EDUCATION, ENGLAND AND WALES PART 1 GENERAL Citation and Commencement 1 These Regulations may be cited as the Education (Grant-maintained Schools) (Finance) Regulations 1993 and shall come into force on 1 April 1993. Interpretation 2 1 In these Regulations, except where the context otherwise requires— “ the Act ” means the Education Reform Act 1988; “the 1989 Regulations ” means the Education (Grant-maintained Schools) (Finance) Regulations 1989 ; “the 1990 Regulations ” means the Education (Grant-maintained Schools) (Finance) Regulations 1990 ; “the 1991 Regulations ” means the Education (Grant-maintained Schools) (Finance) Regulations 1991 ; “the 1992 Regulations ” means the Education (Grant-maintained Schools) (Finance) Regulations 1992 ; and “school” means a grant-maintained school (within the meaning of the Act) situated in England. 2 The following table shows provisions defining or otherwise explaining expressions used in these Regulations (other than provisions defining or explaining an expression used only in the same regulation or Schedule), references in the second column thereof to sections and regulations being, respectively, references to sections of the Act and regulations of these Regulations— aggregated budget section 33(4)(b) allocation formula section 38(2) capital grants section 79(3)(b) change in the characteristics of the school regulation 5(10) delegated budget section 33(6)(b) financial year section 235(1) financial year in question regulation 4(3) former maintaining authority sections 74(8) and 104(1)(i) and (6) general schools budget section 33(4)(a) incorporation date section 104(3) maintenance grant section 79(1) preceding financial year regulation 6(5) relevant date regulation 15(7) relevant expenditure regulation 13(3) relevant percentage regulation 8(2) scheme section 51(2)(a) school’s budget share section 51(2)(b) special purpose grants section 79(3)(a). 3 Unless the context otherwise requires, any reference in these Regulations to— a a numbered regulation or Schedule is a reference to the regulation or Schedule in these Regulations so numbered, and b a numbered paragraph is a reference to the paragraph so numbered in the regulation or Schedule in which the reference appears. Revocation and transitional provisions 3 1 The 1992 Regulations are hereby revoked. 2 Notwithstanding the provisions of these Regulations, a the 1989 Regulations shall continue to apply for the purposes of— i determining, apportioning and redetermining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for the financial year ending on 31 March 1990, and ii determining (and revising) the total amount of maintenance grant which the Secretary of State may recover from the former maintaining authority of a school in respect of that year; b the 1990 Regulations shall continue to apply for the purposes of— i determining, apportioning and redetermining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for the financial year ending on 31 March 1991, and ii determining (and revising) the total amount of maintenance grant which the Secretary of State may recover from the former maintaining authority of a school in respect of the financial year ending on 31 March 1991; c the 1991 Regulations shall continue to apply for the purposes of— i determining, apportioning and redetermining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for the financial year ending on 31 March 1992, and ii determining (and revising) the total amount of maintenance grant which the Secretary of State may recover from the former maintaining authority of a school in respect of that year; d the 1992 Regulations shall continue to apply for the purposes of— i determining, apportioning and redetermining the amount of maintenance grant payable by the Secretary of State to the governing body of a school for the financial year ending on 31 March 1993, and ii determining (and revising) the total amount of maintenance grant which the Secretary of State may recover from the former maintaining authority of a school in respect of that year. 3 Paragraph (1) is without prejudice to the continued operation after 31 March 1993 of any requirements imposed by the Secretary of State on a governing body to whom payments in respect of maintenance grant, capital grant and special purpose grant have been made under one or more of (as the case may be) the 1989, 1990, 1991 and 1992 Regulations. PART 2 MAINTENANCE GRANT Determination of amount of maintenance grant 4 1 Subject to regulation 12, the amount of maintenance grant payable to the governing body of a school for the financial year in question shall be the sum of the following amounts— a an amount determined in accordance with (as the case may be) regulation 5, 6 or 7; b an amount determined in accordance with (as the case may be) regulation 8 or 9; c an amount determined in accordance with regulation 10(1); and d (where applicable) an amount determined in accordance with regulation 11. 