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(1)As soon as practicable after the end of each financial year each water authority shall ascertain the actual amount of their qualifying expenses for that year in respect of each local land drainage district in their area and shall determine whether and (if so) how far the aggregate amount for which precepts have been issued by them for that year to the relevant local authorities exceeds or falls short of the actual amount of the qualifying expenses.
(2)If it is determined under subsection (1) above, in respect of any local land drainage district, that there is an excess or a deficiency in respect of any local land drainage district the amount thereof shall be brought forward to the financial year following that in which the determination is made or (at the option of the water authority) the next financial year after that following financial year and shall be deducted (if an excess) or added (if a deficiency) in ascertaining the qualifying expenses in respect of that district for the financial year to which it is brought forward.
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