4 Obligation to carry forward deficit balances4.5 Planning for deficit balances4.5.1 Reporting on deficit balances4.6 Charging of interest on deficit balances4.7 Writing off deficits4.8 Balances of closing and amalgamating schools4.9 Licensed deficits4.10 Loan schemes

Section 5. INCOME5.1 Income from lettings5.1.1 Income from legal leases and other arrangements5.2 Income from fees and charges5.3 Income from fund raising activities5.4 Income from the sale of assets5.5 Administrative procedures for the collection of income5.6 Purposes for which income may be used

Section 6. THE CHARGING OF SCHOOL BUDGET SHARES6.1General provision6.1.1 Charging of salaries at actual cost6.2 Circumstances in which charges may be made

Section 7. TAXATION7.1 VAT (Value Added Tax)7.2 CITS (Construction Industry Taxation Scheme)

Section 8. THE PROVISION OF SERVICES AND FACILITIES BY THE AUTHORITY8.1 Provision of services from centrally retained budgets8.2 Provision of services bought back from the Authority using delegated budgets8.2.1 Submission of Contract to Purchase Form8.2.2 Packaging8.3 Service level agreements8.4 Teachers Pensions

Section 9. PRIVATE FINANCE INITIATIVE CLAUSES(PFI)

Section 10. INSURANCE10.1 Insurance cover

Section 11. MISCELLANEOUS11.1 Right of access to information


11.2 Liability of governors11.3 Governors expenses11.4 Responsibility for legal costs11.5 Health and Safety11.6 Right of attendance for Chief Finance Officer11.7 Special Educational Needs11.8 Interest on late payments11.9 ‘Whistleblowing’11.10 Child Protection11.11 Redundancy/ early retirement costs

Section 12. RESPONSIBILITY FOR REPAIRS AND MAINTENANCE 12.1 School responsibilities for repairs and maintenance12.2 De minimis limit

Section 13. RESPONSIBILITY FOR SCHOOL MEALS 13.1 School responsibilities for school meals13.2 Assessing eligibility for free school meals

Section 14. RESPONSIBILITY FOR SUPPLY COVER 14.1 Local Authority responsibility for supply cost14.2 School responsibilities for supply costs

Section 15. COMMUNITY FACILITIES

ANNEX A: Schools to which the scheme applies

ANNEX B: School Premises Responsibility

ANNEX C: Best Value

ANNEX D: Contract standing orders

ANNEX E: The Whistleblowing Policy and Procedure

ANNEX F: Supply of Information for the Purposes of the Teachers’ Pension Scheme

ANNEX G: Application of Scheme to Community Facilities Power

ANNEX H: Anti-Fraud and Corruption Strategy

ANNEX J: Financial Regulations

ANNEX K: Responsibility for Redundancy and Early Retirement Costs


THE OUTLINE SCHEME

SECTION 1: INTRODUCTION

1.1 The Funding Framework

Since 1995 Norfolk has delegated funding to all its primary, secondary and special schools in accordance with its Local Management of Schools (LMS) scheme as approved by the Secretary of State. Under the terms of the School Standards and Framework Act 1998, local authorities were required to draw up a new scheme for financing schools to replace the existing LMS scheme, and to base their funding framework on the legislative provisions in s.45-53 of that Act. From April 2004 nursery schools also received delegated budget shares. Unless specifically stated otherwise, the provisions of this scheme apply to any nursery school maintained by the Authority.

Under this legislation local authorities determine for themselves, in consultation with schools and the Schools Forum, the size of their schools budget and their non-schools education budget. As a minimum an authority must appropriate its entire Dedicated Schools Grant to their schools budget but may add an amount to this grant if they wish. The categories of expenditure which fall within the two budgets are prescribed under regulations made by the Secretary of State, but included within the two, taken together is all expenditure, direct and indirect, on an authority's maintained schools, except for capital and certain miscellaneous items. The local authority may deduct funds from their schools budget for certain purposes that are defined in regulations made by the Secretary of State under s.45a of the Act (the centrally retained expenditure). The amount to be deducted for these purposes are decided by the authority, subject to any limits or conditions (including gaining the approval of their Schools Forum or the Secretary of State in certain instances)The balance of the schools budget left after deduction of the centrally retained expenditure is termed the Individual schools Budget (ISB). Expenditure items in the non-schools education budget must be retained centrally (although earmarked allocations may be made to schools)

Local authorities may retain an unallocated reserve within the ISB but must distribute amounts from their ISB amongst their maintained schools using a formula that accords with regulations made by the Secretary of State and enables the calculation of a budget share for each maintained school. This budget share is then delegated to the governing body of the school concerned, unless the school is a new school which has not yet received a delegated budget, or the right to a delegated budget has been suspended in accordance with s.51 of the School Standards and Framework Act 1998 (SSAF).

Section 48 of the SSAF requires the financial controls within which delegation works to be set out in a scheme made by the local authority and approved by the Schools Forum. All revisions to the scheme must also be approved by the Schools Forum, The authority may apply to the Secretary of State for approval in the event of the forum rejecting a proposal or approving it subject to modifications that are not acceptable to the authority this document forms the required scheme for Norfolk.

Subject to provisions of this 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 s.50 of the SSAF. Section 50 has been amended to provide that amounts spent by a governing body on providing community facilities or services under s.27 of the Education Act 2002 are treated as if they were amounts spent for the purposes of the school subject to there being no detriment to educational standards

A local authority may suspend a school's right to a delegated budget if the provisions of the school financing scheme (or rules applied by the scheme) have been substantially or persistently breached, or if the budget share has not been managed satisfactorily. There is a right of appeal to the Secretary of State. A local authority may also suspend a school’s delegated budget for other reasons as set out in s.17 of the SSAF but in that case there is no right of appeal.

The local authority is obliged to publish each year statements setting out details of its planned Schools Budget and LA Budget, showing the amounts to be centrally retained, the budget share for each school, the formula used to calculate those budget shares, and the detailed calculation for each school.

After each financial year the authority must publish a statement showing out-turn expenditure at both central level and for each school, and the balances held in respect of each school which must be certified by the county’s Section 151 officer. Information in budget and out-turn statements may be collated and published by the Secretary of State.

The detailed publication requirements for financial statements and for schemes are set out in regulations made under the School Standards and Framework Act 1998, but each school must receive a copy of the scheme and any amendment, and each year's budget and out-turn statements so far as they relate to that school or central expenditure. These will be made available to schools via the authority’s website.

A budget statement must be published by the beginning of the financial year to which it relates.

1.2 The role of the scheme

This scheme sets out the financial relationship between the Authority and the maintained schools that it funds. It contains requirements relating to financial management and associated issues, which are binding on both the Authority and on the schools.

1.2.1 Application of the scheme to the Authority and maintained schools

This scheme applies to all existing community, voluntary, foundation (including trust) nursery, special and Short Stay schools in the area of the local authority (as listed in Annex A). The scheme will also apply to any maintained schools which open in the future.It does not apply to Academies.


1.3 Publication of the scheme

Schools will be notified of any changes to the scheme, and a full copy will be placed on the Department’s website. Any revisions will be published by the date the revised scheme comes into force, together with a statement that the revised scheme comes into effect on this date

1.4 Revision of the scheme

Any proposed revisions to the scheme will be the subject of consultation with the Governing Body and Headteacher of every school maintained by the authority before they are submitted to the Schools Forum for their approval.

1.5 Delegation of financial powers to the Headteacher

Each Governing Body is asked to consider the extent to which it wishes to delegate its financial powers to the Headteacher, and to record its decision (and any revisions) in the minutes of the Governing Body.The local authority has no wish to impose uniformity on schools but considers that the following level of financial delegation to Headteachers is desirable:

The Headteacher should present the first formal budget plan of each financial year to the full Governing Body for approval prior to submission to the Authority.

Each Headteacher should be accountable for the management of staff and the security, custody and control of all other department resources, including land, buildings, plant, materials, cash and stores.

To ensure effective management of the budget resources Governing Bodies are advised to delegate responsibility for day-to-day financial management to the Headteacher.

The Governing Body should ensure that the Headteacher reports progress on a regular basis to the full Governing Body or a finance committee of that body.

1.6 Maintenance of Schools

The Authority is responsible for maintaining the schools covered by the scheme, and this includes the duty of defraying all the expenses of maintaining them (except in the case of a voluntary aided school where some of the expenses are, by statute, payable by the governing body). Part of the way an authority maintains schools is through the funding system put in place under sections 45 to 53 of the SSAF.


SECTION 2: FINANCIAL CONTROLS

2.1.1 Application of financial controls to schools

In managing their delegated budgets, schools must abide by the Authority's requirements on financial controls and monitoring. Contract Standing Orders as referred to in Paragraph 2.10 below are reproduced at Annex D.

2.1.2 Provision of financial information and reports

Schools are required to provide the authority with financial information in line with the requirements of the Consistent Financial Reporting framework.

School Bank Account type AIf a school has all its budget share and earmarked sums paid into its bank account, the following returns will be required:-

Required each monthA bank reconciliation statement certified by the Headteacher or Responsible

officer (electronic return for Star Account users)A copy of the bank statement used to complete the bank reconciliation if not

banking with the Co-opA VAT reimbursement Claim certified by the Headteacher or Responsible officer (if not

using Star Accounts)Required each quarterA summary of actual receipts and payments analysed at subjective code level for its

budget share. A summary of actual receipts and payments for other grant allocations (if not using Star Accounts)

Cash flow forecasts.

School Bank Account type CIf a school uses an imprest style bank account to facilitate local payments and receipts, the following returns will be required:

Required each monthA bank reconciliation statement certified by the Headteacher or Responsible

officer (electronic return for Star account users).A copy of the bank statement used to complete the bank reconciliation if not

using the Co-op bank.A summary of actual receipts and payments analysed at subjective code level

for its budget share, a summary of actual receipts and payments for other grant allocations and an analysis of VAT. This information will be used to generate the monthly imprest reimbursement. This is part of the monthly electronic paperwork created by Star Accounts.

Each month the Authority will provide schools who operate bank account type C with a list of transactions processed by the Authority and, where applicable, a Budget Control Report(s).


ExceptionSchools, which the Authority has notified that more regular information is required because of assessed financial concern, will be required to submit all returns, appropriate to the bank account type, on a monthly basis.

2.1.3 Payment of salaries; payment of bills

The procedures for these will vary according to the choices schools make about the holding of bank accounts and the buying back of the Authority’s payroll system.

If a school operates a Bank Account type A, payroll services can be carried out by the school or using an external provider. If the school is granted an “Inland Revenue collection reference no.” all statutory returns are completed and or signed by the school and any penalties levied by the Inland Revenue will be a charge against the school’s budget share. Note that the Authority remains the employer for staff in all schools for the purposes of paying over contributions for teachers’ pensions to the Teachers’ Pensions Agency and additional voluntary contributions (AVC) to the nominated insurance company. A Procedure Note explains how those schools managing their own payroll should pass pension contributions to the Authority.

If a school operates Bank Account type C, payroll services will be carried out by Norfolk County Council. The payment of all salaries, wages, pensions, compensation, travelling expenses and other emoluments to employees or former employees of the County Council shall then be made by the Chief Finance Officer or under arrangements approved and controlled by him. Each Headteacher shall notify the Chief Finance Officer as soon as possible, in the prescribed form, of all matters affecting payment of emoluments.

Payment of bills is carried out by the school using its Bank Account type A, or C. The Headteacher shall be responsible for all payments and prior to authorising a bill for payment the Headteacher shall carry out such examination and verification of the accounts as the Governing Body shall determine.

Schools are able to make small payments by cash and are encouraged to make other payments by direct debit.

Schools must ensure that payments are made in accordance with the terms specified by the supplier; interest on late payments will be a charge to the school’s budget share.

2.1.4 Control of assets

Each school must maintain an inventory of its moveable non-capital assets, in a form determined by the authority, and setting out the basic authorisation procedures for disposal of assets. However, schools may determine their own arrangements for keeping a register of assets worth less than £1,000.

Each Headteacher is responsible for maintaining security at all times for all buildings, stocks, stores, furniture, vehicles, equipment, cash, etc. under his control. He shall inform the Chief Finance Officer in any case where security is thought to be defective.Keys to safes and similar receptacles shall be carried on the person of those


responsible at all times; the loss of any such keys must be reported to the Chief Finance Officer forthwith.The Authority has issued a Procedure Note which details how schools may maintain an inventory and the control and security of assets.

2.1.5 Accounting Policies (including year-end procedures)

Schools must abide by the accounting procedures and policies issued by the Authority.

Year-end procedures for closing the accounts are issued by the Authority to all schools during March each year; the timetable for closure is as determined by the Chief Finance Officer.

The financial information system of the County Council shall be the statutory accounts for each school and will be used to assess financial performance.

All official accounting procedures and the form and content of official financial records shall be as agreed by the Chief Finance Officer in accordance with the Accounts and Audit Regulations.

Headteachers shall ensure that accounting procedures and financial records are maintained accurately and kept up to date.

The following principles shall be observed in the allocation of accounting duties:-

a) The duties of authorising payments out and issuing demands for payments to the County Council shall be separated as completely as practicable from the duties of making the payments out and collecting the payments in.

b) Officers charged with the duty of examining and checking the accounts of cash transactions shall not themselves be engaged in any of those transactions.

All financial records, both manual and computerised, shall be completed in a permanent form agreed by the Chief Finance Officer. Financial records, books, forms or documents shall not be amended by use of correcting fluid. Amendments or corrections shall be shown as such.

Fixed asset accounting is not required by the Authority.

2.1.6 Writing off of debts

Governing bodies are only authorised to write off debts up to a level as stipulated in Procedure Notes issued by the Authority.

In the case of larger debts the school must consult the Finance Business Partner (Children’s Services); who must refer the write off to Cabinet.

2.2 Basis of accounting


Annual reports and accounts furnished to the Authority must be on an accruals basis.

SECTION 2.3: SUBMISSION OF BUDGET PLANS

2.3 Submission of budget plans and financial forecasts

Each school will receive formal notification of its Year 1 budget share each year by 28 February and of subsequent years by 2nd week in March when required.

Each school is required to submit a formal budget plan to the Authority by 1 May each year. The Authority would consider it good practice for Governing Bodies to agree their budget plan prior to the start of the new financial year on 1 April. The final plan which must be approved by the full Governing Body, should be submitted to the Authority by 31 March if possible but if schools are not able to agree their formal budget plan by this date, no later than 1 May.

The budget plan must show the school’s intentions for expenditure and income in the current financial year and the assumptions underpinning the budget plan. The following year’s budget plan should be prepared to reflect the full year effect of decisions made in the current year, the estimated effect of pupil number increases, decreases and any other developmental issues. Schools should prepare budgets for a 3 year period.The Authority require all schools to submit a first revision of the budget plan by the end of the summer term each year. This plan should reflect the actual balance in hand/overspend brought forward from the previous financial year. A second revision must be carried out during the autumn term to reflect actual staffing changes, and the projected number of pupils on roll. This plan should be submitted to the Authority by the end of the autumn term each year. If necessary, a final revision may be carried out early in the spring term; any final revision should be submitted to the Authority no later than 28 February each year.

The Authority will supply schools with all income and expenditure data which it holds and which is necessary to efficient planning by schools. The Authority will provide a timetable to schools stating when such information will be provided.

Budget plans may take full account of estimated deficits/balance in hand at the previous 31 March

With regard to clusters and other entities that are funded by grants received from the Local Authority and other public sources, the same timetable for provision of information from the LA and submission of budget plans to the LA applies.

2.4 Efficiency and value for moneySchools must seek to achieve efficiencies and value for money, to optimise the use of their resources and to invest in teaching and learning, taking into account the Authority’s purchasing, tendering and contracting requirements.

It is for heads and governors to determine at school level how to secure better value for money.


Given the very high proportion of local authority spending which flows through delegated budgets, the government considers it desirable that schools should demonstrate that they are following best value principles in their expenditure. Annex C provides guidance for schools on how they may meet this requirement.

2.5 Virement

Schools are free to vire between budget heads in the expenditure of their budget shares but Governors are advised to establish criteria for virements and financial limits above which the approval of the governors is required. It is good practice that the Headteacher reports on a regular basis to the full Governing Body or a finance committee of that body, of all the virements made. Virement does not apply to specific grants devolved to schools on an earmarked basis, except as allowed by the terms of the specific grant.

2.6 Audit: General

Schools are required to co-operate both with auditors employed by the local authority (internal audit) and auditors appointed by the Audit Commission to audit the local authority itself (external audit).

In regard to internal audit, all maintained schools come within the audit regime determined by the Authority.

Regular internal audit visits will continue and reports will be issued to the Director of Children’s Services and Headteachers.

Both the Chief Finance Officer’s internal audit staff and the Council’s external audit staff shall be given access to all records and given such explanations as they require.

The Chief Finance Officer shall maintain an independent, continuous, adequate and effective internal audit of accounting, financial and other processes of the County Council in accordance with the Accounts and Audit Regulations with regard to the following objectives.

Review, appraise and report upon the soundness, adequacy and application of financial and related management controls;

Examine and report upon the extent to which the County Council’s assets and financial interests are accounted for and safeguarded from losses of all kinds arising from fraud, waste, extravagance, poor value for money or any other cause;

Assess and report upon the suitability and reliability of internal financial and related management data;

Contribute to monitoring the use of resources;

The Chief Finance Officer or his representative shall have authority to:

enter any Council premises or land;


have access to all records, documents and correspondence relating to any financial or other transaction of the County Council. This will also apply to unofficial fund records for which an employee of the County Council or a Governor of a school is responsible, by virtue of his position, where expenditure by the unofficial fund leads to a liability on the County Council;

require and receive such explanations as are necessary concerning any matter under examination;

require any employee of the County Council or governor of a school to produce cash, stores, equipment, vehicles or any other property of the County Council or of the school under his control;

With regard to external audit all schools come within the Authority’s external audit regime as determined by the Audit Commission.

2.7 Separate external audits

In instances where a school wishes to seek an additional source of assurance at its own expense, a governing body is permitted to spend funds from its budget share to obtain external audit certification of its accounts, separate from any of the Authority’s internal or external audit process. Where a school chooses to seek such an additional audit it does not remove the requirement that the school must also co-operate with the Authority’s internal and external auditors.

An external audit commissioned by the school would have to take into account the status of the school as a spender of local authority funds.

2.8 Audit of voluntary and private funds

In addition to the normal internal and external audits, schools must provide audit certificates to the Authority within 3 months of the financial year ending in respect of any voluntary and private funds they hold and of the accounts of any trading organisations controlled by the school. It is the responsibility of the governing body to determine, and comply with, any legal requirements in connection with the audit of such funds, eg Charity Commission requirements.

Accounting requirements regarding voluntary and private funds are contained in para 3.7.2.

2.9 Register of business interests

The Governing Body of each school must maintain a register which lists for each member of the Governing Body and the Headteacher, any business interests they or any member of their immediate family have; to keep the register up to date with notification of changes and through annual review of entries, and to make the register available for inspection by governors, staff, parents and the local authority.

More detailed guidance on the maintenance of such a register can be found in the Finance Procedure Manual.


2.10 Purchasing, tendering and contracting requirements

Schools are required to abide by the Contract Standing Orders for Schools in purchasing, tendering and contracting matters. This includes a requirement to assess in advance, where relevant, the health and safety competence of contractors, taking account of the Authority’s policies and procedures. However, Contract Standing Orders for Schools shall not apply if they require schools:

a. to do anything incompatible with any of the provisions of this scheme, or any statutory provision, or any EU Procurement Directive;

b. to seek local authority officer countersignature for any contracts for goods or services for a value below £60,000 in any one year;

c. to select suppliers only from an approved list;

d. or would permit schools to seek fewer than three tenders or quotations in respect of any contract with a value exceeding £10,000 in any one year.

The full Contract Standing Orders for Schools are reproduced at Annex D.

2.11 Application of contracts to schools

Schools have the right to opt out of Authority-arranged contracts except where they have lost that right for particular contracts (whenever started) in accordance with a specified written procedure: in which case they will be bound into the contract for its length (although the contract might contain clauses allowing variance of its terms and conditions); and for contracts approved by the Secretary of State for services for which funding is delegated after 1 April, 1999. Contracts with the Authority must be limited in duration as set out in Section 8.2.

Schools who received newly delegated funds from 1 April 1999 are bound by the contracts the Authority currently has with external companies relating to the responsibilities delegated. The Authority will charge a school’s Budget Share with the costs incurred if the school chooses not to honour these contracts. Although Governing Bodies are empowered under paragraph 3 of schedule 1 to the Education Act 2002 to enter into contracts, in most cases they do so on behalf of the Authority as maintainer of the school and the owner of the funds in the budget share. Other contracts may be made solely on behalf of the Governing Body, when the Governing Body has clear statutory obligations – for example, contracts made by aided or foundation schools for the employment of staff.

2.12 Central funds and earmarking

The Authority is authorised to make sums available to schools from central funds, in the form of allocations that are additional to and separate from the schools’ budget shares (the Standards Fund regulations require Authorities to do this with many grants). Such earmarked allocations shall be subject to conditions setting out the purpose or purposes for which the funds may be used: an earmarked allocation may not be spent


for purposes other than those specified in the conditions for that allocation.

Schools are free to vire additional money from their budget share to support earmarked funding, but must not vire from earmarked funding into the school’s budget share.

The accounting procedures for earmarked sums are issued by the Authority to ensure that expenditure can be separately controlled. Earmarked funds must be returned to the Authority if not spent in year, except where the conditions of grant specify that carry forward is allowed.

The Authority cannot make any deduction, in respect of interest costs to the Authority, from payment to schools of devolved specific or special grant.

2.13 Spending for the purposes of the school

Governing Bodies are free in accordance with s.50(3) of the School Standards and Framework Act 1998 (the SSAF Act 1998) to spend budget shares ‘for the purposes of the school’, subject to regulations made by the Secretary of State and any provisions of this scheme. Under s50 (3A), which came into force on 1st April 2011 amounts spent by governing bodies on community facilities or services under S27 of the Education Act 2002 will be treated as if spent for any purposes of the school .S 50 (30(b) permits the Secretary of State to prescribe additional purposes for which expenditure of the budget share may occur and he has done so. This allows schools to spend their budget on pupils who are on the roll of other maintained schools,

2.14 Capital spending from budget shares

Governing Bodies are permitted to use their budget shares to meet the cost of capital expenditure on the school premises. This includes expenditure by the Governing Body of a voluntary aided school on work that is their responsibility under paragraph 3 of Schedule 3 of the SSAF Act 1998. If the expected capital expenditure from the budget share of any maintained school in any one year is expected to exceed £15,000 the governing body must notify the Authority prior to committing funds and take into account any advice from the Director of Children’s Services as to the merits of the proposed expenditure.

Schools are required to identify separately these works within their budget plans and in any financial information and reports provided to the Authority.

2.15 Notice of Concern

The authority may issue a notice of concern to the governing body of any school it maintains where, in the opinion of the Chief Finance Officer or the Director of Children’s Services, the school has failed to comply with any provisions of the scheme, or where actions need to be taken to safeguard the financial position of the authority or the school.The 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 it


These may include: insisting that relevant staff undertake appropriate training to address any identified

weaknesses in the financial management of the school insisting that an appropriately trained/qualified person chairs the finance

committee of the governing body placing more stringent restrictions or conditions on the day to day financial

management of the school than the scheme requires for all schools – such as the provision of monthly accounts to the authority

insisting on regular financial monitoring meetings at the school attended by authority officers

requiring the governing body to buy into the authority’s financial management systems, and

imposing restrictions or limitations on the manner in which the school manages extended schools activity funded from within its delegated budget share – eg by requiring the school to submit income projections and/or financial monitoring reports on such activities

any other restrictions or requirements deemed necessary

The notice will clearly specify what these requirements are, the way in which and the time by which they must be complied with in order for the notice to be withdrawnIt will also state what further actions the authority will take where the governing body does not comply with the notice

The principal criterion for the issue of a notice is to safeguard the financial position of the authority or school and will not be used in place of withdrawal of delegation where that is the appropriate action to be taken

The notice of concern will be withdrawn when the authority is satisfied that the governing body has fully complied with the requirements it imposes

Any dispute, between the authority and a school that has received a notice of concern, regarding any aspect of the notice will be referred to the authority’s Chief Finance Officer for resolution

2.16 - Schools Financial Value Standard (SFVS)

All local authority maintained schools (including nursery schools and Pupil Referral Units (PRUs) that have a delegated budget) must demonstrate compliance with the Schools Financial Value Standard (SFVS) and complete the assessment form on an annual basis. It is for the school to determine at what time in the year they wish to complete the form.

Governors must demonstrate compliance through the submission of the SFVS assessment form signed by the Chair of Governors. The form must include a summary of remedial actions with a clear timetable, ensuring that each action has a specified deadline and an agreed owner.

All maintained schools with a delegated budget must submit the form to the local authority before 31 March 2013 and annually thereafter.

2.17 Fraud


All schools must have a robust system of controls to safeguard themselves against fraudulent or improper use of public money and assets.

The governing body and head teacher must inform all staff of school policies and procedures related to fraud and theft, the controls in place to prevent them; and the consequences of breaching these controls. This information must also be included in induction for new school staff and governors.

2.18 School Companies

Any school wishing to form a company under the provisions of the Education Act 2002 must first seek the approval of the Authority.


SECTION 3: INSTALMENTS OF THE BUDGET SHARE; BANKING ARRANGEMENTS

3.1 Frequency of instalments

Schools with a Bank Account type A (see para 2.1.2) will be paid in 13 instalments. The initial instalment will be paid on 1 April (or the last banking day prior to the 1 April) followed by 12 subsequent instalments paid on the nineteenth of the month or the last banking day prior to the nineteenth.Schools with a Bank Account type C (imprest account) are reimbursed monthly up to the imprest limit.

3.2 Proportion of budget share payable at each instalment

Schools using a school Bank Account type A will receive 4% of their estimated non-payroll budget share on 1 April. Schools using NCC payroll facilities will receive an advance each month of 1/12th of the remainder excluding rates; other schools will receive, in addition, 1/12th of the payroll budget share less rates. Additions or reductions to the budget share will be advanced or recovered via schools’ bank accounts at monthly intervals. Capital sums which are made available to the school after the allocation of the budget share, will be advanced to schools’ bank accounts as prescribed by the DfE terms and conditions.

3.3 Interest clawback

The scheme may provide for the authority to deduct from budget share instalments an amount equal to the estimated interest lost by the authority in making available the budget share in advance. However, this provision is not currently made.

3.3.1 Interest on late budget share payments

The Authority will add interest to late payments of budget share instalments, where such late payment is the result of an Authority error. The interest rate used will be the same as used for the school investments scheme.

3.4 Budget shares for closing schools

Budget shares of schools for which approval for discontinuation has been secured, will be made available until closure on a monthly basis, net of estimated pay costs, even where some different basis was previously used.

3.5 Bank and building society accounts

All schools may have an external bank account into which their budget share instalments (as determined by other provisions) are paid. Where schools have such accounts they shall be allowed to retain all interest payable on the account.

New bank account arrangements may only be made with effect from the beginning of each financial year. Schools will be required to give a period of notice of 4 months of their wish to opt for a new arrangement.


Any school requesting an external bank account for the first time shall not be able to have one until any existing budget deficit is cleared.

If a school opens an external bank account the Authority must, if the school desires, transfer immediately to the account an amount agreed by both school and Authority as the estimated surplus balance held by the Authority in respect of the school’s budget share, on the basis that there is then a subsequent correction when accounts for the relevant year are closed.

3.5.1 Restrictions on accounts

Accounts may only be held for the purpose of receiving budget share payments, at the following banks or building societies which are consistent with those specified in the authority’s Treasury Management policy:

Santander UKBank of ScotlandBarclays BankCo-operative Bank HSBC BankLloyds/TSB National WestminsterRoyal Bank of Scotland

Schools are allowed to have accounts for budget share purposes which are in the name of the school rather than the Authority. Money paid by the Authority and held in such accounts remains Authority property until spent (s.49(5) of the SSAF Act 1998). The bank account mandate should also show that the Authority is the owner of the funds, and can also receive statements. The Authority can take control of the account if, in the event, the school’s right to a delegated budget is suspended by the Authority. Bank Accounts Type C (imprest accounts) are reimbursed monthly up to the imprest limit.

