# The Financing of Maintained Schools Regulations 1998, Regulation 3: Exceptions


A local education authority’s local schools budget shall not include the following classes or descriptions of expenditure—
(a) expenditure in connection with nursery schools;
(b) expenditure in connection with any provision made for children who have not attained the age of five except where such provision is made at a maintained school or the expenditure is by way of fees paid under section 320 or 348 of the 1996 Act (special provision for children with special educational needs);
(c) expenditure in making payments to another local education authority pursuant to section 492, 493 or 494 of the 1996 Act (recoupment between authorities);
(d) expenditure which the authority capitalise in their accounts in accordance with proper practices being those accounting practices—
(i) which the authority are required to follow by virtue of any enactment, or
(ii) which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned,
but in the event of any conflict in any respect between the practices falling within sub-paragraph (i) above and those falling within sub-paragraph (ii) above, only those falling within sub-paragraph (i) above are to be regarded as proper practices;
(e) expenditure offset by income received from Her Majesty’s Chief Inspector of Schools in England or Her Majesty’s Chief Inspector of Schools in Wales; and
(f) expenditure for the purposes of section 26 of the Road Traffic Regulation Act 1984 (arrangements for patrolling school crossings).

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Source: https://www.legislation.gov.uk/ukdsi/1998/0110799437/regulation/3 (the official version)
Page: https://openlegislation.uk/draft-financing-of-maintained-schools-regulations-1998/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.