2 Where in the opinion of the Secretary of State precise calculation for the purpose of determining any of the amounts referred to in paragraph (1)— a would be impracticable; b would not significantly affect the amount; or c would be disproportionately costly having regard to the complexity of the calculation and the likely effect on the amount, paragraph (1) shall have effect as if it required the Secretary of State to determine as the amount of maintenance grant payable for the financial year in question such amount as appears to him to be fair and reasonable having regard in particular to the former maintaining authority’s scheme. 3 In these Regulations references to the financial year in question are references to the financial year in respect of which the determination of maintenance grant is made. Determination of an amount in respect of a comparable maintained school’s budget share 5 1 Subject to regulations 6 and 7, this regulation applies in the case of any school whose incorporation date falls on or before 1 April in the financial year in question. 2 The Secretary of State shall determine an amount which he is satisfied is or approximates to an amount which the former maintaining authority could have determined, by the application (subject to the following provisions of this regulation) of the allocation formula in their scheme in relation to a comparable maintained school covered by the scheme, as such a school’s budget share for the financial year in question. 3 Where— a at any time before the beginning of the financial year in question the allocation formula included provision for taking into account a particular characteristic of a school which will affect the needs of the school as distinct from those of other schools which do not share that characteristic; and b the scheme has been varied or replaced at any time before the relevant date in relation to the school as initially determined (whether that is the date specified in regulation 17(1) or such other date as may be determined in accordance with regulation 17(2)), and for the financial year in question— i no such provision is included in the allocation formula; or ii the proportion of a comparable maintained school’s budget share derived from the application of that provision would be less than it would have been had the scheme not been varied or replaced, the allocation formula shall be deemed, for the purposes of determining the amount under paragraph (2), to include such provision as it had effect immediately before the scheme was so varied or replaced: Provided that the Secretary of State shall add to, or subtract from, any sum derived from the application of the said provision such amount as appears to him to be fair and reasonable having regard to any increase or decrease in the actual or planned level of spending of the former maintaining authority in respect of schools maintained by them occurring during or since the preceding financial year. 4 Where— a by the application of the allocation formula a part of a school’s budget share is determined by reference to— i an amount of expenditure attributable to each registered pupil of each relevant age or falling within each relevant age group; ii an amount or amounts (as the case may be) of expenditure attributable to any unit of measurement adopted for any factor included in the allocation formula; or iii the amount or amounts (as the case may be) of expenditure attributable to any other such factor; and b the proportion that any such amount is of a comparable maintained school’s budget share is less in the financial year in question than it would have been in a previous financial year, the amount or amounts of expenditure so attributable shall be deemed by the Secretary of State, in applying the allocation formula for the purpose of determining the amount under paragraph (2), to be the amount or amounts determined in accordance with paragraph (5). 5 For the purposes of paragraph (4), the Secretary of State shall determine as the amount or amounts of expenditure so attributable for the purposes of the allocation formula the amount or amounts so attributable in such previous financial year as the Secretary of State shall decide, adjusted by such amount or amounts as appears or appear to him to be fair and reasonable having regard, in particular, to— a any increase or decrease in the actual or planned level of spending of the former maintaining authority in respect of schools maintained by them occurring during or since that year; and b any significant change in the characteristics of the school occurring as aforesaid or which it appears to the Secretary of State will be likely to occur before the end of the financial year in relation to which grant is being determined. 6 Subject to paragraphs (7), (8) and (9), references in this Part to a maintained school are references to a school maintained by the former maintaining authority concerned, and references to a comparable maintained school are references to a maintained county school, any characteristics of which relevant for the purposes of any formula of a kind referred to in paragraph (2) are identical to any such characteristics of the grant-maintained school and are references (in particular) to a school— a the number of registered pupils in each age group at which is identical to the number of such pupils in each age group at the grant-maintained school; and b any other factors affecting the needs of which (including in particular, the number of registered pupils at the school who have special educational needs and the nature of the special educational provision required to be made for them) are identical to any other factors affecting the needs of the grant-maintained school. 