Common use of FINANCIAL CONTRIBUTIONS Clause in Contracts

FINANCIAL CONTRIBUTIONS. 10.4 The Authorities shall agree the methodology for calculating the amount of the Pooled Fund and each Authority’s contribution to the Pooled Fund in each financial year. This shall be based on the contributions and percentage shares set out in Clause 10 as agreed upon at the time the Pooled Fund is established updated to reflect the transfer of funds from the Non-Pooled Fund to the Pooled Fund. 10.5 The Authorities may agree in writing to change the methodology that will apply to the Pooled Fund (if any) with effect from the beginning of any Financial Year. 10.6 The Authorities have agreed that their contributions (and percentage share) to the Pooled Fund for the Financial Year beginning 1 April [ ] shall be as set out in Schedule 5 as follows: 10.7 When determining the contributions to the Pooled Fund in financial years subsequent to the financial year beginning on 1st April [ ] (“Financial Year”), it is the intention of the Authorities, in normal circumstances, to update the percentage share to reflect the transfer of any Non-Pooled Funds to the Pooled Fund and apply the following principles: 10.7.1 each Authority shall take its previous year's baseline contribution and add to that the relevant inflation factor and any other cost pressure on the relevant services, less any local and national savings requirements; 10.7.2 in considering the baseline contributions in the previous Financial Year, this shall be an Authority's contribution as agreed at the commencement of the previous Financial Year and any underspends or overspends during that year shall be ignored. Where Pooled Funds are introduced during a Financial Year the Authorities shall agree when introducing the Pooled Funds what figures shall be taken as the baseline contributions for that Financial Year for the purposes of this clause (as though the Pooled Funds were introduced at the commencement of that Financial Year). 10.8 In determining financial contributions for subsequent financial years the Authorities will also consider whether it is possible to fund any growth proposals. 10.9 In the event that the financial contributions of the Authorities to any Pooled Fund in any Financial Year (the "new Financial Year"): 10.9.1 are less than that in the previous Financial Year as increased by the relevant inflation factor; and/or 10.9.2 do not cover cost pressures on the relevant Services, the Authorities shall negotiate appropriate changes in funding and/or Services so that expenditure will be covered by the financial contributions for the new Financial Year. 10.10 The MKS [ ] Service Non-Pooled Funds (if any), for the avoidance of doubt, shall not constitute Pooled Funds. Non-Pooled Funds (if any) are held outside of the Pooled Funds and can be held by any of the Authorities, but relate to the MKS [ ] Shared Service and are managed by the Head of [ ] Shared Service. 10.11 The Non-Pooled Funds (if any) shall comprise those costs as set out in Schedule 6. 10.12 The Head of the [ ] Shared Service will be the responsible budget holder for the Non-Pooled Funds. No expenditure should be incurred on the Non-Pooled Funds without the authorisation of the Head of [ ] Shared Service. The Authorities should notify the Head of [ ] Shared Service within ten business days of any unauthorised expenditure that has been incurred. Any overspends occurring on any Non-Pooled Funds arising from unauthorised expenditure will not be treated as part of the general provisions for overspends in clauses 10.25 to 10.26 and will be met by the Authority in which the overspend occurred. 10.13 The Head of the [ ] Shared Service will review the expenditure related to the Non- Pooled Funds the “Non-Pooled Funds Review”). The Review will identify the nature of the expenditure and the related contractual arrangements, if any. The Non-Pooled Funds Review will set out the arrangements required to move the Non- Pooled Funds to the Pooled Funds and the timescales for doing so. The recommendations arising from the Non-Pooled Funds Review will be presented to the Board for consideration and approval. The Review will be completed within of the commencement date unless otherwise agreed by the Board. 10.14 The Authorities acknowledge that at the Commencement Date there are no Non- Pooled Funds. If the requirement for Non-Pooled Funds arises during the course of the Agreement, the Authorities shall agree in writing their % contributions to the Non-Pooled Fund Or The Authorities have agreed that their contributions (and percentage share) to the Non-Pooled Fund for the Financial Year beginning 1 April [ ] shall be as set out in Schedule 6 and as follows: MBC: £ (%) SBC: £ (%) TWBC: £ (%) Total: £ (100%) 10.15 When determining the contributions to the Non-Pooled Funds in Financial Years subsequent to the Financial Year in beginning on 1 April [ ] it is the intention of the Authorities, in normal circumstances, to apply the following principles: 10.15.1 each Authority shall take its previous year's baseline contribution and add to that the relevant inflation factor and any other cost pressure on the relevant services, less any local and national savings requirements; 10.15.2 in considering the baseline contributions in the previous financial year, this shall be an Authority's contribution as agreed at the commencement of the previous financial year and any underspends or overspends during that year shall be ignored.