The Authority will continue with the arrangements negotiated now with Co-Operative Bank PLC whereby the accounts are in the name of the Authority but specific to each school, for schools which wish to continue to use School Bank Accounts type C, ie imprest style accounts.

3.6 Borrowing by schools

Governing Bodies may borrow money only with the written permission of the Secretary of State. No overdrafts are allowed and schools are only permitted to use business credit cards in line with Section 17 of the authority’s Financial Regulations as set out in Annex K. However, the authority encourages the use of procurement cards by schools as these can be a useful means of facilitating electronic purchase and can enable schools to benefit from significant discountsThe restriction on Governing Bodies does not apply to Trustees and Foundations, whose borrowing, as private bodies, makes no impact on Government accounts. These


debts may not be serviced directly from the delegated budgets, but schools are free to agree a charge for a service which the Trustees or Foundation are able to provide as a consequence of their own borrowing. Governing Bodies do not act as agents of the Authority when repaying loans.

3.7 Other provisions

3.7.1 Keeping Your Balance

This document issued by the Audit Commission provides a useful means for schools to ensure that their internal financial procedures and controls are adequate and are reviewed on a regular basis. Keeping Your Balance should form part of the schools adopted procedures and therefore should be reviewed on a 2 year basis. Schools are encouraged to use the self-evaluation tool on the Audit Commission web site to undertake the task. A model Finance Policy is included in the Finance Procedures Manual.

3.7.2 Accounting for Private/Voluntary Funds

Where a Headteacher, or a member of staff, or a governor of a school is, by virtue of his/her official position, responsible for money or goods which are the property of an unofficial fund connected with a County Council establishment or service:-

that person shall keep money or goods belonging to the unofficial fund separate from other money or goods;

proper records shall be kept of money or goods belonging to the unofficial fund, and such records shall be kept separate from other records;

an auditor or auditors with suitable qualifications shall be appointed;

audited accounts shall be submitted annually to the trustees of the unofficial fund;

a copy of the audited accounts shall be sent to the Authority within three months of the end of the accounting period;

More details are contained in Procedure Notes.

3.7.3 Payment for delegated services bought back and or other financial transactions carried out by the Authority

Payment for delegated services purchased by schools will all be processed by direct debit wherever possible.


SECTION 4: THE TREATMENT OF SURPLUS AND DEFICIT BALANCES ARISING IN RELATION TO BUDGET SHARES

4.1 The right to carry forward surplus balances

Schools may carry forward from one financial year to the next any surplus/deficit in net expenditure for the year plus/minus any balance brought forward from the previous year. Surplus balances are, however, subject to restrictions shown in para 4.2 below.

4.2 Restrictions on carrying forward surplus balances

With effect from 1 April 2013, surplus budget share balances held by schools as permitted under this scheme are subject to the following restrictions:

a) the Authority shall calculate by 30 September each year the surplus balance, if any, held by each school as at the preceding March;

b) the Authority shall deduct from the calculated balance any amounts for which the school already has a prior-year commitment to pay from the surplus balance;

c) the Authority shall then deduct from the resulting sum any amounts which the school declares to be assigned for specific purposes as permitted by the Authority and which the Authority is satisfied are properly assigned;

d) the legitimate purposes that balances may be held for are:-

- To provide the school with contingency funding, the amount not exceeding 8% of the final budget share or £20,000 whichever is the greater.

- Surpluses derived from sources other than the budget share eg contributions from parents for school trips where expenditure will not be incurred until the following year or surpluses arising from providing community facilities

- In exceptional circumstances with authorisation of the Head of Children’s Services’ Finance, where an individual allocation amounting to more than 1% of the final budget share and was allocated after the 1st February.

- Voluntary Aided schools are allowed to hold revenue monies to fund governors’ liabilities towards DfE grant aided capital works. Evidence of the cost and timing of the project will be required to support this.

- Surpluses derived from Pupil Premium funding - this would mean that, for the purposes of calculating the contingency sum of 8% of the final budget share, the Pupil Premium would be excluded, but would be shown as a separate category in its’ own right.The amount of Pupil Premium allowed to be carried forward should not exceed the sum received in that financial year.The Analysis of Surplus Revenue Balances form would be pre-populated, after the year-end closure of accounts, with the maximum sum allowed under this category for each school.


- A school by school justification for an additional exception, subject to the submission of justification data by the 28 February and approval of the exception by the School Finance Team Service Development Manager.

Any balances falling outside these categories will be returned to the Authority for redistribution to schools. The actual balances each school has at the end of2012/13 and subsequent financial years will be analysed and any surplus over and above monies falling into one of the legitimate categories above will be redistributed in the following financial year.

e) schools not in the Building Maintenance Partnership pool (BMP3) may lodge monies with the Local Authority up to a maximum of £250,000 or £450 per pupil whichever is the lower. This money will be released at any time on production of an appropriate invoice for maintenance or building work that would have been covered by the BMP3 scheme. Interest will be payable on monies lodged in this way. Funds lodged must be transferred before the financial year-end, or they will be deemed to be part of the school’s surplus balance for the purposes of the analysis of balances mechanism.

4.3 Interest on surplus balances

Schools without external bank accounts may set aside an earmarked part of an underspend in a centrally held fund. The fund attracts a competitive market rate of interest and will be administered within the County Council’s formal accounts. Interest is calculated every six months and schools receive a statement confirming the amount of interest earned.

4.4 Obligation to carry forward deficit balances

Deficit balances will be carried forward by the deduction of the relevant amounts from the following year's budget share (see also para 4.9).

4.4.1 Reporting on deficit balances

In order to allow the Authority to monitor balances in hand and overspending, Governing Bodies are required to provide explanations to the Authority by the end of June following the financial year in cases where the total balances in hand or overspending exceeds:

£25,000, or

5% of the school’s previous year budget share

whichever is the larger.

4.5 Planning for deficit budgets

Schools may only plan for a deficit budget in accordance with the terms of para 4.9 below.


4.6 Charging of interest on deficit balances

The Authority may charge interest on deficit balances .The basis of the calculation of interest shall be as follows:

Planned (licensed) deficits may be charged interest as described in para 4.10.1;

All other deficits (unplanned) may be charged interest at the rate, which the Authority would have earned by investing the funds;

4.7 Writing off deficits

The Authority has no power to write off the deficit balance of any school.

4.8 Balances of closing and amalgamating schools

When a school closes any balance (whether surplus or deficit) shall revert to the Authority; a balance cannot be transferred, even to a successor or replacement school to the closing school, except that a surplus transfers to an academy where a school converts to academy status under section 4(1)(a) of the Academies Act 2010. However, there are separate provisions in the Authority’s formula to allow successor or replacement schools to be given additional funding equivalent to the surplus balances of closed schools. Deficit balances may be deducted from additional funding that would otherwise be given to the new school, but may not be recovered by reducing the new school’s main budget share.

4.9 Licensed deficits

The Authority may permit schools that have no existing deficit to plan for a deficit budget in particular circumstances. The funding to allow such a deficit budget shall be provided from the collective surplus of school balances held by the authority on behalf of schools.

The detailed arrangements applying to this scheme are:

a) the maximum length over which schools may repay the deficit is 3 years (i.e. reach at least a zero balance);

b) deficit arrangements will only be agreed by the Authority to bring the school’s expenditure in line with the annual budget share;

c) a recovery plan must be produced by the school and agreed with the Authority;

d) an annual review will take place to ensure the deficit will be repaid within the term agreed;

e) schools, under this scheme, may plan to have a maximum of 10% of their annual budget share as a deficit;


f) the maximum proportion of the collective balances held by the Authority which will be used to back the arrangement, shall not exceed 40%;

g) deficit arrangements for any school must be agreed by the Director of Children’s Services or the Finance Business Partner (Children’s Services).

h) if interest is charged it will be at a rate determined by the County Council’s Chief Finance Officer.

If a school has a licensed deficit and the school proposes to spend amounts received by it in respect of ring-fenced Grants on purposes other than reducing the licensed deficit, the Authority will agree to such a proposal, unless, in its view the proposed expenditure is unreasonable in the school’s financial circumstances.

4.10 Loan schemes

The general provision in para 3.6 above forbidding Governing Bodies to borrow money shall not apply to schemes run by the Authority as set out in the following sections:

The Authority shall provide a form of loan arrangement for schools which does not operate by way of a licensed deficit but rather by way of actual payments to schools or expenditure by the Authority in respect of a particular school on condition that a corresponding sum is repaid from the budget share.

The arrangements applying to this scheme are:

a) the maximum length over which schools may repay the loan is 10 years;

b) loan arrangements will only be agreed by the Authority to facilitate the purchase of large items of expenditure which could not otherwise be purchased in a single year;

c) if a school makes use of this scheme, there is no upper limit to the amount which can be borrowed subject to the 30% limit in d) not being exceeded;

d) the maximum proportion of the collective balances held by the Authority which will be used to back the arrangement, shall not exceed 30%;

e) arrangements under this scheme for any school must be agreed by the Director of Children’s Services or the Finance Business Partner (Children’s Services).

f) interest will be charged based upon the Local Authority Internal Finance House Rate.

g) Loan repayments will be the first charge on school budgets and collected by deductions from budget allocations on 1 April.


SECTION 5: INCOME

Schools shall be able to retain income except in certain specified circumstances.

5.1 Income from lettings

Schools may retain income from lettings of the school premises that would otherwise accrue to the Authority, subject to alternative provisions arising from any joint use or PFI agreements. Schools are permitted to cross-subsidise lettings for community and voluntary use with income from other lettings, provided there is no net cost to the budget share. However, community, voluntary aided and voluntary controlled schools shall be required to have regard to any directions issued by the Authority as to the use of school premises as permitted under the SSAF Act 1998 for various categories of schools. Income from lettings of school premises should not normally be paid into voluntary or private funds held by the school.

5.1.1 Income from legal leases and other arrangements

Income from leases and similar legal arrangements relating to school grounds or property shall be distributed according to the terms of the lease or as may be otherwise agreed by the school and Authority.

5.2 Income from fees and charges

Schools may retain income from fees and charges except where a service is provided by the Authority from centrally retained funds. However, schools are required to have regard to any policy statements on charging produced by the Authority.

Income from boarding charges is collected on behalf of the Authority and should not exceed that needed to provide board and lodging for the pupils concerned.

5.3 Income from fund-raising activities

Schools may retain income from fund-raising activities.

5.4 Income from the sale of assets

Schools may retain the proceeds of sale of assets except in cases where the asset was purchased with non-delegated funds (in which case it will be for the Authority to decide whether the school should retain the proceeds), or the asset concerned is land or buildings forming part of the school premises and is owned by the Authority.

5.5 Administrative procedures for the collection of income

Because of the potential VAT implications of providing services which lead to fees and charges, fund raising activities and the sale of assets, a VAT user guide has been issued to schools. Schools must comply with the procedures in this guide (See Section 7).


5.6 Purposes for which income may be used

Income from the sale of assets purchased with delegated funds may only be spent for the purposes of the school.


SECTION 6: THE CHARGING OF SCHOOL BUDGET SHARES

6.1 General provision

The budget share of a school may be charged by the Authority without the consent of the Governing Body only in circumstances set out in para 6.2 below.

The Authority shall consult a school as to the intention to so charge, and shall notify a school when it has been done.

Schools are reminded that the Authority cannot act unreasonably in the exercise of any power given by this scheme, or it may be the subject of a direction under s.496 of the Education Act 1996.

Should a school wish to challenge such a charge they must set out their objections in writing to the Director of Children’s Services who will make the final determination.

6.1.1 Charging of salaries at actual costs

The Authority will charge salaries of school based staff to schools budget shares at actual costs where schools operate Bank Account C.

6.2 Circumstances in which charges may be made:

6.2.1 Where premature retirement costs have been incurred without the prior written agreement of the Authority to bear such costs (the amount chargeable being only the excess over any amount agreed by the Authority).

6.2.2 Other expenditure incurred to secure resignations where the school had not followed the Authority’s advice.

6.2.3 Awards by courts and industrial tribunals against the Authority or out of court settlement arising from action or inaction by the Governing Body contrary to the Authority's advice.

6.2.4 Expenditure by the Authority in carrying out health and safety work or capital expenditure for which the Authority is liable where funds have been delegated to the Governing Body for such work, but the Governing Body has failed to carry out the required work.

6.2.5 The cost of local authority enforcement action in respect of a schools failure to undertake maintenance and monitoring of plant and equipment

6.2.6 Expenditure by the Authority incurred in making good defects in building work funded by capital spending from budget shares, where the premises are owned by the Authority or the school has voluntary controlled status.

6.2.7 Expenditure incurred by the Authority in insuring its own interests in a school where funding has been delegated but the school has failed to demonstrate that it has arranged cover to meet the minimum standards set by the Authority.


6.2.8 Recovery of monies due from a school for services provided to the school, where a dispute over the monies due has been referred to a disputes procedure and the result is that monies are owed by the school to the Authority.

6.2.9 Recovery of monies due from a school for services provided to the school under a PFI contract where a dispute over the monies due has been referred to a disputes procedure and the result is that monies are owed by the school to the Authority.

6.2.10 Recovery of penalties imposed on the Authority by HM Revenue and Customs, the Contributions Agency, Teachers Pensions, the Environment Agency or other regulatory agencies as a result of school negligence.

6.2.11 Correction of local authority errors in calculating charges to a budget share (eg pension deductions).

6.2.12 Additional transport costs incurred by the Authority arising from decisions by the governing body on the length of the school day, and failure to notify the Authority of non-pupil days resulting in unnecessary transport costs.

6.2.13 Legal costs incurred by the Authority because a school acted against the Authority’s advice (see section 11.4).

6.2.14 Costs of necessary health and safety training for staff employed by the Authority, where funding for training has been delegated but the necessary training not carried out.

6.2.15 Compensation paid to a lender where a school enters into a contract for borrowing beyond its legal powers, and the contract is of no effect.

6.2.16 Cost of work done in respect of teacher pension remittance and records for schools using payroll contractors other than the Authority, the charge to be the minimum needed to meet the cost of the Authority’s compliance with its statutory obligations.

6.2.17 Costs incurred by the Authority in securing provision specified in a statement of SEN where the Governing Body of a school fails to secure such provision despite the delegation of funds in respect of that statement.

6.2.18 Costs incurred by the Authority due to submission by the school of incorrect data.

6.2.19 Recovery of amounts spent from specific grants on ineligible purposes.

6.2.20 Costs incurred by the Authority as a result of the governing body being in breach of the terms of a contract.

6.2.21 Recovery of penalties imposed on the Authority by copyright agencies as a result of the governing body failing in its responsibilities for copyright compliance.


6.2.22 Costs incurred by the Authority because the governing body did not abide by the Scheme resulting in additional work for School’s Finance Team or Internal Audit beyond the regular programme of work.

6.2.23 Costs incurred by the Authority as a result of withdrawal of delegation.

6.2.24 Schools that received newly delegated funds from 1st April 1999 are bound by the contracts the Authority currently has with external companies relating to the responsibilities delegated. The Authority will charge a school’s Budget Share with the costs incurred if the school chooses not to honour these contracts.

6.2.25 Costs incurred by the Authority in lodging school keyholders’ details with Boing Ltd in order for the police to have access to them.

6.2.26 Recovery of money to provide education for school refusers and sick pupils as agreed on consultation.

6.2.27 A schools budget will be charged the equivalent of the full value of the AWPA funding for any pupil that a school admits unlawfully in year by not following the in-year admissions scheme.

6.2.28 Costs incurred by the authority or another school as a result of a school withdrawing from a cluster arrangement, for example where this has funded staff providing services across the cluster.

6.2.29 Costs incurred by the authority in terminating any lease entered into by a school where the school has not obtained the prior approval of the Finance Business Partner (Children’s Services) to enter into such a lease

6.2.30 Costs incurred by the Local Authority relating to the provision of hired facilities e.g. sports facilities, village halls for PE provision etc., where the lease is held and administered by NCC, but the provision is for the benefit of the pupils within the school. The charges relating to the provision, as agreed through the budget setting process, will be downloaded to schools as they arise, but prior to year-end closedown.


SECTION 7:TAXATION

7.1 VAT (Value Added Tax)

A VAT user guide is issued to all schools for their use; amendments to this guide are issued when required. The net amount of VAT incurred by schools can be recovered from HM Revenue and Customs and therefore all schools are required to submit a monthly analysis and or reimbursement claim form.

Schools who need their bank account to be reimbursed will receive payment within 6 weeks of submitting a complete claim. A complete VAT claim consists of all the returns listed in para 2.1.2.

7.2 Construction Industry Scheme from 6 April 2007

The CIS scheme will no longer apply to payments made for construction operations by the Governing Body or headteacher of a maintained school on behalf of the local authority.

Therefore where: construction operations are administered directly by the governing body or

headteacher of a maintained school the money has been made available by Norfolk County Council (e.g. formula

capital) payment is made after 6th April 2007

a maintained school should pay the contractor directly.

The CIS system applies to: Construction operations paid for by the Governing Body or headteacher of non

maintained schools Construction operations where payments are made by Norfolk County Council

or Norfolk Property Services as agent for Norfolk County Council Construction operations where funding is not provided by Norfolk County

Council

If the above apply:

Invoices will be prepared for payment at the school, but the cheque, made payable to Norfolk County Council, together with the invoice, must be passed to the Chief Finance Officer for processing.

If an individual invoice does not exceed £500 exclusive of VAT, this can be paid by the school and charged to a subjective code called Building repairs / maintenance < £500.

CIS certificates will no longer apply and contractors must be registered with HMRC.Any queries should be addressed to:Hayley Buckland, Tax Manager 01603 222832


SECTION 8: THE PROVISION OF SERVICES AND FACILITIES BY THE AUTHORITY

8.1: Provision of services from centrally retained budgets

The Authority shall determine on what basis services from centrally retained funds (the term services includes premature retirement costs and redundancy payments) will be provided to schools, but the Authority is debarred from discriminating in its provision of services on the basis of categories of schools except where:

(a) funding has been delegated to some schools only or;

(b) such discrimination is justified by differences in statutory duties.

8.2 Provision of services bought back from the Authority using delegated budgets

The term of any arrangement with a school starting on or after 1st April 1999 to buy services or facilities from the Authority shall be limited to a maximum of three years from the inception of the scheme or the date of the agreement, whichever is the later, and periods not exceeding five years for any subsequent agreement relating to the same services. In the case of contracts for the supply of catering services the periods may be up to five years and seven years respectively.

When a service is provided for which expenditure is not retainable centrally by the Authority under the Regulations made under section 46 of the SSAF Act 1998 it will be offered at prices which are intended to generate income which is no less than the cost of providing those services. The total cost of the service will be met by the total income, even if schools are charged differently.

8.2.1 Submission of Contract to Purchase Form

Schools are free to choose from the range of services provided by the Authority. Each school is required to submit a Contract to Purchase Form to the Authority by 1 April each year. This form indicates the subscription type services that each school requires. The Services to Schools booklet setting out terms of agreement will be with schools by 28 February. Other services can be purchased on an ad hoc basis during the financial year.

8.2.2 Packaging

The Authority may provide any services for which funding has been delegated. But where the Authority is offering the service on a buyback basis it must do so in a way, which does not unreasonably restrict schools' freedom of choice among the services available.

8.3 Service level agreements

If services or facilities are provided under a service level agreement – whether at no cost or on a buyback basis - the terms of any such agreement starting on or after the


inception of the scheme will be reviewed at least every three years if the agreement lasts longer than that.

Services, if offered at all by the Authority, shall be available on a basis that is not related to an extended agreement, as well as on the basis of such agreements.

8.5 Teachers PensionsAnnex G sets out conditions that are imposed on the Authority and the governing bodies of all maintained schools covered by this Scheme in relation to supplying salary, service and pensions data.


SECTION 9: PRIVATE FINANCE INITIATIVE / PUBLIC PRIVATE PARTNERSHIPS (PFI / PPP)

The Local Authority may issue regulations from time to time relating to Private Finance Initiative or Public/Private Partnership projects. These would deal with the effect on schools and their Governing Bodies of projects. The regulations would take into account the existing and any future guidance issued by the DfE on agreements between the Authority and Governing Bodies and would comply with the requirements included in Section 40 of the School Standards and Framework Act 1998. Issues dealt with in the regulations could include, for instance, the basis of charges to Governing Bodies, the treatment of monies withheld from contractors due to poor performance and the use of schools outside normal school hours. Agreements between the Authority and Governing Bodies will normally be subject to the specific consent of an individual Governing Body. Any proposed regulations applying to schools generally, which would not require the approval of an individual Governing Body, would be consulted on with all Norfolk schools and would be subject to DfE approval.

SECTION 10: INSURANCE

10.1 Insurance cover

If funds for insurance are delegated to any school, the Authority will require the school to demonstrate that cover relevant to an Authority's insurable interests, under a policy arranged by the Governing Body, meets the minimum standard cover set by the Authority. The Authority will have regard to the actual risks, which might reasonably be expected to arise in determining the adequacy of cover at each school.

SECTION 11: MISCELLANEOUS

11.1 Right of access to information

Governing Bodies shall supply to the Authority all financial and other information which might reasonably be required to enable the Authority to satisfy itself as to the school's management of its delegated budget share, or the use made of any central expenditure by the Authority (eg earmarked funds) on the school.

11.2 Liability of governors

Because the Governing Body is a corporate body and because of the terms of s.50(7) of the SSAF Act, governors of maintained schools will not incur personal liability in the exercise of their power to spend the delegated budget share provided they act in good faith.

11.3 Governors' expenses

The Authority shall have the power to delegate to the Governing Body of a school yet to receive a delegated budget, funds to meet governors' expenses.


Only allowances in respect of purposes specified in regulations made under section 19 of the Education Act 2002 may be paid to Governors from a school's delegated budget share. Schools are expressly forbidden from paying any other allowances to governors.

Schools are also barred from payment of expenses duplicating those paid by the Secretary of State to additional Governors appointed by him to schools under special measures. The Authority has issued a Procedure Note that gives details regarding what is considered to be reasonable expenses.

11.4 Responsibility for legal costs

Funding for legal costs incurred by schools has been delegated for several years. Therefore any legal costs incurred by the governing body should be charged to the school budget share. Legal costs incurred by the Authority will normally be funded centrally. However, where the Authority incurs legal costs as a result of a school failing to act in accordance with the advice of the Authority these costs may be charged to the school's budget share (see section 6.2.13).

The Chief Executive of the County Council offers a legal services subscription service to schools. This will normally include all necessary legal advice and assistance in relation to the matters identified in the Services to Schools Booklet. However, if there is a conflict or a significant risk of a conflict between the interests of the Authority and the Governing Body of the school, the governing body will be expected to seek their own independent legal advice. In these circumstances, Law and Administration will consider making a full or partial reimbursement of the subscription fee at the end of the year.

11.5 Health and Safety

Governing Bodies are required to have due regard to duties placed on the Authority in relation to health and safety, and the Authority's policy on health and safety matters in expending the school’s budget share.

Under Section 39(s) of SSAF Act 1998 the Authority may issue directions to the Governing Body and Headteacher of a community, special or voluntary controlled school on health and safety matters; these directions are enforceable, so far as Governing Bodies are concerned, via S497 of the Education Act 1996 if not complied with.

11.6 Right of attendance for Chief Finance Officer

Under Section 151 of the Local Government Act 1972 the Chief Finance Officer is responsible for the proper administration of the County Council’s financial affairs and he or his nominated representative has the right to attend a Governors meeting and give advice when a significant financial issue is being discussed. The Authority would give prior notice of such attendance unless it is impracticable to do so.Schools must notify the Authority in advance of a significant financial issue and when it will be discussed by the Governing Body i.e.

Proposals to enter into significant future year commitments (other than staffing);


All leasing agreements; Budget monitoring reports which indicate that the school is likely to be in

deficit, except in cases where a licensed deficit has previously been agreed.

There will be other circumstances that may also constitute significant financial issues and schools should seek advice from the Director of Children’s Services if in any doubt.

11.7 Special Educational Needs

Schools shall use their best endeavours in spending the budget share, to secure the special educational needs of their pupils.

11.8 Interest on late payments

Schools are reminded that the terms of this Scheme cannot affect statutory requirements regarding interest that may be charged by a supplier for the late payment of invoices.

11.9 ‘Whistleblowing’

A County Council whistleblowing policy and procedure exists which may be followed by persons working at school or school Governors who wish to complain about financial management or financial propriety at the school. Annex F of the Scheme contains details of the policy and procedure.

11.10 Child Protection

Schools are reminded of the need to release staff to attend child protection case conferences and other related events. The availability of central funding for supply costs in such circumstances is set out in section 15.

11.11 Redundancy/ early retirement costs

Annex K sets out the guidance issued by the Department for Education which summarises the position relating to the charging of voluntary early retirement and redundancy costs. It sets out what is specified in legislation and provides some examples of when it might be appropriate to charge an individual school budget, the central schools budget or the local authority’s non-schools budget.


SECTION 12: RESPONSIBILITY FOR REPAIRS AND MAINTENANCE

12.1 School responsibilities for repairs and maintenance

The attached Annex B sets out the categories of work which governing bodies must finance from their budget shares.

12.2 De minimis limit

The Authority has a de minimis limit of £2,000 in determining the split between capital and revenue in the financial accounts.

SECTION 13: RESPONSIBILITY FOR SCHOOL MEALS

13.1 School responsibilities for school meals

A school with a delegated budget for school meals takes on all the legal responsibilities connected with the delivery of school meals (with the exception of the assessment of eligibility for free school meals discussed below).

13.2 Assessing eligibility for free school meals

The Authority is retaining funding to allow it to assess the eligibility of pupils to free school meals, to maintain detailed records of those pupils entitled to free school meals and to conduct regular reviews of entitlement every six months. If schools wish to perform this function themselves they may do so. However, they will not receive any extra funding from the Authority. Schools who do wish to carry out these tasks themselves must register this intention with the Authority and confirm pupils' eligibility using the documentary evidence specified by the Authority.

Section 14. RESPONSIBILITY FOR SUPPLY COSTS

14.1 Local Authority responsibilities for supply costs

The Authority retains centrally funding for supply cover for staff in certain special circumstances listed below. The exact definition for each of these circumstances is laid down in DfE regulations.

• maternity leave, ante-natal care • carrying out trade union duties• performing public duties• undertaking jury service• carrying out duties as a safety representative• acting as a member of the reserve forces• suspensions of staff• attendance at meetings of the General Teaching Council or its Committees• carrying out duties directly related to child protection including Looked After Children


14.2 School responsibilities for supply costs

Schools are responsible for all supply cover not covered by the special circumstances listed in 14.1. In particular schools are responsible for supply costs related to sickness absence. The Authority operates a sickness insurance scheme to allow schools to manage these costs. Schools are able to obtain sickness insurance cover from other insurance companies.

