Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. To clarify the terms of the Director of Children's Services' delegated authority to support a school's application for trust status.

1.2. To approve the County Council's involvement as a member of a foundation trust and the appointment of trustees.

1.3. To clarify the pension arrangements for non-teaching staff in schools which change category.

2) Issues Covered in Report:

2.1. The County Council's involvement in the trust supporting a foundation school.

2.2. The appointment of the County Council's trustee(s).

2.3. Agreement to continued membership of non-teaching staff in the Local Government Pension Scheme.

3) Recommendations:

It is recommended:

3.1. That authority be given to the Director of Children's Services, in consultation with the Executive Lead Member for Children's Services (Education), to agree that the County Council should be a member of a foundation trust, if he is satisfied that the proposal meets the tests set out in paragraph 1.1 and that the Chief Executive (Legal Practice) is satisfied with the necessary legal agreements.

3.2. That the Executive Lead Member for Children's Services (Education) appoint the County Council's trustee(s), and the County Council's authorised representative(s) to act on its behalf in its role as a trust member, and that such appointments be normally for a period of four years unless a shorter period is specified in the trust documentation.

3.3. That the category of non-teaching staff at Perins Community School be eligible to remain active members of the Local Government Pension scheme after their transfer to the employment of the Governing Body on the school changing to Foundation status;

3.4. That new non-teaching employees appointed by Perins School after it commences Foundation status be eligible to join the scheme and be active members;

3.5. That, unless there are extenuating circumstances which require consideration by the Executive Member, the Director of Children's Services and the County Treasurer be jointly authorised to agree any requests received in respect of non-teaching staff at schools seeking Foundation status in the future.

MAIN REPORT

1) Contextual Information:

1.1. At the decision day on 17 July 2007, the Executive Lead Member for Children's Services (Education) delegated authority to the Director of Children's Services to support schools' applications for Trust Status where the following questions can be answered positively by the school:

Will affiliation to this particular Trust raise standards rather than just maintain them?

Will affiliation improve the well being of all children and young people in the community served by the school?

Will affiliation improve community cohesion and collaboration without any loss of existing quality?

Will affiliation improve the school's potential to meet the objectives of the Children and Young People's Plan

and, in the case of secondary schools:

Will affiliation improve the school's potential to meet the objectives of the 14-19 Strategy?

1.2. A number of schools are now investigating Trust Status, with the County Council as a member of the trust.

2) Key Issues:

2.1. It is necessary to establish the County Council's response to invitations to be a member of a trust supporting a foundation school.

2.2. Where the County Council is a member of a trust, the means of appointing its trustee(s) should be set out.

3) Trust Status

3.1. A Trust School is a "foundation school with a foundation". This means that the school is linked with a partner organisation which has charity status. In some cases the trust will appoint the majority of the members of the governing body, but in other cases the trust will only appoint a minority.

3.2. It is possible for the County Council to be a member of a trust. Membership would entitle the County Council to appoint a trustee who can take part in the day to day business of the trust and help to secure a closer involvement in supporting the school.

4) Current proposal - Perins School :

4.1. The first Hampshire school to consider Trust Status is Perins School, New Alresford. Following consultation with parents, staff and other interested parties, the governing body published proposals to change category from community to trust status. At their meeting on 25 November 2008, the governing body resolved to approve the change in category, with effect from 30 January 2009, subject to the trust being set up by that date.

4.2. The governing body considers that it would be advantageous for the County Council to be a member of the trust as that would continue the current close working relationship with the school. This was contained in the consultation documents and the statutory notice and no adverse comments were received. The other proposed members of the trust are Perins School, New Alresford Town Council, Chichester University, The University of Winchester, The Rugby Football Union and Sparsholt College.

4.3. The Director of Children's Services is satisfied that the tests set out in paragraph 1.1 are fully met and that the establishment of the trust should be supported.

4.4. The Perins Trust is being established as a charitable company limited by guarantee. Being a trust member will require the County Council to be a party to the Memorandum and Articles of Association. The County Council's Chief Executive has been in discussion with the trust's legal adviser and is satisfied that the documentation is satisfactory.

