1. Legal Division
Legal Risks for Business Managers, School Councils, & Principals
Presentation by River McKenzie
Principal Lawyer and Manager, Commercial and Property Law Unit

2. Introduction The Legal Division
Issue 1
The Legal Division
Issue 2
Legislative and regulatory framework for principals, business managers, school councils
Issue 3
Conflict of Interest
Issue 4
Privacy and online services
Issue 5
Schools’ Procurement and contracting
Issue 6
Questions

3. When you need legal advice
us at also check out our SPAG –School Policy & Advisory Guides on the Legal Division Website

4. Issue 1: Responsibilities Business Managers

5. Issue 1: Responsibilities School Councils
School Council becomes body corporate from date of constitution (2.3.2(4))

6. Issue 1: Responsibilities School Councils
Constitution (2.3.2)
School Council becomes body corporate from date of constitution (2.3.2(4))
Functions (2.3.5)
Broad power to:
Arrange for supply of goods, services, facilities etc. for schools/preschool programs (2.3.5(b));
Ensure school buildings/grounds are kept in good order and condition (2.3.5(e))
Powers (2.3.6)
Enter into contracts/agreements;
Grant licence to school lands/buildings
Do not have power to:
Purchase/acquire land or buildings (2.3.6(3)(b))
Governance
Strategic Planning
Finance
Policy and Review

8. ‘conflict of interest’ is a situation where a conflict arises between public duty and private interest. i.e. where a public officer could be influenced, or reasonably perceived to be influenced, by a private interest when performing an official function.
A conflict of interest is not in itself improper conduct in itself. However, not recognising a conflict, or failing to manage a conflict appropriately, can undermine public confidence in an organisation and lead to improper conduct.
Conflict

9. Privacy and Online Services
Privacy and Data Protection Act 2014 (Vic) applies to schools
Is the service accessed via a portal or is software downloaded into the school’s digital local network?
Where are the servers located?
Privacy of student, teacher and parental information
Obtain informed consent in writing

10. Purchasing and Contracts – Top Tips
Going to Market
Directly, Expression of Interest (EoI), Tender – Seel advice from Schools Procurement
Avoid conflicts of interest, treat all potential vendor the same
Due Diligence – what would people reasonably expect before you engaged them
Be careful – do not accept any commissions or other benefits (Gifts, Benefits and Hospitality Policy)
REMEMBER:
schools don’t enter into contracts, School Councils do. Make sure the School Council also understands they are the decision maker and provide them with the appropriate amount of information
School Councils are separate legal entities
there are limits on the types of contracts that school councils can enter into
Purchasing Templates
%20Purchasing%20Goods%20or%20Services.aspx

11. Contract Management Using service provider contracts
automatic renewal clauses. A clear and express right for school council to terminate either immediately or after a period of time solves a lot of problems
avoid Indemnities. An indemnity is a contractual promise to pay that tends to be unlimited in its reach
sight supplier certificates of insurance
ensure service description and prices are clearly defined (usually found in schedules)
avoid personal guarantees
termination fees
the laws of another state apply
Finance Manual for Government Schools
information on purchasing thresholds and issuing of purchase orders
School Policy Advisory Guide
information regarding School Councils and Contractors and Purchasing

12. Questions?