SECTION 15: COMMUNITY FACILITIES

Annex H sets out the range of controls that will apply to schools that choose to exercise the power conferred by s. 27(1) of the Education Act 2002 to provide community facilities

SECTION 16: RESPONSIBILITY FOR EARLY RETIREMENT AND REDUNDANCY COSTS

The authority’s policy in relation to early retirement and redundancy costs is currently subject to a separate consultation with schools and any changes that are agreed will be set out in the scheme when the consultation process is complete


ANNEX A

List of Schools to which this scheme applies

Name of School

Primary Schools

Acle St Edmunds Church of England Voluntary Controlled PrimaryAlburgh with Denton Church of England Voluntary Controlled Primary SchoolAldborough Primary SchoolAlpington & Bergh Apton Church of England Voluntary Aided Primary SchoolAntingham & Southrepps Community Primary SchoolAshill Voluntary Controlled PrimaryAshwicken Church of England Voluntary Aided Primary SchoolAslacton Primary SchoolAttleborough Infant SchoolAttleborough Junior SchoolAylsham, John of Gaunt Infant & Nursery SchoolAylsham, St. Michael's Church of England Voluntary Controlled Infant & Nursery SchoolBure Valley School, Aylsham Bacton Community Primary SchoolBanham Community Primary SchoolBarford Primary SchoolBarnham Broom Church of England Voluntary Aided Primary SchoolThe Bawburgh SchoolBawdeswell Community Primary SchoolBeeston Primary SchoolSt. Mary's Community Primary School, BeetleyMoorlands C of E Primary SchoolThe King George VI School, Great BirchamBlakeney Church of England Voluntary Aided Primary SchoolBlofield Primary SchoolHillside Primary School, BradwellHomefield Church of England Voluntary Controlled Primary School, BradwellWoodlands Primary School, Bradwell

Brancaster Church of England Voluntary Aided Primary SchoolBressingham Primary SchoolBrisley Church of England Voluntary Aided Primary SchoolBrockdish Church of England Voluntary Controlled PrimaryBrooke Voluntary Controlled Church of England PrimaryBrundall SchoolBunwell Primary SchoolBurnham Market Primary SchoolBurston Community Primary SchoolBuxton Primary SchoolCaister Infant School & NurseryCaister Junior SchoolCantley Primary SchoolSt. Peter & St. Paul Church of England Voluntary Controlled Primary SchoolCarleton Rode Church of England Voluntary Aided Primary SchoolCastle Acre Church of England Voluntary Controlled Primary SchoolCaston Church of England Voluntary Aided Primary SchoolCatfield Voluntary Controlled Church of England Primary SchoolCawston Voluntary Controlled Primary SchoolClenchwarton Primary SchoolColby Primary SchoolColkirk Church of England Voluntary Aided Primary SchoolColtishall Primary SchoolCorpusty Primary SchoolCostessey Infant SchoolSt. Augustine's Roman Catholic Voluntary Aided Primary School, CostesseyQueenshill Primary School CostesseyCringleford Voluntary Aided Church of England Primary SchoolSuffield Park Infant & Nursery School, Cromer


Cromer Junior SchoolDenver Church of England Voluntary Controlled PrimaryDersingham Infant & Nursery SchoolDersingham St. George's Church of England Primary SchoolDickleburgh Voluntary Controlled PrimaryDiss Infants & Nursery Community SchoolDiss Church of England Voluntary Controlled Junior SchoolDitchingham Church of England Voluntary Controlled Primary SchoolDocking Primary School (Church of England)Clackclose Community Primary School, Downham Market Downham Market, Hillcrest Primary SchoolDrayton Community Infant SchoolDrayton Church of England Voluntary Controlled Junior SchoolEarsham Church of England Voluntary Aided Primary SchoolDereham Church of England Voluntary Aided Infant School & NurseryDereham, St. Nicholas Junior SchoolThe Grove House Nursery and Infant Community SchoolKing's Park Infant School, DerehamToftwood Infant SchoolDereham, Toftwood Community Junior SchoolEast Harling Primary School & NurseryRudham Church of England Primary SchoolEast Ruston Area Community Infant SchoolSt. Peter's Church of England Voluntary Controlled Primary School, EastonEccles, Hargham and Wilby Church of England Voluntary Aided Primary SchoolEllingham Voluntary Controlled PrimaryEmneth Primary SchoolErpingham Voluntary Controlled Primary SchoolFakenham Infant & Nursery SchoolFakenham Junior School

Edmund de Moundeford Church of England Voluntary Controlled Primary School, FeltwellFilby Primary SchoolFleggburgh Church of England Voluntary Controlled Primary SchoolFlitcham Voluntary Aided Church of England PrimaryForncett St. Peter Church of England Voluntary Aided Primary SchoolFoulsham Primary SchoolFreethorpe Community Primary SchoolFrettenham Primary Partnership SchoolGarboldisham Church of England Voluntary Controlled PrimaryGarvestone PrimaryGayton Church of England Voluntary Controlled Primary SchoolGillingham, St. Michael's Church of England Voluntary Aided Primary SchoolGooderstone Church of England Voluntary Aided Primary SchoolGreat Dunham Primary SchoolGreat Ellingham Primary SchoolGreat Massingham Voluntary Controlled Primary SchoolStibbard, All Saints Church of England Voluntary Aided Primary SchoolThe Great Witchingham Church of England Voluntary Aided Primary SchoolAlderman Swindell Infant School, Great YarmouthCobholm Primary SchoolEdward Worlledge Community Junior SchoolHerman Primary School, GorlestonNorth Denes Junior SchoolNorthgate St. Andrews Infant School, Great YarmouthPeterhouse Primary SchoolSt. Nicholas Priory Junior School (Church of England Voluntary Controlled)St. George's Infant School (Gt Yarmouth)St. Mary's Roman Catholic Voluntary Aided Primary School, GorlestonStradbroke Community Primary SchoolWroughton Infant School, Gorleston


Wroughton Junior SchoolSouthtown Infant, Great YarmouthGresham Village Primary SchoolHolly Meadows School GrimstonHainford Primary Partnership SchoolHappisburgh Church of England Voluntary Controlled Primary SchoolHapton Church of England Voluntary Controlled Primary SchoolHarpley Church of England Voluntary Controlled Primary SchoolHeacham Infant School & NurseryHeacham Junior SchoolArden Grove Infant School & Nursery HellesdonFirside Junior School, HellesdonHeather Avenue Infant, HellesdonKinsale Infant School, HellesdonKinsale Junior School, HellesdonHemblington Primary SchoolHempnall Primary SchoolHemsby Primary SchoolHethersett, Woodside Infant and Nursery SchoolHethersett Voluntary Controlled Junior SchoolHevingham Primary SchoolHickling Church of England Voluntary Controlled Infant SchoolTen Mile Bank Community Primary SchoolHilgay Village Voluntary Controlled Primary SchoolHindringham Church of England Voluntary Controlled PrimaryHingham Primary SchoolHockering Church of England Voluntary Controlled Primary SchoolGreat Hockham Primary SchoolHockwold & Methwold Community SchoolHolt Community Primary SchoolHopton Church of England Voluntary Controlled Primary SchoolHorning Community Primary SchoolHorsford Church of England Infant SchoolHorsford, All Saints Church of England Voluntary Controlled Junior SchoolSt. Faiths Church of England Voluntary Controlled Primary School Horsham

St. John's Community Primary & Nursery School, HovetonHunstanton Infant SchoolRedgate Junior School, HunstantonIngoldisthorpe Church of England Voluntary Aided Primary SchoolKelling Primary SchoolKenninghall Primary SchoolFairstead Community PrimaryHoward Infant & Nursery School, King's LynnThe Howard Junior School, King's LynnGaywood Community Primary School, Kings LynnHighgate Infant School, King's LynnReffley Community SchoolSt. Edmund's Community School, King's LynnGreyfriars Primary School, King's LynnEastgate Primary, King's LynnSt. Martha's Roman Catholic Voluntary Aided Primary School, King's LynnSt. Michael's Church of England Primary School, King's LynnWhitefriars Church of England Voluntary Aided Primary, King's LynnLangham Village School

Lingwood Primary SchoolLitcham Primary SchoolLittle Melton PrimaryLittle Plumstead Church of England Voluntary Aided Primary SchoolLittle Snoring Primary SchoolLoddon Infants School & NurseryLoddon Junior SchoolManor Field Infant & Nursery School, Long StrattonLudham Primary School & NurseryLyng Church of England Voluntary Controlled Primary SchoolMarham Junior SchoolMarham Airfield Infant SchoolMarsham Primary SchoolMarshland St. James Voluntary Controlled Primary SchoolMattishall Primary School Astley Primary SchoolDuchy of Lancaster Methwold Church of England Voluntary Controlled Primary School


Middleton Voluntary Controlled Primary SchoolMileham Primary SchoolMorley Church of England Voluntary Aided PrimaryMulbarton Community Infant SchoolMulbarton JuniorMundesley InfantMundesley JuniorMundford Voluntary Controlled PrimaryNarborough Church of England Voluntary Controlled Primary SchoolNeatishead Voluntary Controlled PrimaryNecton Church of England Voluntary Controlled Primary SchoolNewton Flotman Church of England (Voluntary Controlled) Primary SchoolNorth Elmham Voluntary Controlled PrimarySt. Andrew's Church of England Voluntary Aided Primary School, LophamNorth Pickenham, St. Andrew's Church of England Voluntary Controlled Primary SchoolNorthrepps Primary SchoolNorth Walsham Infant School & NurseryNorth Walsham Junior SchoolMillfield Primary SchoolThe Norman Church of England Voluntary Aided Primary School, NorthwoldNorth Wootton Community Primary SchoolAngel Road Infant School, NorwichAngel Road Junior, Norwich Avenue Junior School, NorwichBignold Primary SchoolBluebell Primary SchoolClover Hill Infant School & Nursery, BowthorpeChapel Break Infant, NorwichSt. Michael's Church of England Voluntary Aided Junior School, NorwichCatton Grove Primary School, NorwichCavell Primary and Nursery School, NorwichValley Primary School, NorwichColman Infant School, NorwichColman Junior School, NorwichMile Cross Primary School, Norwich

Eaton Primary School, NorwichGeorge White Junior School, NorwichRecreation Road Infant SchoolLakenham Primary School, NorwichLarkman Primary School, NorwichMagdalen Gates Primary School, NorwichMousehold Infant and Nursery School, NorwichNelson Infant School, NorwichRanworth Henderson Green Primary SchoolTuckswood Community Primary School, NorwichSt. John's Roman Catholic Voluntary Aided Infant School, NorwichSt. Thomas More Roman Catholic Voluntary Aided Junior SchoolLionwood Infant School, NorwichLionwood Junior School, NorwichWensum Junior School, NorwichWest Earlham Community Infant West Earlham Junior SchoolOld Buckenham Community Primary SchoolGarrick Green Infant SchoolLodge Lane Infant School, Old CattonOld Catton Voluntary Controlled Junior SchoolOrmesby Village Infant SchoolOrmesby Village Junior School Overstrand, The Belfry, Church of England Voluntary Aided Primary SchoolPoringland Primary SchoolPulham Church of England Voluntary Controlled Primary SchoolRackheath Primary SchoolHarleston, Church of England Voluntary Aided Primary SchoolReedham Primary SchoolReepham PrimaryRocklands Community Primary SchoolRockland St. Mary Primary SchoolRollesby Primary SchoolSt. Mary's (Endowed) Voluntary Aided Church of England Primary School, RoughtonRoydon Primary SchoolRuncton Holme Church of England Voluntary Aided Primary School


Parker's Church of England Voluntary Controlled Primary SchoolSalhouse Voluntary Controlled Primary SchoolSandringham & West Newton Church of England Voluntary Aided PrimarySaxlingham Nethergate Church of England Voluntary Controlled Primary SchoolScarning Voluntary Controlled Primary SchoolScole Church of England Voluntary Controlled Primary SchoolSculthorpe Church of England Voluntary Aided Primary SchoolTattersett, Blenheim Park Community Primary Sedgeford Primary SchoolSeething and Mundham Primary SchoolShelton with Hardwick Community SchoolSheringham Community Primary & Nursery SchoolThomas Bullock Church of England Voluntary Aided Primary SchoolSt. Martin at Shouldham Church of England Voluntary Aided Primary SchoolSnettisham Primary SchoolSouthery PrimarySouth Walsham, Fairhaven Church of England Voluntary Aided Primary SchoolSouth Wootton Infant SchoolSouth Wootton Junior School Spixworth Infant SchoolWoodland View Junior, SpixworthSporle Voluntary Controlled Voluntary Controlled Primary SchoolSprowston Infant SchoolSprowston Junior SchoolCecil Gowing Infant School, SprowstonFalcon Junior School, SprowstonSparhawk Infant School & Nursery, SprowstonWhite Woman Lane Junior School, SprowstonStalham Community Infant SchoolStalham Junior School

The James Bradfield Church of England Voluntary Controlled Community Primary SchoolStoke Holy Cross Primary SchoolSurlingham Community Primary SchoolSutton Church of England Infant SchoolSwaffham Church of England Voluntary Controlled Infant and Nursery SchoolSwaffham Voluntary Controlled Church of England Junior SchoolSwanton Abbott Community Primary SchoolSwanton Morley Voluntary Controlled Primary SchoolTacolneston Church of England Voluntary Controlled Primary SchoolPreston (Church of England) Voluntary Controlled Primary SchoolTaverham, Ghost Hill Infant & Nursery SchoolNightingale Infant School, TaverhamTaverham Junior SchoolTerrington St. Clement Primary Terrington St. John Primary SchoolThe Bishop’s C of E VA Primary, ThetfordThetford, Drake Infant School and NurseryNorwich Road SchoolQueensway Infant School & Nursery, ThetfordRaleigh Infant School & NurseryRedcastle Furze Primary School, Thetford Thompson Primary SchoolHillside Avenue Primary School & Nursery ThorpeDussindale Primary School, ThorpeSt. William's Primary SchoolThurlton Primary SchoolThurton Primary SchoolTilney All Saints Church of England Voluntary Controlled Primary SchoolTilney St. Lawrence Community PrimaryTivetshall Primary SchoolGlebeland Community Primary School, Toft MonksTrowse Primary SchoolTunstead Primary SchoolUpwell Community Primary SchoolWalpole Cross Keys Primary School


Walpole Highway Community Primary SchoolAnthony Curton Church of England Voluntary Controlled Primary SchoolWalsingham Community PrimaryWatlington Primary SchoolWestfield (Watton) Infant and Nursery SchoolWatton Junior SchoolWeasenham Voluntary Controlled PrimaryWeeting Voluntary Controlled Primary SchoolWells-next-the-Sea Primary & Nursery SchoolWilliam Marshall Church of England Primary School, WelneyWest Lynn Primary School, King's LynnWest Raynham Voluntary Controlled Primary SchoolWest Walton Community PrimaryWest Winch Primary SchoolWicklewood Primary School

St. Germans Primary SchoolWiggenhall, St. Mary Magdalen PrimaryWimbotsham and Stow Community SchoolWinfarthing, All Saints Church of England PrimaryWinterton Primary School & Nursery Woodton Primary SchoolWormegay Church of England Primary SchoolWorstead Voluntary Controlled PrimaryWreningham V.C. Primary SchoolAshleigh Infant School and Nursery, WymondhamBrowick Road Infant School, WymondhamRobert Kett Junior School , WymondhamSpooner Row Primary School, WymondhamYaxham Church of England Voluntary Aided Primary

Secondary Schools

Attleborough High SchoolAylsham High SchoolCaister High School Downham Market High School - Technology CollegeDereham, Neatherd Community HighDereham, Northgate High SchoolDereham Sixth Form CentreFakenham High SchoolFramingham Earl High SchoolCliff Park High SchoolGreat Yarmouth Voluntary Aided High SchoolHethersett High SchoolBroadland High SchoolSmithdon High School HunstantonKing's Lynn, King Edward VII School

Litcham High SchoolLong Stratton High SchoolNorth Walsham High SchoolSewell Park College, NorwichCity of Norwich School Hewett School, NorwichOld Buckenham HighArchbishop Sancroft Church of England High School, HarlestonSprowston Community High SchoolStalham High SchoolSt. Clement's High SchoolThorpe St. Andrew SchoolAlderman Peel High School, Wells-next-the-SeaMarshland High School

Special Schools

Attleborough, Chapel Road SpecialJohn Grant School, Caister-on-Sea

Sheringham Woodfields School


Churchill Park School, King’s LynnThe Clare SchoolHarford Manor, NorwichThe Parkside School, NorwichHall SchoolSidestrand Hall SchoolDereham, Fred Nicholson SchoolEaton Hall School, Norwich

Nursery Schools

Earlham Nursery SchoolEmneth Nursery SchoolKing’s Lynn Nursery School


ANNEX B

School Premises ResponsibilitiesAll schools have full responsibilities for repairs and maintenance of their premises.

As a consequence of this, a buy-back scheme, known as the Building Maintenance Partnership (BMP3) has been developed; this scheme is available to all schools.Schools can join the “Pool”, if they wish, by paying an annual premium, which is determined as a percentage of the amount identified in their Budget Share. An Advisory Board made up of Headteachers, Governors, Diocesan Boards and County Council representatives will manage the pool.

The County Council’s Property Adviser (NPS Property Consultants Ltd) manages the BMP3 on a day to day basis).

The pool is managed in two parts:-

1. Earmarked element 2. Insurance element

Schools joining the pool, for a 5-year contract period, are guaranteed to have the earmarked sum spent on their school over the contract period. The remaining balance represents an insurance element for the unforeseen, this is managed on a pooled basis.

BMP3 Prospectus 2010 – 15 Successor SchemeThis is issued to all schools and contains the detailed workings of the buy back scheme.

School responsibilities – not included in the Partnership

These are as follows:- Internal decoration Floor finishes Glazing Trees

List of maintenance responsibilities

The A-Z List identifies in some detail which school responsibilities for maintenance will be covered by the BMP3, should schools join the scheme - see Annex B (1)

The list is not exhaustive. Please refer any queries to your Building Surveyor. In the event of a dispute about whether an item is covered by the BMP3, the Advisory Board will make a binding judgement.

Date of issue: April 2013 Page 45 Scheme for Financing Schools

Annex B(1)

A-Z LIST OF MAINTENANCE RESPONSIBILITIES IN COMMUNITY, FOUNDATION AND VOLUNTARY CONTROLLED SCHOOLS

KeyBMP = Schools' responsibility covered by the BMPSchool = Schools' responsibility not covered by the BMPLA = Local Authority responsibilityIndividual Agreement = Subject to negotiation and agreement

Area of Work Responsibility

AAccess controls BMPAerials SchoolAlarms (Fire):

All maintenance and repair BMPExtending or upgrading system School

Alarms (Intruder) – Nacoss Approved only:-Resetting SchoolRepair and routine maintenance BMP

All weather pitchesArtificial turf/Doltrack Individual agreementOther ie macadam/asphalt games surfaces BMP

Amenity horticulture eg flower beds, grass cutting SchoolAmenity horticulture (permanent construction, e.g. brick, retaining walls). BMPAmplifying system SchoolArt Equipment including Kilns (Servicing and Testing) BMPArt Equipment including Kilns repairs arising School

BBalustrades (Stairs/Landing) BMPBells BMPBlinds SchoolBoarding accommodation:

Supported by fees SchoolNot supported by fees BMP

Boards:Blackboards fixed BMPBlackboards portable SchoolNotice Boards fixed BMPNotice Boards portable SchoolPinboards fixed BMPWhiteboards fixed BMPWhiteboards portable School

Boiler room plant and equipment BMPBoundary fences and walls BMP


CCameras – security (Nacoss Approved only) SchoolCar parks BMPCaretaker's house (repairs as lease agreement) BMPCarpets (loose or adhered) SchoolCavity wall insulation BMPCCTV systems (Nacoss Approved only):

excluding camera/video recorders Schoolhardwiring, brackets, fixings, columns BMP

Ceilings BMPChairs/Desks SchoolChimneys BMPClass change system BMPClassroom sinks BMPCleaning SchoolCloakroom fittings (fixed) BMPClocks (permanently fixed to the exterior of the building) BMPClocks (internal) SchoolCompressors (Servicing and Testing) BMPCompressors repairs arising SchoolComputer network cables SchoolCraft Design and Technology (fixed work benches and sinks)BMPCulvert repairs to built structures BMPCupboards:

Fixed BMPFree standing School

Curtains and tracks SchoolCycle sheds BMP

DDamp proof course BMPDecorations:

External BMPInternal (including School Meal Areas) School

Design and Technology Workshop Equipment (Servicing and Testing)BMPDesign and Technology Workshop Equipment Repairs arising SchoolDesks/Chairs School


Disabled access, lifts & hoists fixed repairs, servicing and testing BMPDisabled access, lifts & hoists loose and changing tables(Servicing and testing) BMPDisabled access, lifts & hoists loose and changing tables SchoolDitches:

Cleaning and routine maintenance SchoolRepairs to built structures BMP

Doors BMPDrains and gullies:

Drain repairs BMPClearing and rodding BMPSurface water drainage to buildings and paved areas BMP

Drama lighting – see stage lightingDrinking fountains BMPDrinking water – water coolers School owned (non Rental) BMPDuctwork:

Cleaning of extract systems serving School Meal Areas SchoolDustbin enclosure BMP

EElectrical heating systems (fixed) BMPElectricity:

Electrical testing of portable appliances BMPRepairs arising to portable appliances SchoolElectrical testing associated with public entertainment licence SchoolElectrical testing of fixed installations BMPElectrical wiring and circuitry BMPFixed installations, eg hand dryers, sockets, and switches BMPLight bulbs (lamps), tubes and starters, including access School

Entrance/Exit steps, ramps and handrail BMPEnvironmental Health – see kitchensExtractor fan BMP

FFan convectors (fixed installations) BMPFencing BMPFire:

Alarms BMPExit signs (illuminated) BMPGuards BMPServicing of Extinguishers BMPRepairs arising to, or provision of Extinguishers, fire buckets,blankets, break glass etc SchoolHose - fixed to main water supply BMPHydrants and mains (external) BMPSprinkler system BMP

Flagpoles BMPFloodlighting BMPFloor covering:


Damaged from unprotected chairs/desk legs. equipment SchoolFlexible finish eg carpet, vinyl sheet or tiles, floating timber/laminated SchoolRigid finish eg block, quarry tiles, granwood, fixed timber BMPSanding and sealing floors SchoolStructural floor eg screed, boards, blocks etc BMP

Flowerbeds SchoolFlues BMPFluorescent tubes and starters including access SchoolFolding partitions (sliding track) BMPFuel bunker & oil tanks BMPFume cupboards:

Fixed BMPMoveable School

Furniture:Fixed SchoolMovable School

GGas service:

Bottle gas cages BMPGas appliances fixed (eg water heaters, room heaters) and laboratory gas taps BMPMains, pipework and meters BMP

Gates BMPGlazing (excluding rooflights)/Glazing Film SchoolGraffiti SchoolGrounds maintenance:

Routine work eg grass cutting, flower beds, line marking SchoolRepair of built structures BMP

Gullies and Drains:Drain repairs BMPClearing and rodding BMPSurface water drainage to buildings and paved areas BMP

Gullies and Gratings:Leaf/silt clearing School

Gutters:Repairs BMPCleaning BMP

Gym equipment (fixed and portable):Inspections of equipment BMPRepairs of equipment SchoolAny consequential repair of structural fixings (anchors) following inspection BMP

Gym floor:marking Schooldamaged by equipment School


HHandrails BMPHeating equipment fixed (ie room heating)

Boiler plant BMPHeat distribution (pipes, radiators, electric heaters) BMP

Hedges SchoolHouses:

Staff School/BMPOther School/BMP

IIronmongery – doors and windows BMPInterrupted Utility Services:

Empty Oil/LPG Supply (purging/resetting) SchoolMains supplies (utility services) BMP

KKitchens (including Home Economics areas):

Building shell BMPEnvironmental health improvements by individual

agreement/LA/BMPEquipment (Servicing and Testing) BMPEquipment repairs arising School/LAFloor finishes (as floor coverings) SchoolInternal fabric BMPInternal decorations School

LLaboratory benches (including utility supplies) BMPLand drainage to playing fields School/LALeaf/litter silt clearance - to gullies and channels SchoolLibrary shelving:

Fixed BMPMovable School

Lifts - Insurance Inspection BMPLifts, including stair lifts - Repairs/maintenance BMPLighting (Drama etc.) – see stage lightingLighting – External areas BMPLight fittings BMPLighting – Floodlighting BMPLight bulbs/lamps/tubes and starters including access SchoolLino SchoolLitter pickup SchoolLocal exhaust ventilation, fume and dust extraction – Insurance Inspection BMP


MMains supply (water, electricity and gas) BMPMat wells (excluding mat) BMPMeters (gas, electricity and water) – public utilities BMPMeters – sub-meters (gas, electricity and water) SchoolMeter cupboards BMPMirrors BMPMobile classroom Responsibilities as for

permanent accommodation

NName boards:

Repair/replacement of board SchoolSign writing changes School

OOil tank and enclosure BMPOverflow pipes BMP

PPainting

External (including repairs arising) BMPInternal (including preparatory work) School

Partitions:Permanent BMPTemporary/folding/extra wide doors BMP

Paved surfaces BMPPaved surfaces – gullies/gratings leaf/silt clearing SchoolPE Equipment

Inspections and repairs of equipment SchoolAny consequential repair of structural fixings (anchors) following inspection BMP

Pest control SchoolPitch markings SchoolPlaster/plasterboard (excluding preparatory work prior to decoration)BMPPlayground, paths, walkways, etc, including gullies and drains BMPPlayground marking SchoolPlay equipment indoor and outdoor:

Inspections of equipment BMPRepairs of equipment SchoolRepair of structural fixings (anchors) following inspection BMP

Playing fields: Routine maintenance (including running tracks/run ups/landing areas) SchoolReconstruction LA

Power points BMPPortable electrical/gas appliances (Servicing and Testing) BMPPortable electrical/gas appliances repairs arising School/LA


Pressure systems e.g. pressure cookers, autoclaves and pressureVessels – Insurance inspection BMP

RRadiators – pipework/valves BMPRailings BMPRainwater pipes & gutters BMPRefrigeration Systems, Cold Storage Rooms / Areas(Servicing and Testing) BMPRoads, paths & playgrounds BMPRoofs BMPRoof trusses BMPRooflights (including glazing materials) BMPRoof tiles/coverings BMP

SSafer surfaces below play equipment for curriculum support:

Fixed surfaces BMPLoose or removable surfaces eg sand, bark School

Safety glazing film SchoolSafety glazing – windows/doors SchoolSafety nosings/edgings (stairs/steps) SchoolSecurity alarms (Nacoss Approved only) BMPSecurity cameras (Nacoss Approved only) SchoolSecurity – CCTV systems – hardwiring, brackets, fixings, columns BMPSecurity lighting:

Lamps and bulbs replacement SchoolOther repairs BMP

Security Monitoring Service - including links SchoolServices (see water, gas, electricity and drainage)Servicing all components covered by BMP BMPSewage - treatment plant & pumps

Daily monitoring SchoolRepairs and maintenance BMP

Sewage disposal - septic plants, cesspools SchoolShared use facilities (where legal agreements exist) Individual agreementSheds (where directly used for curriculum support) BMPShelving:

Fixed BMPMovable School

ShowersRoutine cleaning of showerheads SchoolRepair and maintenance BMP

Shrubs & plants School


Signs:Notice boards/Display cases - Fixed BMPNotice boards/Display cases - Moveable SchoolFire safety signs BMPDirection signs and name plates School(see also nameboard)

Sinks and sterilising (including drainer and unit if installed) BMPSites features & structures:

Public stiles, kissing gates BMPOther structures and features Individual

agreementSkirting boards BMPSliding/folding partitions (sliding track) BMPSnow guards BMPSolar/safety film for glass SchoolSprinkler system (fire) BMPSports hall:

court markings Schoolflooring damaged by equipment School

Staging:Fixed BMPPortable School

Stage lighting:Inspection and repair of the fixed installation up to the switch fuse prior to lighting circuits BMPInspection to the remainder of the installation BMPRepairs to the remainder of the installation School

Staging Services:Stage curtain winches SchoolStage curtains SchoolStage Scenery systems SchoolFixed equipment and wiring BMP

StairwaysStairs:

safety nosings/edgings – stairs/steps Schoolsafety treatment – applied strips/paints to steps etc. School

Sub-Meters – (gas, electricity and water) SchoolSun blinds (internal) SchoolSun blinds (external) BMPSwimming pools:

General division of responsibilities as per the A-Z School/BMPFixed handrails BMPFixed access steps BMPLoose access steps SchoolBasin covers SchoolBasin cover fixings BMPBasin linings School


TTeachers' houses School/LATelephones SchoolThermostatic controls BMPTiling - Wall/Swimming Pool Basin BMPToilets (wc, basin, urinal) BMPTrees School/LA

UUtility Services:

Interrupted – empty oil/LPG supply (purging/resetting) SchoolInterrupted – mains supplies BMP/

Utility Co.

