Common use of GAG AND EAG Clause in Contracts

GAG AND EAG. 4.1 The Secretary of State agrees to pay EAG to the Company in relation to the Academy in accordance with the Master Agreement. 4.2 Clauses 42A to 53 of the Master Agreement do not apply to the Academy. 4.3 GAG will be paid by the Secretary of State to the Company in order to cover the normal running costs of the Academy, and shall only be spent by the Company towards those costs. These costs will include, but are not limited to: a) teachers' salaries and related costs (including full and part time teaching staff and seconded teachers); b) non-teaching staff salaries and related costs (including pension contributions, educational support staff, administrative and clerical staff and manual and premises related staff); c) employees' expenses; d) the purchase, maintenance, repair and replacement: (i) of teaching and learning materials and other educational equipment, including books, stationery and ICT equipment and software, sports equipment and laboratory equipment and materials; (ii) of other supplies and services; e) examination fees; f) repairs, servicing and maintenance of buildings (including redecoration, heating, plumbing, lighting etc); maintenance of grounds (including boundary fences and walls); cleaning materials and contract cleaning; water and sewage; fuel and light (including fuel oil, solid and other fuel, electricity and gas); rents; rates; purchase, maintenance, repairs and replacement of furniture and fittings; g) insurance; h) medical equipment and supplies; i) staff development (including in-service training); j) curriculum development; k) the costs of providing school meals for pupils (including the cost of providing free school meals to pupils who are eligible to receive them), and discretionary grants to pupils to meet the cost of pupil support, including support for pupils with special educational needs or disabilities (taking account of the fact that separate additional money will be available for pupils with statements of special educational needs); l) administration; and m) establishment expenses and other institutional costs. 4.4 Subject to clauses 4.11 and 4A.2, GAG for each Academy Financial Year for the Academy will include: a) funding equivalent to that which would be received by a maintained school with similar characteristics, determined by the Secretary of State and notified in the Annual Letter of Funding or its equivalent, taking account of the number of pupils at the Academy; b) funding for the cost of functions which would be carried out by the local authority if the Academy were a maintained school, such funding to be determined at the discretion of the Secretary of State; c) funding for matters for which it is necessary for the Academy to incur extra costs, to the extent that those costs are deemed in the discretion of the Secretary of State to be necessary; and d) payments equivalent to further, specific grants made available to maintained schools, where the Academy meets the requisite conditions and criteria necessary for a maintained school to receive these grants, such payments to be at the discretion of the Secretary of State. 4.5 Subject to clause 4.7, the basis of the pupil number count for the purposes of determining GAG at the Academy for an Academy Financial Year will be the Company’s most recent estimate in respect of the Academy provided in accordance with clause 4.6. 4.6 The Secretary of State shall in advance of each Academy Financial Year, at such time or times as he shall determine, request that the Company provides an estimate of the number of pupils on roll in the following September at the Academy for the purposes of determining GAG for an Academy Financial Year at the Academy, and the Company shall provide the requested estimate (such estimate to be based on an objective assessment of numbers) in respect of the Academy to the Secretary of State as soon as reasonably practicable. 4.7 Once the condition specified in clause 4.8 has been satisfied with respect to the Academy for the Academy Financial Year for which funding is being calculated, the basis of the pupil number count for the purpose of determining GAG for the Academy will be the Schools Census for the relevant month (determined at the discretion of the Secretary of State) preceding the Academy Financial Year in question 4.8 For the purpose of clause 4.7, the condition is satisfied in the Academy Financial Year which immediately follows the Academy Financial Year in which all planned year-groups will be present at the Academy (that is, all the pupil cohorts relevant to the age-range of the Academy will have some pupils present). 4.9 For any Academy Financial Year in which GAG for the Academy has been calculated in accordance with clauses 4.5 and 4.6, an adjustment may be made to the following Academy Financial Year's formula funding element of GAG for the Academy to recognise any variation from that estimate. The Secretary of State may for the purpose of calculating any adjustment to the formula funding element of GAG under this clause, use the Census for the relevant month (determined at the discretion of the Secretary of State) for the Academy Financial Year in question as a means of determining pupil numbers in an Academy Financial Year. The additional or clawed-back grant will be only that amount relevant to the number of pupils above or below that estimate. 