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the VAT, promptly submit a VAT reclaim application to Her Majesty’s Revenue and Customs (HMRC). Any failure by the Academy Trust to submit a VAT reclaim application to HMRC, or to pursue the application diligently, or to repay any reclaimed amount to the Secretary of State as soon as reasonably practicable following receipt will be taken into account by the Secretary of State in:
a) calculating and paying any subsequent grant to the Academy Trust; or
b) adjusting GAG payable to the Academy Trust in subsequent Academy Financial Years.
Application of the Academies Financial Handbook
4.6 In relation to the use of grant paid to the Academy Trust by the Secretary of State, the Academy Trust must follow the requirements of, and have regard to the guidance in, the Academies Financial Handbook.
4.7 The Academy Trust must have adequate insurance cover or opt in to the Department’s arrangements as set out in the Academies Financial Handbook.
4.8 The Academy Trust must submit information about its finances to the Secretary of State in accordance with the Academies Financial Handbook, or as otherwise specified by the Secretary of State.
Budgeting for funds
4.9 The Academy Trust must balance its budget from each Academy Financial Year to the next. For the avoidance of doubt, this does not prevent the Academy Trust from:
a) subject to clause 4.14, carrying a surplus from one Academy Financial Year to the next; or
b) carrying forward from previous Academy Financial Years sufficient cumulative surpluses on grants from the Secretary of State to meet an in-year deficit on such grants in a subsequent financial year, in
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