Devolved School Management (DSM) was introduced in 1993 to enhance and improve the management of resources at school level. DSM Guidelines Standards in Scotland’s Schools etc Act 2000.

The most recent DSM Guidelines, reflect the DSM principles agreed by the Fair Funding Reference Group, which are:

• Subsidiary and Empowerment
• Collaboration
• Accountability and Responsibility
• Clarity and Equity

These principles reflect the National Improvement Framework aims of excellence through raising attainment and achieving equity. The principles also fully endorse those proposed in the Fair Funding consultation:

• Support excellence and equity – ensuring every child and young person has the same opportunity to succeed
• Be fair – placing the needs of all children and young people at the centre
• Be simple, transparent and predictable – ensuring the costs of delivering education can be easily understood and explained and that schools are able to manage and plan ahead with certainty
• Deliver value for money – ensuring that every penny spent is used effectively

The Council receives the bulk of its funding from the Scottish Government through Aggregate External Finance (AEF). This funding is broken down into 3 constituent parts: General Revenue Grant (GRG), Non-Domestic Rates Income (NDRI) and Specific Grants. The Council sets the budget each year, in February, which is aligned to the following priorities – Wellbeing, Communities and Local Democracy, Climate Change and A Sustainable Council. Services must ensure that financial plans align with the mission, vision and priorities within the Council Plan 2023-2028 and service operational plans. Budgets are aligned to the delivery of these plans and should be developed accordingly. Budgets are calculated for the various sections within all services including Education.

School budgets for teachers are constructed using average teachers’ salaries with promoted structures funded to actual salaries. School budgets for local government staff are constructed using actual salaries.

The method/formula for allocating staff to schools is detailed within appendices 3 to 14 and will take local circumstances into account where appropriate.

The Council participates in the Teacher Induction Scheme (TIS) which provides probationer places for newly qualified teachers across Scotland. Finance will review the funding received from the Scottish Government for TIS on an annual basis and ensure that sufficient funds are transferred to the Education Service to cover salary costs of probationer teachers.

Further information on the Council’s budget setting process is detailed within the Budget Holders Manual and the Code of Financial Practices.

Head Teachers/Heads of Centre are given maximum flexibility over their budgets, however there are areas of expenditure that are generally not considered suitable for devolution. The reasons for this include but are not limited to: areas outside the influence of the Head Teacher/Heads of Centre; areas that are too bureaucratic; have unacceptable levels of risk; benefit from economies of scale; require professional expertise; and are complex by their nature.

Areas of expenditure not devolved to schools and met from the central Education budget are detailed in Appendix 1.

The budget for employee salary costs (including employer’s national insurance and pension costs) is provided to schools based on the method/formula for allocating staff to schools detailed within Appendices 3 to 14.

The devolved school budget for all other expenditure at school level is provided as a monetary value. This is calculated as a per capita allocation based on pupil census numbers, with an additional sum for island schools and small schools. Full details of the method of allocating the school budget is detailed within Appendix 2.

At the start of the financial year, and following appropriate consultation, Head Teachers/Heads of Centre are required to vire their devolved school budget to the relevant budget lines in line with their planned spend. In accordance with audit requirements, details of the devolved budget allocation should be uploaded to the finance system by the school’s Education Business Officer by 31 May each year. Finance will then provide a summary of all devolved school budget lines to the Head of Service (Education).

Codes of Financial Practice are issued under the authority of the Council’s Financial Regulations. It shall be the duty of each Head of Service to ensure that the requirements of the Codes of Financial Practice are made known to the appropriate staff within their Service and that they are adhered to.

The Best Value framework supports continuous improvement in public services in Scotland and is a key foundation of the Scottish Government Public Sector Reform agenda. As part of this framework the Council must secure continuous improvement whilst maintaining an appropriate balance between quality and cost. This requires a strong financial management framework, supporting strategic financial planning and sitting alongside the performance management framework.