4.10 For any Academy Financial Year in which GAG for the Academy is calculated in accordance with clause 4.7, no adjustment will be made to the equivalence funding element in the following Academy Financial Year’s equivalence funding element of GAG for the Academy unless the Company demonstrates to the satisfaction of the Secretary of State that there has been a significant impact on costs, such as an extra class. For any other element of GAG for the Academy the Secretary of State may make adjustments to recognise a variation in pupil numbers from that used to calculate the element of grant in question; the basis of these will be set out in the Annual Letter of Funding or its equivalent. 4.11 The Secretary of State recognises that if he serves notice of intention to terminate this Agreement, the intake of new pupils during the notice period is likely to decline and that in such circumstances payments based simply on the number of pupils attending the Academy are unlikely to be sufficient to meet the Academy’s needs during the notice period. In those circumstances, the Secretary of State may undertake to pay a reasonable and appropriately larger GAG with respect to the Academy in the notice period than would be justified solely on the basis of the methods set out in clauses 4.4 to 4.10, in order to enable the Academy to operate effectively. 4.12 Not used. 4.13 At the beginning of any Academy Financial Year the Company may hold unspent GAG for the Academy from previous Academy Financial Years amounting to such percentage (if any) as for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company prior to the beginning of that Academy Financial Year of the total GAG payable for the Academy in the Academy Financial Year just ended, or such higher amount as may from time to time be agreed. The Company shall use such carried-forward amount for such purpose, or subject to such restriction on its use, as is for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company. Clause 73 of the Master Agreement does not apply to the Academy. 4.14 Notwithstanding clause 4.13, any additional grant provided over and above that set out in clauses 4.4 to 4.10 and made in accordance with clause 4.11 may be carried forward without limitation or deduction until the Start-up Period or the circumstances set out in clause 4.11 have come to an end. Clause 74 of the Master Agreement does not apply to the Academy. 4.15 Any savings of GAG not allowed to be carried forward under clauses 4.13 and 4.14 above will be taken into account in the payment of subsequent grant. Clause 75 of the Master Agreement does not apply to the Academy. 4.16 Not used.

GAG AND EAG. 4.1 The Secretary of State agrees to pay GAG and EAG to the Company in relation to the Academy in accordance with the Master Agreement subject to clauses 4.2 to 4.9 below which replace clauses 42A to 51 of the Master Agreement. 4.2 Clauses 42A to 53 of the Master Agreement do not apply to the Academy. 4.3 GAG will be paid by the Secretary of State to the Company in order to cover the normal running costs of the Academy, and shall only be spent by the Company towards those costs. These costs will include, but are not limited to: a) teachers' salaries and related costs (including full and part time teaching staff and seconded teachers); b) non-teaching staff salaries and related costs (including pension contributions, educational support staff, administrative and clerical staff and manual and premises related staff); c) employees' expenses; d) the purchase, maintenance, repair and replacement: (i) of teaching and learning materials and other educational equipment, including books, stationery and ICT equipment and software, sports equipment and laboratory equipment and materials; (ii) of other supplies and services; e) examination fees; f) repairs, servicing and maintenance of buildings (including redecoration, heating, plumbing, lighting etc); maintenance of grounds (including boundary fences and walls); cleaning materials and contract cleaning; water and sewage; fuel and light (including fuel oil, solid and other fuel, electricity and gas); rents; rates; purchase, maintenance, repairs and replacement of furniture and fittings; g) insurance; h) medical equipment and supplies; i) staff development (including in-service training); j) curriculum development; k) the costs of providing school meals for pupils (including the cost of providing free school meals to pupils who are eligible to receive them), and discretionary grants to pupils to meet the cost of pupil support, including support for pupils with special educational needs or disabilities (taking account of the fact that separate additional money will be available for pupils with statements of special educational needs); l) administration; and m) establishment expenses and other institutional costs. 4.4 Subject to clauses 4.11 and 4A.2, GAG for each Academy Financial Year for the Academy will include: a) funding equivalent to that which would be received by a maintained school with similar characteristics, determined by the Secretary of State and notified in the Annual Letter of Funding or its equivalent, taking account of the number of pupils at the Academy; b) funding for the cost of functions which would be carried out by the local authority if the Academy were a maintained school, such funding to be determined at the discretion of the Secretary of State; c) funding for matters for which it is necessary for the Academy to incur extra costs, to the extent that those costs are deemed in the discretion of the Secretary of State to be necessary; and d) payments equivalent to further, specific grants made available to maintained schools, where the Academy meets the requisite conditions and criteria necessary for a maintained school to receive these grants, such payments to be at the discretion of the Secretary of State. 