Local management of schools

The total amount available for school recurrent funding is comprised of three elements:

Centrally Held Resources - to cover expenditure for services that are delivered centrally and are the responsibility of the Education and Library Board to provide; for example home to school transport, school meals, curriculum advisory and support services, school library service, etc.;
Resources Held at Centre - include centrally held funds against which schools can make a call on, for example substitute cover, contingency and curriculum reserve funds etc. along with various initiatives which may be put in place, either by the Department or individual Boards; and
Local Management of Schools delegated funding - allocated to school budgets.

The Local Management of Schools (LMS) arrangements for the financing of schools were first introduced in 1991 and allow for the delegation of financial and managerial responsibilities to schools.

School budgets are determined by formula and delegated to the Boards of Governors of individual schools to meet the on-going costs of running their school. The management of a school's budget is then determined by the Board of Governors and Principal who are best placed to make decisions on relative priorities and the most effective use of resources in accordance with their school's needs.

From 1991 to 2004 there were seven different LMS formulae in use - operated by the five Education and Library Boards for controlled and maintained schools and by the Department for voluntary grammar and grant-maintained integrated schools.

From 1st April 2005, all grant-aided schools in Northern Ireland are funded under the arrangements set out in the Common Funding Scheme. The introduction of a single, common funding scheme, for all grant-aided schools in Northern.Ireland, followed comprehensive consultation exercises on the principles, rationale and initial proposals for a Common Funding Formula in April 2001 and in the Autumn of 2004 on the factors that might make up the initial Common Funding Scheme (see Common Funding Consultations).

The Common Funding Scheme does not alter the principles behind the Local Management of Schools. It does mean however, that all schools have their budgets calculated on a consistent, fair and transparent basis, ensuring that schools of similar size and characteristics receive similar funding regardless of their geographical location.

See Common Funding for more details.