Owning the land and buildings

Facts:

Foundation schools have more control over the use of school buildings, lettings and particularly the use of redundant buildings
There are greater opportunities to explore initiatives such as extended schools and for the governing body and the school to take much more of a lead in developing this
It is possible to sell surplus land subject to the Secretary of State’s approval and cooperation of LA (foundation schools must adhere to published procedures on this matter)
The school pays 20% of rates which may mean a slight addition to individual school budget depending on the LA funding formula. A requirement to submit accounts of private funds to the Charity Commission is the subject of recent legislation. There is a recognition by the Charities Commission that this should not be an additional reporting burden for schools. FASNA is involved in the current implementation discussions and will seek to ensure that there is no additional burden on schools
It may be possible for Foundation schools to have a greater influence in any PFI contracts being negotiated with the LA as part of the Building Schools for the Future programme

LA / foundation schools need to know that:

There is no change in the way in which a school receives capital funding. Schools still receive the formula capital amount depending on the size and type of school and retain access to funds for health and safety related work through the LA
LAs have a statutory duty to treat all maintained schools equally regardless of the type of school. This means that all schools have access to funds retained by the LA for any capital projects over the LAs de minimus limit and be included in any PFI bid the LA is preparing
If the governors decide to become a trust school, either by setting up your own trust or by joining an existing trust, the land and buildings transfer to the trust. Each individual school has the day to day management and financial responsibilities for it

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