Local education authorities are requested by Section 52 of the School Standards and Framework Act of 1998 to prepare and publish a budget statement each year. This includes allocations to budget headings both for the local authority and each school. The size of the overall budget for schools and the amount of money which will be allocated according to each factor within the Scheme for Financing Schools must be set out. Within the financial formula of the financing scheme cash values for resourcing pupils and school activities are agreed to create the budget allocation for each school. The Section 52 budget statement therefore sets out both for schools and communities funding plans for schools.
The Outturn Statement, produced and published after the end of the financial year, sets out actual expenditure which has taken place and enables comparison with the original budget statement. The Outturn Statement also details funds which will be carried forward.
The Scheme for the Financing of Schools replaces the Scheme for Local Management of Schools from 1st April 1999. It is based on the legislative provisions in sections 45-53 of the School Standards and Framework (SSAF) Act 1998 as amended by sections 41-45 of the Education Act of 2002.