Further Education Act 1985

3 Financial and accounting provisions

(1) Loans under this Act shall carry interest at a rate not less than such rate as may be determined by the Secretary of State with the consent of the Treasury.

(2) Without prejudice to the generality of subsection (1) above a rate may be determined in relation—

(a) to all loans under this Act; or

(b) to loans under this Act of a particular category,

and a determination may be made by reference to a rate specified by or under any other statutory provision or a rate ascertainable by such other means as the Secretary of State may with the consent of the Treasury specify.

(3) Before determining a rate the Secretary of State shall consult such bodies representing local education authorities as appear to him to be concerned and any local education authority with whom consultation appears to him to be desirable.

(4) In addition to any accounts or statements of account which they are required to keep by virtue of section 23 of the [1982 c. 32.] Local Government Finance Act 1982 a local education authority who exercise powers under this Act shall in respect of their exercise—

(a) keep—

(i) a general revenue account; and

(ii) such other accounts as the Secretary of State may direct; and

(b) prepare such statements of account as he may direct.

(5) Any revenue account kept by an authority under this section and any statement of account prepared by an authority under this section shall show the full cost to the authority of goods or services which are supplied under this Act and which are relevant to that account or statement.

(6) A local education authority shall use their best endeavours to secure that at the end of every year any revenue account kept by them under this section and relating to that year is in surplus.

(7) Income and expenditure attributable to the supply of goods or services in circumstances such as are mentioned in section 2(4) above are to be disregarded for the purposes of subsection (6) above, whether or not the goods or services are supplied for less than their open market value.

(8) If at the end of any year any revenue account kept by a local education authority under this section is in deficit, the amount of the deficit shall be charged—

(a) to the extent that the deficit is attributable to a particular establishment, to any fund set up by the authority for the sole purpose of meeting expenditure in relation to that establishment in connection with the authority's functions under this Act or their other functions as a local education authority;

(b) subject to paragraph (a) above, to any general fund set up by the authority for the sole purpose of meeting expenditure in connection with their functions under this Act or their other functions as a local education authority; and

(c) subject to paragraphs (a) and (b) above, to their rate fund.

(9) Without prejudice to the generality of this section, the powers conferred upon the Secretary of State by this section may be exercised separately and differently as respects England and Wales.

(10) In this section—

• " rate fund "—

  (a)

  in relation to the Inner London Education Authority, means any fund for which a precept is issued by the Greater London Council; and

  (b)

  in relation to any other local education authority, means the county fund or general rate fund; and

• " year " means a period of twelve months ending with 31st March.