What powers does the founder have to control the activities of an educational institution, and how can these be organised effectively?
- 7 days ago
- 8 min read
«Why does the founder of an educational institution play a key role in ensuring its stable, legitimate, and high-quality functioning?»
When working with communities, we frequently encounter a widespread view held by both school administrators and staff at education authorities: the founder is responsible for ensuring the functioning of educational institutions, but does NOT have the right to exercise control over them.
This view raises a number of practical questions. Is it really the case that only authorised state bodies may carry out inspections of educational establishments? Does the education authority of a community have the right to control the activities of the establishments under its jurisdiction? In which legislative acts are the founder’s powers to exercise control enshrined?
Firstly, it should be noted that the relationship between local governments and legal entities owned by the relevant communities is based on the principles of subordination, accountability, and controllability to local governments (Article 17 of the Law of Ukraine “On Local Self-Government in Ukraine”).
In the context of decentralisation, the founder of an educational institution plays a key role in ensuring its stable, lawful, and high-quality functioning. In compliance with Article 25 of the Law of Ukraine “On Education”, the founder ensures the maintenance and development of the educational institution and its material and technical base, and also exercises control and management functions within the limits of their powers. At the same time, the founder has no right to interfere in the activities of the educational institution carried out within the scope of its autonomy, as defined by law and its founding documents.
Important note! The autonomy of an educational institution implies freedom in management decisions; however, such freedom is exercised within clearly defined legal boundaries and does not preclude control by the founder in areas falling within its responsibility.
It is important to emphasise that the founder’s control is not the same as inspecting the educational process. It does not involve checking lessons or interfering with the work of teachers. The founder’s control relates to the exercise of their managerial and property-related powers and is aimed to ensure that the educational institution:
operates in conformity with its founding documents;
complies with the requirements of the law in the areas for which the founder is responsible;
ensures the conditions for meeting licensing requirements;
ensures the proper management of the community’s property and local budget funds.
The law does not establish a single, universal mechanism for the founder’s control over the activities of an educational institution. Instead, control powers are exercised in specific areas defined by legislation.
Let us now consider the main areas of such control.
MAIN AREAS OF CONTROL
I. Control over conformity with the founding documents
Legal justification:
Article 23 of the Law of Ukraine “On Education” (autonomy is exercised within the limits defined by law and the founding documents).
The essence of control
The founder ensures that the activities of the educational institution:
comply with its charter;
are carried out in compliance with the requirements of the law;
complied with the founder’s decision, adopted within the scope of its powers;
did not create any risks of breaching the licencing conditions.
The state is responsible for controlling compliance with the licencing conditions. Meanwhile, in exercising its managerial powers, the founder has an interest in ensuring that the activities of the educational institution meet the requirements necessary for the stable provision of educational services.
Tools of control
Analysis of founding and internal documents
The founder has the right to control the compliance of the charter of the educational institution with current legislation. At the same time, legal expertise and the approval of the charter fall within the powers of the council, so such control must be exercised at the stage of the adoption of the document. The founder may also verify that the internal regulations of the institution (on structure, branches, fee-paying services, or other matters) do not conflict with the charter or legislation.
Hearing reports from the school principal
The founder may require the principal to provide regular management reports and analyse whether the activities of the educational institution are conducted within the powers defined by the charter and the contract. This constitutes management control, not control over the educational process.
Control over the implementation of the founder’s decisions
The founder has the right to make decisions within the scope of its powers and to control their implementation, or to receive substantiated information on the reasons for non-implementation. This is a fundamental function of a governing body.
II. Financial and operational control by the founder
Legal justification:
Article 25 of the Law of Ukraine “On Education”;
Budget Code of Ukraine;
Law of Ukraine “On Accounting and Financial Reporting in Ukraine”;
Please note that Article 25 of the Law of Ukraine “On Education” defines the founder’s powers in the sphere of financial and economic control, whilst it does not contain any explicit provision on the management of the property of an educational institution.
The founder’s powers with regard to property derive from other provisions of legislation, in particular from the provisions on the management of community property.
In this respect, the founder acts as the owner of the property of the community and the administrator of budgetary funds, rather than as a participant in the educational process.
The essence of control
The founder exercises control, within the limits of its powers, to ensure that:
budgetary funds are used for their intended purpose and efficiently, and that compliance with the requirements of budgetary legislation is ensured during their use;
the property of the community, allocated to the educational institution, is preserved, properly accounted for and used for its intended purpose;
the financial decisions of the institution are well-founded and transparent;
the financial and operational activities of the institution do not pose any risks to its stable and uninterrupted operation.
Tools of control
Control through budgetary procedures
The founder approves the budget of the educational institution, taking into account their proposals; analyses whether the planned expenditure complies with the requirements of budgetary legislation and whether the financial indicators are realistic; and monitors any amendments made to the budget. Such control is preventive in nature and aims to prevent breaches at the planning stage.
