Finance - Amendment to the Scheme for Financing Schools and Guidance for Schools in Financial Difficulty

The Scheme for Financing Schools is the statutory document that governs the relationship on ‘all matters financial’ between the Local Authority (LA) and maintained schools (including PRUs) in Kent. It is the umbrella document that contains the rules and regulations which other finance guidance feeds from including the Financial Controls. It does not apply to Academies.

The Department for Education (DfE) has made some directed changes to the Scheme for Financing Schools relating to loan schemes. They have removed the option of giving schools revenue loans; previously our preferred method of managing deficit schools. As a consequence of this we have now introduced Licensed Deficits in our Finance Scheme for schools either in deficit, or forecasting a deficit.

Section 5 of our Financial Controls, Guidance for Schools in Financial Difficulty has been replaced by Guidance for Schools in Financial Difficulty incorporating the Licensed Deficit Application to accommodate these changes. Please ensure you familiarise yourself with this updated financial control. If you are in a current deficit position or forecasting a deficit you will need to complete a Licensed Deficit Application and send it in with your three year budget plan by 31 May 2018.

These revisions were agreed at the Schools Funding Forum on 27 April 2018 and have been uploaded to Kelsi. Please see the Scheme for Financing Schools guidance (PDF, 445.8 KB) and the Financial Control page for Section 5.

Contact Details

Siobhan Cheeseman
Telephone: 03000 41 54 15
Email: schoolsfinancialservices@kent.gov.uk