VVandalism whilst school is in session SchoolVandalism (out of hours) insurance excess BMPVehicle access ways BMPVentilation fans BMPVeranda BMP

WWalls BMPWall Safe/Floor Safe BMPWater:

Distribution pipework BMPWater heaters (fixed) BMPMain from meter connection BMPStorage tanks and insulation BMP

Windows BMPWindow blinds/screens SchoolWorktops (fixed) BMP


ANNEX C

BEST VALUE FOR SCHOOLS

1. An Introduction to Best Value

There is a statutory duty on local authorities to obtain Best Value by securing economic, efficient and effective services. The Best Value framework, within which local authorities are required to respond to local needs and make decisions locally, primarily focuses on the balance between cost and quality in striving continuously to improve services.

The Best Value approach does not apply statutorily to governing bodies in their use of delegated and devolved budgets. However, governing bodies are required to set targets to raise standards, are expected to provide good quality public service, and spend public money wisely. Schools are accountable for balancing costs (in terms of economy and efficiency) and effectiveness (in terms of their performance and the quality of what they provide) as required by the Best Value framework. To achieve this schools need to demonstrate that they apply Best Value principles in arriving at decisions about all their activities, especially how the financial resources delegated to them are managed.

In practical terms the main features of Best Value can be summarised as a need for the governing body of a school to act on the outcomes of self-review with the aim of securing continual improvement. Existing mechanisms such as school development plans, post-OFSTED inspection action plans and the Norfolk School Self Review model provide opportunities for the governing body to demonstrate that they are applying the four principles of Best Value: Compare, Challenge, Compete and Consult.

Schools apply these principles by:

• comparing their performance against that of other schools;• challenging whether the performance is good enough and how and why services

are provided; • consulting stakeholders, especially parents and pupils;• considering competition as a means of securing economic, efficient and effective

services.

In order to assure that the principles of Best Value are being applied to all local authority spending, schools are, through the Scheme for Financing Schools, required to adopt the principles of Best Value.

Guidance on the criteria for inspecting Best Value in schools can be found in the OFSTED Handbook for school inspection.


2. Audit Commission Guidance on Best Value

The Audit Commission has included guidance for schools on Best Value in its self-evaluation tool ‘Managing School Resources’.

“Schools which are successfully implementing the principles of best value work in the following ways:

CompareThe school makes use of all available sources of comparison to measure its performance against national indicators and the performance of similar schools. It compares the educational attainment of its pupils and other educational outcomes such as attendance and exclusions and identifies where it needs to improve. It also compares its performance in meeting its own targets by measuring progress in achieving objectives. It makes these comparisons on an annual basis to provide the focus for its next school development plan. The school also makes use of self-evaluation to compare its performance against standards in such areas as the development of its staff (Investors in People) and its management processes (Business Excellence Model). The school also compares its use of resources by benchmarking its expenditure against that of other similar schools.

ChallengeThe school asks itself difficult questions about its performance. Is it good enough? What more should we be doing? The school listens to and acts on the messages received through monitoring by its local education authority and OFSTED inspection. The school investigates under-achievement and its causes and takes necessary action. The school’s governors play an active role in challenging the school by questioning its direction and priorities. They are well placed to advise the school on whether it is meeting the needs of parents, pupils and the local community. The school gains the views of these stakeholders about its performance and responds to them. The school development plan identifies all significant areas for development and sets out the actions needed to bring about improvement. In addition to questioning its educational performance, the school also challenges its use of resources and investigates whether there are more cost-effective ways of providing the curriculum and other services.

CompeteThe school ensures that it delivers value for money by securing services in the most efficient and effective way. It looks critically at the services offered by a variety of providers to secure the best service at the most economical price. It reviews the cost, quality and impact of services purchased from other providers to ensure they are providing value for money. It knows what it expects from providers and has performance targets against which to measure their performance. The school shops around as much as possible to make the most efficient use of its resources.

ConsultThe school engages in meaningful consultation with its own staff, parents, pupils and the local community. It consults on major changes to the use of its resources where they might affect the educational opportunities it provides. It also seeks the opinions of its stakeholders to check how well it is doing in meeting their needs and uses their


views to challenge its performance. The school uses consultation to secure the support of parents for its educational objectives set out in policies such as the home-school agreement and homework policy. It can demonstrate how it has taken the results of consultation into account and balanced the views of its consultees, including its own staff, with the school’s overall priorities.

Effective management of improvementThe school’s development plan shows how the school intends to turn its aims into action and what outcomes it is seeking. If defines its success criteria or performance indicators and has systems for regularly monitoring and measuring achievement of its goals. The school makes best use of its staff and resources. Plans have been effectively communicated within the school so that all parties are clear about what they are trying to achieve and their own roles within the process. Staff have personal objectives and take responsibility for how their performance affects the whole. The school can provide evidence that it is implementing its actions, achieving key targets and that outcomes meet its aims.

School using the Audit Commission self-evaluation tool ‘Managing School Resources’ will be able to identify the extent to which they apply the principles of Best Value. The Authority recommends that all schools use the tool as part of their self-review process.

3. Schools’ adherence to Best Value principles

As discussed above, the statutory framework of Best Value does not bind schools. However, schools must demonstrate that they are following the principles of Best Value.

It should be remembered that finance is just one, albeit very important, resource. Schools should, when considering their adherence to Best Value principles, review all their decision-making processes, not just the financial ones.


BEST VALUE PRINCIPLES - CHECKLIST FOR SCHOOLS

Challenge – why do you do what you do?

Is the budget reviewed annually with reference to the school’s priorities?

Does the School Development Plan set costed objectives and targets with clear links to the budget?

Are evaluation measures built into the school’s planning process allowing the school to learn from its experiences?

Do the headteacher and governing body anticipate new demands and opportunities?

Does the school plan over more than one year - including proposals to utilise any balances held?

Compare – does anyone else do it better?

Does the school use comparative financial and other information to compare its position with similar schools and to inform its planning process?

Would the school be interested in further developing comparative information to benchmark their performance against other schools?

Consult – do other people know what you do, and what do they think about it?

Are parents kept regularly informed of developments in school?

Are all appropriate staff adequately trained on the use of financial systems and consulted during the budget-setting process?

Are governors fully involved in the budget-setting process as well as formally agreeing the budget?

Do staff and governors generally understand the school’s priorities and how it plans to achieve them?

Is a report taken to the governing body at least once a term summarising the financial position of the school?

Compete – are you getting the best deal?

Are sound controls in place to ensure probity? (e.g. certification, internal check, segregation of duties)

Are quotations/tenders obtained for the purchase of goods and services in


accordance with the Scheme for Financing Schools?

Are decisions on the purchase of support services from the Authority or another provider discussed with the governing body or finance committee?Is there a clear understanding of the limits of delegation within the school?

Is a register of business interests maintained?


ANNEX D

STANDING ORDERS — CONTRACTS(Authority Maintained Schools)

CONTENTS

ALL CONTRACTS

1. Interpretation2. Alternatives to Chair of Governors3. Application and Exceptions4. Pre-estimate5. Limited Exceptions for Proprietary Articles, Urgent Contracts, etc.6. Deciding the Evaluation Criteria7. Pecuniary Interests of Employees and Governing Bodies 8. Supervision of Contracts by Third Parties9. Nominated Sub-Contractors and Suppliers

BELOW £50,000

10. Contracts below £50,000

OVER £50,000 TENDERS

11. Contracts over £50,000 including those over the relevant EU Procurement Threshold - Tenders 12. Open Tendering 13. Ad Hoc List14. Standing List15. Invitations to Tender

OVER EC THRESHOLD TENDERS

16. Contracts with an estimated value exceeding the relevant EU Directive Threshold


17. Invalid Tenders18. Receipt of Tenders19. Opening of Tenders20. Errors or Discrepancies in Tenders21. Acceptance of Tenders

POST TENDER NEGOTIATIONS

22. Post Tender Negotiations



23. Form of Contract

24TUPE

25E-Procurement

26Constructing Excellence

27 Procurement Guide

N.B. Contract Standing Orders add to existing statutory requirements, e.g. Health and Safety at Work legislation etc.


STANDING ORDERS RELATING TO CONTRACTS

The overall purpose of these Contract Standing Orders is threefold:-

(a) to ensure transparency and fairness in the procurement of works, goods and services

(b) to ensure the County Council gets best value from its procurements

(c) to protect those involved in the procurement process

1. INTERPRETATION

1.1 In these Standing Orders the words and phrases listed below shall unless the context otherwise requires be interpreted in accordance with this Standing Order:

1.1.1 'Headteacher' shall mean the Headteacher of a school responsible for the function to which the contract relates or any other person or body duly authorized by the Governing Body.

1.1.2 'Governing Body' shall mean the Board of Governors to which the power of making the contract has been delegated.

1.1.3 'Appropriate Committee' shall mean the Committee or Sub-Committee to which the power of making the contract has been delegated.

1.1.4 The 'Chair of Governors' shall be the person duly elected as Chair of

the Board of Governors at a school.

1.1.5 'Estimated value’ shall mean the value of the contract estimated under Standing Order 4.

1.1.6 'Person’ shall include partnership, body corporate or unincorporated association.

1.1.7 “In writing” or “written” includes transmission by email and any other electronic means which is approved by the County Council’s Head of Law and Monitoring Officer and Chief Finance Officer.

1.1.8 The Procurement Guide means the manual issued by the Chief Finance Officer containing best practice guidance on procurement and known by that name.

1.1.8 Words imparting the masculine gender shall be interpreted as including also the feminine gender.


2. ALTERNATIVES TO CHAIR

2.1 The Governing Body may designate the Clerk to the Governors or another Governor (excluding the Headteacher) to carry out the Chair of Governor's responsibilities listed in paragraphs 7, 17, 18, 19 and 22 of these Standing Orders.

3. APPLICATION EXCEPTIONS

3.1 These Contract Standing Orders shall apply to every procurement or disposal made by or on behalf of the Norfolk County Governing Body except contracts:-

3.1.1 for the acquisition or disposal of any interest in land; or

3.1.2 for the lending or borrowing of money; or

3.1.3 of employment for an individual employee; or

3.1.4 for goods to be purchased at an auction or by ESPO or any other consortium, association or similar body of which the Council is a member.

3.1.5 for the disposal of property (including any interest in land).

3.1.6 for the engagement of Counsel

3.2 The engagement of consultants and other professional advisers shall be in accordance with these Contract Standing Orders insofar as reasonably practicable unless the governing body directs otherwise.

N.B. If the estimated value of the engagement exceeds the relevant EU threshold EU Procurement Directives and UK Regulations will apply.

3.2.1 The Headteacher must ensure so far as possible that no conflict of interests exists for any chosen consultant, etc., either as between the Governing Body and other clients or as between different pieces of work by that consultancy, etc., for the Governing Body.

3.3 Exceptions to these Standing Orders may only be made within the relevant law and with the authority:-

3.3.1 of the Council by a direction given generally or in relation to contracts of a specified class;

3.3.2 of the Governing Body especially in relation to a specific contract either in an emergency or for other special reason, but shall be reported to the Council.


4. PRE-ESTIMATE

4.1 Before any procurement is begun the Headteacher shall estimate the value of the contract and that estimate shall be recorded.

4.2 In the case of contracts for the supply of goods or services, the estimated value for the purposes of these Standing Orders shall be the total estimated value of the goods or services to be supplied over the period covered by the contract.

5. LIMITED EXCEPTIONS FOR PROPRIETARY ARTICLES, URGENT CONTRACTS etc.

5.1 EU Directives, Acts of Parliament (e.g. requiring Compulsory Competitive Tendering) and UK Regulations will prevail over some of these Standing Orders but otherwise these Standing Orders do not require tendering:

5.1.1 for goods or materials which are available only as proprietary or patented articles from one contractor or supplier and for which no reasonably satisfactory alternative is available in the European Union; or

5.1.2 for a procurement which constitutes a variation or extension and either: (i) the variation or extension is specifically provided for in the

original contract (although in such cases the Headteacher should first consider whether re-tendering would be likely to result in better value for the school), or

(ii) the estimated value of the variation or extension is less than the greater of £5,000 or 10% of the original contract sum.

5.1.3 for works of art, museum specimens or historical documents; or

5.1.4 for the execution of work or for the supply of services or goods or materials certified by the Headteacher as being required so urgently as to preclude the invitation of quotations or tenders. (Where the contract exceeds £100,000 in estimated value such certificate is to be reported to the governing body; otherwise the certificate is to be retained on the appropriate file); or

5.1.5 for repairs to, or the supply of, parts of existing proprietary or patented articles, including items of equipment or machinery; or

5.1.6 for something which it is not reasonably practicable in the Governing Body's interest so to do, subject (if the contract exceeds £100,000 in estimated value) to a report to the next meeting of the governing body.


6. DECIDING THE EVALUATION CRITERIA

6.1 Before any tender is sought the Headteacher shall decide and record the evaluation criterion to be used when the tenders are received.

6.2 The evaluation criterion must be either:

6.2.1 the lowest price (where the school is to pay the supplier); or

6.2.2 the highest price (where the supplier is to pay the school); or

6.2.3 the most economically advantageous tender.

6.3 If the chosen evaluation criterion is defined as the 'most economically advantageous', the Headteacher will then decide and record in a list of criteria (in descending order of significance) upon which the tenders will so be evaluated. The list will accord with the appropriate list prescribed under EU Public Procurement Directives.

6.4 The Headteacher shall notify all those invited to tender which evaluation criterion is being used in the case of the contract in question.

6.5 In respect of contracts to be awarded under the Open Tendering Procedure (Standing Order 12) the Headteacher must in addition to the other requirements of this Standing Order determine and publish in the Invitation to Tender the minimum criteria to be applied in determining whether a tenderer will be disqualified under Standing Order 12.

6.6 For contracts involving innovative forms of procurement where the scheme is not defined at the tender stage, the award criterion will be the most economically advantageous tender. In the case of such contracts, the Headteacher must decide and record the basis on which tenders will be evaluated and must also inform those invited to tender of the process for awarding and developing the contract.

7. PECUNIARY INTERESTS OF EMPLOYEES AND GOVERNING BODIES

7.1 If any governor, or any employee of the governors, or anyone employed at the school by the Authority, becomes aware of a current or proposed contract with the governing body (i.e. the governing body itself or the Governing Body as agent of the Authority), and that governor or employee has a direct or indirect pecuniary interest in that contract, he shall as soon as practicable inform the Chair of Governors in writing. The Chair of Governors shall record that information in a register to be kept by the Chair of Governors for that purpose and open for inspection at the school by any member or officer of the governing body or the County Council and OFSTED.


8. SUPERVISION OF CONTRACTS BY THIRD PARTIES

8.1 It shall be a condition of any contract between the governing body and any person (not being an employee of the governors or anyone employed at the school by the Authority) who is required to supervise a contract on behalf of the Governing Body that in relation to that contract he shall comply with the requirements of these Standing Orders as if he were a member of the governing body.

8.2 Such person shall:-

8.2.1 at any time during the carrying out of the contract produce to the Headteacher or his representative on request all records maintained by him in relation to the contract; and

8.2.2 on completion of the contract transmit all records to the Headteacher.

9. NOMINATED SUB-CONTRACTORS AND SUPPLIERS

9.1 Where a sub-contractor or supplier is to be nominated to a main contractor, the following provisions shall have effect:-

9.1.1 Where the estimated amount of the sub-contract or estimated value of the goods to be supplied by the nominated supplier does not exceed £50,000 then, unless the Headteacher is of the opinion in respect of any particular nomination that it is not reasonably practicable to obtain competitive tenders, tenders shall be invited for the nomination in accordance with Standing Order 10.

9.1.2 Where the estimated amount of the sub-contract or estimated value of the goods to be supplied by the nominated supplier exceeds £50,000 then, unless the Governing Body determines in respect of any particular nomination that it is not reasonably practicable to obtain competitive tenders, tenders shall be invited in accordance with Standing Order 11.

9.1.3 The terms of the invitation under paragraph 9.1.1 or 9.1.2 above require an undertaking by the person submitting the tender that if he is selected he will be willing to enter into a contract with the main contractor on terms which indemnify the main contractor against his own obligations under the main contract in relation to the work or goods included in the sub-contract.

9.1.4 The Headteacher concerned shall comply with Standing Order 6 in deciding the person whose tender is to be nominated to the main contractor.


NOTECare must be taken when nominating sub-contractors and suppliers in technical specifications. In particular it must be justified by the subject matter of the contract or accompanied by the words “or equivalent”. In other words, the Governing Body must be genuinely open to the consideration of alternatives.

10. CONTRACTS BELOW £50,000

10.1 Contracts, the estimated value of which is below £50,000 shall be let in accordance with rules to be made by the Governing Body for use within the school. These rules shall require competitive quotations to be obtained unless impracticable. The Headteacher shall obtain the approval of the governing body to the text of its rules and to any amendment thereof.

11. CONTRACTS OVER £50,000 INCLUDING THOSE OVER THE RELEVANT EC PROCUREMENT THRESHOLD - TENDERS

From 1.1.2010, EU thresholds are £156,442 for Supplies & Services for aggregated requirements across all departments and £3,927,260 for each single Works. These values change every two years – for current values see:). http://www.ogc.gov.uk/sdtoolkit/reference/ogc-library/procurement/thresholds.html

11.1 Where the estimated value of the contract is over £50,000 the governing body shall, unless impracticable, invite not less than four written tenders and shall enter in the record particulars of all persons invited to tender.

11.2 The invitation shall appoint the place and the latest day and hour for receipt of tenders and shall state the content of Standing Order 17.

11.3 Unless the Governing Body has authorized, whether specifically or generally, the use of an ad hoc list or a standing list, the Headteacher shall invite tenders on the basis of open tendering.

12. OPEN TENDERING (OVER £50,000 TENDERS)

12.1 Where contracts are to be let on the basis of open tendering the Headteacher must at least fifteen days before the last date for the receipt of tenders give public notice expressing the nature and purpose of the contract or stating where further details may be obtained and inviting tenders for its execution.

12.2 If the estimated value of the contract exceeds £100,000, notice shall be published in at least one local newspaper and if the estimated value of the contract exceeds the relevant EU Threshold in at least one appropriate trade or professional journal and place an award notice in the Official Journal of the European Union


http://www.ogc.gov.uk/sdtoolkit/reference/ogc-library/procurement/thresholds.html

12.3 Standing Order 16 applies to contracts above the EU Threshold.

13. AD HOC LIST

13.1 This Standing Order shall apply where the governing body, or (where the estimated value of the contract is between £50,000 and £100,000) the Headteacher has authorised the use of an ad hoc list

13.2 If the estimated value of the contract exceeds £100,000, notice shall be published in at least one local newspaper and if the estimated value of the contract exceeds the relevant EU Threshold in at least one appropriate trade or professional journal and place an award notice in the Official Journal of the European Union.

13.3 The Headteacher may also give notice to all or a selected number of persons included in any relevant standing list.

13.4 The notice shall:-

13.4.1 specify details of the contract into which the Governing Body wishes to enter; and

13.4.2 invite persons interested to apply for permission to tender; and

13.4.3 specify a period, being not less than ten days, within which such applications are to be submitted to the Headteacher.

13.5 After the expiry of the period specified in the Public Notice invitations to tender for the contract shall be sent to:

13.5.1 not less than four of the persons who apply for permission to tender, selected by the Headteacher; or

13.5.2 where fewer than four persons have applied or are considered suitable, to all those persons whom the Headteacher considers suitable.

13.6 In the case of contracts with an estimated value over £100,000, the names of all persons who applied and of those invited to tender shall be reported to the Governing Body on a quarterly basis.


14. STANDING LIST (OVER £50,000 TENDERS)

14.1 This Standing Order shall apply where the Governing Body has authorised the use of a standing list for a contract or for a category of contracts.

14.2 The list shall:


14.2.1 be compiled and maintained by the headteacher; and

14.2.2 contain the names of all persons who are approved by the Governing Body; and

14.2.3 indicate the categories of contract and the values or amounts in respect of those categories for which those persons are approved.

14.3 At least four weeks before a list is first compiled notice inviting applications for inclusion in it shall be published:

14.3.1 in at least one local newspaper; and

14.3.2 in at least one appropriate trade or professional journal.

14.4 The notice referred to in Paragraph 14.3 must include any minimum criteria to be applied in determining whether a contractor will be selected for the list or any part of the list

14.5 The list shall be submitted to the Governing Body for approval together with details of any person whose name is not included in the list but who had requested that it should be.

14.6 The list be amended as required from time to time and shall be reviewed at intervals not exceeding three years. At least four weeks before each review, each person whose name appears in the list shall be asked whether he wishes his name to remain there and notices inviting applications for inclusion in the list shall be published in the manner provided by paragraph 14.3 of this Standing Order.

14.7 At each review the list shall be reported to the Governing Body with particulars showing those invited to tender, those responding and those successful, since the last review, and individual amendments shall also be reported to the Governing Body.

14.8 Invitations to tender for a contract shall be sent to:

14.8.1 not less than four persons selected by the Headteacher, from among those approved for a contract of the relevant category and amount or value: or

14.8.2 where fewer than four persons are approved for a contract of the relevant category and amount or value, all those persons.



15. INVITATIONS TO TENDER (OVER £50,000 TENDERS)

15.1 Every invitation to tender shall specify the latest day and hour and the place appointed for the receipt of tenders and shall state the effect of Standing Order 17.

15.2 Persons to whom tender documents are sent shall be asked to acknowledge receipt.

15.3 Where the estimated value of the contract is over £100,000, the Headteacher shall on inviting tenders send to the governing body a note of the subject and the closing date and time and (where appropriate) a list of the persons invited to tender together with the estimated value.

16. CONTRACTS WITH AN ESTIMATED VALUE EXCEEDING THE RELEVANT EU DIRECTIVE THRESHOLD (OVER £50,000 TENDERS)

From 1.1.2010, EU thresholds are £156,442 for Supplies & Services for aggregated requirements across all departments and £ 3,497,313 for each single Works. These values change every two years – for current values see:). http://www.ogc.gov.uk/sdtoolkit/reference/ogc-library/procurement/thresholds.html

16.1 For contracts with an estimated value above the relevant EU threshold the Headteacher will comply with all of the Procedures set out in the relevant EU Directives and consequent UK Regulations, including:

16.1.1 inserting at each stage the requisite Notices in the Official Journal of the European Communities; and

16.1.2 applying all relevant time limits correctly; and

16.1.3 issuing the correct number of invitations to tender; and

16.1.4 not rejecting abnormally low prices without first giving the tenderer(s) the opportunity to explain their tender(s);

16.1.5 complying with technical EU requirements, e.g. on Open Systems for IT computers.

17. INVALID TENDERS (OVER £50,000 TENDERS)

17.1 An invalid tender must not be accepted.(NOTE:- Tenders estimated at below £100,000 are addressed to and opened by the Headteacher. Tenders estimated at over £100,000 are addressed to and opened by the Chair of Governors).

17.2 A tender shall not be valid unless it has been delivered to the place appointed by the Chair of Governors, (or, where the estimated value of the


http://www.ogc.gov.uk/sdtoolkit/reference/ogc-library/procurement/thresholds.html

contract was below £100,000, by the Headteacher) not later than the appointed day and hour in a plain sealed envelope or parcel addressed to the Chair of Governors, (or, where the estimated value of the contract was below £100,000, to the Headteacher) bearing the word “tender” followed by the subject to which it relates and shall not be valid if the envelope, parcel or packaging bears any name or mark indicating the sender (regardless of the identity of the person causing the name or mark in question to be visible).

18. RECEIPT OF TENDERS (OVER £50,000 TENDERS)

18.1 On receipt envelopes containing tenders shall be date and time stamped by the Chair of Governors or the Headteacher and shall remain in his custody until they are opened.

19. OPENING OF TENDERS (OVER £50,000 TENDERS)

19.1 Tenders shall be opened at one time in the presence of not less than two members of staff designated by the Chair of Governors, (or, where the estimated value of the contract was below £100,000, by the Headteacher), who shall both initial each tender.

19.2 Tenders received at the appointed place later than the day and hour specified under Standing Order 15 shall not be opened.

19.3 Particulars of all tenders received shall be entered upon the record which shall be signed by the members of staff present at the opening, together with a note of the number of unopened tender envelopes.

19.4 Where the estimated value of the contract exceeded £100,000 the Chair of Governors shall forthwith send a copy of the record to the Headteacher (with the tender documents) and to the Chief Finance Officer and shall retain a copy himself.

19.5 All tenders received, including any invalid tenders, shall be retained with their envelopes by the Headteacher for at least two years and in the case of a successful tender, for at least seven years.

20. ERRORS OR DISCREPANCIES IN TENDERS (OVER £50,000 TENDERS)

20.1 Where examination of tenders reveals errors or discrepancies that would affect the tender figures in an otherwise successful tender, the tenderer is to be given details of such errors and discrepancies and afforded an opportunity of confirming or withdrawing his offer.

20.2 Where the tender is for a fixed sum and is for measured work calculated on Bills of Quantity with rates or Activity Schedules and the arithmetical calculations are erroneous the tenderer may confirm either the rate (or rates) or the total for that particular item or the tenderer may withdraw the offer. Where the Contractor has agreed to confirm the offer, any revision to the


arithmetic total will require a compensating adjustment to provide a build up of cost to agree with the tendered sum.

20.3 Where a tender is for measured work calculated on Bills of Quantity with rates or Activity Schedules and is not for a fixed sum and the arithmetical calculations are erroneous the tenderer may confirm either the rate (or rates) or the total for that particular item or the tenderer may withdraw the offer.

20.4 If the tenderer withdraws, the next tender in competitive order is to be examined and dealt with in the same way.

20.5 Any exception to this procedure may be authorised only by the governing body after consideration of a report by the Headteacher, or in cases of urgency, by the Headteacher after consultation with the Chair of the Governors.

21. ACCEPTANCE OF TENDERS (OVER £50,000 TENDERS)

21.1 The Headteacher may accept from valid tenders in accordance with the decided evaluation criteria:-

21.1.1 the lowest tender, if that was the evaluation criterion, provided that the tender is not more than 10 per cent above the estimated value; or

21.1.2 the highest tender, if that was the evaluation criterion, provided that the tender is not more than 10 per cent below the estimated value; or

21.1.3 the most economically advantageous tender, if that was the evaluation criterion and if one tender clearly meets that criterion more closely than any other; or

21.1.4 any other tender only after consultation with the Chair of Governors and after taking legal advice on the impact of EU Directives and subject to the Headteacher making a written report to the Governing Body subsequently.

21.2 A Headteacher may not reject an abnormally low tender without first giving the tenderer the opportunity to explain the tendered price.

21.3 Acceptance of a tender must be in writing and may in some cases be in the form of an official purchase order and shall be signed by the Headteacher or by a member of staff designated by him. The 'acceptance' must not prejudice any formal contract required by Standing Order 23.

21.4 Where the estimated value of the contract was over £100,000 the Headteacher shall forthwith inform the Chair of Governors of the name of the successful tenderer.


21.5 The Headteacher shall inform all tenderers of the name of the successful tenderer and (where practical) the amount of the tender accepted and (without connecting particular prices to particular tenderers) the prices submitted by other tenderers.

21.6 The file copy of the record shall be endorsed to indicate the tender accepted.

NOTE

In the case of contracts which have been tendered via the EU procurement process, a 10 calendar day standstill period between notification of an award to the successful and unsuccessful tenders and the entering into the contract must be applied. Advice on the nature of the notification, and the details to be included, are set out in Chapter 25 of the County Council’s Procurement Guide.

22. POST TENDER NEGOTIATIONS

22A.1 In the case of contracts whose estimated value was between £50,000 and the EU Threshold, the Headteacher may (following the closing date for receipt of tenders but before acceptance of any tender) carry out Post Tender Negotiations to attempt to secure an improvement in the contract price or other conditions in one or more of the following circumstances:

22A.1.1 where the lowest submitted tender or the most economically advantageous tender (where this is the award criterion) exceeds the estimated value of the contract;

22A.1.2 where the Headteacher considers that the price of the lowest tender submitted does not represent the best value for money that can reasonably be obtained;

22A.1.3 where tenders have been invited only on the basis of unit prices or a schedule of rates and the lowest in aggregate is not the lowest on all items;

22A.1.4 where the lowest submitted tender or the most economically advantageous tender (where this is the award criterion) contains conditions, trading terms, specification, performance, guarantees, or service delivery less favourable than in other tenders, or than stipulated for AND this defect may be overcome by post tender negotiations.