7 Where the allocation formula includes provision for taking into account the amount of any non-domestic rate payable in respect of a school, the Secretary of State shall, in applying the allocation formula for the purpose of determining the amount under paragraph (2), apply that provision as if the amount of the non-domestic rate payable was— a in the case of a school which was a charity before becoming a grant-maintained school, that payable in respect of a comparable maintained school which is a charity; and b in the case of a school which was not a charity before becoming a grant-maintained school, that payable in respect of a comparable maintained school which is not a charity. 8 For the purposes of this regulation, it is to be assumed that there is a comparable maintained school covered by the former maintaining authority’s scheme whether or not there is in fact such a school; and, for the purposes of paragraph (7), it is to be further assumed that a comparable maintained school is capable of being a charity. 9 In this regulation— “charity” means an institution established for charitable purposes only; “factor” means, in relation to the allocation formula, any circumstance, fact or matter affecting the needs of individual schools and subject to variation from school to school which is to be taken into account in accordance with the allocation formula; and “relevant” in relation to “age” and “age group” means an age group separately treated in the allocation formula for the purposes of determining that part of each school’s budget share which is to be determined by reference to numbers of registered pupils. 10 References in these Regulations to any change in the characteristics of the school include, in particular, references to any change in the number of registered pupils thereat. 6 1 In any case where the school’s incorporation date falls before the financial year in question, the Secretary of State may if he thinks fit, instead of determining an amount under regulation 5(2), determine an amount in accordance with paragraph (4). 2 Subject to paragraph (3), the Secretary of State shall consult the former maintaining authority and the governing body of the school before deciding whether, pursuant to paragraph (1), to determine an amount in accordance with paragraph (4). 3 Paragraph (2) shall not apply in any case where it appears to the Secretary of State that, in relation to the financial year in question, a comparable maintained school’s budget share, determined by the application of the allocation formula in the former maintaining authority’s scheme, would have been determined wholly or mainly by reference to expenditure (whether actual, estimated, notional or otherwise characterised) for the purposes of that school in a previous financial year. 4 Where the Secretary of State decides to determine an amount in accordance with this paragraph he shall determine an amount by— a taking the amount which— i in the case of a school whose incorporation date falls in or before the financial year ending on 31 March 1993, was determined in respect of the school under (as the case may be) regulation 5, 6, 7, 15(3) or 16(3) of the 1992 Regulations for that year; or ii in the case of a school whose incorporation date falls after the financial year ending on 31 March 1993, is determined in respect of the school under (as the case may be) this paragraph or regulation 5, 7 or 13(3) for the financial year in which the school’s incorporation date falls; and b adjusting that amount by such amount as appears to him to be fair and reasonable having regard, in particular, to— i any increase or decrease in the actual or planned level of spending of the former maintaining authority in respect of the schools maintained by them occurring since the financial year in respect of which the amount referred to in sub-paragraph (a) above was determined; and ii any significant change in the characteristics of the school occurring as aforesaid or which it appears to him is likely to occur before the end of the financial year in relation to which grant is being determined. 5 In these Regulations references to the preceding financial year are references to the financial year immediately preceding the financial year in question. 7 1 This regulation applies in the case of any school whose incorporation date is after 1 April in the financial year in question. 2 In any case to which this regulation applies the Secretary of State shall not determine an amount in accordance with regulation 5(1); but he shall determine an amount in accordance with paragraph (3). 