Analysis of financial and accounting reports
The founder has the right to receive and analyse financial, budgetary, and accounting reports, as well as information on the use of educational subsidies and funds from local programmes. The purpose of such an analysis is to identify overspending, inefficient use of funds, or breaches of financial discipline. The analysis of reports does not constitute interference in the daily management of the educational institution.
Control over the management of the property of the community
The founder controls the record-keeping and preservation of property assigned to the educational institution, approves the transfer of property for use and the write-off of fixed assets in cases specified by law, and may also initiate an inventory check. One of the control tools in the management of community property may be the hearing of reports from the heads of legal entities owned by the community. This power falls within the scope of the executive bodies of local governments and is used to assess the efficiency of property use, financial discipline, and the performance of community institutions.
Control over personnel decisions in financial matters
The founder endorses (rather than approves) the staffing plan and may also assess the impact of personnel decisions on the financial capability and operational stability of the educational institution when reviewing financial plans, staffing plans or reports.
Internal financial control
Such control is exercised within the scope of managerial responsibility and does not take the form of ongoing or comprehensive audits. The founder may initiate internal checks where there are substantiated risks or following the results of enquiries and analysis of financial statements, involving the relevant financial departments. This does not refer to ongoing audits, but rather to control exercised within the scope of managerial responsibility.
III. Control over the creation of a safe, healthy, and inclusive educational environment
Legal justification: Article 25 of the Law of Ukraine “On Education”.
In compliance with Article 25 of the Law of Ukraine “On Education”, the founder ensures and controls the creation of a safe, healthy, and inclusive educational environment at the educational institution, including conditions that apply the principles of universal design and reasonable adjustments.
In this respect, the founder’s control is directed at the conditions for the realisation of the right to education and does not concern the content of the educational process, teaching methods or the academic autonomy of the educational institution.
The essence of control
The founder exercises control to ensure that appropriate conditions are established and maintained at the educational institution, which:
ensure the physical, psychological, and digital safety of those involved in the educational process;
comply with health and safety, fire safety, and industrial safety requirements;
guarantee the accessibility of the educational environment for people with special educational needs;
prevent any threats to the life, health, and dignity of those involved in the educational process.
Tools of control:
Control over the condition of buildings and premises
The founder controls the technical condition of the buildings, structures, and territories of the educational establishment, in particular ensuring that the premises comply with safety requirements, health standards, and accessibility standards for people with reduced mobility.
Control over compliance with safety requirements
The founder controls compliance with occupational health and safety, fire safety, industrial safety, sanitary and digital security requirements at the educational institution within the limits of its powers.
Provision of funding for safety measures
Within the limits of its budgetary powers, the founder ensures the funding of measures aimed to eliminate hazardous conditions, modernise infrastructure, and bring the educational environment into line with legal requirements.
Control over the creation of an inclusive educational environment
The founder is responsible for ensuring the accessibility and proper organisation of inclusive or special education, in particular by creating conditions for people with special educational needs in compliance with the law.
IV. Control over compliance with the principle of non-discrimination and equal access to education
Legal justification: Article 25 of the Law of Ukraine “On Education”.
In compliance with Article 25 of the Law of Ukraine “On Education”, the founder ensures and controls compliance in the educational institution with the principle of non-discrimination and equal access to education.
The essence of control
The founder ensures that, in the activities of the educational institution:
there is no discrimination on any grounds specified by law;
equal access to education is guaranteed for all learners;
internal procedures and management decisions do not create unjustified restrictions or privileges.
Tools of control:
Analysis of local regulatory acts
The founder analyses the local regulatory acts of the educational institution (rules on admission, transfer and expulsion, as well as internal regulations) to ensure they comply with the principle of non-discrimination and the requirements of the law.
Responding to enquiries and complaints
If there are any enquiries or complaints about possible instances of discrimination, the founder shall respond within the scope of their powers, including by initiating investigations and taking management decisions aimed to eliminate the identified breaches.
How can a founder organise control effectively?
Control that is clearly anchored in legislation ensures that the powers of the founder are exercised legitimately and minimises the risk of those powers being exceeded.
The law does not specify the frequency, duration or procedures for the founder to exercise control over the activities of educational institutions. However, in order to ensure transparency, predictability, and impartiality in the control measures, the founder would be well advised to establish clear rules for the exercise of such powers.
To organise control effectively, the following measures are advisable:
to establish regulatory frameworks for control procedures, including the areas covered by control, the frequency of such procedures, and the forms of reporting;
to clearly distinguish between control and the operational management of the activities of the educational institution;
to ensure transparency and the documented recording of the results of control measures;
to include control measures in the work plan of the education governing body, specifying their objectives, forms, and timelines.
Control by the founder is not an inspection of the educational process, nor is it interference in the work of teaching staff. It is the local authority’s managerial responsibility to ensure that the educational institution operates within the law, in compliance with its own charter, and whilst respecting the rights and legitimate interests of learners.
The DECIDE project is implemented by NGO DOCCU and PHZH International Projects in Education with the support of the Embassy of Switzerland in Ukraine.