Regulation 5
For the purposes of the definition of “expenditure” in section 37(7) the aggregate of the following expenditure for the purposes of the institution is hereby prescribed—
subject to paragraph (2) below, all expenditure incurred in the relevant financial year by the former governing body under section 36(5) or 142(6) of the 1988 Act (“relevant expenditure”); and
where the scheme specifies that all or part of a deficit incurred by the former governing body in a previous financial year shall or may be carried forward in calculating the institution’s budget share for the relevant financial year, all expenditure which would be incurred by the former governing body if the deficit or, as the case may be, the part carried forward, were a liability of the former governing body satisfied in the relevant financial year; and
where the former governing body maintains an account at a bank or other financial institution for the purpose of meeting relevant expenditure, all expenditure incurred in the relevant financial year by the assisting authority in making payments into the account in respect of relevant expenditure, less the difference between the total amount of relevant expenditure met from the account and the total amount of earned income paid into the account; and if the calculation required by this sub-paragraph produces a negative amount it shall reduce the expenditure hereby prescribed.
Expenditure does not fall within sub-paragraph (1)(a) above if at the end of the relevant financial year payment in respect of it (whether or not due) has not been made.