22A.2 In Post Tender Negotiations carried out under Standing Order 22A.1 where the price is the award criterion the tenderers submitting the lowest tender and all those the value of which is within 5% of the lowest tender or, if there is no such tender, the tenderer submitting the second lowest, shall be invited to participate in Post Tender Negotiations.


22A.3 In Post Tender Negotiations carried out under Standing Order 22A.1 where the most economically advantageous tender is the award criterion the tenderers submitting the most economically advantageous tender and the second most economically advantageous tender must be invited to participate in the Post Tender Negotiations.

22A.4 Post Tender Negotiations may only be authorised by the Headteacher. In the case of contracts with an estimated value exceeding £50,000 the Headteacher must also obtain the consent of the Head of Law and Monitoring Officer who must thereafter be notified of the time and venue of all negotiations carried out and who must have the right to be represented at any such negotiations.

22A.5 In the case of all Post Tender Negotiations the Headteacher shall record in writing the objective to be secured by such negotiations and in the case of contracts with an estimated value exceeding £100,000, forward a copy of this record to the Head of Law and Monitoring Officer.

22B.1 In the case of contracts with an estimated value exceeding the relevant

EU Directive Threshold, the Headteacher may (following the closing date for receipt of tenders but before acceptance of any tender) carry out Post Tender Negotiations in order to:

22B.1.1 ensure that the tender is constructed correctly; or

22B.1.2 ensure that the tenderer has fully understood the specification; or

22B.1.3 seek clarification from tenderers of quality and performance indicators.

No other discussions may take place. Where such discussions are held, the procedures in this Standing Order at paragraphs 22A.4 to 22A.5 above and 22E.1 to 22J.1 below will apply with the necessary consequential amendments so as to refer to “discussions” rather than “negotiations.

22B.2 Headteachers may not enter into Post Tender Negotiations if that would:

22B.2.1 distort competition; or

22B.2.2 change the specification tendered on; or

22B.2.3 change the contract award criteria.

22C.1 Post Tender Negotiations may only be authorized by the Headteacher with the consent of the Chair of Governors who shall thereafter be notified of the time and venue of all negotiations carried out and who shall have the right to be represented at any such negotiations.


22D.1 No negotiations shall take place under this Standing Order unless the tender documents specifically reserve the right to do so.

22E.1 Unless other arrangements are specifically authorised by the Chair of Governors all negotiations held under this Standing Order shall take place at the school with both the tenderer and the relevant school representatives present.

22F.1 During negotiations with the tenderer there shall always be present at least two school representatives.

22G.1 A note of the negotiations will be made by one of the representatives present recording those present, the time and location of the negotiations, detail of the discussion and any agreement reached. The note shall be signed by all representatives present and will be kept with a file copy of the record and a further copy will be sent to the Chair of Governors.

22H.1 At no time shall a tenderer be informed of the detail of any other tender submitted or as to whether or not the tender he submitted was the lowest or the most economically advantageous tender (where that is the award criterion).

22I.1 Acceptance of tenders following Post Tender Negotiations shall be in accordance with Standing Order 21 except that the Headteacher shall also inform the Chair of Governors of the name of the successful tenderer and of the price regardless of the estimated value of the contract.

22J.1 The Chair of Governors will maintain a record of all Post Tender Negotiations in which will be recorded the date of the tender, the date of any Post Tender Negotiations, the names of tenderers involved in negotiations, the original price, the revised price, the revised specification, the names of the representatives involved and the details of the contract awarded.

23. FORM OF CONTRACT

23.1 Every contract whose estimated value was over £50,000:

23.1.1 must be in writing; and

23.1.2 shall specify the goods, materials or services to be supplied, the price to be paid and shall contain a statement as to the amount of any discount or other deductions, the period within which the contract is to be performed and such other conditions and terms as may be agreed between the parties; and

23.1.3 shall include a clause prohibiting the contractor from transferring or assigning or sub-letting to any person any portion of the contract without the written permission of the governing body signified by the Headteacher; and


23.1.4 shall where relevant contain a clause requiring that all goods and materials used or supplied and all the workmanship shall be at least of the standard required by any appropriate British or equivalent EU or International Standards Specification or Code of Practice current at the date of the tender; and

23.1.5 shall contain a clause empowering the Governing Body to cancel the contract and to recover from the contractor the amount of any resulting loss if the contractor or any person employed by him or acting on his behalf whether or not to his knowledge shall have offered or given or agreed to give to any person any gift or consideration of any kind as an inducement or reward for taking or for not taking any action in relation to the contract or any other contract with the Governing Body, or, in relation to any contract with the Governing Body, shall have committed any offence under the Prevention of Corruption Acts 1889 to 1916, or shall have given any fee or reward the receipt of which is an offence under Section 117(2) of the Local Government Act 1972.

23.2 Every such contract shall be signed by the Headteacher.

23.3 Every contract whose estimated value exceeds £100,000 shall in appropriate cases provide for the payment of liquidated damages by the contractor where he fails to complete the contract within the time specified.

24 TRANSFER OF UNDERTAKINGS (Protection of Employment) Regulations 1981 (TUPE)

In relation to contracts where there is a likelihood that employees may be transferred to a new employer the invitation to tender will state that the school assumes TUPE will apply unless evidence to the contrary is produced.

NOTE

Advice should be sought in relation to human resource and pension issues before starting a procurement which might involve a transfer of staff.

25 E-Procurement

25.1 E-Tendering

These Contract Standing Orders apply equally to e-tendering.

25.2 E-Auctions

25.2.1 Procurements by E-Auction are acceptable in order to achieve the final contract price provided all appropriate guidelines have been complied with and indicative process obtained.


25.2.2 The requirements in the Contract Standing Orders apply to procurements by E-Auction except that Paragraphs 17.2, 18 and 19.1 will not apply.

26 Constructing Excellence

The County Council endorsed the principle of working with contractors in accordance with the principles of Constructing Excellence and encourages Chief Officers to apply these principles where appropriate.

27 Procurement Guide

Those applying these Standing Orders are also advised to refer to the County Council’s Procurement Guide which can be found at http://intranet.norfolk.gov.uk/purchasing/default.htm under Service Review and Procurement. This Guide provides advice on a range of matters to be considered in connection with the procurement of goods, services and works including advice on the following:-

(a) the extent to which non-commercial considerations can be taken into account in awarding contracts:

(b) what the invitation to tender should say regarding the transfer of staff and the requirement to provide workforce information.

(c) evaluation of tenderers and tenders(d) Post Tender Negotiation


http://intranet.norfolk.gov.uk/purchasing/default.htm

ANNEX E

The Whistleblowing Policy

1. INTRODUCTION

1.1 As a person working for the Council you may be the first to realise that there could be something seriously wrong within the Council. However, you may feel that speaking up would be disloyal to your colleagues or to the Council. You may also fear harassment or victimisation. In these circumstances it may be easier to ignore the concern rather than report what may just be a suspicion of malpractice.

1.2 The Council is committed to the highest possible standards of openness, integrity and accountability. We expect employees, and others that we deal with, who have serious concerns about any aspect of the Council’s work to come forward and voice those concerns.

1.3 The purpose of this Policy and the accompanying Whistleblowing Procedure is to make it clear that you can raise your concerns in confidence without fear of victimisation, subsequent discrimination or disadvantage. The Council encourages you to raise serious concerns in the first instance within the Council rather than overlooking a problem or ‘blowing the whistle’ outside, and we would rather that you raised the matter when it is just a concern rather than waiting for proof.

1.4 You should continue to raise appropriate concerns with relevant external agencies such as the Health and Safety Executive, the Audit Commission, and utility regulators.

1.5 The Policy and Procedure applies to all employees and those contractors working for the Council on Council premises, for example, agency staff, builders, drivers. It also covers suppliers and those providing services under a contract with the Council in their own premises, for example, care homes, or in the premises of another contractor, including construction and other sites. The Policy also applies to organisations working in partnership with the Council.

1.6 The Policy has been prepared in response to the Public Interest Disclosure Act 1998 in accordance with Government and Local Government Association guidance on the issue and has been discussed with the relevant trade unions and has their support. The Procedure has the full support of the Joint Consultative and Negotiating Committee and Unison. Any changes, other than statutory, will be referred to the Joint Consultative and Negotiating Committee for consultation. The Policy has been formally adopted by the Council and publicised widely to all those who may wish to use it.


1.7 The Council recognises employees may wish to seek advice and be represented by their trade union representative when raising a concern under the Policy, and acknowledges and endorses the role trade union representatives play in this area. Trade union representatives acting in accordance with the Policy and Procedure will not suffer detriment in their employment with the Council.

2. AIMS AND SCOPE OF THIS POLICY

2.1 This policy aims to:

encourage you to feel confident in raising serious concerns and to question and act upon concerns;

provide avenues for you to raise those concerns and receive feedback on any action taken;

ensure that you receive a response to your concerns and that you are aware of how to pursue them if you are not satisfied;

reassure you that you will be protected from possible reprisals or victimisation if you have a reasonable belief that you have raised any concern in good faith.

2.2 There are existing procedures in place to enable employees to lodge grievances relating to their employment. The Whistleblowing Policy is intended to cover concerns that fall outside the scope of other procedures, including the corporate complaints procedure. This Policy therefore includes your concerns about:-

conduct which is an offence or a breach of law; harassment of others;* sex, race or disability discrimination against others;* disclosures related to miscarriages of justice; health and safety risks, including risks to the public as well as other

employees; damage to the environment; the unauthorised use of public funds; possible fraud and corruption; sexual or physical abuse of clients; breaches of the Council’s Standing Orders, and policies; anything that makes you feel uncomfortable in terms of known standards,

your experience or the standards you believe the Council subscribes to; or other unethical or improper conduct (not otherwise included in this list) concealing information about any of these matters

* Complaints relating to harassment of, or discrimination against you, will be dealt with under the specific procedures relating to those matters.

2.3 The Policy applies to service provision, the conduct of Officers, Members, or others acting on behalf of the Council.

2.4 It should be emphasised that this Policy is intended to assist individuals who


have discovered malpractice or serious wrongdoing, provided they make the disclosure in accordance with the Policy. It is not designed to question financial or business decisions taken by the Authority nor may it be used to reconsider any matters that have already been addressed under the harassment, complaint or disciplinary procedures. Individuals who make disclosures outside the arrangements set out here will not be protected under this Policy and may not be protected under the Act.

3. THE COUNCIL’S PROMISE TO YOU

3.1 The Council is committed to good practice and high standards and wants to be supportive of employees and others who work for the Council.

3.2 The Council recognises that the decision to report a concern can be a difficult one to make. If you raise your concern based on reasonable belief and in good faith, you should have nothing to fear because you will be doing your duty to your employer and the public and The Public Interest Disclosure Act 1998 will protect you from dismissal or other detriment. If your concern is not confirmed by the investigation, no action will be taken against you. If, however, you make an allegation frivolously, maliciously or for personal gain, disciplinary action may be taken against you.

3.3 The Council will not tolerate any harassment or victimisation (including informal pressures) and will take appropriate action to protect you when you raise a concern in good faith, even if you are genuinely mistaken in your concerns. Any harassment or victimisation of a whistleblower may result in disciplinary action against the person responsible for the harassment or victimisation.

3.4 Any investigations into allegations arising from your whistleblowing will not influence or be influenced by any other personnel procedures to which you may be subject.

4. CONFIDENTIALITY

4.1 All concerns will be treated in confidence and every effort will be made not to reveal your identity if you so wish. If we are not able to resolve your concern without revealing your identity (e.g. because your evidence may be needed in Court), we will discuss this with you.

5. ANONYMOUS ALLEGATIONS

5.1 This policy encourages you to put your name to your allegation whenever possible.

5.2 Concerns expressed anonymously are much less powerful but may be considered by the Council taking into account:


the seriousness of the issues raised; the credibility of the concern; and the likelihood of confirming the allegation from attributable sources.

5.3 The Head of Law and Monitoring Officer Democratic Services will decide in each case whether a complaint made anonymously should be investigated.

6. THE RESPONSIBLE OFFICER

6.1 The Head of Democratic Services and the Head of Law and Monitoring Officer, (the Council’s Monitoring Officer), have overall responsibility for the maintenance and operation of this Policy. The Head of Law and Monitoring Officer Democratic Services will maintain a record of concerns raised and the outcomes (but in a form which does not endanger your confidentiality) and will report as necessary to the Council, or any Standards Committee of the Council.

The Whistleblowing Procedure

1. HOW TO RAISE A CONCERN

1.1 As a first step, you should normally raise concerns with your immediate manager, Chief Officer or if you wish your Trade Union. This depends, however, on the seriousness and sensitivity of the issues involved and who is suspected of the malpractice.

1.2 If you are unsure whether or how to raise a concern you can contact the independent voluntary organisation Public Concern at Work on 020 7404 6609, for guidance.

1.3 Concerns may be raised orally or in writing on the Whistleblowing Form attached to this Procedure and which you can obtain from the Head of Law and Monitoring Officer Democratic Services. The Council encourages you to identify yourself when raising your concern, but if you wish you may remain anonymous . You can also telephone the Council’s Whistleblowing Hotline 01603 224433.

1.4 The Head of Law and Monitoring Officer Democratic Services, as the Officer responsible for this Policy, will be informed of all concerns raised under the Policy (unless, of course, they are against the Head of Law and Monitoring Officer Democratic Services).

1.5 If you believe that senior management is involved, or if you are not happy with your Chief Officer’s response to your concerns, you should approach the:

Chief Executive Chief Finance Officer Head of Law and Monitoring Officer Democratic Services Head of Audit and Scrutiny


You can also telephone the Council’s Whistle blowing Hotline 01603 224433

1.6 The earlier you express the concern the easier it is to take action.

1.7 Although you are not expected to provide proof for your concern, you will need to demonstrate to the person contacted that there are reasonable grounds for your concern.

1.8 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.

1.9 You may invite your trade union, professional association representative or a friend to be present during any meetings or interviews in connection with the concerns you have raised. Any meetings that need to be arranged with you can be held off-site if you wish.

1.10 If you are not an employee of the Council we would prefer that you raise your concern in the first instance with the Chief Officer of the Council department you are working for.

2. HOW THE COUNCIL WILL RESPOND

2.1 Whoever you raise your concerns with (normally your Chief Officer or the Head of Law and Monitoring Officer Democratic Services) will appoint a person to investigate your concern and you will be informed who this is. Confidentiality will be maintained in accordance with section 4 of the Whistleblowing Policy.

2.2 In order to protect individuals and those accused of misdeeds or possible malpractice, initial enquiries will be made to decide whether an investigation is appropriate and, if so, what form it should take. The overriding principle which the Council will have in mind is the public interest. Concerns or allegations which fall within the scope of specific procedures (for example, child protection, harassment or discrimination issues) will normally be referred for consideration under those procedures.

2.3 Following initial investigations the Council will respond to your concerns as appropriate. Your concern may:

be investigated by management, internal audit, or through the disciplinary process;

be referred to the police; be referred to the external auditor; form the subject of an independent inquiry.

2.4 Some concerns may be resolved by action agreed with you without the need for investigation. If urgent action is required this will be taken before any investigation is conducted.


2.5 Within seven working days of a concern being raised, the person appointed to investigate your concern will contact you (in a way which does not arouse suspicions in your workplace):

acknowledging that the concern has been received; indicating how we propose to deal with the matter; giving an estimate of how long it will take to provide a final response; telling you whether any initial enquiries have been made; supplying you with information on staff support mechanisms; advising you of your entitlement to seek advice and representation from your

trade union representative ; telling you whether further investigations will take place and if not, why not,

and to agree with you how to proceed if you have chosen to remain anonymous.

2.6 The Council will do what it can 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 Council will arrange for you to receive advice about the procedure and other appropriate support.

2.7 The Council accepts that you need to be assured that the matter has been properly addressed. Subject to legal constraints and any confidentiality or other issues, we will inform you of the outcome of any investigation.

3. HOW YOUR CONCERNS CAN BE TAKEN FURTHER

3.1 This Procedure is intended to provide you with an avenue within the Council to raise concerns. If you are unsure whether or how to raise a concern you can contact the independent voluntary organisation Public Concern at Work on 020 7404 6609, for guidance. The Procedure has the full support of the Joint Consultative and Negotiating Committee and Unison. Any changes, other than statutory, will be referred to the Joint Consultative and Negotiating Committee for consultation.

3.2 The Council hopes you will be satisfied with any action taken as a result of raising a concern. If you are not, and if you feel it is right to take the matter outside the Council, the following are possible contact points:

the external auditor (Send your letter to: The Audit Commission, Springvale Court, Hadleigh Road, Sproughton, Ipswich, Suffolk, IP8 3AS Telephone 01473 203000 – Hotline No. 020 7630 1019)

your trade union; your local Citizens Advice Bureau; relevant professional bodies or regulatory organisations; the police.

3.3 If you do take the matter outside the Council, you should be careful not to disclose confidential information, and ensure that you comply with the


requirements of the Public Interest Disclosure Act 1998 so that you do not lose the protection of the Act against dismissal or other detriment. Seek advice from the contact point about this.

The Whistleblowing Policy, procedure and form can be accessed via the County Council’s website at the following web address : http://intranet.norfolk.gov.uk/whistleblowing/whistleblowing_title.htm


http://intranet.norfolk.gov.uk/whistleblowing/whistleblowing_title.htm

WHISTLEBLOWING FORMPlease complete this form and send it to the:

Head of Democratic ServicesNorfolk County Council, County Hall, Martineau Lane, NORWICH NR1 2DH

Tel: 01603 222620 Fax: 01603 222977

Name:

Address or Contact Details:

Best Time to Contact You:

Person Assisting You (eg relative, friend, union official)

Address:

Post Code:

Telephone:

Details of your concern (please continue on a separate sheet if necessary)

Signature: Date:

CONFIDENTIALITY

Thank you for completing this form. Your concern will be treated in confidence. Within 7 working days of receipt of your concern the person appointed to investigate your concern will write to you as set out in paragraph 3 of the Whistleblowing Procedure set out overleaf.


ANNEX F

Supply of Information for the Purposes of the Teachers’ Pension Scheme

In order to ensure the performance of the duty on the Authority to supply Teachers Pensions with information under the Teachers’ Pension Regulation 1997, the following conditions are imposed on the Authority and governing bodies of all maintained schools covered by this Scheme in relation to their budget share and come into effect on 1 November 2002:

The conditions only apply to governing bodies of maintained schools who have not entered into an arrangement with the Authority to provide payroll services.

A governing body of any maintained school, whether or not the employer of the teachers at such a school, which has entered into any arrangement of agreement with a person other than the Authority to provide payroll services, shall ensure that any such arrangement or agreement is varied to require that person to supply salary, service and pensions data to the Authority which the Authority requires to submit its annual return of salary and service to Teachers’ Pensions and to produce its audited contributions certificate. The Authority will advise schools each year of the timing, format and specification of the information required. A governing body shall also ensure that any such arrangement or agreement is varied to require that Additional Voluntary Contributions (AVCs) are passed to the Authority within the time limit specified in the AVC scheme. The governing body shall meet any consequential costs from the school’s budget share.

A governing body of any maintained school which directly administers its payroll shall supply salary, service and pensions data to the Authority which the Authority requires to submit its annual return of salary and service to Teachers’ Pensions and to produce its audited contributions certificate. The Authority will advise schools each year of the timing, format and specification of the information required from each school. A governing body shall also ensure that Additional Voluntary Contributions (AVCs) are passed to the Authority within the time limit specified in the AVC scheme. The governing body shall meet any consequential costs from the school’s budget share.


ANNEX G

APPLICATION OF SCHEME TO THE COMMUNITY FACILITIES POWER

1 Introduction

1.1 Schools wishing to develop services or facilities for the community are encouraged to discuss proposals with the County Council in the first instance.

1.2 Schools that choose to exercise the power conferred by s 27(1) of the Education Act 2002 to provide community facilities will be subject to a range of controls.

1.3 Community facilities are defined in the Act as “ any facilities or services whose provision furthers any charitable purpose for the benefit of – (a) pupils at the school or their families, or (b) people who live or work in the locality in which the school is situated.”

2 Controls

2.1 There are a number of controls that schools need to be aware of when proposing to develop community facilities or services.

2.2 Expenditure incurred in the exercise of this power may, with effect from 1 April 2011, be met from the school budget share including any accumulated surplus on the budget share,providing there is no detriment to school standards

2. 3 Regulations made by the Secretary of State under s.(2), if any, which can specify activities that may not be undertaken at all under the main enabling power (see Section 4).

2.4 Schools’ legal obligations to consult the County Council and have regard to advice from the authority.

2.5 Guidance issued by the Secretary of State to governing bodies about a range of issues connected with exercise of the power to which the school must have regard.

2.6 The requirements under s.28(1), to act within the limitations and restrictions contained in a school’s own instruments of government.

2.7 These additional provisions in the Norfolk County Council scheme for financing schools (made under section 48 of the School Standards and Framework Act 1998 extended to the powers of governing bodies to provide community facilities by paragraph 2 of Schedule 3 to the Education Act 2002)

3 Relationship with existing community agreements

Where a school is already carrying out any of the activities covered by this power under the terms of an existing funding or management agreement with the County Council then the terms of that agreement continue to apply.

4 Consultation with the County Council


4.1 Section 26(4) of the Education Act 2002 requires that before exercising the community facilities power, governing bodies must consult the County Council and have regard to the advice given to them.

4.2 Schools are likely to benefit from informal contacts and advice from officers with the relevant professional expertise well before the formal consultation itself. It could also be helpful to all parties if schools gave the County Council notice of their intent to exercise the power in advance of the formal consultation itself.

4.3 Formal consultation with the County Council will commence when the full consultation material has been submitted in writing and the response period will begin from receipt of the full material. Major uses of the power where services have an annual turnover in excess of £100,000 or capital schemes costing more than £100,000 are involved will lead to the County Council providing formal advice in writing (which may be e-mail) within eight weeks. In the case of more minor uses advice will be provided within six weeks. Subsequently the governing body should inform the council of the action taken in response to this advice.

4.4 The school should provide the following information in the formal consultation document:

a full business plan for the provision of the proposed community facilities or services covering the first three years of operation;

in the case of capital projects affecting the existing buildings on the school site and/or the construction of new buildings, then the full plans and costing of the works proposed ;

details of any planning and environmental considerations and evidence of discussions with relevant regulatory agencies;

expressions of support from potential user groups, district and parish councils, local community groups, neighbouring schools, business representatives, as appropriate;

details as to how the facility will be managed and how this relates to the management of the school;

a statement that the proposed activities will not interfere with the over riding purpose of the school in achieving higher standards for pupils [ section 26(3) of the Act ];

details of any proposed funding agreements with third parties; the insurance arrangements proposed.

4.5 Normally the consultation document should be sent to the Lifelong Learning and Development Officer, Education Department, County Hall, Martineau Lane, Norwich, NR1 2DL and where Early Years and Child Care developments are included then a copy should also be sent to the Head of Early Years and Childcare Strategy, Education Department, County Hall, Martineau Lane, Norwich, NR1 2DL.

5 Consultation with other bodies


5.1 School governing bodies should consult the planning and service provision bodies in their neighbourhoods that are currently involved with those sorts of facilities. For example; district councils for leisure facilities, adult education providers, local colleges and the local Learning and Skills Council if adult education is involved. Often the relevant bodies will have plans that affect the activities proposed and may be interested in becoming a partner in the particular project.

5.2 Bodies with plans covering the community to be served by the facility or services should be consulted and the degree of fit with the relevant planning frameworks and policies assessed. In particular the following should be consulted if their work could be affected:

The Early Years and Child Care Strategy where any developments affecting early years education or child care are proposed – the early years and child care development plan as it covers the community served by the facility is an important document, it may also be advisable to consult existing local providers;

The local parish councils (where they exist) and the local district council. These will have relevant physical planning policies. Community development plans and the priorities contained therein will be very important for community facility developments. There may also be specific plans for young people, area regeneration, leisure facilities and /or arts/sports plans and so on.

Agencies such as Sports England and the Arts Council will have policies and strategies, if not specific plans, that will affect not only their funding attitudes but also set out their priorities.

All the schools within the cluster and neighbouring secondary schools. Local adult and community learning providers, if such provision is proposed and

the Learning and Skills Council (LSC) for Norfolk. The school’s proposals should be consistent with the Adult Learning Plans for Norfolk.

6 Funding Agreements with Third Parties

6.1 The provision of community facilities in many schools may be dependent on the conclusion of a funding agreement with one or more third parties who will either be supplying funding or supplying funding and taking part in the provision. A very wide range of bodies and organisations are potentially involved.

6.2 Any funding agreements with third parties (as opposed to funding agreements with the County Council itself) should be submitted to the County Council for its comments and advice. Such draft agreements should form part of the consultation with the County Council. Schools must have regard to the advice. The County Council may wish to set conditions upon access, egress and use of other facilities on the site.

6.3 Funding agreements with third parties should contain adequate provision for access by the County Council to the records and other property of those parties which are held on the school premises in order for the County Council to satisfy itself as to the propriety of expenditure on the facilities in question.6.4 Schools are reminded that if an agreement has been or is to be concluded against the wishes of the County Council or has been concluded without informing the County Council and is judged to be seriously prejudicial to the interests of the school or the County Council, that may constitute grounds for suspension of the right to a delegated


budget

7 Financial accounts and information

7.1 Best practice in respect of these community facilities is to use the same accounting and reporting systems as are used for the school’s main budget share but with the activities separately identified on a full cost basis. However, where this is not practicable then schools that exercise the community facilities power must provide a summary statement every six months, showing the income and expenditure for the school arising from the facilities in question for the previous six months and, on an estimated basis, for the next six months. The form of these statements will be notified to schools and the forms will be returned to Children’s Services Finance.

7.2 If the County Council believes there to be cause for concern as to the school’s management of the financial consequences of the exercise of the community facilities power then it may , after giving notice to the school, require financial statements to be supplied every three months.

7.3 Financial information relating to community facilities also has to be included in returns made by schools under the Consistent Financial Reporting Framework.

7. 4 Schools are required to grant access to the school’s records connected with exercise of the community facilities power, in order to facilitate internal and external audit of relevant income and expenditure.

8 Treatment of Income and Surpluses

8.1 Schools may retain all income derived from community facilities except where otherwise agreed with a funding provider. When a surplus has been derived after a proper charging of all costs including relevant overheads then the surplus may be carried over from one financial year to the next. The recommended practice would be to account for this as a separate community facilities surplus. It would be possible for the school to add it to any budget share surplus but in that case the amount added to the main budget share surplus should be separately identified, in case it is required to offset any subsequent deficit in the operation of the community facility.

8.2 The school must ensure that no deficit arises from the operation of the community facility.

8.3. Schools’ budget shares will not include allocations for rates in respect of any community facilities since the cost of community facilities cannot be charged to schools’ budget shares.

8.4 All the costs of maintaining any facility used for these purposes needs to be covered by the income.8.5 When a school ceases to be maintained by the County Council , any accumulated retained income obtained from exercise of the community facilities power reverts to the County Council unless there is some other agreement with a funding provider.

8. 6 Liabilities to third parties incurred in the exercise of this power are a charge on all


the income retained by the school from these activities.

9 VAT

9.1 As with existing community activities, schools may only reclaim VAT for expenditure on community facilities where this is funded from local authority funds. Expenditure from funds obtained direct by schools from private (or indeed, central government) sources are not covered by the VAT reclaim procedures. An update to the VAT manual for schools will be issued.

10 Banking and Borrowing

10.1These are covered by Section 3 this Scheme, which also applies to the use of the community facilities power.

11 Health and safety

11.1 The health and safety provisions of the main Scheme (see Section 11) also apply to the community facilities power.

12 Service Level Agreements (SLAs)

12.1The community facilities powers are not covered by schools’ existing SLAs with the County Council. This means local authority services like payroll, bill payments, ICT support, personnel and so on, in respect of staff employed or expenditure incurred in the exercise of these powers, will only be provided at an extra cost beyond the SLA subscription rate. When making these arrangements with the County Council or other providers, schools will need to ensure the issues surrounding National Insurance and taxation of employees have been fully dealt with.

