Derbyshire_Schools_Net_Logo

Leasing agreements for maintained schools.

Changes to leasing agreements for maintained schools

From 1 April 2024, a new International Financial Reporting Standard (IFRS 16 Leases) was introduced for Local Authorities. IFRS 16 Leases ends the distinction between Operating and Finance leases for accounting purposes.

This means that all leases will be now classed as Finance leases, which previously schools were not allowed to enter into without the approval of the Secretary of State.

As a result, the Secretary of State has agreed to a blanket consent to common school leasing activities.

Required action from schools:

Any leases which fall into the blanket consent set out below, do not require approval from Derbyshire County Council, however, we do require details of these leases, which should submitted here: School leases form.

This is an ongoing data collection and should be completed as and when your school:

  • takes out a new lease
  • extends an existing lease
  • terminates an existing lease early
  • has any other changes to an existing lease

We also require a copy of the lease agreement, which should be sent to  CS.Accountancy@derbyshire.gov.uk.

Blanket consent

  • All existing leases in place on 1 April 2024 for items included in this list.
  • Leases related to IT equipment (for example laptops, tablets, desktop computers, printers, photocopiers, servers, door entry security systems, CCTV Systems, whiteboards and touch screen boards).
  • Leases related to telephony (for example mobile phones, landline phones and telephone systems).
  • Leases related to catering and cleaning equipment (for example tills, water coolers, vending machines, dishwashers, washing machines, ovens, fridges, freezers, water boilers, small kitchen appliances, crockery and cutlery).
  • Leases related to furniture (for example desks, tables and chairs).
  • Leases related to bathroom and sanitary items (for example hand dryers, towel dispensers, sanitary bins).
  • Leases related to gym equipment (for example treadmills, free weights and weight machines, rowing machines and exercise bikes).
  • Leases related to groundskeeping equipment (for example lawn mowers, string trimmers, leaf blowers and salt spreaders).
  • Leases related to LED lighting system (for example lightbulbs, control mechanisms and control panels) - consent is granted where the product has been sourced with support from the Department for Education through Get help buying for schools or from a recommended route on the GOV.UK Find a framework website.
  • Leases related to minibuses and other vehicles for the use of the school.
  • Leases related to temporary classrooms and equivalent structures (but not land leases they sit on, which may require separate consent – see school land transactions guidance).

Any leased assets not included in the list above will need to be submitted to the Secretary of State for Education for consent. These may include leases relating to land and buildings; see further guidance on submit a school land transaction proposal on the GOV.UK website.

Also see

Audit Services

Audit services are staffed by highly qualified and experienced auditors drawn from a wide variety of professional backgrounds embracing both the public and private sectors.

Consistent financial reporting (CFR)

A copy of your school's Consistent Financial Reporting (CFR) return has been produced, which has now been submitted to the ESFA.

Copyright for schools

Copyright gives creators the freedom to decide what happens to their creations. You may use someone else's work only if you have permission by the copyright owner or if the law allows it.

Finance, legal and insurance

The range of financial, legal and insurance services we offer to schools and academies together with documents and useful links.

Letting of school premises

Issues around school lettings, particularly in relation to children's centres and extended services.

Procurement

The Department for Education (DfE) and the Crown Commercial Service have developed free e-learning procurement training modules for school staff who are responsible for budgets and buying.

Provision for doubtful debts - treatment at year-end

Some schools will have noticed a change to the accounting treatment of the above at the year-end. Previously this issue was dealt with outside individual schools cost centres, and schools were only affected at the point of a debt being written-off.

Public liability insurance for fires and fireworks

Your public liability insurance does not automatically cover campfires, bonfires or firework displays organised by the school.

Risk management funding support

Information regarding funding support for the purposes of risk management.

School benchmarking data

Benchmarking allows you to check how your school's finances compared with other similar schools.

Schools financial year-end

The timetable for preparing the year-end accounts is now available.

Value added tax guide for schools

This guide is a supplement to the main accounts payable and accounts receivable VAT guidance.