Voluntary Aided Schools

Separate funding arrangements for Condition, Modernisation and Devolved capital to finance Governor liabilities are made by the DfES.  Detailed guidance is contained in our Voluntary Aided Schools page.  The method of calculation also relates to pupil numbers and condition/suitability.

• NDS Condition - funding has been made available since 2001-02 and is allocated to LEAs for Community and Foundation schools by the DfES based upon formula with a pupil number element and from the Condition data in our Asset Management Plan.  It is allocated by us to finance scheme proirities as set out in our Local Policy Statement to address Condition related items. For Voluntary Aided Schools please visit our Voluntary Aided Schools page.
  
  

• NDS Modernisation – funding has been made available since 2002-03 and is allocated to LEAs by the DfES for Community and Foundation schools based upon formula with a pupil number element and from the Condition and Suitability data in our Asset Management Plan.  It will be allocated by us to finance scheme proiorities as set out in our Local Policy Statement to address general condition related or suitability items.  For Voluntary Aided Schools please visit our Voluntary Aided Schools page.

Devolved capital

As part of the DfES's ongoing Capital Investment strategy, capital allocation is being devolved to schools. All maintained schools (i.e. those with a DfES number) including maintained nursery schools and Pupil Referral units should receive an allocation of NDS Devolved formula capital grant. However certain schools will not be entitled to this allowance including schools with all buildings less than 3 years old and schools where capital needs are met through a PFI contract. NDS represents a fundamental element of the partnership between schools and the LEA to manage school buildings. This money must be spent on essential capital projects identified in your Asset Management Plan (AMP).

Notification of the specific allocation to each school will be made by the LEA and is based on a formula which comprises a lump sum and a per pupil element. The pupil element is based upon the Annual Schools Census Form 7 for the January immediately prior to the financial year (i.e. 2001-02 allocation is based upon January 2001 Form 7) and is calculated as FTE equivalents. The calculation is as follows:

Asset Management will retain a record of money spent by schools generated from the General Ledger and will notify schools annually of their allocation for the year and of any balance or deficit brought forward from previous years.

This funding will be available by annual allocation and each allocation must be spent within 3 years. Schools may wish to consider the following methods of maximising the value of the devolved capital available:

• Clustering funds
  There is an opportunity for schools to form clusters to pool their capital and undertake a significant scheme at one site (e.g. within a consortium or between schools with particularly strong links).
  
  

• Accumulating or advancing funds
  It is also possible to accumulate your allocation during the 3-year period in order to undertake a larger scheme, rather than spend each year's funds year on year.  This would mean either accumulating funds over 3 years or requesting the advancement of funds to year 1.  Accumulation or advancement will require our agreement. Advancement will only be possible if sufficient other schools were prepared to accumulate theirs.  In the event that requests for advancement are oversubscribed, we will prioritise requests to finance schemes identified in your AMP as:
  
  
  • Condition D1, or
  • Suitability grade A or
  • Health & Safety or Security High risk.

Scheme identification

Schools will need to gain agreement from Asset Management for projects to be undertaken. DfES guidance defines eligible capital expenditure as including:

• Health and Safety Works (major roof repairs, rewiring, upgrading fire / security systems, resurfacing play areas).
  
  

• Refurbishment – (which could include upgrading boiler plant, or could include cabling to provide ICT equipment).
  
  
• Conversions (for example, general teaching area to specialist use).
  
  
• Security (improvement to / provision of lighting and fencing, CCTV).
  Note that other Standards Fund grant may be available specifically for this purpose.

The DfES also indicate examples of ineligible expenditure as being:

• General Maintenance

• Redecoration or Day to Day repairs
• Purchase of books or training materials / services
• Repayment of loans

These definitions of capital expenditure are in line with those applied to schools under Fair Funding.  Works you propose to carry out must be identified as a high priority in your Asset Management Plan Condition or Suitability assessments.  Expenditure on ineligible items may result in grant having to be repaid.

We are keen to target Priority 1 Grade D and C Condition items in partnership with you.  If the project is not affordable (ie in excess of your devolved capital sum) we will consider requests from you to finance the shortfall in order that the work may proceed.  However, the level of funds available centrally is finite and we cannot guarantee that finance will be available.

It will also be feasible, subject to detailed DfES criteria, to use devolved capital to contribute to the cost of a project bid for the Seed Challenge Initiative subject to the bid meeting both Devolved Capital and Seed Challenge criteria.

The most recent correspondence to schools is given in the Devolved Capital 2002-03 document.