13 Insurance

13.1It is the responsibility of the governing body to make adequate arrangements for insurance against risks arising from the exercise of the community facilities power. Details of these arrangements should be included in the formal consultation material sent to the County Council. Such insurance should not be funded from the school budget share. The County Council is not able to offer this insurance under a SLA arrangement.

13.2 A school proposing to provide community facilities should, as an integral part of its plans, undertake an assessment of the insurance implications and costs, seeking professional advice if necessary.

13.3 The County Council will undertake its own assessment of the insurance arrangements made by a school in respect of community facilities, and if it judges those arrangements to be inadequate, make arrangements itself and charge the resultant cost to the school. This is particularly to safeguard the council against possible third party claims.


Norfolk County Council

Anti-Fraud and Corruption Strategy

2011-12 Edition

If you would like this document in large print, audio, Braille, alternative format or in a different language please contact the Chief Internal Auditor on telephone 01603 222784 or 01603 223833 (minicom) and we will do our best to help.


Everyone Turn to page 5

Members Turn to page 14

Staff Turn to page 16

Contractors, Suppliers & Partners

Turn to page 20

Wholly Owned Companies

Turn to page 23

Public and External Organisations

Turn to page 24


CONTENTS

Leader and Chief Executive of the Council’s Letter

Part 1 ANTI-FRAUD AND CORRUPTION STRATEGY

1.1 Introduction

1.2 Anti-Fraud and Corruption Policies1.3 Scope1.4 Culture1.5 Actions Constituting Theft, Fraud, Corruption and Bribery1.6 Non- Financial Irregularities1.7 Deterrence – The Corporate Framework1.8 The Threats1.9 Members Policy: Prevention, Detection, Investigation, Sanctions and Reporting 1.10 Staff Policy: Prevention, Detection, Investigation, Sanctions and Reporting1.11 Contractors, Suppliers and Partners Policy: Prevention, Detection, Investigation,

Sanctions and Reporting1.12 Wholly owned companies Policy: Reporting1.13 The Public and External Organisations Policy: Prevention, Detection,

Investigation, Sanctions and Reporting1.14 Contacting Us

Part 2 ANTI-FRAUD AND CORRUPTION STRATEGY – Processes

2.1 Internal Control Systems:2.1.1 Authorising the Investigation of Suspected Fraud2.1.2 Allegations of Fraud2.1.3 Role of Risk and Insurance2.1.4 Role of Norfolk Audit Services2.1.5 The Disciplinary Action Review Group (DARG)2.1.6 Confidentiality2.1.7 Reporting Procedures for Employees2.1.8 Sanctions and Redress2.1.9 The Rights of the Suspect

2.2 Publicity and Training2.3 Success measures2.4 Prosecution Policy2.4.1 Objectives of the Prosecution Policy


2.4.2 Evidential Test 2.4.3 Public Interest Test2.4.4 Public Interest Factors2.4.5 Member and Officer Fraud and Corruption2.5 Fraud Response Plans – Internal Fraud2.6 Specific Responsibilities2.7 Administration


Anti-Fraud and Corruption Strategy

Letter from the Leader of the Council and Chief Executive

To all Members, staff, partner organisations, contractors, suppliers and members of the public:

The Council has established itself as an authority that puts probity and accountability high on its agenda and one that takes issues of theft, fraud, corruption and bribery seriously. Good corporate governance and the protection of public assets are a key priority for the Council within the current strategy.

The public is entitled to demand conduct of the highest standard, and employees and members are expected to conduct themselves in accordance with the standards that apply to them.

We expect the highest standards of political, professional and personal conduct to be upheld.

The Council’s strategy has now been updated and revised to ensure it reflects best practice, including the Bribery Act 2010. Please read the strategy, seek clarification where necessary and help us to apply its principles.

Signed Signed

Derek Murphy David WhiteLeader of the Council Chief Executive

January 2012


Annex HPart 1

ANTI-FRAUD AND CORRUPTION STRATEGY


1.1 Introduction

Norfolk County Council is one of the largest organisations in the County,employing around 19,500 people and having gross expenditure of around £1.48bn in 2011-12, mainly derived from taxation.

The Council has a County Council plan for 2011-14 which sets out the three strategic ambitions and cross cutting Corporate Objectives. The Council’s strategic ambitions for Norfolk are to:

Be an Inspirational place with a clear sense of identity Have a Vibrant, strong and sustainable economy; and Aspirational people with high levels of achievement and skills.

While delivering these ambitions through ‘Norfolk Forward’, the County Council is committed to the eradication of theft, fraud, corruption and bribery and to the promotion of high standards of integrity. One pound lost to fraud or corruption means one pound less for public services and for the achievement of Norfolk County Council’s Ambitions. Theft, fraud, corruption or bribery are not acceptable and will not be tolerated.

This strategy has been established to promote and facilitate the development of controls that will promote and aid the prevention and detection of theft, fraud, corruption or bribery against the Council. This strategy will add value by consistently promoting efficient, economic and effective organisational behaviour. This will be achieved by providing guidelines, training, assigning responsibility for the development of controls and the conduct of investigations. Controls include Disciplinary Rules, Contract Standing Orders, Financial Regulations, Codes of Conduct and Standards of Behaviour.

To deliver the Council’s ambitions we need to maximise the financial resources available to us. In order to do this we must reduce fraud, theft, corruption and bribery to an absolute minimum. The Council recognises its responsibility to protect public funds and we will endeavour to implement secure systems and promote high standards of conduct. We will investigate and seek the strongest possible sanctions against those who seek to defraud or steal from the Council. This includes our own Members, officers, contracting partners and external individuals and organizations the Council does business with. Fraud and Corruption risks are considered as part of the Council’s strategic risk management arrangements.

Norfolk County Council, through Norfolk Audit Services, will measure the success of this strategy against agreed criteria and report to the Council’s Audit Committee. We welcome external scrutiny as a demonstration of our commitment to this Strategy.

The Council’s affairs are open to scrutiny by a variety of external bodiesand people, for example:

The External Auditor is required to ensure that the Authority has adequate arrangements for the prevention of fraud and corruption


The Public:o as Council Tax payerso as service userso annual inspection of accountso publication of data as part of the Government’s transparency agenda

The Business Community - annual business consultation for Non-Domestic Rates

Her Majesty’s Revenue and Customs.

Scrutiny of services is through the Council’s Scrutiny and Overview Panels. In addition there is scrutiny of this strategy directly by the Audit Committee and via the Head of Finance, through internal audit, under Section 151 of the Local Government Act, 1972; and through the Standards Committee via the Head of Law who acts as Monitoring Officer, under Section 5 of the Local Government and Housing Act, 1989.


1.2 Policies

This strategy will be supported where appropriate by five separate policies on Anti Fraud and Corruption. Each of the five policies has distinct features and outcomes and will be agreed with the relevant groups and stakeholders.

The five Anti-Fraud and Corruption policies cover:

Employees Members Contractors and suppliers and their employees Partners; and The County Council.

The Council’s Constitution, Financial Regulations, Standing Orders, Whistle-blowing, Complaints and Anti Money Laundering policies also support the Anti-Fraud and Corruption arrangements.

These policies will be subject to review and approval by the appropriate approving bodies as required.

1.3 Scope of the Strategy

This strategy and its supporting policies apply to any irregularity or suspected irregularity, involving members, employees as well as consultants, suppliers, contractors, outside agencies doing business with the Council and employees of such agencies and/or any other parties with a business or in a formal partnership relationship with the Council, including the wholly owned companies.

Details on the arrangements for each of these groups are covered in the sections that follow. In some cases the principles will be a requirement, in others principles may apply as appropriate and others are encouraged to recognize and support the principles and how we want to work with them.

Chief Officers are responsible for ensuring that internal controls are such that fraud or corruption will be prevented, where possible, and the measures in the Anti-Fraud and Corruption Strategy are promoted within their area of responsibility. (Financial Regulations 4.5.3)

Each Chief Officer will:

Identify, be familiar with and assess the types and risks of theft, fraud, corruption or bribery that might occur within their area of responsibility

promote the strategy and relevant policies, publicity and relevant training to staff and bodies they do business with

be alert for any indication of theft, fraud, corruption or bribery; and be ready to take appropriate action in a timely way, should there be a suspicion

of theft, fraud, corruption or bribery.


Success measures for this strategy are set out at in part 2 of the strategy (2.3).

1.4 Culture

Norfolk County Council is determined that the culture and tone of theorganisation is one of openness, honesty and opposition to theft, fraud, corruption and bribery. There is an expectation and requirement that Council Members, Chief Officers and staff, at all levels, will lead by example in these matters and that all individuals and organisations associated in whatever way with the Council, will recognize this strategy and policies and how we want to do work with them.

Under Section 17 of the Crime and Disorder Act, the Council has a statutory general duty to take account of the crime and disorder implications of all of its work and do all that it reasonably can to prevent crime and disorder in Norfolk.

This strategy is based on deterrence, prevention, detection, investigation, and sanctions within an over-riding anti-fraud and corruption culture. The Council promotes this culture across all our activities and within the community.

The Council takes a holistic approach to anti-fraud and corruption measures. Fraud prevention and system security is an integral part of the development of new systems, strategic and operational risk management and ongoing operations. Chief Officers will consider the theft, fraud, corruption and bribery threats and take advice where appropriate, when implementing any financial or operational system.

The holistic approach extends to the investigation of allegations and the prevention of theft, fraud, corruption and bribery through system reviews. The Internal Audit team provides the Council’s fraud investigation and system audit functions. They act to promote the deterrence, prevention, detection, investigation, sanctions and redress of such activity. The arrangements also take into account relevant requirements and professional guidance relating to money laundering and terrorist financing. In addition the team is free to work with other agencies in the pursuance of the Council’s anti-fraud and corruption aims. Clear outcomes will be agreed, measured and reported to the Audit Committee for the counter fraud and corruption work.

Any investigation activity that is required will be conducted without regard to the suspected wrongdoer’s length of service, position/title, or relationship to the Council.


1.5 Actions Constituting Theft, Fraud, Corruption and Bribery

If there is any question as to whether an action constitutes theft, fraud, corruption or bribery the Chief Internal Auditor or Head of Law should be consulted and they will provide guidance.

For the purposes of this strategy:

- Theft is defined as , ‘A person is guilty of theft, if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it, for the Council theft can include ‘theft of resources, funds, or assets (including information) from the Council or its clients’.

- Fraud is defined as, ’the intentional distortion of records for gain’. In addition to the laws on theft, the Fraud Act 2006 defines three types of fraud:

False representation Failing to disclose information Abuse of position.

Corruption is defined as ‘any course of action or failure to act by individuals or organizations, public or private, in violation of law or trust fro profit or gain

Bribery is defined as, ‘the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty’. Misuse of official position is defined as, ‘employees or their friends, relatives, or acquaintances benefiting inappropriately from exercise of duty’.

In July 2011 the Bribery Act 2010 came into force. This Act modernizes the law on bribery. This strategy has been fully revised to incorporate the requirements of this legislation and the detailed guidance which supports it. A key feature of the Bribery Act 2010 is that the Council may be liable for failing to prevent a person from bribing on the Council’s behalf. There is a full defence if the Council can show it has adequate procedures in place to prevent bribery. The Council, while a large organization, should have a low risk of bribery taking place in its name, so the preventative action required to be demonstrated can be proportionate. There is already top level commitment to conduct our business without bribery, see the letter on page 3. The risks of Bribery are considered by Chief Officers and managers. The Council will undertake due diligence when it engages others to represent it in business dealings. The Council’s policies, including those concerning the Bribery Act 2010, will be communicated as part of this strategy. The requirements of the Bribery Act 2010 will be monitored and reviewed alongside the other measures for this strategy. The Government does not intend that genuine hospitality or similar business expenditure that is reasonable and proportionate be caught by the Act. Soliciting or accepting a bribe also constitutes a crime.

The terms for Fraud and Corruption include, but are not limited to:


Any dishonest or fraudulent act (see 1.1). Theft of funds, investments, supplies, data, intellectual property or other assets. Impropriety in the handling or reporting of money or financial transactions. Profiteering as a result of ‘insider’ knowledge of Council activities. Accepting or seeking, offering or giving anything of material value from/to

contractors, suppliers or persons providing services/materials to/from the Council.

Destruction, removal or inappropriate use of records, furniture, fixtures and equipment.

Abuse of IT equipment, systems, software or security procedures Any similar or related irregularity.

The terms for Bribery specifically include, but are not limited to:

Giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so

This can include seeking to influence a decision maker by giving some kind of extra benefit to that decision maker rather than by what can legitimately be offered as part of a tendering process.

1.6 Non Financial Irregularities

Irregularities concerning Members are covered by the Members Code of Conduct and should be resolved by the Head of Law and the Council’s Standards Committee.

Irregularities concerning an employee’s moral, ethical, or behavioural conduct, for example nepotism, cronyism, bullying or other unprofessional conduct are covered by the Council’s Standards of Conduct and Behaviour and should be resolved by departmental management and Human Resources rather than Norfolk Audit Services.

1.7 Deterrence – The Corporate Framework

The Council takes ultimate responsibility for the protection of our finances and those that are administered on behalf of the Government or the Community. In turn Chief Officers have a duty to protect their service area on a risk assessed basis from losses due to theft, fraud, corruption or Bribery and are responsible for implementing proper internal controls and risk management arrangements.

The corporate framework, which underpins the operation of the Council, has a number of facets that exist to protect the Council against losses and reputational damage from theft, fraud, corruption or bribery and act as a deterrent. These include:-

An established Standards Committee and an adopted code of conduct for Members.

An established Audit Committee


The Constitution, Financial Regulations, Standing Orders and the Scheme of delegation.

The Council’s Constitution arrangements are published on the Council’s web pages to the public, partners, staff and members.

Risk Management arrangements including Risk Registers both Corporate and Departmental

Training for staff and members on the corporate strategy documents and what the arrangements mean for their behavior.

Monitoring and testing of the operation of the ethical framework. A dedicated Internal Audit team whose work programmes include proactive

work. Participation in national anti-fraud initiatives for example the National Fraud

Initiative (NFI) The promotion of awareness of anti-fraud and corruption, theft and Bribery

issues reinforced by training and publicity. Effective disciplinary procedures Effective recruitment procedures.

The respective roles and responsibilities of stakeholders are detailed within this document. For clarity the specific responsibilities are summarised at section 2.6.

The objectives of each part of this strategy and its supporting policies and how they are to be measured are highlighted in a box at the conclusion of each section, for clarity.


1.8 The Threats:

The Council is responsible for the proper administration of its finances and assets. This not only includes direct income and expenditure, but also that which we administer on behalf of the Government, on behalf of our clients and that for which we are the responsible accountable body. All of these sources of income, expenditure and our valuable assets are potentially at risk.

The Council will be vigilant in all of these areas and will apply appropriate principles of risk assessed deterrence, prevention, detection, investigation, sanctions and redress across all its services. The Council will not be afraid to tackle difficult or uncomfortable cases and will take a robust line and seek the maximum appropriate sanctions and redress.

The cost of theft, fraud, corruption or bribery to the Council will be monitored. The Chief Internal Auditor will report on the number, nature and cost of investments in work to counter fraud and corruption and of any investigatory work that is required in the Annual Audit Report as one of the performance measures. The Chief Internal Auditor will report performance information in the periodic reports to the Audit Committee.

The Council will make a proportionate investment in work to counter theft (security), fraud, corruption and Bribery bearing in mind the risks that have been identified.

The Strategy explains the arrangements for each of the parties covered by the Anti-Fraud and Corruption policies (see 1.2) and these are set out in the following sections as follows:

Members (1.9) Staff (1.10) Contractors, Suppliers and Partners (1.11) Wholly owned companies (1.12) Public and External Organisations (1.13)


1.9 Our Members

The role of our members in this strategy is to:

Act in a manner which sets an example to the community whom they represent and to the staff of the Council. To conduct themselves in ways which are beyond reproach, above suspicion and are fully open an accountable

Champion and promote the Council’s strategy and the zero tolerance culture towards theft, fraud, corruption and bribery

Raise matters of concern that may come to their attention during their work Review, consider and approve the strategy, its policies and its performance

measures annually Consider the Annual Report of the delivery against the strategy’s performance

measures Encourage the public to report concerns or to pass on concerns raised by the

public to the appropriate officer. Our Members will be provided with advice on how to respond if an allegation of theft, fraud, corruption or bribery is passed to them

Participate in any reviews, disciplinary meetings or appeals as required.

Prevention

Our Members are required to operate within the:

The Council’s Constitution Members Code of Conduct Sections 94 - 96 of the Local Government Act 1972 Local Authorities Members’ Interest Regulations 1992 (S.I.618) County Council Standing Orders

The Council will provide fraud awareness training to our Members and encourage an open and honest dialogue, generally and specifically with regard to Anti Fraud and Corruption, between Members and officers.

These matters and other guidance are specifically brought to the attentionof Members at the Induction Course for new Members and are in eachMember’s handbook. Also included in the induction process are rules on the declaration and registration with the Head of Law of potential areas of conflict between Members’ County Council duties and responsibilities and any other areas of their personal, professional lives or other activities.

The Council will ensure that the processes that are particularly vulnerable such as planning, disposals, procurement and expenses are adequately protected through strong internal control mechanisms.


Detection

Through Internal Audit and Risk Management reviews and the work of the Monitoring Officer the Council will ensure that the possibility of theft, fraud, corruption or bribery is considered in all vulnerable areas and appropriate tests are devised to detect them. All members are encouraged to contact Internal Audit with any such suspicions they have or are advised of.

Investigation

Any allegations of theft, fraud, corruption or bribery made against our Members will be fully investigated in accordance with the provisions of the Local Government Act 2000 and any subsequent statute or codes of practice. Following an appropriate investigation the Standards Committee is responsible for the initial assessment into Members misconduct.

The Council will fully assist the Standards Committee or other law enforcement agencies with any investigation concerning a Member.Allegations about Members that are received by Internal Audit will be referred immediately to the Monitoring Officer. The Monitoring Officer may utilise Internal Audit for the purposes of any investigation relating to financial matters.

Sanctions and Redress

The Council will utilise its own Standards Committee to the fullest extent to promote high standards and regulate the conduct of our Members and will take action as they see fit.

Reporting

Our members are encouraged to contact Internal Audit with any such suspicions they have or are advised of. Please see ‘Contacting us’ on page 27.

1.10 Our Staff

The role of our staff in this strategy is:

To raise concerns in the knowledge that they will be treated in confidence and properly investigated. Normally reporting matters to their line manager, departmental Finance Business Partner or Procurement or HR Advisor will be appropriate however, if necessary, a route other than these may be used, see Contacting Us at 1.14 on page 27.


To conduct themselves in ways which are beyond reproach, above suspicion and are fully open and accountable.

for Chief Officers and Managers, to be aware of the appropriate financial procurement and other anti-fraud regulations and to be responsible for raising awareness of policies, procedures and ensuring conformance to them, by the staff, suppliers etc. for whom they are responsible.

Our staff are an important element in our approach to minimizing the risk of theft, fraud, corruption and Bribery and they are positively encouraged to raise any concerns that they may have on these issues where they are associated with the Council’s activities.

Prevention

The Council recognises that its systems are vulnerable from attack from within the organization, particularly by those who may gain ‘inside’ knowledge of potential control weaknesses through their official position. Prevention is better than cure and all managers must ensure that as far as possible and on a risk assessed basis their systems are adequately protected by sound internal controls. It is the responsibility of all managers to establish and maintain systems of internal control and to ensure that the Council’s resources are properly applied, including:

Manager’s duties include responsibility for the prevention and detection of theft, fraud, corruption and bribery.

Staff of the Council are expected to follow any Code of Conduct related to their Professional Institute and also abide by the Council’s Standards of Conduct and Behavior.

Staff must comply with Section 117 of the Local Government Act 1972 regarding the disclosure of pecuniary interests in contracts relating to the County Council or the non-acceptance of any fees or rewards whatsoever other than their proper remuneration. These requirements are set out in the Council’s Standards of Conduct and Behaviour.

The Chief Internal Auditor will ensure that an adequate and effective internal audit is undertaken of the Council’s systems and processes. Internal Audit assists managers to implement proper controls and remedy control failures. Further details appear in part 2.

The Council will ensure that procedures relating to recruitment, staff conduct and disciplinary processes are robust and are followed. With regard to the vetting of new entrants, references will be taken in all cases and personal testimonials will not be accepted. Where qualifications are required for a particular post, candidates will be required to submit original certificates for checking. If a doubt arises as to the authenticity of a qualification, this will be verified with the examination board/professional body. Where necessary, officers will undertake checks with the Criminal Records Bureau (CRB).

As part of the longer term strategy Internal Audit proposes that the Council will identify those posts considered to be in key, high risk, financial/fraud sensitive positions.


Internal Audit will recommend to all Heads of Service that their staff who meet this criteria are considered for higher levels of pre-employment checks and more closely monitored for indicators of fraudulent behavior, such as unusual leave and working patterns. Further risk assessed options for vetting staff to a high standard to stop organised criminals infiltrating key departments will be explored during 2012.

The Council has in place a Disciplinary Procedure for all categories of its staff. The role that appropriate staff are expected to play in the Council’s framework of internal control features in employee Terms and Conditions of Employment.

Detection

It is the responsibility of Chief Officers, their managers and all staff to prevent and detect theft, fraud, corruption or bribery. It is often the alertness of staff, Members and the public that enables detection to occur and the appropriate action to take place when there is evidence that such events may have been committed, or be in progress. Despite the best efforts of managers and auditors, instances of theft, fraud, corruption or bribery frauds are discovered by chance or “tip off”, and the Council has in place arrangements to enable such information to be properly dealt with, for example the Whistleblowing Policy. These are covered by the response plans covered in Section 3 of the strategy

Through Internal Audit and Risk Management reviews and the work of the Monitoring Officer the Council will ensure that the possibility of theft, fraud, corruption or bribery is considered in all vulnerable areas and appropriate tests are devised to detect them. All internal audit reviews will have regard to the possibility of theft, fraud, corruption or bribery. Auditors will receive training to ensure that they have a full understanding of systems controls and potential risk areas. Internal Audit will undertake proactive audits in high risk areas with a view to identifying any theft, fraud, corruption or bribery.

The Council actively encourages staff to whistle blow on colleagues who are suspected of committing theft, fraud, corruption or bribery. All members of staff are encouraged to contact Internal Audit with any such suspicions.

The Council operates a Confidential Reporting Code (Whistleblowing Policy) for those employees who wish to utilise the protection offered by the Public Interest Disclosure Act 1998. The Council encourages a strong ethical and counter fraud culture and that staff have high levels of awareness and recognise their responsibilities to protect the organisation and its resources. It also encourages that its staff, and staff within contracting organisations, have confidence in the whistle-blowing arrangements and feel safe to make a disclosure.

Investigation

Any allegations of theft, fraud, corruption or bribery made against our staff will be fully investigated in accordance with disciplinary procedures, statute or codes of practice. Following an appropriate investigation the Chief Officer or Governing Body is responsible for the initial assessment into employee misconduct.


The Council will fully assist law enforcement agencies with any investigation concerning an employee. Allegations about staff that are received by Internal Audit will be referred immediately to the Head of Finance. The Head of Finance may utilise Internal Audit for the purposes of any investigation relating to financial matters.

Norfolk Audit Services is charged with leading the Council’s fight against theft, fraud, corruption or bribery. The unit is led by the Chief Internal Auditor and will examine all allegations on a risk assessed basis.

The Council will normally expect to deal with staff under the Disciplinary Procedures before referring a case to the Police. Referral to the Police is a matter for the Disciplinary Action Review Group (DARG) described in part 2 of the strategy, following consideration of the facts of each case. Referral to the Police will not prohibit action under the disciplinary procedures.

Where financial impropriety is discovered, the Council’s presumption (unless there is a good reason not to) is that, subject to consideration by the DARG, the Police will be informed and arrangements made, where appropriate, for the prosecution of offenders by the Crown Prosecution Service

Internal Audit will investigate any allegation that may have a direct or indirect impact on the finances for which we are responsible. This will include cases where staff may have financial information relating to organisations which are or have been funded by the Council, or with whom the Council has a contract.

Staff have a duty to assist the Council with any matter under investigation. Failure to assist with an investigation may be considered as a breach of trust or failure to comply with financial regulations. This could lead to disciplinary action being taken.


The Council will seek the strongest available sanctions against any employee who commits theft, fraud, corruption or bribery against the Council or the public purse. The Chief Officer will take appropriate disciplinary action against the individual. We will seek to use the full extent of the penalties or sanctions allowed for in the disciplinary procedures or through legal action if required.

Reporting

All staff are encouraged to contact Internal Audit with any such suspicions they have or are advised of. Please see ‘Contacting us’ on page 27.


1.11 Our Contractors, Suppliers and Partners

Chief Officers and Managers are expected to be aware of the appropriate financial procurement and other anti-fraud regulations and to be responsible for raising awareness of policies, procedures and ensuring conformance to them, by contractors, suppliers and partners, for whom they are responsible.

Those organisations supplying or undertaking work on behalf of the Council are expected to maintain strong anti-fraud and corruption principles as set out in this strategy. Through contract documentation we will ensure that our partners take the issue of theft, fraud, corruption or bribery seriously.

Our suppliers, contractors and partners will be expected to:

have adequate recruitment procedures and controls when their staff are handling finance on behalf of the Council.

be responsible for any losses affecting Council funds attributable to their employees.

These expectations will be written into all contract terms and agreements where appropriate. We ask our partners to recognize the Council’s strategy and how we want to do work with them.

Prevention

The Council expects our suppliers, contractors and encourages partners to have adequate controls in place to prevent, minimize and detect theft, fraud, corruption or bribery. The Council provides leaflets, available from our internet pages. We will also provide support and training to our community partners to help them implement proper controls and protect the funds they administer.

The Council encourages a strong ethical and counter fraud culture and that contractors, suppliers and partners have high levels of awareness and recognise their responsibilities to protect the organisation and its resources. It also encourages that staff within contracting organisations, have confidence in the whistle-blowing arrangements and feel safe to make a disclosure.

Detection

All contractors, suppliers and partners are encouraged to contact Internal Audit with any suspicions.

Where our suppliers, contractors and partners are involved with the administration of our finances, or those for which we have responsibility they are responsible for:


ensuring there are adequate and effective systems of internal control and risk management in place to give a reasonable expectation that theft, fraud, corruption or bribery would be detected

providing adequate evidence of suitably qualified reviews on functions and transactions concerning our finances or to allow us to conduct internal audit reviews and pro-active theft, fraud, corruption or bribery detection exercises as we would for our own service areas.

Investigation

Our suppliers, contractors will be expected to and we encourage partners to participate fully with any investigation by the Council or Police investigation and provide full access to their financial records as they relate to our finances, and their staff will be asked to assist fully with any investigation and prosecution if required. These conditions will be included in any contract terms or agreements where possible.

At the conclusion of each investigation, the Investigator will produce a report. The manager whose responsibility encompasses the area of that investigation will formally accept the report and take the appropriate action (disciplinary or other). If the Chief Internal Auditor is not satisfied that the appropriate action has been undertaken, they will refer the matter to the relevant Commissioning /Contract Manager and ultimately the Chief Officer for the relevant service and the Head of Law.

The decision to refer the matter on for further action, such as reporting the matter to the Police, will be taken by the Head of Procurement and Chief Officer.

System weaknesses identified as a result of theft, fraud, corruption or bribery investigations will be highlighted by Internal Audit. The supplier, contractor will be expected to and partner organisation will be encouraged to address these issues in a timely way. Failure to implement adequate system controls will be the subject of a report to the Chief Officer, Head of Procurement, or Committee.


