The Local Government Changes for England (Finance) Regulations 1994

Funds of shadow authorities

16.—(1) Subject to paragraph (2), any sums received and payments made by a shadow authority during the preliminary period shall—

(a) where such an authority is to have the functions of a district council, be paid into and met from a fund to which the provisions of sections 91 and 92 (general funds) of the 1988 Act shall apply as if the authority were a relevant authority and as if in section 91(3) for “1 April 1990” there were substituted a reference to the beginning of the preliminary period and as if in section 91(4) and (5) for “31 March 1990” there were substituted a reference to the beginning of the preliminary period;

(b) where such an authority is to have the functions of a county council but not those of a district council, be paid into and met from a fund to which the provisions of section 148(4) of the 1972 Act (principal councils' funds and accounts) shall apply as if the authority were a council for a county.

(2) Any sums received and payments made during the preliminary period by a shadow authority as described in paragraph (1)(a) in respect of matters referred to in section 90 (payments to and from collection funds) of the 1988 Act shall be paid into and met from a fund to which the provisions of section 89 of the 1988 Act (collection funds) shall apply as if the authority were a billing authority and as if in section 89(2) for “April 1, 1990” there were substituted a reference to the beginning of the preliminary period.

(3) Section 148(5) of the 1972 Act shall apply to the funds described in paragraphs (1) and (2).

(4) On the reorganisation date assets held in the funds described in paragraphs (1)(a), (1)(b) and (2) shall be transferred respectively to the general fund of the authority, the county fund of the authority and the collection fund of the authority.