The Corporate Procurement Strategy document document sets out the recommended activities and procedures required when purchasing all externally provided goods, services and works which Head Teachers/Heads of Centre must adhere to.

North Ayrshire Council is committed to empowering Head Teachers/Heads of Centre to make appropriate, and informed decisions to best meet their local need in accordance with the Council’s policies, guidance and frameworks.

Head Teachers/Heads of Centre are expected to ensure school expenditure is in accordance with their School Improvement Plan, supporting the Council’s strategic plans, priorities and the National Improvement Framework.

The Scottish Negotiating Committee for Teachers (SNCT) determines the nationally agreed terms and conditions of service for Teachers and Associated Professionals. These terms and conditions of service are set out in the SNCT Handbook of Conditions of Service and Local Authorities / Head Teachers must adhere to these in their employment of teachers and associated professionals.

The Local Negotiating Committee for Teachers (LNCT) determines terms and conditions of service on matters devolved by the SNCT to local authority level. Head Teachers must adhere to LNCT Local Agreements in their employment of teachers and associated professionals.

The Scottish Joint Council for Local Government Employees determine the terms and conditions of service for Local Government Employees which are incorporated into local agreements reached by the Council and recognised trade unions. These are set out in the Terms and Conditions of Employment for Local Government Employees and Head Teachers/Heads of Centre must adhere to these in their employment of local government staff.

The Council has a range of HR Policies and Procedures which cover Teachers and Associated Professionals and Local Government Employees. Head Teachers must adhere to these policies and procedures in their employment of staff.

This DSM Scheme and related appendices will be accessible on the North Ayrshire Council website. It is recommended that Head Teachers/Heads of Centre publish the DSM Scheme on school websites.

Head Teachers/Heads of Centre are required to complete the Council’s Budget Holder & Code of Financial Practice training which includes training on the DSM Scheme. Briefings and updates on the operation of the DSM Scheme will be included as part of the regular programme for Head Teacher/Heads of Centre meetings.

Education Business Officers will be available to train Head Teachers/Heads of Centre on the use of the financial management system.

Training on the DSM Scheme will be made available to others, for example Elected Members and Depute Head Teachers/Depute Heads of Centre on an ad-hoc basis.

The DSM Scheme has been developed in consultation and engagement with all stakeholders including Head Teachers, Heads of Centre, Finance and Trade Unions. The Scheme has been approved by North Ayrshire Council’s Cabinet and will be reviewed on an annual basis by the DSM Review Board. The DSM Review Board will comprise:

• Head of Service (Education)
• HT Representative (Secondary)
• HT Representative (Primary)
• HT/Head of Centre Representative (Early Years)
• ASN Sector Representative
• Senior Manager
• Education Resources Manager
• EBO Representative
• Education Funding Co-ordinator
• Finance Representative

Head Teachers/Heads of Centre are expected to form appropriate forums to consult with staff, parent councils, pupils and the wider community on appropriate matters which may include school staffing models, DSM decisions and allocation of departmental or class resources.

Head Teachers/Heads of Centre should consider applying a participatory budget model to engage their school and wider community in determining where relevant funds should be spent or invested. Guidance on participatory budgeting is available from the Scottish Government and the North Ayrshire Community Planning Partnership.

The Head of Service (Education) will provide regular updates to Head Teachers/Heads of Centre and key stakeholders on the Council’s overall financial position and will engage with Head Teachers/Heads of Centre as part of the Council’s annual budget setting process for the Education Service. Local Authority decisions about education spending must give due regard to Getting it Right for Every Child (GIRFEC) and the role of LA’s as corporate parents.

Education Business Officers will provide monthly updates to Head Teachers on their devolved school budget and projected financial outturn. In addition, Head Teachers will have access to the Council’s Finance System to enable interrogation of budget and expenditure.

The Council will ensure that information on eligibility for free school meals; footwear and clothing grants and education maintenance allowance is available on the Council’s website.

The Council’s priorities are set out in the Council Plan and supporting strategies. Head Teachers/Heads of Centre are expected to be collaborative and collegiate focussed, embracing joint working with the learning community, parents, children and young people, staff, partners and the Council.