We will seek the strongest available sanctions against any supplier or contractor’s staff who commit theft, fraud, corruption or bribery against the Council or the public purse and we will encourage partners to do the same. We will request that the organisation takes appropriate disciplinary action against the individual and/or we will require that they are removed from the Norfolk County Council account. The ability to request removal of staff will be written into contract terms where appropriate. The Council will seek to use the full extent of the penalties or sanctions allowed for in the contract, service level agreement, partnership agreement or through legal action if required.

Reporting

All contractors, suppliers or partners are encouraged to contact Internal Audit with any such suspicions they have or are advised of. Please see ‘Contacting us’ on page 27.



1.12 Our Wholly owned Companies

NORSE is a company wholly owned by the Council. The NORSE group of companies recognise this strategy and will apply the principles to their trading activities where appropriate.

Reporting

The Norse staff handbook includes reference to the group’s whistleblowing policy. Staff, who become aware of impropriety, dishonesty or maladministration, are encouraged to draw this to the attention oftheir line manager or the Group HR director.


1.13 The Public and External Organisations

Members of the public and organisations that work with the Council have an important role to alert to the Council to any concerns about the potential for theft, fraud, corruption or bribery that they may become aware of. Not every organisation has a formal contract with the Council. We will promote and ask that every organisation that works with the Council recognises our strategy and its principles. The Council also has a Whistle-blowing Strategy available on its website.

Details of how to contact us appear on page 27.

Members of the public may receive financial assistance from the Council through a variety of sources. Unfortunately, all of these areas are vulnerable to attack by fraudsters. Theft, fraud, corruption or bribery means less money is available for those in genuine need. Our anti fraud and corruption efforts will be balanced against our desire to ensure genuine service users receive their full entitlement. We will apply the same principles in dealing with theft, fraud, corruption or bribery in all of areas of expenditure that directly support the community.

Prevention

The Audit Commission is leading and developing arrangements to encourage the exchange of information between the Council and other agencies on national and local fraud and corruption activity in relation to Local Authorities through, for example, data matching.

With the rapid increase in recent years of frauds perpetrated against a variety of local authorities, usually involving fraudsters having multiple identities and addresses, the necessity to liaise between organisations has become paramount. The County Council has existing liaison and will make arrangements for this purpose with:

The Audit Commission National Frauds Initiative office Norfolk Constabulary, including the Economic Crime Unit Society of County Treasurers Home Counties Chief Internal Auditors Group County Chief Auditor Networks (regional and national) Norfolk Financial Officers Association Norfolk Chief Internal Auditors Group Eastern Fraud Forum National Anti Fraud Network (NAFN) CIPFA Better Governance Forum.


We will implement strong systems of verification of all claims for all types of financial assistance. We will utilise all data available to corroborate information given by applicants for the purposes of prevention and detection of fraud. We will also monitor and review grants and assistance given to external organisations to ensure applications are genuine. All our staff involved in assessing applications will be given ongoing fraud awareness training.

Detection

It is the responsibility of Members, Chief Officers, their managers and all staff to encourage the public and external organizations to prevent and detect theft, fraud, corruption or bribery. It is often the alertness of staff, Members and the public that enables detection to occur and the appropriate action to take place when there is evidence that such events may have been committed, or be in progress.

Through Internal Audit and Risk Management reviews and the work of the Monitoring Officer the Council will ensure that the possibility of theft, fraud, corruption or bribery is considered in all vulnerable areas and appropriate tests are devised to detect them.

We will utilise formal referral procedures for all staff making assessments of clients for Council services and encourage early referral of suspected cases for investigation. We will participate in national and local initiatives, including data matching and work with all Government agencies to detect and prevent fraud and other crimes affecting the well-being of our community.

We will analyse fraud trends in order to identify high risk areas and undertake pro-active anti-fraud drives based on that analysis.

Investigation

Any matters that are raised will be considered and if appropriate formally investigated or referred to the Police.

Prosecution and Sanctions

The Council will seek the strongest sanctions against anyone found to have committed theft, fraud, corruption or bribery against the Council.

Reporting

The public and external organizations are encouraged to contact their local Member or if they prefer Internal Audit with any such suspicions they have or are advised of. Please see ‘Contacting us’ on page 27.


1.14 Contacting Us

Any one concerned about possible theft, fraud, corruption or bribery concerning the Council, its partner bodies or wholly owned companies are encouraged to report concerns either in person, by letter, e-mail or by telephone as below:

In person asking for a member of the internal audit team at County Hall, Martineau Lane Norwich NR1 2DW

By Letter: The Chief Internal Auditor, Norfolk Audit Services, County Hall, Martineau Lane, Norwich, Norfolk, NR1 2DW

By E-mail at: [email protected]

By telephone either:

o Customer Service Centre (0344) 800 8020

o HRDirect (01603) 222212

o Chief Internal Auditor (01603) 222777*

* there is an answerphone for out of hours

We will treat your concerns seriously, confidentially and explain to you what will happen next. If you prefer to remain anonymous we will understand but it may significantly limit our ability to investigate your concerns and respond back to you.

If you do feel unable or uncomfortable to raise your concerns through any of these routes, then you may wish to raise them through Public Concern at Work, www.pcaw.co.uk (telephone number 0207 404 6609), a registered charity whose services are independent, free and strictly confidential.

These options will be included on the Council’s Website with a link to enable reporting of suspicions or allegations via the internet for convenience.


http://www.pcaw.co.uk/

mailto:[email protected]

Part 2

ANTI-FRAUD AND CORRUPTION STRATEGY – Processes


Processes

The following Chapters set out in detail our processes to prevent, detect, investigate and prosecute and suspected or actual incidents of Theft, Fraud, Corruption or Bribery.

2.1 Internal Control and Risk Management Systems

The strategy and policies are supported by Internal Control and Risk management systems. These systems are described in more detail in this part of the strategy, covering:

Authorising the Investigation of Suspected Fraud Allegations of Fraud Role of Risk and Insurance Role of Norfolk Audit Services The Disciplinary Action Review Group (DARG) Confidentiality Reporting Procedures for Employees Sanctions and Redress The rights of the suspect

2.1.1 Authorising the Investigation of Suspected Theft, Fraud, Corruption or Bribery

Members of Internal Audit will have:

Free and unrestricted access to all Council records, including personnel, and premises, whether owned or rented.

The authority to examine, copy and/or remove all or any portion of the contents of files, desks, cabinets and other storage facilities on the premises without prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of their investigation

These arrangements for Internal Audit’s access to partnership’s records should be set out in all partnership agreements.


2.1.2 Allegations of Fraud

Chief Officers are responsible for following up any allegation of theft, fraud, corruption or bribery and will do so through clearly defined procedures which are covered below and in the more detailed Fraud Response Plans described in Section 2.5 Chief Officers are expected to deal swiftly and firmly with those who may have defrauded the Council, or may have acted corruptly. The Council will be robust in dealing with financial malpractice.

There is a need to ensure that any investigation process is not misused and, therefore, any abuse (such as raising unfounded malicious allegations) may be dealt with as a disciplinary matter.

In general terms and in support of the more detailed Manager’s Response plan (see section 2.5) Chief Officers are responsible for following up any allegation of theft, fraud, corruption or bribery received and will do so by:

contacting the Norfolk Audit Services (see below) and, or the Head of Law, as soon as possible

arranging for the allegation to be investigated promptly recording all evidence received ensuring that evidence is sound, adequately

supported and secure if appropriate calling a meeting of a Disciplinary Action Review Group (see

below) by contacting the Head of Organisational Development and Human Resources

liaison with the Police, if it is considered a criminal matter (2.4 see page 41) notifying the Council’s Risk and Insurance manager implementing Council Disciplinary Procedures where appropriate.

2.1.3 Role of Risk and Insurance

The Risk and Insurance Section within Corporate Finance is responsible for leading on risk management within the Council, promoting, co-ordinating and reporting on risk, including that of Theft, Fraud, Corruption or Bribery, to panels and to the Audit Committee.

Risk and Insurance will lead and advise on the risk profiling of functions and roles overseen by Chief Officers that are considered to have a higher risk potential. They will also provide advice on the recovery of losses through the Council’s insurers.


2.1.4 Role of Norfolk Audit Services

The Annual Internal Audit Plan allows resources to undertake pro-active detection work. We will utilise all methods available to detect theft, fraud, corruption or bribery. This includes data matching, open source research, surveillance and intelligence led investigation where appropriate. We will also actively participate in the Audit Commission’s National Fraud Initiative (NFI). Weaknesses identified by all of these methods will be reviewed to ensure that appropriate action is taken to strengthen the internal control arrangements. The need for fair processing notification on application forms for the Council’s services which permit data sharing will be continuously reviewed by Internal Audit, as the NFI extends into new areas.

The array of preventative systems, particularly internal control systems within the Council, has been designed to provide indicators of any theft, fraud, corruption or bribery activity, although generally they should be sufficient in themselves to deter such activity. Norfolk Audit Services are happy to provide advice to Chief Officers regarding internal controls.

Chief Officers of the County Council are required by FinancialRegulations to report all suspected irregularities to the Head of Finance; in practice reporting is to the Chief Internal Auditor who manages Norfolk Audit Services within Corporate Finance. Reporting concerns is essential to the success of the Anti-Fraud and Corruption Strategy and ensures:

there is a focal point for gathering information and noting trends if they are emerging

consistent treatment of information regarding theft, fraud, corruption or bribery proper and proportionate investigation by an independent and experienced audit

team a proper professional response to fraud investigations the optimum protection of the County Council’s interests through proactive

counter fraud audits.

Depending on the nature and anticipated extent of the allegations, Norfolk Audit Services will work closely with Chief Officers and other agencies, such as the Police, to ensure that all allegations and evidence are properlyinvestigated and reported upon, and where appropriate, maximum recoveries are made for the Council. An initial assessment will be made on whether an investigation is appropriate and if so what form that should take. If an investigation is to take place SMART Terms of Reference will be drafted and will specify the results to be achieved by investigations. We plan to introduce performance indicators to assess our success. We will improve efficiency by including estimates of resources required and deadlines, in plans for investigations. Plans will be monitored and updated.We will establish a maximum duration for investigations. The Chief Internal Auditor and Head of Finance should play a role in ensuring that the overall duration of assessments and investigations is reduced to a minimum

Investigating Officers are appointed to lead disciplinary investigations. Local manager investigation or internal audit investigations support the Investigating Officer as


‘witnesses of fact’. Those leading disciplinary and audit investigations into theft, fraud, corruption or bribery will be professionally trained and accredited for their role and attend regular refresher training to ensure they are aware of new developments and legislation. We seek to increase the training of staff leading or undertaking investigations in investigative techniques, legislation and report-writing skills

The Council’s Disciplinary Procedures will be used where the outcome of the audit investigation indicates improper behaviour.

Investigations by internal audit will be conducted in accordance with best practice and where appropriate with regard to statutory requirements, e.g. Police and Criminal Evidence Act, Regulation of Investigatory Powers Act, Data Protection Act and by appropriately trained staff. The Chief Internal Auditor holds the CIPFA Investigative Practices Certificate. Internal Auditors taking part in investigations are either studying for or qualified to suitable levels of technical or professional competencies. Investigations are managed by either a qualified IIA auditor or qualified accountant. We seek to promote and follow procedures to protect the rights of individuals at all stages of the investigation and to ensure the legality of the investigative acts which are planned or then in progress.

The Audit Team will:

maintain a time recording system linked to work plans with estimates of time to be spent on investigations to align workload with resources and to avoid delays

provide information on effectiveness by reporting performance statistics on investigations activity, potential and real results

Internal Audit will highlight any system weaknesses that are identified as a result of an investigation. These will be addressed through an agreed action plan. The relevant service area manager is responsible for implementing the plan. Internal Audit will monitor implementation of agreed actions. Failure to implement adequate system controls following a loss to theft, fraud, corruption or bribery will be the subject of a report to the relevant Director, Management Team and/or Committee. All potential misconduct cases must be handled using the Authority’s Disciplinary Procedure and Internal Audit’s investigating officers will liaise with line managers and Human Resources advisers to ensure effective use of the Authority’s procedures.

The external auditor also has powers to independently investigate fraud and corruption, and the County Council can use his services for this purpose. The external auditor also needs to have an understanding of how the Audit Committee exercises oversight of management’s processes for identifying and responding to the risks of fraud and the internal controls established to mitigate them. They must seek written representations to properly discharge their responsibilities under the relevant standards and make enquiries for a ‘letter of representation’ for that purpose. Any such arrangements will be reported to the Audit Committee as part of the Internal Audit Annual Report.

Council Standing Orders and Financial Regulations provide direction and require staff, when dealing with the Council’s affairs, to act in accordance with best practice.


The Head of Finance has a statutory duty under Section 151 of the Local Government Act 1972 to ensure the proper arrangements of the Council’s financial affairs and has developed Financial Regulations, as part of the Constitution, which outline the systems, procedures and responsibilities of staff in relation to the Council’s financial activity. The Head of Finance maintains a Head of Profession role within the Council and through this exercises quality control on financial administration throughout the Council.

The Head of Law has two roles. Firstly, to monitor the legality of decisions and is the statutory 'Monitoring Officer'. Secondly, to advise on Corporate Standards which seek to ensure a minimum level of compliance and understanding of the legal context in which the Council and individual departments operate.

The Council has developed and is committed to continuing with systems and procedures which incorporate efficient and effective internal controls and risk management. These include adequate separation of duties to minimise the risk of error or impropriety. Chief Officers are required to ensure that such controls, including those in a computerised environment, are properly maintained and documented. The existence, appropriateness, and effectiveness of these internal controls and risk management is independently monitored by Norfolk Audit Services. The Council, through the Risk and Insurance Manager, will develop a fraud profile and fraud risks will be identified with mapping of compensating controls with ongoing monitoring.

The Audit Committee of the Council has in place reporting arrangements so that it can form a view on the overall effectiveness of internal controls and risk management. These arrangements will include regular reports from internal and external audit and responses from Chief Officers on cases where ineffective internal control has been highlighted.

2.1.5 The Disciplinary Action Review Group (DARG)

Matters of concern will be reported via the processes described above. Where the matter concerns an employee and potential disciplinary action the Head of Human Resources and Organisational Development (OD and HR) has been informed of suspected misconduct or other matter having a corporate significance, they will according to the value and significance of the concerns provide advice or if appropriate arrange a meeting of a DARG as soon as possible.

A DARG consists of representatives of the Head of Law, the Head of HR and OD, the Chief Officer and, in cases involving financial matters, the Chief internal Auditor (for the Head of Finance).

The DARG will seek to agree whether Disciplinary Procedures should begin, whether further investigations should be carried out, if an investigating officer should be appointed and whether the case should be referred to the Police. The DARG will clarify responsibilities for ensuring that action is taken to avoid future similar situations occurring.

It should be noted that the responsibility for proceeding with disciplinary matters lies primarily in the hands of the relevant Chief Officer. Further details regarding the DARG


process can be found on the HR Shared Services intranet website ‘PeopleNet’. http://www.peoplenet.norfolk.gov.uk/view/NCC069121

2.1.6 Confidentiality

Any one who suspects dishonest or fraudulent activity should either inform their line manager, Finance Officer or if more appropriate notify the Internal Audit Unit immediately and should not attempt to personally conduct investigations or interview/interrogations related to any suspected theft, fraud, corruption or bribery. The Chief Internal Auditor and their team treat all information received confidentially. (See Reporting Procedures section below and ‘Contacting Us’ at 1.14 on page 27).

If, arising from a notification, there is an Investigation, the results of that work will not be disclosed or discussed with anyone other than those who have a legitimate need to know. This is important in order to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct and to protect the Council from potential civil liability.

2.1.7 Reporting Procedures for Employees

Great care must be taken in the investigation of suspected improprieties or irregularities so as to avoid mistaken accusations or alerting suspected individuals that an investigation is under way.

An employee who discovers or suspects theft, fraud, corruption or bribery may have taken place should either report the concerns immediately to their manager or if that is not felt appropriate by the methods set out in ‘Contact Us’ (1.14) on page 27. The employee or person who wishes to remain anonymous should use the Public Concern at Work route, but it is more helpful to the investigation if contact is possible.

All inquiries concerning the activity under investigation from the suspected individual, their legal advisor attorney or representative, or any other inquirer should be directed to Norfolk Audit Services or the Legal Department. No information concerning the status of an investigation will be given out without proper authority.

The proper response to any general inquiries is;”I am not at liberty to discuss this matter”. Under no circumstances should any reference be made to any allegation or any other specific details.

The individual who reports a concern should be informed of the following:

Do not contact the suspected individual in an effort to determine facts or to try to investigate the matter.

Do not discuss the case, facts, suspicions, or allegations with anyone unless specifically asked to do so by NPLaw or Internal Audit.

Details of how to make contact are covered in ‘Contact Us’ on page 27.


http://www.peoplenet.norfolk.gov.uk/view/NCC069121

2.1.8 Sanctions and Redress

We will seek the strongest available sanctions against staff who commit theft, fraud, corruption or bribery against the Council, its clients or the public purse. This will include disciplinary action, prosecution and civil proceedings (including seeking the recovery of pension entitlements). Employees found guilty of gross misconduct at disciplinary for offences of theft, fraud, corruption or bribery will be subject to dismissal. This applies to employees who improperly benefit from the Council as a corporate body and not just those who steal funds from their own unit. It also applies to employees who commit theft, fraud, corruption or bribery from the Council’s clients. We will also take disciplinary action against staff who commits theft, fraud, corruption or bribery against other Local Authorities or any other agency administering public funds.

At the conclusion of each investigation, the Investigator will produce a report. The manager whose responsibility encompasses the area of that investigation will formally accept the report and take the appropriate action, (disciplinary or other). If the Chief Internal Auditor is not satisfied that the appropriate action has been undertaken they will refer the matter to the Head of Law and the Head of Finance. As with all disciplinary matters, the level of proof required is that of the balance of probability. Disciplinary cases involving allegations of theft, fraud, corruption or bribery will be handled on this basis.

The decision to refer the matter on for further action such as prosecution will be taken by the Disciplinary Action Review Group. Decisions to prosecute or refer the examination results to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made in conjunction with legal counsel and senior management.

The Council is developing a clear strategy on the recovery of losses incurred from fraud and corruption including the use of criminal and civil law to the full.

The Council is developing success measures and monitoring of the proceedings for the recovery of losses and the effectiveness of recovery rates.

The Strategy’s success objectives will be reported in an Annual Report on the ‘Effectiveness and Impact’ of the Anti Fraud and Corruption Strategy, to the Audit Committee. Our CIPFA benchmarking covers Investigation Outcomes, including:

The number of investigations The percentage of investigations closed Where there was no action Unproven or exonerated cases Internal Disciplinary action Dismissal Referral to the Police Civil Recovery action

2.1.9 The rights of the suspect

During any investigation the rights of the suspect (be they Member, Employee or third


party) will be respected and care will be taken to ensure that investigations are fair, proportionate and in accordance with statute, procedures and best practice. This will include: Employment rights, Human Rights and Data Protection rights. Human Resources will ensure that any person under investigation or disciplinary action, including suspension, has access to advice, guidance (PeopleNet), support schemes (Norfolk Support Line), their trade union and a Human Resources representative as required.


2.2 Publicity and TrainingThe Head of Law, supported by advice from the Chief Internal Auditor, will lead the promotion of the strategy through a programme of training, publicity and a ‘Bite Sized’ leaflet to be available to members, staff, partner bodies, contractors and the public. The Head of Law will be supported by the Chief Internal Auditor in raising awareness and understanding of the strategy.

Links to the strategy will be published on both the internal and public facing Council websites incorporating links (see Contact Us on page 27) for any concerns to be raised.

The Council recognises that the continuing success of its Anti-Fraud and Corruption Strategy and its general credibility will depend largely on the effectiveness of its annual anti-fraud publicity campaign, programmed training and responsiveness of staff and Members throughout the Council.

The Council will have a comprehensive communications plan for Anti Fraud and Corruption publicity including:

Awareness raising events Posters ‘Bite sized’ leaflets Items in Core Brief, staff newsletters (Norfolk Manager, Finance News, Our

Norfolk) Items in Norfolk Matters Team Briefings.

The Council can evidence that it is creating a strong deterrent effect, including publicising:

Successful cases of proven theft, fraud, corruption or bribery The likelihood of proportionate sanctions being applied should theft, fraud,

corruption or bribery be detected and losses recovered The extension of NFI to new areas with the appropriate ‘fair processing

notifications’ on forms, notified data subjects of the use of data for NFI purposes; and promptly conducted NFI investigations to prevent prolonged exposure.

To facilitate awareness and understanding of the strategy, the Council supports the concept of eLearning training, particularly for staff involved with internal control systems, to ensure that their responsibilities and duties are regularly highlighted and reinforced.

Disciplinary action will be taken against employees who ignore such training and guidance.

Norfolk Audit Services (NAS) staff will be involved in investigating most allegations of theft, fraud, corruption or bribery. It is important, therefore, that auditors should be experienced and trained to do so. The Chief Internal Auditor will ensure that training and development plans of internal audit staff will reflect this requirement.


2.3 Success MeasuresThe following measures will demonstrate the success of the strategy. Progress with these will be reported to the Audit Committee.

High Staff Awareness of the risks, controls and consequences of fraudulent or corrupt acts measured through staff feedback.

High Member awareness of the risks, controls and consequences of fraudulent or corrupt acts measured through member feedback.

High contractor, NORSE and partner awareness of the risks, controls and consequences of fraudulent or corrupt acts measured through client side monitoring.

Public, particularly service users and external organization awareness of the risks, controls and consequences of fraudulent or corrupt acts measured through feedback. Delivery of a plan of Anti-Fraud and Corruption preventative and detective audits in the Annual Internal Audit Plan agreed by the Audit Committee.

Professional investigation of identified frauds measured and confirmed through internal and independent review.

Consideration and reporting of the cost of each investigation and loss reported to the Audit Committee

Control and reduction in the overall duration of and resources for investigations.


______________________________________________________________

2.4 Prosecution Policy2.4.1 Introduction

The Council’s anti-fraud policy and strategy sets out our aims and objectives with regard to tackling theft, fraud, corruption or bribery. It states that we will seek the strongest possible sanction against any individual or organisation that may cause the Council loss. The use of sanctions will be governed by the following principles which shall apply equally to any theft, fraud, corruption or bribery against the Council or against funds for which the Council has responsibility.

2.4.2 Objectives

The objectives are:

1. To ensure that the Council applies a full range of sanctions in a fair and consistent manner.

2. To ensure that sanctions are applied in an effective and cost efficient manner.3. To ensure that the sanction decision making process is stringent, robust,

transparent and fair.

These principles are designed to provide a framework within which to ensure the most appropriate resolution to a case is reached. The sanction decision will have regard at all times to the Council’s disciplinary policy and anti-fraud policy objectives, the individual circumstances of each person concerned and the overall impact of the punishment to both the individual and the community.A range of sanctions is available to the Council. These include disciplinary action, civil proceedings, criminal proceedings, official cautions and administrative penalties.

After dismissal, the ultimate sanction available to the Council is referral for criminal prosecution to the Police. We recognise that this is a serious step to take and the decision to refer cases for prosecution will not be taken lightly.

In some cases, the ultimate decision on prosecution will be taken by the Crown Prosecution Service. This will be as a result of a referral of cases to the Police. We will utilise the Police in cases where their additional powers are required to secure evidence or recovery of funds or where the matter is considered too serious to be pursued in-house.

We will utilise the Council’s Legal Service to support and undertake civil action if appropriate. In these cases, the decision to refer cases for civil action will be taken by the Head of Law, in consultation with the Head of Finance and the Chief Officer.

In appropriate cases, we will also utilise the prosecution arm of other public agencies. This will usually be for cases involving joint investigations.

When considering referring a case for prosecution, it is generally accepted that there


are two “tests” to be applied – the evidential test and the public interest test. Only when both these tests are satisfied can a case be considered suitable for prosecution.

2.4.3 Evidential Test

Is there enough evidence to provide “a realistic prospect of conviction”?

In order to ensure that a “realistic prospect of conviction” exists, officers of the Investigations team will at all times ensure that investigations are conducted in accordance with relevant legislation and in line with published Codes of Practice and Guidance with regard to evidence gathering, interviewing and rules of disclosure.

To ensure the cost effectiveness of actions the evidence obtained needs to be of a standard to make the prospect of a conviction or successful civil action highly likely.

The evidence gathered will be examined in the first instance by the investigator and their manager. When both are satisfied that sufficient evidence exists to successfully prosecute and that the Public Interest test is also satisfied, in consultation with the Council’s Legal Team and a Disciplinary Action Review Group, the case file will be passed on to the police for investigation. Both the Council’s Legal team and the CPS will apply their own inspection of the evidence to ensure that a realistic prospect of conviction exists.

2.4.4 Public Interest Test

In order to ensure consistency and correctness when considering a case for Sanction/Prosecution, the guidelines applied by the Crown Prosecution Office – as detailed in Section 10 Prosecution of Offences Act 1985 will be followed by officers of the Investigations team. In addition, the guidance provided by relevant Government agencies on prosecution will also be considered.

2.4.5 Public Interest Factors

A conviction is likely to result in a sentence. The defendant was in a position of authority or trust. The evidence shows that the defendant was a ringleader or an organiser of the

offence. There is evidence that the offence was premeditated. There is evidence that the offence was carried out by a group. The defendant’s previous convictions or cautions are relevant to the present

offence, if known. There are grounds for believing that the offence is likely to be continued or

repeated, for example, by a history of recurring conduct; or the offence, although not serious in itself, is widespread in the area where it was committed.

Aggravating and mitigating factors will be taken into consideration when deciding on the appropriate sanction.

2.4.6 Member and Officer Fraud and Corruption


In the case of Members any concerns will be managed by the Head of Law on behalf of the Council’s Standards Committee.

In all cases of theft, fraud, corruption or bribery, serious and intentional breach of financial regulations and corruption committed by officers we will seek parallel disciplinary action. The normal recommendation would be gross misconduct. Theft, fraud, corruption or bribery committed by officers will also be considered for criminal prosecution.

Where a financial loss has been identified, we will always seek to recover this loss either through the civil or criminal process. We will also seek recovery of losses from pension entitlements where appropriate.

The factors that will affect our decision to refer for prosecution will be based on the evidential and the public interest test, as described above. We will seek prosecution in all cases involving theft from vulnerable clients or where there is evidence of corruption of public officials.

______________________________________________________________

ANTI-FRAUD STRATEGY – Response Plans__________________________________________________________________________________

2.5 Fraud Response Plan – Internal Fraud

Where managers identify or are informed of suspicions of fraud or corruption they must act promptly. The general steps that need to be taken are set out in page 21of this strategy. More detailed steps that should take will be set out in a detailed Manager’s Fraud Response Plan. It is not intended to publish the detailed Managers Fraud Response Plan. The plan will be circulated separately to Service Area Managers.

There is also a separate Fraud and Corruption Response Plan for the internal audit section, this will not be published either.

Both Response Plans will be reviewed and approved annually by the Head of Finance and the Head of Law.

ANTI-FRAUD STRATEGY - Responsibilities___________________________________________________________________________________

2.6 Specific Responsibilities

Stakeholder Specific Responsibilities

Members To support and promote the development of a strong counter theft, fraud, corruption or bribery culture by working to:


Champion and promote the Council’s strategy and the zero tolerance culture towards theft, fraud, corruption or bribery

To raise matters of concern that may come to their attention during their work

Review, consider and approve the strategy and its performance measures annually

Consider the Annual Report of the delivery against the strategy’s performance measures

To encourage the public to report concerns or to pass on concerns raised by the public to the appropriate officer

To participate in any reviews, disciplinary meetings or appeals as required.

Chief Executive Ultimately accountable for the effectiveness of the Council’s arrangements for countering theft, fraud, corruption or bribery.

Monitoring Officer To advise Councillors and officers on ethical issues, standards and powers to ensure that the Council operates within the Law and statutory Codes of Practice. Assisted by advice from the Chief Internal Auditor to lead on the promotion of the strategy including training and publicity. To review the strategy as required and report annually to members.

Head of Finance (Section 151 Officer)

To ensure the Council has an adequately resourced and effective Internal Audit and Risk Management Service including adequate Counter theft, fraud, corruption or bribery activities.

