16.—(1) This regulation applies in the case of a school which becomes a grant-maintained school after 1st April in the financial year in question.
(2) In any case to which this regulation applies the amounts to be added together for the purpose of determining the amount of maintenance grant payable in respect of the school under regulation 5 shall include an amount determined in accordance with paragraph (3).
(3) The funding authority, having consulted the former maintaining local education authority and the governing body of the school, shall determine such amount, if any, as appears to them to be fair and reasonable, being all or part of any sum deducted from the school’s budget share for the financial year in question by the maintaining local education authority in respect of any deficit incurred by the school in respect of its budget share in any previous financial year, having regard. in particular, to the following matters—
(a)the existence and the terms of any agreement in writing between the governing body of the school and the maintaining local education authority regarding the repayment of such deficit;
(b)the existence in the relevant scheme of provision permitting schools to anticipate their budget shares for the following year in order to finance planned items of expenditure; and
(c)evidence that the maintaining local education authority took steps to reduce schools' budget shares where deficits have occurred and did not allow schools to carry over deficits from one year to the other with no planned reduction.