The method / formula for allocating staff to schools is set out in Appendices 3 to 14. The Head of Service (Education) will engage with Head Teachers/Heads of Centre in any reviews of the method / formula for allocating staff to schools.

Head Teachers/Heads of Centre will be responsible for the recruitment and management of their employees in accordance with the SNCT Code of Practice on Head Teacher Responsibility in Recruitment and Selection of Staff (where applicable) and will also be expected to participate in any agreed centrally managed recruitment processes (such as Supply Teachers and Supply Early Years Practitioners).

Head Teachers/Heads of Centre will be responsible for ensuring that the recruitment and management of their employees is compliant with the Council’s recruitment and selection policy and procedure.

The recruitment panel for permanent Head Teacher and Depute Head Teacher appointments will include Parent Council representation in accordance with the Scottish Schools (Parental Involvement) Act 2006 and the Education (Scotland) Act 1996. The recruitment panel for Head Teacher appointments will be chaired by an Elected Member. A representative of the Executive Director (Education) will also be included in the recruitment panel for both Head Teacher and Depute Head Teacher appointments.

Head Teachers will be responsible for the appointment of Principal Teachers and Unpromoted Teachers.

Due to changing pupil rolls in primary and secondary schools and the balance of the curriculum in secondary schools, some teachers may become surplus to requirements in the school in which they are based. Surplus teachers will be identified as part of the annual staffing exercise for schools.

Head Teachers are required to comply with the transfer processes that enable the transfer of teachers between schools as a means of avoiding redundancies.

Transfers will be arranged after vacancies for the forthcoming academic session have been identified and before recruitment to vacant posts commences.

Head Teachers/Heads of Centre will be responsible for the appointment of local government employees.

Due to changing pupil rolls, a requirement to transfer local government employees between schools may be identified as part of a staffing exercise. Head Teachers/Heads of Centre are required to comply with the transfer processes that enable the transfer of local government employees between schools.

Head Teachers/Heads of Centre will have access to the following professional support to assist them in carrying out their devolved management responsibilities:

• Senior Managers
• Education Business Officer
• Education Resources Team
• Education Funding Support Team
• Finance
• Procurement
• Human Resources

As budget holder, Head Teachers/Heads of Centre have responsibility to manage and monitor assigned revenue budgets on a monthly basis. Variances should be highlighted and corrective action should be agreed to allow for a balanced budget for non-payroll budgets. Full details can be found within the Budget Holders Manual.

Head Teachers/Heads of Centre can request carry forward of underspent budget from one financial year to the next. This is capped at 2% of the school’s initial devolved budget entitlement, excluding the budget for staffing which has been allocated as part of the school’s staffing entitlements set out in Appendices 3 to 14.

Requests to carry forward underspent budget must be submitted to the Head of Service (Education) for approval using the Request to Carry Forward Underspent Budget Form provided at Appendix 15. Requests must be supported by a sound business case and submitted by 31 January each year. Head Teachers/Heads of Centre should include the intended use of any approved carry forward budget within their school improvement plans.

Virement is the ability to move monies between subjective and objective headings of expenditure and income to offset either a deficit or planned future expenditure. Full details can be found within the Codes of Financial Practice.

The rules concerning budget virement within the Education Service up to a maximum of £20,000 are set out in this DSM Scheme.

Head Teachers/Heads of Centre can vire up to a maximum of £20,000 between budget lines in a financial year without the need for external approval. This excludes the budget for staffing which has been allocated as part of the school’s staffing entitlements set out in Appendices 3 to 14. Virement from staffing budgets will only be available in exceptional circumstances and through agreement between the Head Teacher/Head of Centre and the Head of Service (Education). Requests to vire from staffing budgets should be submitted to the Head of Service (Education) using the Request to Vire from Staffing Budget Form provided at Appendix 15. Any requests to vire an amount in excess of £20,000 must be approved in accordance with the Codes of Financial Practice.