3 The Secretary of State shall determine an amount which appears to him to be equal to that amount of the school’s budget share for the financial year in question in respect of which either sums had not yet been made available pursuant to section 36(2) and (3) of the Act, or, if made available, had not been spent, immediately before the school’s incorporation date by the governing body of the school (before it acquired grant-maintained status) in exercise of their powers under section 36(5) of the Act. Determination of an amount as a percentage addition 8 1 Subject to regulation 9, the Secretary of State shall determine an amount which is equal to the relevant percentage of the amount determined in accordance with, as the case may be, regulation 5, 6 or 7. 2 In these Regulations the relevant percentage is the percentage determined in accordance with Schedule 1 to these Regulations. 9 1 This regulation applies in the case of any school— a whose incorporation date falls in or before the financial year ending on31 March 1993; and b in respect of which the amount first referred to in regulation 8(1) is less thanthe amount which was determined in respect of the school for the financial yearending on 31 March 1993 under (as the case may be) regulation 8, 9, 10(4), 15(5) or 16(4) or (5) of the 1992 Regulations. 2 In any case to which this regulation applies, regulation 8(1) shall have effect as if it required the Secretary of State to determine an amount equal to the amount which was determined in respect of the school for the financial year ending on 31 March 1993 under (as the case may be) regulation 8, 9, 10(4), 15(5) or 16(4) or (5) of the 1992 Regulations. Determination of an amount in respect of school meals, contingencies and the provision of nursery education 10 1 Subject to paragraph (2), the Secretary of State shall determine the amount which is the sum of the amounts determined in accordance with paragraphs (3) to (6). 2 In any case where the Secretary of State determines an amount under regulation 6, paragraph (1) shall have effect as if it required him to determine an amount equal to the amount referred to in paragraph (3). 3 The Secretary of State shall determine an amount in respect of the provision of school meals calculated by the application of the following formula— ( M × F ) (P) + ( S × G ) , (B) where M is the number of registered pupils in receipt of free school meals at the school; F is the total of the former maintaining authority’s planned expenditure for the financial year in question in providing meals to pupils in receipt of free school meals at relevant schools; P is the number of registered pupils in receipt of free school meals at relevant schools; S is the number of registered pupils at the school who bought meals at the school on a date in the preceding financial year determined by the Secretary of State; G is the total of the authority’s planned expenditure for the financial year in question on school meals, other than free school meals, at relevant schools and excluding expenditure to be met from any charges for such meals; and B is the number of registered pupils at relevant schools who bought meals at those schools on a date in the preceding financial year determined by the Secretary of State. 4 In paragraph (3), “number of registered pupils” means the number of pupils on a school’s register on a date determined by the Secretary of State; “planned expenditure”means the initial amount appropriated by the authority for meeting expenditure at all relevant schools excluding any such expenditure falling within their aggregated budget; and “relevant schools” means all primary or all secondary schools maintained or formerly maintained by the authority required to be covered by a statement for the year under section 42 of the Act, according as to whether the school is a primary school or a secondary school. 5 The Secretary of State shall determine the amount which it appears to him, had the school continued to be maintained by the authority, could have been allocated for the purposes of the school in accordance with the authority’s scheme in respect of contingencies. 6 Where the governing body of the school provides education for junior pupils who have not attained the age of five years, the Secretary of State shall determine an amount in respect of such provision which he is satisfied is fair and reasonable having regard in particular to the extent to which, in his opinion, the cost of such provision ought to be met from the amount determined in accordance with (as the case may be) regulation 5 or 7. Determination of an amount representing the unspent sum of a previous financial year’s budget share 11 1 This regulation applies where— a the determination of maintenance grant in respect of a school is for the financial year in which the school’s incorporation date falls; and b in a previous financial year the school (before it acquired grant-maintained status) had a delegated budget under a scheme made by the former maintaining authority. 2 In any case to which this regulation applies, there shall be added to the amount of maintenance grant payable in respect of the school under regulation 4 an amount determined in accordance with paragraph (3). 