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New Regulations for Private Schools

New Regulations for Private Schools
Private education holds an increasingly significant role in the Egyptian educational system, especially as the quality of public education continues to deteriorate (Egypt ranked 141 out of 148 nations worldwide in the 2014 World Competitiveness Report). Aside from its social benefit, private education has become a major sector in Egypt’s economy. As the number of private schools has increased in the past several years, various decisions have been issued to organise the sector, the most recent of which are Decision No. 420 concerning private education ("Decision 420"),[1] and Decision No 422 concerning international schools ("Decision 422").[2] Recent changes indicate that the Government wishes to take a more proactive role in the supervision and regulation of private schools. The two Decisions reflect this, especially from a financial standpoint, but at the same time offer the owners of private schools greater flexibility in some areas through changes in the administrative practice. For instance, Decision 420 prohibits the imposition of additional fees (for example for scheduling meetings or withdrawal of a student’s file), unless agreed upon by the Education Administration. This should be read together with a previous Ministerial Decision issued in August 2014, which limited the amount of fee increase chargeable by private schools; the new Decision 420 follows in this vein by limiting the amount of fees chargeable for annual tuition, allowing schools to request increases in tuition once every five years rather than once every three. All increases will be made based on fixed categories set by the Minister of Education, and must be approved by several authorities as well as the Minister. With regards to financial matters, the new Decision 420 obligates the managers of private schools to have two separate bank accounts in the name of the school, either with one of the national banks or the post office. All of the school’s funds will be channeled through these two accounts; one will be for the school’s expenditures and the other for school activity fees. Only the manager or another individual as set out by the school’s internal regulations will be allowed to withdraw funds from these accounts. The new Decision 420 has also determined the manner of private schools’ record-keeping. Schools must now keep books for all income and expenditure in a more detailed way than prescribed in the previous regulations. Schools must also submit a budget statement every August, as well as a final financial statement every December.
Licensing of Private Schools
Regarding licensing, Decision 420 stipulates that the direct approval of the Minister of Education must be obtained for a school to obtain license. This departs from previous practice which only required the approval of the Educational Directorate. Moreover, engineering drawings for the school will have to be reviewed by the General Authority for Educational Buildings, which will determine whether the number of classrooms and their capacity is sufficient.
Increasing the flexibility of private school administration
Decision 420 requires the owner of a private school to be a juristic person holding Egyptian citizenship, capable of satisfying all of the school’s financial needs. However, the Decree removes the stipulation that the main objective of the owner cannot be the realisation of profits, replacing it with a provision that the owner’s objective cannot be commercialisation or exploitation. Decision 420 does reiterate the owner’s right to 15% of the school’s revenues, the same amount guaranteed by the previous decision. While the previous decision had determined the organisational structure of private schools in detail – including the number of managers, agents, and specialists, with regards to the size of the school and number of its classrooms – Decision 420 grants greater flexibility. There is now a minimum standard, which all private schools must abide by; all schools must have a manager, an agent, a teaching standards authority, a central finance administration, and a sufficient number of employees, all in accordance with the regulations of public schools. However, the Decree does not delve into the further details about staff number and organization. Decision 420 also sets out several amendments regarding workers in private schools. Workers cannot have more than one day’s pay deducted without an investigation and a hearing, and cannot have their employment contract terminated merely on the basis of below average performance. It is to be noted that in cases of violations of Decision 420, a panel for private education affairs from the Educational Directorate shall place the violating school under financial, administrative, and general management supervision until the matter is resolved.
Mandate, International Schools and Consequences of Violation
According to Decision 420, a private school is any non-governmental entity whose aim – either wholly or partially – is to educate, professionally develop, or train in the arts, in exchange for money consideration. Decision 420 exempts those entities set up by foreign nations for the teaching of non-Egyptians, centers and institutes founded by international agreements, and the international schools mentioned in the Minister of Education’s Decision 422. While Decision 420 largely keeps in place the provisions of its predecessor, it stipulates significant new licensing requirements, particularly regarding buildings and the interactions between the schools and the General Authority for Educational Buildings. Finally, Decision 420 provides for amendments of the textbooks used by the private schools. Decision 420 repeals Decision No. 449 of 2013 organising private education, and allows all private schools a grace period of six months in which they can amend their internal regulations to conform to the new Decree’s requirements. The amendments must be made within this school-year however, and must be delivered to the relevant authorities for review.
Conclusion
There is no doubt that investment in private schools has become a major area of investment in services in Egypt, and one where significant profits are made. Due to the “public good” nature of this service, it is understandable that the state should be significantly involved in its supervision. However, the two new decrees referred to above show the persistence of confusion with respect to the state’s intervention in this sector. While the state intervenes excessively in some areas, other aspects of private education remain unchecked. There needs to be a comprehensive review of the policy objectives of state intervention before more decrees are issued.   [1] Minister of Education's Decision No. 420/2014 on Private Education, Egyptian Gazette, Issue No. 222 (cont.), 29 September 2014. [2] Decision of the Ministry of Education No. 422/2014 on International Schools, Egyptian Gazette, Issue No. 223 (cont.), 30 September 2014.
