Paragraph 6 Suspension of delegated budgets
Under paragraph 1 of Schedule 15 when the local education authority are considering whether the governing body of a school which has a delegated budget–
have been guilty of a substantial or persistent failure to comply with any delegation requirement or restriction, or
are not managing in a satisfactory manner the expenditure or appropriation of the sum referred to in section 50(1),
they may have regard to the governing body’s conduct before 1st April 1999 as the governing body of a county, voluntary or maintained special school within the meaning of the 1996 Act.
For the purposes of sub-paragraph (1) above in relation to the period before 1st April 1999–
the reference in paragraph 1(1)(a) of Schedule 15 to “any delegation requirement or restriction” shall include any requirements applicable under the local education authority’s scheme as then in force; and
the reference in paragraph 1(1)(b) of that Schedule to the “expenditure or appropriation of the sum referred to in section 50(1)” shall include the expenditure or appropriation of the sum put at the disposal of the governing body pursuant to section 116(2) of the 1996 Act.