Audit Committee To review, consider, approve and monitor the Council’s Anti Fraud and Corruption Strategy and policies and consider the adequacy and effectiveness of the arrangements for Counter Fraud and Whistle-blowing.

Standards Committee The Committee monitors and advises upon the content and requirement of Codes, Protocols and other procedures relating to standards of conduct throughout the Council, with particular reference to members. The Committee needs to be aware of this strategy.

External Audit Statutory duty to ensure that the County Council has in place adequate arrangements for the prevention and detection of theft, fraud, corruption or bribery.

Internal Audit Responsible for implementing the Anti Fraud and Corruption Strategy and investigating any issues reported under this policy and the Confidential Reporting (Whistleblowing) Policy. To ensure that all suspected or reported irregularities are dealt with promptly and in accordance with this policy and that


action is identified to improve controls and reduce the risk of recurrence. To report on Anti-Fraud and Corruption arrangements to the Audit Committee in an Annual Report.

Chief Internal Auditor To support and advise the Head of Law and include an assurance statement on Anti-Fraud and Corruption controls in the Internal Audit Annual Report to the Audit Committee. To develop ongoing measuring and monitoring techniques to evaluate, remedy and continuously improve theft, fraud, corruption or bribery prevention and detection. The measurable criteria and results are to be reported to the Audit Committee. To ensure that counter fraud and corruption work is risk assessed and adequately staffed.

Risk and Insurance Manager

To lead on the risk assessments and risk registers in relation to theft, fraud, corruption or bribery risks.

Managers To promote staff awareness and ensure that all suspected or reported irregularities are immediately referred to Internal Audit. To ensure that there are mechanisms in place within their service areas to assess the risk of theft, fraud, corruption or bribery and to reduce these risks by implementing and checking robust internal controls. To report suspicions or incidents promptly.

Staff To comply with Council policies and procedures, to be aware of the possibility of theft, fraud, corruption or bribery and to report any genuine concerns to the appropriate management, the Chief Executive, the Head of Finance, the Monitoring Officer, or Internal Audit promptly as appropriate.

Public, Partners, NORSE, Suppliers, Contractors & Consultants

To be aware of the possibility of theft, fraud, corruption or bribery against the Council and report any genuine concerns or suspicions promptly.

2.7 Administration

The Head of Law is responsible for the administration, revision, interpretation and application of this policy. In order to strengthen the Councils systems and procedures, the Chief internal Auditor will annually review and recommend revisions to the counter fraud and corruption strategy and arrangements. Hence the Anti-Fraud and Corruption Strategy will be reviewed every year or more frequently if required in accordance with any legislative changes, latest professional guidance or best practice and any findings of our own annual reviews.


STRATEGY ENDORSED BY:

THE AUDIT COMMITTEE 30 September 2011

Sources/Bibliography

Norfolk County Council Anti-fraud & Corruption Strategy November 2010-11The Bribery Act 2010 – Quick Start GuideProtecting the Public Purse – Audit CommissionEuropean Court of Auditors Follow Up of Special Report No 1/2005 Concerning the management of the European Fraud OfficeCIPFA Better Governance Forum ‘Managing the Risk of Fraud: Actions to Counter Fraud & Corruption’, October 2006 and ‘Red Book 2’ October 2008Fraud Act 2006Tackling Staff Fraud and Dishonesty: Managing and Mitigating the Risks, CIFAS, CIPD 2007 Risk Management Course Notes – Fraud & Corruption Risk Management – The Audit Perspective, CIPFA, BGF 01.10.07ICT Fraud and Abuse 2004 – Audit CommissionManaging the Business Risk of Fraud: A Practical Guide, Exposure Draft 12.11.07, IIA/ACFE/AICPAUse of Resources Guidance, Audit CommissionMoney laundering and terrorist financing 08/09


ANNEX JFINANCIAL REGULATIONS

(LA Maintained Schools)

Contents

1. General2. Managing the Budget Share3. Carry-Forward Provisions4. Financial Control; Value for Money5. Interest on Working Capital / Savings6. Monitoring and Evaluation7. Delegation to Headteachers8. Manpower Budgets9. Accounting10.Audit11.Suspected Irregularities12.Banking Arrangements and Cheques13.Retention of Records14. Income15.Orders of Work, Goods and Services16.Payment of Accounts17.Salaries, Wages and Pensions18.Travelling and Subsistence19. Insurance20. Investments, Borrowings and Trust Funds21.Goods & Stores (Including Vehicles, Plant, Furniture, Equipment etc.)22.Unofficial Funds23.Security

1. GENERAL

1.1 The County Council approves financial regulations as necessary for the supervision and control of its finances, accounts, income, expenditure and assets.

1.2 Under Section 151 of the Local Government Act 1972 the Chief Finance Officer is responsible for the proper administration of the County Council’s financial affairs and he or his representative has the right to attend a governors meeting and give advice when a significant financial issue is being discussed.

1.3 1.3.1These Financial Regulations establish the principles of good financial administration. They shall apply to the Governing Bodies of schools covered by the County Council’s Scheme for Financing Schools.

1.3.2 A Finance Procedure Manual is also issued to all schools. This promotes good practice providing wide ranging financial directives and information to aid better accounting in schools.


1.4 Each Headteacher is accountable for the management of staff and the security, custody and control of all other departmental resources, including land, buildings, plant, materials cash and stores.

2. MANAGING THE BUDGET SHARE

2.1 Each school will receive formal notification of its budget share each year by the 28th February.

2.2 Each school with delegated responsibility must notify the LA how it intends to use its budget share preferably by 31 March, i.e. before the start of the budget year, and by 1 May at the latest. The budget should also include expenditure to be funded from other sources of income expected to be received by the school e.g. letting income, Government and other grants, donations, parents’ contributions.

2.3 Each school with delegated responsibility will have freedom to deploy its budget share according to its needs, subject to the provisions of this document and other County Council regulations.

2.4 Governing Bodies are required to manage the delegated budget to keep expenditure within their budget share as allocated at the start of the financial year, taking into account estimated income and any agreed additions from contingency funds. Governing Bodies should lay down procedures, as contained in the school’s financial policy document, for approving detailed budgets by the start of the financial year, and once the budgets are approved by the Governing Body or Finance Committee there is authority to incur expenditure. Schools shall prepare a three-year budget plan, taking account of the funding implications of forecast changes in pupil numbers and the staffing needs dictated by pupil number forecasts and by curriculum requirements. There should be a clear link between the three-year budget plan and the goals and objectives as contained in the school’s improvement and development plan.

2.5 Once fixed, the Governing Body should ensure that expenditure is incurred only within the approved budget.

2.6 Governing Bodies have the power to switch monies between all budget headings (known as virement) with the exception of ‘earmarked’ capital allocations or grants. The Governing Body or Finance Committee shall monitor and review the budget and notify the LEA of budget changes at least every term to ensure that financial records and budget control reports are kept up to date.

2.7 The budget share will be held by the Chief Finance Officer on behalf of

Governing Bodies as part of the County Council’s Fund, although part of the budget share may be deposited in a local bank account for school use.


2.8 Subject to government legislation on capital expenditure control, schools will have freedom to redeploy expenditure from their delegated budget into capital items. Schools must not enter into finance leases. Schools must not enter into operating leases without the approval of the Children’s Services Assistant Director - (Business and Compliance)

2.9 The financial information system of the County Council shall be the statutory accounts for each school and will be used to assess financial performance. Where there are local banking arrangements, schools should provide sufficient details of their income and expenditure to enable the County Council’s accounts to be updated each quarter.

3. CARRY-FORWARD PROVISIONS

3.1 All underspendings compared to the budget share shall be carried forward to the next financial year.

3.2 Schools must not plan for a deficit, except with the express agreement of the LEA and following the submission of a three-year deficit recovery plan. Any unplanned deficit which arises in one year will be a first charge on the school’s following year budget share.

3.3 In very exceptional circumstances when the LA feel that the financial situation is out of control, they may withdraw the delegated budget from a school’s Governing Body. When delegation is withdrawn the LA may cancel all or part of any overspend via the Contingency Fund.

3.4 Schools are required to provide an explanation for any overspending in excess of 5% of the previous year’s budget, or £25,000, whichever is the larger amount.

3.5 Schools’ surplus balances will be analysed and any sums determined to fall outside the defined legitimate categories, for which balances may be held, will be redistributed to all schools in the following year through the normal funding formula.

4. FINANCIAL CONTROL – VALUE FOR MONEY

4.1 Each Governing Body shall, at all times, endeavour to secure the best value for money and shall establish sound arrangements for the planning, appraisal, authorisation and control of its resources and ensure that these are working properly in order to achieve economy, efficiency and effectiveness in its operations.

5. INTEREST ON WORKING CAPITAL/SAVINGS


5.1 Schools will not be charged interest on their working capital where this is administered by the Chief Finance Officer, except where schools have local banking arrangements.

5.2 Schools may set aside an earmarked part of an underspend in a centrally held fund. The fund attracts interest at a competitive rate and will be administered within the County Council’s formal accounts.

5.3 Schools operating local banking arrangements, which involve monthly advances of budget share to the schools’ bank accounts, will receive funds from the Council net of interest, i.e. subject to loss of interest to the County Council being clearly specified and justified. Schools may receive/pay interest on balances on their local bank account.

6. MONITORING AND EVALUATION

6.1 Schools shall provide information appropriately requested by the LA and give access to records required for monitoring and evaluation by the LA. Such duties also exist on the part of schools in providing information requested by the Secretary of State.

6.2 To facilitate benchmarking comparisons, the financial information provided by schools must comply with the framework of Consistent Financial Reporting as laid down by the DfE.

7. DELEGATION TO HEADTEACHERS

7.1 To ensure effective management of the budget resources Governing Bodies are advised to delegate responsibility for day-to-day financial management to the Headteacher.

7.2 The Governing Body should delegate responsibility to the Headteacher to vire budget provision within the approved detailed budget up to a specified maximum sum.

7.3 The virement of sums in excess of any sum predetermined by the Governing Body, should be agreed by the Governing Body or by a finance committee of that body.

7.4 The Governing Body should ensure that the Headteacher reports progress on a regular basis to the full Governing Body or a finance committee of that body.

7.5 The Headteacher is responsible for presenting monitoring reports to the Governing Body or Finance Committee each month, investigating discrepancies and advising the Governing Body promptly of any action that must be taken. A revised budget plan should be approved by the Governing Body or Finance Committee at least every term.

7.6 To facilitate effective budget monitoring, the Headteacher must ensure


that the school’s financial records are up to date and that the necessary financial returns are submitted to the Local Authority promptly. Where there is a local bank account, the Headteacher must ensure that there is an adequate cash balance to meet current requirements.

8. MANPOWER BUDGETS

8.1 Staffing costs form such a significant part of a school’s budget that each school must produce an estimate of its staffing requirements person by person, both in terms of numbers and cost, and submit this information each year with its detailed financial budget.

8.2 The staffing budget should be monitored regularly and the County Council informed of significant changes.

9. ACCOUNTING

9.1 All official accounting procedures and the form and content of official financial records shall be as agreed by the Chief Finance Officer in accordance with the Accounts and Audit Regulations.

9.2 Before introducing, amending or withdrawing any books, forms or procedures (including any uses of information technology) relating to official accounting procedures or financial records, Headteachers shall consult with the Chief Finance Officer.

9.3 Headteachers shall ensure that accounting procedures and financial records are maintained accurately and kept up to date.

9.4 The following principles shall be observed in the allocation of accounting duties: -

9.4.1 The duties of authorising payments out and issuing demands for payments in to the County Council shall be separated as completely as practicable from the duties of making the payments out and collecting the payments in.

9.4.2 Officers charged with the duty of examining and checking the accounts of cash transactions shall not themselves be engaged in any of those transactions.

9.5 All financial records, both manual and computerised, shall be completed in a permanent form agreed by the Chief Finance Officer. Financial records, books, forms or documents shall not be amended by use of correcting fluid. Amendments or corrections shall be shown as such.

9.6 Schools are legally required to record their income and expenditure in the form stipulated by Central Government in Consistent Financial Reporting (CFR), the main purpose of which is to facilitate benchmarking comparisons at a national level and encourage value for money.


10. AUDIT

10.1 The Chief Finance Officer shall maintain an independent, continuous, adequate and effective internal audit of accounting, financial and other processes of the County Council in accordance with the Accounts and Audit Regulations with regard to the following objectives.

To: -

10.1.1 Review, appraise and report upon the soundness, adequacy and application of financial and related management controls.

10.1.2 Examine and report upon the extent to which the County Council’s assets and financial interests are accounted for and safeguarded from losses of all kinds arising from fraud, waste, extravagance, poor value for money or any other cause.

10.1.3 Assess and report upon the suitability and reliability of internal financial and related management data.

10.1.4 Contribute to monitoring the use of resources.

10.2 The Chief Finance Officer or his authorised representative shall have authority to: -

10.2.1 enter any Council premises or land;

10.2.2 have access to all records, documents and correspondence relating to any financial or other transaction of the County Council. This will also apply to unofficial fund records for which an employee of the County Council or a governor of a school is responsible, by virtue of his position, where expenditure by the unofficial fund leads to a liability on the County Council;

10.2.3 require and receive such explanations as are necessary concerning any matter under examination.

10.2.4 require any employee of the County Council or governor of a school to produce cash, stores, equipment, vehicles or any other property of the County Council or of the school under his control.

11. SUSPECTED IRREGULARITIES

11.1 A Headteacher shall immediately inform the Chief Finance Officer of any irregularity or suspected irregularity affecting the finances or property of the County Council. The Chief Finance Officer shall take such steps as he considers necessary by way of investigation and report.

12. BANKING ARRANGEMENTS AND CHEQUES


12.1 Banking arrangements, including choice of bank, authorised signatories, and limits on the amount of individual payments that may be authorised by the Headteacher, must be considered and formally approved by the Governing Body as part of the school’s finance policy.

12.2 Responsibility for day-to-day management of the bank account shall be delegated to the Headteacher.

12.3 When official funds are administered through an imprest type account, the bank account can be opened, closed or amended, or arrangements made to withdraw cash, only through the Chief Finance Officer.

12.4 Bank accounts must not be allowed to become overdrawn and schools must not enter into any loan agreement with their bank or other institution.

12.5 Official, personal and School Fund monies must always be kept entirely separate.

13. RETENTION OF RECORDS

13.1 Headteachers shall keep up-to-date schedules detailing all financial records used within their schools.

13.2 The Chief Finance Officer shall prescribe retention periods for financial records.

14. INCOME

14.1 All income must be identified and included in the budget plan and procedures must be developed to ensure that the income is received on the due date.

14.2 The Governing Body is responsible for approving policies for the setting of charges, letting of school premises, collection of debts due, the issue of receipts, the records to be maintained, arrangements for shared use of school premises, and writing off of bad debts.

14.3 The Headteacher is responsible for ensuring that all income due is collected and accounted for in accordance with the Governing Body’s charging policies.

14.4 Receipts shall be issued for all income above an agreed minimum sum.

14.5 There should, as far as possible, be subdivision of duties among staff with responsibilities for collecting, recording and banking income.

14.6 All income must be banked promptly and intact, without deductions for


refunds or petty cash payments; and there must be no encashment of personal cheques.

14.7 Bank paying-in slips must show the split between cash and cheques; and each cheque must be identified with its drawer. The total sums collected should be reconciled with the total banked.

14.8 VAT on income must be calculated and correctly accounted for.

14.9 Further guidance on income can be found in section 9 of the Schools Finance Procedure Manual.

15. ORDERS FOR WORK, GOODS AND SERVICES

15.1 Official orders shall be in a form approved by the Chief Finance Officer and shall be signed only by officers authorised by the Headteacher as agreed by the Governing Body in the school’s finance policy.

15.2 Schools are required to comply with the County Council’s Standing Orders (see section 5 of the Schools Finance Procedure Manual).

16. PAYMENT OF ACCOUNTS

16.1 Responsibility for day-to-day management shall be delegated to the Headteacher, subject to limits agreed by the Governing Body.

16.2 The Governing Body must ensure that, as far as possible, staff responsibilities are distributed so that more than one person is involved in the process of checking goods received, keeping accounting records, and making payments to suppliers.

16.3 The school must ensure that invoices have been thoroughly checked and certified before payment and that payment is made only against an original VAT invoice. Payment should comply with the terms set out on the invoice.

16.4 VAT and CIS rules must be complied with.

17. USE OF BUSINESS CREDIT CARDS

17.1 The use of credit cards must be approved by the Governing Body.

17.2 Cards can only be obtained from the school’s approved bankers and the credit card limit must not exceed £3,000.

17.3 All applications for staff use must be approved by the Headteacher and use by the Headteacher approved by the Chair of Governors or Chair of the Finance Committee. All approved users must complete a certificate stating that they understand the rules for usage.


17.4 Cards will normally be securely stored in the finance office with a register recording its use. It must not be used to obtain cash or for personal transactions. Users will be responsible for obtaining an appropriate VAT invoice. The account will be paid in full at the end of each period and a termly report made of the use of cards.

17.5 The school will notify Children’s Services Finance immediately of any loss

or irregularity

18. SALARIES, WAGES AND PENSIONS

18.1 The Governing Body is responsible for ensuring that employees are paid in accordance with their employment contracts and that all income tax, national insurance, and pension contributions are correctly accounted for and paid over.

18.2 The Governing Body can choose to use the County Council’s payroll provider or to use an alternative payroll provider or to manage the payroll within the school.

19. TRAVELLING AND SUBSISTENCE

19.1 The Headteacher is responsible for ensuring that travel and subsistence claims are checked and authorised, that the claims are accurate and made by means of the correct forms, and that the claims are processed via the payroll so that tax regulations are complied with.

20. FORMULA CAPITAL

20.1 Devolved Formula Capital Grant allocations should be directed towards essential capital expenditure on premises and the basis of such expenditure should follow the priorities agreed locally and set out within the Premises Development Plan (PDP) and ICT Development Plan.

20.2 Devolved Formula Capital Grant (DFC) falls outside the scope of the school’s budget share and should not be included as part of the budget plan. The County Council has no discretion over the use of DFC Grant. It can be spent only in accordance with DfE guidelines and, therefore, virements from Devolved Formula Capital Grant cannot be made. In all cases if an allocation is not used within three years it is lost.

20.3 From 2006/07 the Devolved Formula Capital allocation includes funding for ICT equipment and schools, therefore, have to balance the needs of buildings’ improvements and ICT development. For this reason, schools are now required to produce and submit to the County Council each year


a three year capital budget plan to show how they intend to use their DFC funding.

21. INSURANCE

21.1 The Governing Body is responsible for ensuring that the school adheres to the minimum insurance standards as set out by the County Council. These are sent out annually to those schools that do not use the County Council’s policy. If the school chooses to obtain cover through an independent insurer, rather than through the County Council’s policy, the school must seek at least three confidential quotes and make careful evaluation of both the price and the extent of the cover provided.

21.2 Headteachers shall promptly notify the Chief Finance Officer of: -

21.2.1 all new risks for consideration by the Chief Finance Officer as to whether they should be insured; and

21.2.2 any changes affecting existing insurances.

21.3 Where an event is covered by an insurance policy, Headteachers shall promptly notify the Chief Finance Officer of any occurrence which might result in a claim against the insurer or against the Council.

21.4 Any separate insurance arrangements in which the County Council has an interest shall be promptly notified to the Chief Finance Officer.

22. INVESTMENTS, BORROWING AND TRUST FUNDS

22.1 All investments of unofficial money under the control of the Governing Body or a member of staff shall be made in the name of the school or in the name of nominees approved by the Governing Body.

22.2 All officers acting as trustees by virtue of their official position shall deposit all securities, etc. relating to the trust with the Chief Finance Officer unless the deed otherwise provides.

23. GOODS AND STORES (INCLUDING VEHICLES, PLANT, FURNITURE, EQUIPMENT ETC.)

The Headteacher shall maintain a suitable Assets Register to an extent and in a form agreed by the Chief Finance Officer. A copy of the Assets Register should be kept off-site.

The Headteacher shall arrange for all goods and stores to be checked and reconciled with the records at least annually and all discrepancies investigated promptly.

Headteachers may, in accordance with arrangements approved by the


Governing Body, dispose of obsolete or otherwise unrequired goods and stores of the type which were or could have been purchased by the school from its share of the Individual Schools Budget.

Governing Bodies have the discretion to write-off goods and stores’ deficiencies. All write-offs over £500 shall be notified to the County Council.

Items of school property should not be removed from school premises without authority. A register should be kept to record all items of school property taken off site.

24. UNOFFICIAL FUNDS

24.1 Section 18 of the Schools Finance Procedure Manual contains detailed guidance on the operation of Unofficial Funds (or School Funds).

24.2 These funds often provide a substantial additional source of income with which to supplement the official budget share. They fall within the responsibility of the Governing Body and are subject to the same rigorous standards of accountability as official funds.

24.3 Some Unofficial Funds are eligible for charitable status and certain tax concessions. Monies from the School Fund may be spent only to advance the education of the pupils by providing or assisting in the provision of educational, recreational and other charitable facilities.

24.4 The Governing Body is responsible for approving banking arrangements and authorised signatories, for appointing a Fund Treasurer and Fund Auditor, and for agreeing a policy on the refund of deposits and surpluses on educational visits.

24.5 The Headteacher is responsible for the day-to-day management of the Fund, for the delegation of duties to staff, and for ensuring that records are kept up to date and reconciled to the bank statement every month.

24.6 The Headteacher must ensure that the accounts and supporting records are audited as soon as possible after the end of the accounting year. The audited accounts must be submitted to the Governing Body for approval and a copy sent to the County Council.

24.7 Where transactions relating to a trading activity, eg a tuckshop or the sale of sweatshirts, are processed through the School Fund, there should be a supplementary trading account in order to demonstrate the surplus or loss on the activity.

25. SECURITY

25.1 Each Headteacher is responsible for maintaining security at all times for all buildings, stocks, stores, furniture, vehicles, equipment, cash, etc. under his control. He/she shall inform the Chief Finance Officer in any case where


security is thought to be defective.

25.2 Keys to safes and similar receptacles shall be carried on the person of those responsible at all times; the loss of any such keys must be reported to the Chief Finance Officer forthwith.


ANNEX K

RESPONSIBILITY FOR REDUNDANCY AND EARLY RETIREMENT COSTS This guidance note summarises the position relating to the charging of voluntary early retirement and redundancy costs. It sets out what is specified in legislation and provides some examples of when it might be appropriate to charge an individual school’s budget, the central Schools Budget or the local authority’s non-schools budget.

Section 37 of the 2002 Education Act says:

(4) costs incurred by the local education authority in respect of any premature retirement of a member of the staff of a maintained school shall be met from the school's budget share for one or more financial years except in so far as the authority agree with the governing body in writing (whether before or after the retirement occurs) that they shall not be so met

(5) costs incurred by the local education authority in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of a maintained school shall not be met from the school's budget share for any financial year except in so far as the authority have good reason for deducting those costs, or any part of those costs, from that share.

(6) The fact that the authority have a policy precluding dismissal of their employees by reason of redundancy is not to be regarded as a good reason for the purposes of subsection (5); and in this subsection the reference to dismissal by reason of redundancy shall be read in accordance with section 139 of the Employment Rights Act 1996 (c. 18).

The default position, therefore, is that premature retirement costs must be charged to the school’s delegated budget, while redundancy costs must be charged to the local authority’s budget. In the former case, the local authority has to agree otherwise for costs to be centrally funded, while in the latter case, there has to be a good reason for it not to be centrally funded, and that cannot include having a no redundancy policy. Ultimately, it would be for the courts to decide what was a good reason, but the examples set out below indicate the situations in which exceptions to the default position might be taken.

Charge of dismissal/resignation costs to delegated school budget

If a school has decided to offer more generous terms than the authority’s policy, then it would be reasonable to charge the excess to the school

If a school is otherwise acting outside the local authority’s policy Where the school is making staffing reductions which the local authority does

not believe are necessary to either set a balanced budget or meet the conditions of a licensed deficit

Where staffing reductions arise from a deficit caused by factors within the school’s control

Where the school has excess surplus balances and no agreed plan to use these

Where a school has refused to engage with the local authority’s redeployment policy

Charge of premature retirement costs to local authority non-schools budget


Where a school has a long-term reduction in pupil numbers and charging such costs to their budget would impact on standards

Where a school is closing, does not have sufficient balances to cover the costs and where the central Schools Budget does not have capacity to absorb the deficit

Where charging such costs to the school’s budget would prevent the school from complying with a requirement to recover a licensed deficit within the agreed timescale

Where a school is in special measures, does not have excess balances and employment of the relevant staff is being/has been terminated as a result of local authority or government intervention to improve standards

Costs of new early retirements or redundancies can also be charged to the central part of the Schools Budget if the Schools Forum agree and the local authority can demonstrate that the “revenue savings achieved by any termination of employment are equal to or greater than the costs incurred”. The Schools Forum must agree to any increase in this budget over the previous financial year. If the Schools Forum does not agree with the local authority’s proposal, then the authority can appeal to the Secretary of State. The Schools Forum would also be involved if the additional expenditure resulted in a breach of the central expenditure limit, whereby central expenditure increases faster than the Schools Budget as a whole.

An example of where a charge to the central Schools Budget might be appropriate would be a school reorganisation. A reorganisation involving the closure of a number of schools would be likely to result in savings because there would be a reduced amount being allocated through the formula for factors such as flat rate amounts to all schools or floor area. If the savings in the formula exceeded the ongoing costs of the VER/redundancy then this would qualify.

It would be possible to consider savings at an individual school level as well, but this needs to be carefully managed so that there are clear ground rules in place for applications, recommendations and approval. It may be sensible to agree criteria for eligibility which are consistent with the general approach as to when costs should be centrally funded.

It is important that the local authority discusses its policy with its Schools Forum. Although each case should be considered on its merits, this should be within an agreed framework. It may be reasonable to share costs in some cases, and some authorities operate a panel to adjudicate on applications.

There are clearly difficulties in setting a budget, whether inside or outside the Schools Budget, at a point prior to the beginning of the financial year before schools have set their budgets and made staffing decisions. Local authorities can only make a best estimate of what may be needed, based on past experience, local knowledge of the financial position of individual schools and the context of that year’s funding settlement. There are dangers in raising expectations that costs will be met centrally if the budget is set too high, and so an alternative would be to keep the budget tight and use contingency or schools in financial difficulties budgets if there is an unexpected need for staffing reductions and it is not appropriate for delegated budgets to fund VER/redundancy costs. To achieve best use of resources, local authorities should also have an active redeployment policy, to match staff at risk to vacancies.

One of the permitted uses of the contingency is where “a governing body has incurred expenditure which it would be unreasonable to expect them to meet from the


school’s budget share” while local authorities are also allowed to retain funding for schools in financial difficulties “provided that the authority consult the schools forum on their arrangements for the implementation of such support.”

For staff employed under the community facilities power, the default position is that any costs must be met by the governing body, and can be funded from the school’s delegated budget if the governing body is satisfied that this will not interfere to a significant extent with the performance of any duties imposed on them by the Education Acts, including the requirement to conduct the school with a view to promoting high standards of educational achievement . Section 37 now states:

(7)Where a local education authority incur costs—(a)in respect of any premature retirement of any member of the staff of a maintained school who is employed for community purposes, or(b)in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of a maintained school who is employed for those purposes,

they shall recover those costs from the governing body except in so far as the authority agree with the governing body in writing (whether before or after the retirement, dismissal or resignation occurs) that they shall not be so recoverable.

(7A)Any amount payable by virtue of subsection (7) by the governing body of a maintained school in England to the local authority may be met by the governing body out of the school’s budget share for any funding period if and to the extent that the condition in subsection (7B) is met.

(7B)The condition is that the governing body are satisfied that meeting the amount out of the school’s budget share will not to a significant extent interfere with the performance of any duty imposed on them by section 21(2) or by any other provision of the Education Acts.

(9)Where a person is employed partly for community purposes and partly for other purposes, any payment or costs in respect of that person is to be apportioned between the two purposes; and the preceding provisions of this section shall apply separately to each part of the payment or costs.


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