Private education holds an increasingly significant role in the Egyptian educational system, especially as the quality of public education continues to deteriorate (Egypt ranked 141 out of 148 nations worldwide in the 2014 World Competitiveness Report). Aside from its social benefit, private education has become a major sector in Egypt’s economy. As the number of private schools has increased in the past several years, various decisions have been issued to organise the sector, the most recent of which are Decision No. 420 concerning private education ("Decision 420"),[1] and Decision No 422 concerning international schools ("Decision 422").[2] Recent changes indicate that the Government wishes to take a more proactive role in the supervision and regulation of private schools. The two Decisions reflect this, especially from a financial standpoint, but at the same time offer the owners of private schools greater flexibility in some areas through changes in the administrative practice. For instance, Decision 420 prohibits the imposition of additional fees (for example for scheduling meetings or withdrawal of a student’s file), unless agreed upon by the Education Administration. This should be read together with a previous Ministerial Decision issued in August 2014, which limited the amount of fee increase chargeable by private schools; the new Decision 420 follows in this vein by limiting the amount of fees chargeable for annual tuition, allowing schools to request increases in tuition once every five years rather than once every three. All increases will be made based on fixed categories set by the Minister of Education, and must be approved by several authorities as well as the Minister. With regards to financial matters, the new Decision 420 obligates the managers of private schools to have two separate bank accounts in the name of the school, either with one of the national banks or the post office. All of the school’s funds will be channeled through these two accounts; one will be for the school’s expenditures and the other for school activity fees. Only the manager or another individual as set out by the school’s internal regulations will be allowed to withdraw funds from these accounts. The new Decision 420 has also determined the manner of private schools’ record-keeping. Schools must now keep books for all income and expenditure in a more detailed way than prescribed in the previous regulations. Schools must also submit a budget statement every August, as well as a final financial statement every December.
Licensing of Private Schools
Regarding licensing, Decision 420 stipulates that the direct approval of the Minister of Education must be obtained for a school to obtain license. This departs from previous practice which only required the approval of the Educational Directorate. Moreover, engineering drawings for the school will have to be reviewed by the General Authority for Educational Buildings, which will determine whether the number of classrooms and their capacity is sufficient.
Increasing the flexibility of private school administration
Decision 420 requires the owner of a private school to be a juristic person holding Egyptian citizenship, capable of satisfying all of the school’s financial needs. However, the Decree removes the stipulation that the main objective of the owner cannot be the realisation of profits, replacing it with a provision that the owner’s objective cannot be commercialisation or exploitation. Decision 420 does reiterate the owner’s right to 15% of the school’s revenues, the same amount guaranteed by the previous decision. While the previous decision had determined the organisational structure of private schools in detail – including the number of managers, agents, and specialists, with regards to the size of the school and number of its classrooms – Decision 420 grants greater flexibility. There is now a minimum standard, which all private schools must abide by; all schools must have a manager, an agent, a teaching standards authority, a central finance administration, and a sufficient number of employees, all in accordance with the regulations of public schools. However, the Decree does not delve into the further details about staff number and organization. Decision 420 also sets out several amendments regarding workers in private schools. Workers cannot have more than one day’s pay deducted without an investigation and a hearing, and cannot have their employment contract terminated merely on the basis of below average performance. It is to be noted that in cases of violations of Decision 420, a panel for private education affairs from the Educational Directorate shall place the violating school under financial, administrative, and general management supervision until the matter is resolved.
Mandate, International Schools and Consequences of Violation
According to Decision 420, a private school is any non-governmental entity whose aim – either wholly or partially – is to educate, professionally develop, or train in the arts, in exchange for money consideration. Decision 420 exempts those entities set up by foreign nations for the teaching of non-Egyptians, centers and institutes founded by international agreements, and the international schools mentioned in the Minister of Education’s Decision 422. While Decision 420 largely keeps in place the provisions of its predecessor, it stipulates significant new licensing requirements, particularly regarding buildings and the interactions between the schools and the General Authority for Educational Buildings. Finally, Decision 420 provides for amendments of the textbooks used by the private schools. Decision 420 repeals Decision No. 449 of 2013 organising private education, and allows all private schools a grace period of six months in which they can amend their internal regulations to conform to the new Decree’s requirements. The amendments must be made within this school-year however, and must be delivered to the relevant authorities for review.
Conclusion
There is no doubt that investment in private schools has become a major area of investment in services in Egypt, and one where significant profits are made. Due to the “public good” nature of this service, it is understandable that the state should be significantly involved in its supervision. However, the two new decrees referred to above show the persistence of confusion with respect to the state’s intervention in this sector. While the state intervenes excessively in some areas, other aspects of private education remain unchecked. There needs to be a comprehensive review of the policy objectives of state intervention before more decrees are issued.   [1] Minister of Education's Decision No. 420/2014 on Private Education, Egyptian Gazette, Issue No. 222 (cont.), 29 September 2014. [2] Decision of the Ministry of Education No. 422/2014 on International Schools, Egyptian Gazette, Issue No. 223 (cont.), 30 September 2014.