Common use of Cost Sharing Mechanism Clause in Contracts

Cost Sharing Mechanism. 4.1 The annual operating surplus (or deficit) on the Cambs HIA Budget in any one Financial Year shall be apportioned to the Parties pro rata to the fee income generated within each Party's district for the corresponding Financial Year. The annual operating surplus (or deficit) shall be the balance remaining after deduction of the direct operational costs of Cambs HIA, the actual cost of operational support and other services provided by the Lead Party to Cambs HIA and payment in the agreed sum to South Cambridgeshire for as long as this Party provides the primary office location for Cambs HIA and the agreed sum to Huntingdonshire for so long as this Party provides ICT equipment and services. 4.2 When CHIA has an operating deficit, the loss with be apportioned to the Parties based on budgeted fee income (excluding any other sources of fee income e.g. private, Registered Housing providers). When there is a surplus, this will be allocated to the Parties based on actual fee income generated (excluding any other sources of fee income). 4.3 The Management Board may agree to retain any operating surplus up to £10,000 (or any such higher sum that is in accordance with their authorities delegation procedures). Unless any operating surplus is retained by agreement of the Management Board to enable the development of Cambs HIA, any annual operating surplus shall be refunded to the Parties within thirty days of the close of the Cambs HIA Budget accounts at the end of each Financial Year. 4.4 In the event of an annual operating deficit, the Parties shall pay their apportioned part within thirty days of invoice by the Lead Party but, unless there are exceptional circumstances accepted by the Management Board. A review of the Cambs HIA by the Management Board shall also be started within 3 months of the end of the Financial Year in question.

Cost Sharing Mechanism. 4.1 The annual operating surplus (or deficit) on the Cambs HIA Budget in any one Financial Year shall be apportioned to the Parties pro rata to the fee income generated within each Party's district for the corresponding Financial Year. The annual operating surplus (or deficit) shall be the balance remaining after deduction of the direct operational costs of Cambs HIA, the actual cost of operational support and other services provided by the Lead Party to Cambs HIA and payment in the agreed sum to South Cambridgeshire for as long as this Party provides the primary office location for Cambs HIA and the agreed sum to Huntingdonshire for so long as this Party provides ICT equipment and services. 4.2 When CHIA has an operating deficit, the loss with be apportioned to the Parties based on budgeted fee income (excluding any other sources of fee income e.g. private, Registered Housing providers). When there is a surplus, this will be allocated to the Parties based on actual fee income generated (excluding any other sources of fee income). 4.3 The Management Board may agree to retain any operating surplus up to £10,000 10 ,000 (or any such higher sum that is in accordance with their authorities delegation procedures). Unless any operating surplus is retained by agreement of the Management Board to enable the development of Cambs HIA, any annual operating surplus shall be refunded to the Parties within thirty days of the close of the Cambs HIA Budget accounts at the end of each Financial Year. 4.4 In the event of an annual operating deficit, the Parties shall pay their apportioned part within thirty days of invoice by the Lead Party but, unless there are exceptional circumstances accepted by the Management Board. A review of the Cambs HIA by the Management Board shall also be started within 3 months of the end of the Financial Year in question.