137Claims etc
(1)Subsidy under section 135 above shall not be payable to an authority until either—
(a)they have made a claim for it in such form as the Secretary of State may determine; or
(b)if they have not made such a claim, the amount of subsidy payable to them (apart from subsection (6) below) has been estimated under subsection (3) below.
(2)The Secretary of State may withhold from an authority so much of any subsidy under section 135 above as he thinks fit until either—
(a)the authority has supplied him with prescribed particulars relating to their claim for subsidy and complied with prescribed conditions as to records, certificates, audit or otherwise; or
(b)he is satisfied that there is a good reason for the authority’s failure to supply those particulars or comply with those conditions.
(3)If an authority has not—
(a)made a claim for subsidy;
(b)supplied the prescribed particulars referred to in paragraph (a) of subsection (2) above; or
(c)complied with the prescribed conditions referred to in that paragraph,
within the prescribed period, then the Secretary of State may estimate the amount of subsidy payable to them (apart from subsection (6) below) and employ for that purpose such criteria as he considers relevant.
(4)If the Secretary of State considers it reasonable to do so in any particular case, he may give the authority in question written notice extending any of the periods prescribed under subsection (3) above for the purposes of paragraph (a), (b) or (c) of that subsection, as the case may be.
(5)If an authority fails to make a claim for subsidy within such period as the Secretary of State considers reasonable, he may withhold from them such part of the subsidy as he thinks fit for so long as he thinks fit.
(6)Where the amount of subsidy paid to an authority for any year is found to be incorrect, the amount payable to them for any subsequent year may be adjusted for the purpose of rectifying that mistake in whole or in part.