Regulation 3 Expenses

the part of those expenses which is incurred by the Commission in securing the audit of the accounts of any of the specified bodies for any financial year or years prior to the financial year 1988-89 shall be met by regional and islands councils in proportion to their respective products of a rate of one penny in the pound or standard penny rate products, whichever in each case is the higher, for that financial year, which products shall be as first estimated by the Secretary of State for the purposes of section 12 of the Local Government (Scotland) Act 1966(^f1); and

the remaining part of those expenses shall be met by each of the specified bodies in accordance with the following formula:—

• A x B÷C

A is the remaining part of those expenses;

B is the number of hours during which an auditor or an employee of an auditor is engaged, on behalf of the Commission, in the financial year 1988-89 on the audit of the accounts of that specified body for that financial year; and

C is the number of hours during which an auditor or an employee of an auditor is engaged, on behalf of the Commission, in that financial year on the audit of the accounts of all of the specified bodies for that financial year.

any reference in paragraph (1)(a) or (b) above to the part or the remaining part of the expenses of the Commission is a reference to the part or the remaining part under deduction of the amount of grant referable to it; and (b) the amount of grant referable to the part or the remaining part of the expenses of the Commission for this purpose shall be determined by apportioning the total amount of the grant as between the part and the remaining part in proportion to their respective amounts.