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Part IE+W+S Further education

Chapter IIE+W+S Institutions within the further education sector

Property, rights and liabilities: generalE+W+S

37 Attribution of surpluses and deficits.E+W

(1)This section applies where, immediately before the date on which any educational institution becomes an institution within the further education sector—

(a)it is maintained by a local education authority, F1...

F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and in the financial year ending immediately before that date (referred to in this section as the “relevant financial year”), the institution was covered by a scheme under [F2section 48 of the School Standards and Framework Act 1998 (LEAs’ financial schemes)]; and in this section, in relation to the institution, the scheme is referred to as the “applicable scheme” and the authority concerned as the “assisting authority”.

(2)If the net expenditure of the institution for the relevant financial year is less than the net budget share of the institution for that year, the assisting authority shall pay to the new governing body of the institution a sum equal to the shortfall.

(3)If the net expenditure of the institution for the relevant financial year is greater than the net budget share of the institution for that year, the new governing body of the institution shall pay to the assisting authority a sum equal to the excess.

(4)In this section, in respect of any financial year of the institution—

(5)Any sum payable under this section shall be paid in accordance with regulations, and the regulations may provide for sums to be payable by prescribed instalments and for sums to carry prescribed interest.

(6)Regulations may, in the case of any institution where the operative date falls within a financial year in which the institution was covered by such a scheme as is referred to in subsection (1) above, make provision for applying this section with modifications relating to the amounts that are to be taken for the purposes of this section to be the net budget share and the net expenditure of the institution for that year.

(7)In this section, in respect of any financial year of the institution—

(8)In this section—

F5(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)prescribed” means prescribed by regulations.

F6(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1S. 37(1)(b) and preceding word repealed (6.11.2006 for E., 2.1.2008 for W.) by Education Act 2002 (c. 32), s. 216(4), Sch. 21 para. 15(a), Sch. 22 Pt. 3 (with ss. 210(8), 214(4)); S.I. 2006/2895, art. 2; S.I. 2007/3611, Sch. Pt. 1

F2Words in s. 37(1) substituted (1.9.1999) by 1998 c. 31, s. 140(1), Sch. 30 para. 40(a) (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch.1.

F3Words in s. 37(7) substituted (1.9.1999) by 1998 c. 31, s. 140(1), Sch. 30 para. 40(b) (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch.1.

F4Words in s. 37(7) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 110(3)(b) (with ss. 1(4), 561, 562, Sch. 39)

Modifications etc. (not altering text)

C1S. 37(2)(3) modified (1.4.1993) by S.I. 1993/563, art. 2, Sch. 1

S. 37 applied (with modifications) (1.9.1993) by S.I. 1993/1977, regs. 3, 4; (1.8.1995) by S.I. 1995/1453, regs. 3, 4(1); (1.8.1996) by S.I. 1996/1766, regs. 3, 4(1)

C2S. 37(4)(7) applied (with modifications) (1.8.1995) by S.I. 1995/1453, regs. 3, 4(1); (1.8.1996) by S.I. 1996/1766, regs. 3, 4(1)

Commencement Information

I1S. 37 wholly in force at 1.4.1993 see s. 94(3) and S.I. 1992/831, art. 2, Sch. 3