School Buildings and School Trust

Voluntary (aided or controlled) schools usually comprise two charities that work interdependently, the governing body, a corporate body created under the SSFA 1998, which runs the school the charity usually called the foundation, which holds the land and buildings on trust for the provision of a school and/or for specified religious and educational purposes.

Each of these charities has its own charity trustees. Governors are charity trustees. Refer to Assistant Director Business & Premises for information of the trustees of the foundation.

The ‘school’ is the charitable activity of the governing body, not an entity in itself.

It is implicit in the purpose of the charity that the governing body can use the site for its charitable activity ‘school’ without lease, licence or other agreement.

The governors have ‘control of the premises¹’ to decide on occasional or regular lettings. Governors also decide on significant other uses e.g. Pre-School, Out of Hours Clubs etc. Where these are not run by the governing body, the foundation trustees will be party to the legal agreement that allows the other party to occupy the site. The legal agreement will be a lease or licence. The legal agreement is on commercial terms.

The governing body should not agree to a use of the premises that is contrary to the purposes and practices of the Church of England.

The governing body should not agree to a use of the premises that is contrary to the purposes and practices of the Church of England. For advice on what is ‘contrary’ consult vicar.

The governing body can be directed by the Local Authority to allow use for certain purposes e.g. youth work. This rarely happens.

Legislation allows for certain uses e.g. for political meetings before elections.

Only the Foundation governors of the governing body can decide the use of the premises on Sundays.

All revenue work to the premises is LA liability, but the funding is delegated to schools being part of the Direct Schools Grant (DSG). There is no governing body contribution to revenue work. All work costing less than £2,000 is automatically revenue expenditure.

All capital work at Voluntary Controlled (VC) school premises is LA liability, but certain responsibilities will have been delegated to schools in agreement with the Schools Forum.

All capital work at Voluntary Aided (VA) school premises is governing body liability except work to the playing fields.

Here are some examples that are intended to provide guidance on how to decide what might be regarded as revenue (paid for from revenue budgets) and capital expenditure (which can be met from capital grant).

Example 1

• Localised repairs to a roof (patching or mending) should usually be met from revenue funds, because this would be regarded as normal repair and maintenance work. If the whole roof, or a substantial part of a large roof, needs to be replaced, then this could reasonably be regarded as capital

Example 2

• Small repairs to playgrounds (filling individual potholes etc.) should usually be met from revenue funds, because this would be regarded as normal repair and maintenance work. If the whole of the playground needs to be resurfaced, then this might reasonably be regarded as a capital item.

Example 3

• A boiler has unexpectedly broken down, and requires a new part which will cost £1,800. This could have been regarded as either revenue (because it is repair and maintenance) or capital. The cost, however, dictates that it must be revenue because it is below the ‘de minimis’ threshold of £2,000

Example 4

• Replacing a damaged furniture would be regarded as a revenue cost because it is normal wear and tear. If, however, as part of a refurbishment of a whole classroom, all of the furniture is to be replaced then it can be included as part of the capital project

Capital Includes - Purchase of computer hardware and software where these are to be capitalised. However capital cannot be used for leasing of IT equipment and warranties as these must be funded from revenue

Standalone academies

Academies comprise of three charities that work interdependently.

i) The academy trust (academy proprietor) is the charity. The academy is the charitable activity of the academy trust.

ii) The governors of the academy trust are charity trustees and company directors.

iii) The charity usually called the foundation, which holds the land and buildings on trust for the provision of a school and/or for specified religious and educational purposes

An academy trust that run a number of academy schools is called a multi-academy trust. The above three charities applies but;

• the academy trust is one single charity
• the directors of the academy trust are the charity trustees and company directors
• each individual school may have its own governors (sitting on a local governing body), but in this arrangement they are not charity trustees; they are sub-committees with delegated authority.

Unlike Voluntary schools, academies occupy the premises through formal agreements.

The Playing Fields

These are usually owned by the local authority. The agreement is a 125-year lease. The Academy Trust is responsible for maintenance and insurance. Consent is required for works. A sublease cannot be granted