Education Headquarters maintains a central budget to cover costs arising from teacher and some local government employee absence, other than short-term unplanned sickness absence costs. It is anticipated schools will vire an element of their devolved school budget to the school cover budget line to employ supply staff to cover short term absence. It is acknowledged that in some occasions, schools may be unable to cover short term absence due to lack of availability of supply staff. The Education Headquarters cover budget can be downloaded to schools to cover the following absence reasons:

A review of school salary spend against school salary budget will take place on a monthly basis. Schools who have a salary spend in excess of the school salary budget will be reviewed by the Education Funding Team. Where it is identified the additional spend relates to one of the accepted reasons set out in the table above, arrangements will be made on an annual basis to download the budget required to offset the additional spend.

Any payments made to teachers for the purposes of supported study are made at the teacher’s normal hourly rate of pay. For promoted teachers, payment will be based on the hourly rate of pay of the top point of the main grade. All such payments must be appropriately authorised by the Head Teacher who is responsible for ensuring the school has sufficient devolved budget available to meet these additional costs.

Secondary Head Teachers who engage invigilators for the purposes of the prelim exam diet should authorise any such payments and ensure the school has sufficient devolved budget available to meet these additional costs. The current SQA invigilation fee structure should be applied for Invigilator, Depute Chief Invigilator and Chief Invigilator payments. Head Teachers are responsible for obtaining updated fee structures from the SQA , to ensure ongoing compliance with the Real Living Wage hourly rate of pay.

If a promoted teacher post is job sized or re-sized during the financial year, any increase to salary will be included within the promoted teacher staffing entitlement of the school.

Head Teachers/Heads of Centre may have access to budgets directly delegated to them by the Scottish Government. Whilst these budgets are not directly referred to within this DSM Scheme, Head Teachers/Heads of Centre are expected to adhere to the Council’s financial regulations, Council Plan and supporting strategies, HR Policies and Procedures and employee terms and conditions of service in their management of these budgets.

Head Teachers/Heads of Centre are not permitted to move employees between externally funded and core posts without adhering to normal recruitment processes (e.g. moving PEF funded employees into core funded posts for the purposes of covering vacant posts or submitting claims to HQ to cover leave such as long-term sickness absence or family leave is not permitted).

There is no HQ cover budget for PEF funded posts as all available funds are distributed to schools.

This DSM Scheme will be reviewed annually by the DSM Review Board who will engage with local authority peers and stakeholders as appropriate.

The budgets devolved to schools are calculated on a per capita basis, based on pupil census data and will be downloaded to the Initial DSM Allocation budget line 26151. Details as follows:

An additional sum will be devolved to small schools and island schools to ensure their unique circumstances are taken into account.

Head Teachers/Heads of Centre are required to vire the allocated budget to the relevant budget lines in accordance with their planned spend for the financial year and report their allocated budget lines to the Head of Service (Education) by 31 May each year.

Education Business Officers have details of full budget lines available within the financial system. Details of the more commonly used budget lines are listed below:

Head Teachers/Heads of Centre can vire up to a maximum of £20,000 between devolved budget lines in a financial year without the need for external approval.

Head Teachers/Heads of Centre can request carry forward of underspent non-staffing budget from one financial year to the next. This is capped at 2% of the school’s initial devolved budget entitlement (excluding budgets allocated for staffing).

10.23fte plus (Roll multiplied by 0.0555)

Modified Roll multiplied by 0.0025

0.1fte Mentoring Time for each Probationer (for those covering 0.8fte vacancy only)

Of the overall FTE staffing entitlement, the management FTE staffing entitlement is as follows:

Additional entitlement may be granted to reflect the individual circumstances of a school e.g. to cover remission time for a recognised TU representative.

• School Roll = Census status 1 and status 5 pupils
• School Roll projection for staffing allocation model will be based on average of previous three rolling years pupil census data
• Modified School Roll = Roll + footwear / clothing % based on three year rolling average

Head Teachers can design the staffing structure that best supports learning and with procedures for managing organisational change.