3 The Secretary of State shall determine the amount which it appears to him is equal to that amount of the school’s budget share for any financial year prior to the financial year in question in respect of which either sums were not made available pursuant to section 36(2) or (3) of the Act, or, if made available, were not spent by the governing body in exercise of their powers under section 36(5) of the Act. Determination of amount of maintenance grant otherwise than under regulation 4 12 1 Notwithstanding the provisions of regulation 4, the Secretary of State may, in the case of a school whose incorporation date falls in the financial year in question, determine the amount of maintenance grant payable to the governing body of the school for the financial year in question in accordance with the following provisions of this regulation. 2 In any case to which this regulation applies, the amount of maintenance grant payable to the governing body of the school for the financial year in question shall be the sum of the amounts determined in accordance with regulations 13(1) and 14. 3 The Secretary of State shall consult the former maintaining authority and (as the case may be) the governing body or the prospective governing body of the school before determining the amount of maintenance grant payable in respect of the school for the financial year in question in accordance with this regulation. 13 1 The Secretary of State shall determine an amount which is the sum of the amounts determined in accordance with paragraphs (2), (4) and (5) subject to any adjustment made in accordance with paragraph (6). 2 The Secretary of State shall determine an amount which he is satisfied is equal to the amount of relevant expenditure incurred by the former maintaining authority in respect of the school in the preceding financial year. 3 Schedule 2 shall have effect for the purposes of determining the amount of relevant expenditure incurred by the authority in that year. 4 The Secretary of State shall determine an amount which is equal to the relevant percentage of the amount determined in accordance with paragraph (2); and Schedule 1 shall have effect for the purposes of determining the relevant percentage. 5 The Secretary of State shall determine an amount in respect of the authority’s planned expenditure on the provision of school meals calculated by the application of the following formula— ( M × F ) (P) + ( S × G ) , (B) where M, F, P, S, G and B represent the matters respectively denoted by those letters in regulation 10(3); and for the purposes of this paragraph the expressions used in regulation 10(3) shall have the meanings assigned to them by regulation 10(4). 6 The sum of the amounts determined in accordance with paragraphs (2), (4) and (5) may be adjusted by such amount as the Secretary of State is satisfied is fair and reasonable having regard, in particular, to— a any increase or decrease in the actual or planned level of spending of the former maintaining authority in respect of the schools maintained by them occurring during or since the end of the financial year ending last before the incorporation date, and b any significant change in the characteristics of the school occurring as aforesaid or which it appears to the Secretary of State will be likely to occur before the end of the financial year in relation to which grant is being determined. 14 The Secretary of State shall determine an amount equal to the amount which would have been determined in respect of the school in accordance with regulation 11 if the amount of maintenance grant for the school were to be determined under regulation 4. Relevant date 15 1 Subject to paragraphs (2) and (3) and regulation 18, any amount required to be determined by the Secretary of State under this Part shall be determined on the information available to him on the relevant date. 2 In paragraph (1), the relevant date means 31 March in the preceding financial year or, for the purposes of determining the amount of maintenance grant payable in respect of any school for any financial year, such other date as the Secretary of State may determine. 3 The Secretary of State may, in any case where he considers it appropriate to do so, redetermine the relevant date. 4 Where— a the Secretary of State determines in accordance with paragraph (2) that, in respect of any school for any financial year, the relevant date should be a date other than 31 March in the preceding financial year, or b he redetermines the relevant date in accordance with paragraph (3), he shall notify the governing body of the school and the former maintaining authority in writing of that fact. 5 Where there is not available to the Secretary of State on the relevant date sufficient information as will, in his opinion, allow him to determine any amount referred to in paragraph (1) he may determine the amount of maintenance grant payable in respect of the school on such basis as appears to him to be fair and reasonable having regard to the information available to him on the relevant date. 6 The Secretary of State shall not take into account any information made available to him after the relevant date (but before the date of his determination) for the purposes of determining the amount of maintenance grant payable in respect of a school for the financial year in question. 