Charlie McConalogue (Donegal North East, Fianna Fail)
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73. To ask the Minister for Education and Skills the guidelines offered by his Department to assist schools in managing their finances with particular regard to managing an on going deficit in view of the fact that following reductions to the capitation and ancillary grants together with the removal of the minor works grant has meant that many schools are in debt (details supplied); and if he will make a statement on the matter. [43478/13]

Charlie McConalogue (Donegal North East, Fianna Fail)
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74. To ask the Minister for Education and Skills if he considers it appropriate that the burden of meeting financial shortfalls in the running of a school the responsibility of a school's board of management when the funding provided by his Department is insufficient in the first instance and secondly the board of management members are there in a voluntary capacity; and if he will make a statement on the matter. [43480/13]

Ruairi Quinn (Dublin South East, Labour)
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I propose to take Questions Nos. 73 and 74 together.

Section 15 of the Education Act, 1998 requires the Board of Management, in carrying out its functions, to have regard to the efficient use of resources, and in particular, the efficient use of state funds. Boards of primary schools therefore have a statutory duty to ensure that appropriate systems and procedures are in place to ensure school resources, including grants, staffing and other resources, are managed properly and efficiently and in a manner that provide for accountability to the relevant parties.

The "Constitution of Boards and Rules of Procedure 2011" which was issued by the Department in September 2001, set out the role and responsibility of Boards of Management of primary schools. That publication includes guidance for Boards in relation to finance, grants payments, insurance, accounting practice and budgeting.

As the Deputy is aware Budget 2012 provided for a 2% reduction in the funding for capitation and related grants to primary schools in both 2012 and 2013 and a further 1% in 2014 and 2015.

Due to my decision to retain posts from previous disadvantage schemes in DEIS Band 1 and Band 2 primary schools, it was necessary to generate alternative savings within the primary education budget. This was achieved in 2012 by bringing forward 1.5% of the 2% reduction in overall capitation funding originally scheduled for this year.

Given the extremely difficult economic circumstances that this country is facing and the fact that every Department has had to find considerable cost-savings, all expenditure must be examined to see if cost-savings can be found. In that context, I cannot give the Deputy any measure of assurance in relation to primary capitation rates.