Promoted teachers must be given a reduction in weekly class contact to enable them to carry out those duties which are in addition to their duties as a classroom teacher. Its extent may vary according to the nature and scope of those duties. The additional duties of promoted teachers must be capable of being undertaken within the 35 hour working week and, where a promoted teacher retains a classroom teacher role, within the arrangements agreed at establishment level through the working time agreement.

Any salary conservation costs arising from a school-initiated restructure will be met by the school.

1.1fte per class (includes 0.1fte Non-Class Contact Time).

0.1fte Mentoring Time for each Probationer (for those covering 0.8fte vacancy only).

1.0fte for all schools.

Additional 0.3fte Teacher allocation.

Additional entitlement may be granted to reflect the individual circumstances of a school e.g. to cover remission time for a recognised TU representative.

• School Roll - Census status 1 and status 5 pupils
• Modified School Roll - Roll plus footwear and clothing allowance %

Head Teachers can design the staffing structure that best supports learning and teaching in the school, within the staffing allocation for the school and in accordance with procedures for managing organisational change.

Promoted teachers must be given a reduction in weekly class contact to enable them to carry out those duties which are in addition to their duties as a classroom teacher. Its extent may vary according to the nature and scope of those duties. The additional duties of promoted teachers must be capable of being undertaken within the 35 hour working week and, where a promoted teacher retains a classroom teacher role, within the arrangements agreed at establishment level through the working time agreement.

Management FTE staffing entitlement will only be changed if the school roll has remained in the new band for two academic years.

Any salary conservation costs arising from a school-initiated restructure will be met by the school.

Promoted teachers must be given a reduction in weekly class contact to enable them to carry out those duties which are in addition to their duties as a classroom teacher. Its extent may vary according to the nature and scope of those duties. The additional duties of promoted teachers must be capable of being undertaken within the 35 hour working week and, where a promoted teacher retains a classroom teacher role, within the arrangements agreed at establishment level through the working time agreement.

The Pupil Support Assistant Allocation is distributed to primary and secondary schools based on a rolling three-year average of their roll and modified roll.

The allocation model is as follows:

Additional entitlement to Pupil Support Assistant hours may be allocated by the Accessibility Group to support pupils with long-term, significant additional support needs.

Any additional entitlement will be notified to Head Teachers, together with the duration of entitlement.

Additional entitlement to Pupil Support Assistant hours may be allocated by the Inclusion Group to support pupils with short-term, significant additional support needs.

Any additional entitlement will be notified to Head Teachers, together with the duration of entitlement.

1.0fte allocation for Education Business Officers in each school cluster.

1.0 Full-time equivalent per secondary school.

School Dining Supervisors are allocated to Primary Schools and Lockhart Campus based on the following methodology:

There are three different models of service delivery across North Ayrshire Council Early Learning & Childcare (ELC) Centres and Classes.

The staffing model for each ELC Centre and Class is based upon:

• The model of service delivery
• The maximum number of children allocated to the ELC Centre or class
• The requirement to ensure the ELC Centre or class meets the statutory adult : child ratio

The FTE entitlements for ELC Centres and Classes are as follows:

Included in the overall FTE entitlements above are Early Years Assistant posts for the establishments that include this designation of post within their staffing structure.

Variation to the FTE entitlement for an early years’ establishment may be agreed by the Head of Service to reflect individual circumstances. Where this is agreed, budget allocation will be made to cover the additional FTE entitlement for the period granted.

Included in the overall FTE entitlement for model 1 and model 2 ELC Centres and Classes are the following leadership roles.

Healthy Start Club Workers are allocated in the following schools who operate a breakfast club:

12fte Area Inclusion Workers to be allocated to primary/special schools based on need and reviewed on an annual basis.

School counselling staff are allocated to provide a counselling support service to secondary and primary 7 pupils. Total allocation as follows:

Completed request to carry forward underspent budgets forms should be submitted to the Head of Service (Education).