Each new authority shall keep a fund to be known as the general fund; and all receipts of the authority shall be carried to that fund and all liabilities falling to be discharged by the authority shall be discharged out of that fund.

Accounts shall be kept of receipts carried to, and payments made out of, the general fund.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nothing in subsection (1) above shall be construed as requiring or authorising an authority to apply or dispose of the surplus revenue arising from any undertaking carried on by it otherwise than in accordance with any enactment or instrument applicable to the undertaking.

Each new authority shall make arrangements for the proper administration of its financial affairs and shall secure that one of its officers has responsibility for the administration of those affairs.

Subsection (1) above applies to any F9billing authority in the area for which the residuary body in question is established and to any new authority established for (or for an area which includes or is included in) that area.

A residuary body may in any financial year distribute among F9the billing authorities in the area for which it is established any money (other than capital money) for the time being in the hands of that body; and any such distribution shall be in the same proportions as those that would apply to a levy made by it on those authorities in respect of that year.

In this section “capital money” means money of such description as may be specified for the purposes of this section by an order made by the Secretary of State F9and references in this section to a billing authority shall be construed as references to an authority, other than the Council of the Isles of Scilly, which is a billing authority for the purposes of Part I of the Local Government Finance Act 1992..