R2-11

The Secretary of State for Education and Employment should re-examine the practice of appointing vice-chancellors and principals of English institutions to the board of HEFCE to determine whether an alternative exists, which avoids perceived conflicts of interest, and to ensure that existing rules protect against any potential conflict of interest as the council is presently constituted. Grant-maintained schools Grant maintained schools are schools in which responsibility for budgets, staff appointments, pay and the ability to shape the overall aims and policy of the school - previously vested in representatives of local authorities - have been transferred to voluntary governors, whether appointed or elected, of individual schools. In England financial oversight is the responsibility of the Funding Agency for Schools; in Scotland and Wales it remains directly with the Government. It is important that systems are in place to minimise the risk of problems arising in grant- maintained schools and to enable their swift resolution, although on the evidence put to us, such problems as have occurred appear only to have been isolated incidents. We note that three bodies, the DfEE, OFSTED and FAS, are involved in issues of school governance. We believe that it is necessary for the Secretary of State to clarify the roles of these bodies, and to delegate casework wherever possible. Amendments are needed to the methods and terms of appointment of governors to ensure that they meet best practice and no one group can exercise undue influence.