FINANCIAL CONTRIBUTIONS. 10.4 The Authorities shall agree the methodology for calculating the amount of the Pooled Fund and each Authority’s contribution to the Pooled Fund in each financial year. This shall be based on the contributions and percentage shares set out in Clause 10 as agreed upon at the time the Pooled Fund is established updated to reflect the transfer of funds from the Non-Pooled Fund to the Pooled Fund. 10.5 The Authorities may agree in writing to change the methodology that will apply to the Pooled Fund (if any) with effect from the beginning of any Financial Year. 10.6 The Authorities have agreed that their contributions (and percentage share) to the Pooled Fund for the Financial Year beginning 1 April [ ] shall be as set out in Schedule 5 as follows:: MBC: (%) SBC: (%) TWBC (%) Total (100%) 10.7 When determining the contributions to the Pooled Fund in financial years subsequent to the financial year beginning on 1st April [ ] (“Financial Year”), it is the intention of the Authorities, in normal circumstances, to update the percentage share to reflect the transfer of any Non-Pooled Funds to the Pooled Fund and apply the following principles: 10.7.1 each Authority shall take its previous year's baseline contribution and add to that the relevant inflation factor and any other cost pressure on the relevant services, less any local and national savings requirements; 10.7.2 in considering the baseline contributions in the previous Financial Year, this shall be an Authority's contribution as agreed at the commencement of the previous Financial Year and any underspends or overspends during that year shall be ignored. Where Pooled Funds are introduced during a Financial Year the Authorities shall agree when introducing the Pooled Funds what figures shall be taken as the baseline contributions for that Financial Year for the purposes of this clause (as though the Pooled Funds were introduced at the commencement of that Financial Year). 10.8 In determining financial contributions for subsequent financial years the Authorities will also consider whether it is possible to fund any growth proposals. 10.9 In the event that the financial contributions of the Authorities to any Pooled Fund in any Financial Year (the "new Financial Year"): 10.9.1 are less than that in the previous Financial Year as increased by the relevant inflation factor; and/or 10.9.2 do not cover cost pressures on the relevant Services, the Authorities shall negotiate appropriate changes in funding and/or Services so that expenditure will be covered by the financial contributions for the new Financial Year.. Non-Pooled Fund 10.10 The MKS [ ] Service Non-Pooled Funds (if any), for the avoidance of doubt, shall not constitute Pooled Funds. Non-Pooled Funds (if any) are held outside of the Pooled Funds and can be held by any of the Authorities, but relate to the MKS [ ] Shared Service and are managed by the Head of [ ] Shared Service. 10.11 The Non-Pooled Funds (if any) shall comprise those costs as set out in Schedule 6. 10.12 The Head of the [ ] Shared Service will be the responsible budget holder for the Non-Pooled Funds. No expenditure should be incurred on the Non-Pooled Funds without the authorisation of the Head of [ ] Shared Service. The Authorities should notify the Head of [ ] Shared Service within ten business days of any unauthorised expenditure that has been incurred. Any overspends occurring on any Non-Pooled Funds arising from unauthorised expenditure will not be treated as part of the general provisions for overspends in clauses 10.25 to 10.26 and will be met by the Authority in which the overspend occurred. 10.13 The Head of the [ ] Shared Service will review the expenditure related to the Non- Pooled Funds the “Non-Pooled Funds Review”). The Review will identify the nature of the expenditure and the related contractual arrangements, if any. The Non-Pooled Funds Review will set out the arrangements required to move the Non- Pooled Funds to the Pooled Funds and the timescales for doing so. The recommendations arising from the Non-Pooled Funds Review will be presented to the Board for consideration and approval. The Review will be completed within of the commencement date unless otherwise agreed by the Board. 10.14 The Authorities acknowledge that at the Commencement Date there are no Non- Pooled Funds. If the requirement for Non-Pooled Funds arises during the course of the Agreement, the Authorities shall agree in writing their % contributions to the Non-Pooled Fund Or The Authorities have agreed that their contributions (and percentage share) to the Non-Pooled Fund for the Financial Year beginning 1 April [ ] shall be as set out in Schedule 6 and as follows: MBC: £ (%) SBC: £ (%) TWBC: £ (%) Total: £ (100%) 10.15 When determining the contributions to the Non-Pooled Funds in Financial Years subsequent to the Financial Year in beginning on 1 April [ ] it is the intention of the Authorities, in normal circumstances, to apply the following principles: 10.15.1 each Authority shall take its previous year's baseline contribution and add to that the relevant inflation factor and any other cost pressure on the relevant services, less any local and national savings requirements; 10.15.2 in considering the baseline contributions in the previous financial year, this shall be an Authority's contribution as agreed at the commencement of the previous financial year and any underspends or overspends during that year shall be ignored. 10.16 Not used. 10.17 In the event that the financial contributions of the Authorities to any Non-Pooled Funds in any financial year (the "New Financial Year"): 10.17.1 are less than that in the previous financial year as increased by the relevant inflation factor; and/or 10.17.2 do not cover cost pressures on the relevant Services, each Authority shall make the appropriate changes in funding and/or services from their Non-Pooled Funds so that expenditure will be covered by their financial contributions for the new Financial Year without impacting on the MKS [ ] Shared Service. Administration of Pooled and Non-Pooled Funds 10.18 [Host Authority] holds the Pooled and Non-Pooled Funds. 10.19 The Head of [ ] Shared Services will act as the Pool Manager. 10.20 The Pool Manager will be responsible for: 10.20.1 Managing the relevant Pooled Fund; and 10.20.2 Managing the relevant Non-Pooled Fund. 10.21 The monies in any Pooled and Non-Pooled Fund may be expended on Services in different proportions to that in which the Authorities shall have contributed to the Pooled or Non-Pooled Fund. 10.22 The monies in Pooled and Non-Pooled Funds shall be spent in accordance with any restrictions agreed between the Authorities on the establishment of the Pooled and Non-Pooled Fund or as may be varied by agreement from time to time.