7 References in these Regulations to the relevant date are references to the date referred to in paragraph (2) unless the relevant date has been redetermined in accordance with paragraph (3) in which case it is a reference to that date as redetermined. Apportionment of maintenance grant 16 1 This regulation applies in the case of any school whose incorporation date falls after 1 April in the financial year in question. 2 Where in respect of any such school the amount of maintenance grant is determined in accordance with regulation 4, the amount of maintenance grant payable to the governing body for the financial year in question shall be apportioned in accordance with the following formula– A × C × F B + D , where A is the number of days in the financial year falling on or after the incorporation date of the school; B is 365 or, where the financial year in question ends during a leap year, 366; C is the amount determined in accordance with regulation 10(3); and D is the sum of the amounts determined in accordance with regulations 7, 8, 10(5) and (6) and 11; F bears the value ascribed to it in the Table below according to the incorporation date of the school— incorporation date 1 April–31 July F = 1.0 incorporation date 1 August–31 December F = 1.015 incorporation date 1 January–31 March F = 1.02. 3 Where in respect of any such school the amount of maintenance grant is determined in accordance with regulation 12, the amount of maintenance grant payable to the governing body of the school for the financial year in question shall be apportioned in accordance with the following formula— A × C × F + G , B + G , where C is the amount determined in respect of the school in accordance with regulation 13(1); G is the amount determined in respect of the school in accordance with regulation 14; and A, B, and F represent the matters respectively denoted by those letters in paragraph (2). Adjustments 17 1 Without prejudice to paragraph (5), this paragraph applies where— a after determining the amount of maintenance grant payable in respect of any school for any financial year in accordance with these Regulations it appears to the Secretary of State that, by reason of— i any change in the characteristics of the school, ii any change in the level of spending by the former maintaining authority, or iii any other change affecting the needs of the school, the amount so payable should be revised; or b the Secretary of State is satisfied that his determination of the amount of maintenance grant payable in respect of any school for any financial year was made in ignorance of, or was based on a mistake as to, some material fact, or was not in accordance with these Regulations. 2 Subject to paragraph (3), in any case to which paragraph (1) applies, the Secretary of State may redetermine the amount of maintenance grant payable in respect of the school for that year in accordance with these Regulations and, if the amount so redetermined is different from the amount previously determined, revise his determination accordingly. 3 Subject to paragraph (4), paragraph (2) shall not enable the Secretary of State to revise his determination of maintenance grant so as to reduce the amount of grant payable to the governing body of the school concerned for the financial year in question. 4 The Secretary of State may revise his determination of maintenance grant so as to reduce the amount payable where— a that determination was made in ignorance of, or was based on a mistake as to, some material fact; and b such ignorance or mistake was not attributable to an act or omission of the former maintaining authority. 5 Where it appears to the Secretary of State that, by reason of any extraordinary circumstances, the amount of maintenance grant determined in respect of a school for any financial year is insufficient to enable the governing body of the school adequately to carry out their functions with respect to the conduct of the school, he may redetermine the amount of maintenance grant payable in respect of the school for that year in accordance with paragraph (6), and revise his determination accordingly. 6 Where the Secretary of State decides to redetermine the amount of maintenance grant by virtue of paragraph (5), he shall redetermine that amount by adding to it such amount as appears to him to be necessary for the purpose of enabling the governing body adequately to carry out their functions with respect to the conduct of the school. 7 Where in accordance with this regulation the Secretary of State revises the amount of maintenance grant payable in respect of any school for any financial year he shall give notice thereof to the governing body of the school and to the former maintaining authority. 8 A determination which has been revised in accordance with this regulation may be further revised in accordance with this regulation and may be so further revised notwithstanding that the Secretary of State is satisfied that the revised determination was not made in accordance with these Regulations. Application of relevant date provisions to a redetermination of the amount of maintenance grant 18 1 In its application for the purposes of any redetermination under regulation 17 of the amount of maintenance grant payable in respect of a school for any financial year, regulation 15 shall have effect subject to the following provisions of this regulation. 