4.5. The County Council is not required to provide financial support in order to be a member of the trust. The proposed terms of the Trust provide that the liability of Trust members is limited to the sum of £10 towards the costs of winding up, adjusting the rights of the contributories amongst themselves and discharging the liabilities incurred by the Trust. Therefore, the Council's liability in this regard is nominal only. The Council's trustee, if appointed, will owe duties to the Trust and could find himself at risk of personal liability if, for example, he acts outside the objects of the Trust, or without the authority of the board of trustees.  There is a power for the Trust to pay indemnity insurance for its trustees which would protect them from any inadvertent breach of trust.  The Council's trustee would also benefit from the terms of the Council's indemnification of Members and staff which, essentially, indemnifies the trustee provided that he has acted in good faith and honestly believed that his actions were within his power and that his duty required or entitled him to act in that way. Therefore, there could be some liability for the Council in respect of the actions of the Council's trustee however, in view of the terms of the Council's indemnity, the risk of liability is reduced. Trust members have the ability to withdraw from the Trust by giving written notice of resignation

4.6. It will be necessary for the County Council to appoint a trustee. This could be a County Council Member or Officer. As Perins School is a Sports College, it is suggested that the Education Officer (Sport), who already works closely with the school and understands its needs, should be appointed as the County Council's representative trustee, initially for a period of four years from the date the trust is established. Future appointments are covered in paragraph 5.2.

4.7. As there is also provision in the Memorandum and Articles for the members of the trust to meet, it would be advisable for an authorised representative to be appointed. Since one of the purposes of a meeting of members is to approve the actions of the trustees, the County Council's authorised representative should not be the same person as its trustee. It is suggested that this appointment should be made by the Executive Member under the normal procedure for appointing representatives on outside bodies.

5) Further Trust School proposals:

5.1. It is understood that several schools are considering trust status and one other has commenced the formal process. Purbrook Park School, Havant, is a foundation school but has undertaken initial consultations with interested parties and is intending to publish formal proposals early in 2009. The governing body has agreed that these would include the inclusion of the County Council as a member of the trust.

5.2. The County Council's participation in trust school arrangements is welcome, particularly as it secures continued close working relationships with all categories of maintained school. In order to clarify the procedures, the following guidelines are proposed:

a) That authority be given to the Director of Children's Services to agree that the County Council should be a member of a trust, if he is satisfied that the proposal meets the tests set out in paragraph 1.1 and that the Chief Executive (Legal Practice) is satisfied with the necessary legal agreements, and

b) That the Executive Lead Member for Children's Services (Education) be authorised to appoint the County Council's trustee(s) and authorised representative(s), normally for a period of four years unless a shorter period is specified in the trust documentation.

6) Pension arrangements for support staff

6.1. As a result of the change of status, Hampshire County Council will cease to be the employer of all staff based at the School and they will become employed by the Governing Body of the School.

6.2. Essentially their terms and conditions of employment will remain unchanged. However in order for current and future staff (Teaching staff are members of the Teachers' Pension Scheme and can remain so irrespective of the type of maintained school at which they are employed) to remain or become members of the Local Government Pension Scheme (LGPS), the School Governing Body needs to agree it and the County Council, as Local Education Authority, needs to pass a resolution to that effect, in accordance with Regulation 8 (b) of the LGPS (Administration) Regulations 2008.

6.3. A request from Perins School that the County Council protects the position of non-teaching staff. Clearly this means the school agrees to the proposal. This should be supported as protecting the current and future interests of non-teaching staff at the School and as being in the best interests of employment relations at the School. If this resolution is passed, the County Treasurer will put the necessary arrangements in place.

6.4. As there may be other schools seeking Foundation status in the future, it is expected that there may be further requests for non-teaching staff to remain active members of the LGPS. These should similarly be supported as protecting the current and future interests of non-teaching staff at these schools. It is, therefore, proposed that unless there are extenuating circumstances which warrant specific consideration, the Director of Children's Services and the County Treasurer be jointly authorised to agree such requests.

6.5. The County Treasurer advises that there are no financial implications if agreement is given for non-teaching staff of Perins School to remain or become members of the LGPS, and that the same would normally apply in future changes in school category from community to foundation.

7) Outline of Options:

7.1. Option 1:

a) To participate as a member of a trust, when invited by a governing body.

7.2. Option 2:

a) To decline to participate

8) Option Analysis / Comparison:

8.1. To participate will secure a continued working relationship with the school and confirm that the County Council considers that all categories of school have equal standing.

8.2. Not to participate would suggest that the County Council would not give its full support to Trust Schools.

9) Conclusions:

9.1. Where invited, the County Council should welcome participation in the trust supporting a school and set out appropriate procedures to facilitate this.

10) Recommendations:

Please see Executive Summary for recommendations.

CORPORATE OR LEGAL INFORMATION:

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

a) Equalities issues have been considered and no adverse impact identified.

2. Impact on Crime and Disorder:

a) These proposals will have no impact on crime and disorder.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

· There will be no impact

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

· This is not applicable.