The Local Government Changes for England (Collection Fund Surpluses and Deficits) Regulations 1995

Relevant billing authority— audit adjustment

5.—(1) This regulation applies following the conclusion, in accordance with Part III of the Local Government Finance Act 1982(1), of the audit of the accounts for the immediately preceding year of a billing authority which is an abolished or relinquishing authority and in this regulation —

(a) “billing authority’s audited share” means an amount calculated by applying to the final surplus or deficit the formula in paragraph 6(2) of Part II of Schedule 2 to the Funds Regulations, where items B, C and D are as stated in that paragraph and item A is the final surplus or deficit, and

(b) “final surplus or deficit” means the surplus or deficit in the collection fund of the relevant billing authority for the immediately preceding year as shown in the final audited accounts of that authority for that year.

(2) This regulation shall not apply to the calculation of the audit amount or audit adjustment of a major precepting authority which is an abolished or relinquishing authority.

(3) The relevant billing authority shall, within one month of the conclusion of the audit referred to in paragraph (1) above, calculate the audit amount and the audit adjustment of—

(a) each transferee authority,

(b) each relevant major precepting authority which was such an authority in relation to the relevant billing authority for the immediately preceding year, and

(c) where the relevant billing authority is a relinquishing authority, itself,

and shall notify to each transferee authority, and each such relevant major precepting authority, its audit adjustment.

(4) For the purpose of paragraph (3) above—

(a) the audit amount—

(i) of a transferee or relinquishing authority, shall be a proportion of the billing authority’s audited share, which proportion shall, subject to paragraph (8) below, be the same as the proportion which the estimated amount of the transferee or relinquishing authority, as the case may be, calculated under regulation 4, bears to the billing authority’s estimated share, and

(ii) of a relevant major precepting authority referred to in paragraph (3)(b) above, shall be calculated by applying to the final surplus or deficit the formula in paragraph 6(4) of Part II of Schedule 2 to the Funds Regulations, where items B, C and D are as stated in that paragraph and item A is the final surplus or deficit, and

(b) subject to paragraphs (5) and (8) below, the audit adjustment —

(i) of a transferee or relinquishing authority, shall be calculated by deducting from the audit amount of that authority its estimated amount calculated under regulation 4, and

(ii) of a relevant major precepting authority referred to in paragraph (3)(b) above, shall be calculated by deducting from the audit amount of that authority its estimated amount, such amount being its share of any surplus, or part of any deficit, in relation to the estimate, and calculated by the relevant billing authority under the Funds Regulations in accordance with paragraph 6(4) of Part II of Schedule 2 to those Regulations.

(5) Each of the audit amounts and the estimated amounts referred to in paragraph (4)(b) above shall be expressed as a positive figure if a proportion of a surplus in the collection fund of the relevant billing authority and a negative figure if a proportion of a deficit, and the audit adjustment may be a positive or negative figure.

(6) Where the audit adjustment in relation to an acquiring authority, or a relevant major precepting authority, is a positive amount, the relevant billing authority shall pay that amount to the acquiring authority, or the relevant major precepting authority, as the case may be, and where the audit adjustment is a negative amount, the acquiring or relevant major precepting authority shall pay the relevant billing authority such amount, in either case in the year in which payment falls to be made as provided in regulation 8 and in a manner agreed between the relevant authorities.

(7) Subject to regulation 8, where the audit adjustment of a transferee authority, or a relinquishing authority, is a positive amount, the transferee authority or the relinquishing authority, as the case may be, shall transfer that amount from its collection fund to its general fund, and where the audit adjustment is a negative amount, the transferee authority, or the relinquishing authority, shall transfer that amount from its general fund to its collection fund.

(8) Where for the immediately preceding year there is no estimated surplus or deficit in the collection fund of the relevant billing authority—

(a) an authority’s audit adjustment shall be its audit amount, and

(b) for the purposes of paragraph (4)(a)(i) above the proportion to be used in the calculation of the audit amount of a transferee or relinquishing authority shall be calculated according to tax base in the same manner as the proportion of a billing authority’s estimated share is calculated under regulations 4(4) and (5).

(1)

1982 c. 32.