2 Where the redetermination of maintenance grant under regulation 17(2) is made on one or more of the grounds specified in paragraph (1)(a) of that regulation the Secretary of State may take into account for the purposes of the redetermination any information received by him after the relevant date which relates to any of the reasons for making the redetermination. 3 Where the redetermination of maintenance grant under regulation 17(2) is made on the grounds, specified in paragraph (1)(b) of that regulation, that the Secretary of State is satisfied that his determination was made in ignorance of, or was based on a mistake as to, some material fact, he may take into account any information received by him after the relevant date which relates to that fact. 4 Where in accordance with paragraphs (2) and (3) any additional information is taken into account by the Secretary of State for the purposes of redetermining grant under regulation 17(2), he may take that information into account for the purposes of making any further redetermination under that regulation. 7 Regulation 15 shall not apply where a redetermination is made by the Secretary of State in accordance with regulation 17(5) and (6). Requirements which may be attached to payment of maintenance grant 19 1 The requirement set out in paragraph 1 of Schedule 3 is specified as a requirement which may be imposed by the Secretary of State on governing bodies to whom payments of maintenance grant are or have been made. 2 The Secretary of State may determine, for the purposes of the application of section 79(7) of the Act to such governing bodies, any requirement referred to in paragraphs 2 to 4 of Schedule 3. PART 3 CAPITAL AND SPECIAL PURPOSE GRANTS Capital grants 20 The Secretary of State may pay capital grants in respect of expenditure of a capital nature of a class or description specified in Schedule 4 incurred or to be incurred by the governing body of a school. Special purpose grants 21 1 The Secretary of State may pay special purpose grants in respect of expenditure of any class or description specified in Schedule 5 incurred or to be incurred by the governing body of a school— a for or in connection with the educational purposes so specified, or b in respect of any expenses so specified being expenses which it appears to the Secretary of State the governing bodies of schools cannot reasonably be expected to meet from maintenance grant. 2 Special purpose grants may be paid on a regular basis in respect of expenditure of a recurrent kind or by reference to expenditure incurred or to be incurred on particular occasions or during any particular period. Requirements which may be attached to payment of special purpose grants 22 1 The requirements set out in paragraph 1 of Schedule 3 and paragraph (2) below are specified as requirements which may be imposed by the Secretary of State on governing bodies to whom payments of special purpose grants are or have been made. 2 The requirements referred to in paragraph (1) are— a a requirement that any such payment shall be applied for the purpose of defraying expenditure in respect of which it was made and for no other purpose; and b a requirement that such a payment shall be so applied before a date specified by the Secretary of State. 3 The Secretary of State may determine for the purposes of the application of section 79(7) of the Act to such governing bodies as are referred to in paragraph (1)— a any requirement referred to in paragraphs 2 to 4 of Schedule 3; b any requirement formulated with a view to the Secretary of State satisfying himself that a requirement imposed in accordance with paragraph (2) is being, or has been, complied with including, in particular, requirements as to the furnishing by the governing body of audited statements relating to expenditure in respect of which the grant has been paid together with such accounts, receipts, invoices and other information as he may require in order to verify the same; and c any requirement as to the repayment, in whole or in part, of payments made to the governing body in respect of such grant if any other requirement imposed by him in accordance with this Regulation subject to which the payments were made is not complied with. PART 4 RECOVERY OF AMOUNTS IN RESPECT OF MAINTENANCE GRANT FROM FORMER MAINTAINING AUTHORITY Determination of amount to be recovered 23 1 Subject to paragraph (2) below, the total amount which the Secretary of State may recover from the former maintaining authority of a school in respect of any financial year beginning on or after 1 April 1993 by virtue of section 81(1) of the Act is the amount determined in accordance with these Regulations as the amount of the maintenance grant payable in respect of the school and financial year in question (as from time to time revised). 2 The amount which would otherwise fall to be determined in accordance with paragraph (1) above as the total amount recoverable from a former maintaining authority by virtue of section 81(1) of the Act in respect of any school for any financial year may be reduced by an amount not exceeding the amount outstanding in respect of any excess amount recovered from the authority under that section in respect of any previous financial year.