4.5 Subject to clause 4.7, the basis of the pupil number count for the purposes of determining GAG at the Academy for an Academy Financial Year will be the Company’s most recent estimate in respect of the Academy provided in accordance with clause 4.6. 4.6 The Secretary of State shall in advance of each Academy Financial Year, at such time or times as he shall determine, request that the Company provides an estimate of the number of pupils on roll in the following September at the Academy for the purposes of determining GAG for an Academy Financial Year at the Academy, and the Company shall provide the requested estimate (such estimate to be based on an objective assessment of numbers) in respect of the Academy to the Secretary of State as soon as reasonably practicable. 4.7 Once the condition specified in clause 4.8 has been satisfied with respect to the Academy for the Academy Financial Year for which funding is being calculated, the basis of the pupil number count for the purpose of determining GAG for the Academy will be the Schools Census for the relevant month (determined at the discretion of the Secretary of State) preceding the Academy Financial Year in question 4.8 For the purpose of clause 4.7, the condition is satisfied in the Academy Financial Year which immediately follows the Academy Financial Year in which all planned year-groups will be present at the Academy (that is, all the pupil cohorts relevant to the age-range of the Academy will have some pupils present). 4.9 For any Academy Financial Year in which GAG for the Academy has been calculated in accordance with clauses 4.5 and 4.6, an adjustment may be made to the following Academy Financial Year's formula funding element of GAG for the Academy to recognise any variation from that estimate. The Secretary of State may for the purpose of calculating any adjustment to the formula funding element of GAG under this clause, use the Census for the relevant month (determined at the discretion of the Secretary of State) for the Academy Financial Year in question as a means of determining pupil numbers in an Academy Financial Year. The additional or clawed-back grant will be only that amount relevant to the number of pupils above or below that estimate. 4.10 For any Academy Financial Year in which GAG for the Academy is calculated in accordance with clause 4.7, no adjustment will be made to the equivalence funding element in the following Academy Financial Year’s equivalence funding element of GAG for the Academy unless the Company demonstrates to the satisfaction of the Secretary of State that there has been a significant impact on costs, such as an extra class. For any other element of GAG for the Academy the Secretary of State may make adjustments to recognise a variation in pupil numbers from that used to calculate the element of grant in question; the basis of these will be set out in the Annual Letter of Funding or its equivalent. 4.11 The Secretary of State recognises that if he serves notice of intention to terminate this Agreement, the intake of new pupils during the notice period is likely to decline and that in such circumstances payments based simply on the number of pupils attending the Academy are unlikely to be sufficient to meet the Academy’s needs during the notice period. In those circumstances, the Secretary of State may undertake to pay a reasonable and appropriately larger GAG with respect to the Academy in the notice period than would be justified solely on the basis of the methods set out in clauses 4.4 to 4.10, in order to enable the Academy to operate effectively. 4.12 Not used. 4.13 At the beginning of any Academy Financial Year the Company may hold unspent GAG for the Academy from previous Academy Financial Years amounting to such percentage (if any) as for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company prior to the beginning of that Academy Financial Year of the total GAG payable for the Academy in the Academy Financial Year just ended, or such higher amount as may from time to time be agreed. The Company shall use such carried-forward amount for such purpose, or subject to such restriction on its use, as is for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company. Clause 73 of the Master Agreement does not apply to the Academy. 4.14 Notwithstanding clause 4.13, any additional grant provided over and above that set out in clauses 4.4 to 4.10 and made in accordance with clause 4.11 may be carried forward without limitation or deduction until the Start-up Period or the circumstances set out in clause 4.11 have come to an end. Clause 74 of the Master Agreement does not apply to the Academy. 4.15 Any savings of GAG not allowed to be carried forward under clauses 4.13 and 4.14 above will be taken into account in the payment of subsequent grant. Clause 75 of the Master Agreement does not apply to the Academy. 4.16 Not used.

GAG AND EAG. 4.1 The Secretary of State agrees to pay GAG and EAG to the Company in relation to the Academy in accordance with the Master Agreement. 4.2 Clauses 42A to 53 52 of the Master Agreement do not apply to the Academy. 4.3 GAG will be paid by the Secretary of State to the Company in order to cover the normal running costs of the Academy, and shall only be spent by the Company towards those costs. These costs will include, but are not limited to: a) teachers' salaries and related costs (including full and part time teaching staff and seconded teachers); b) non-teaching staff salaries and related costs (including pension contributions, educational support staff, administrative and clerical staff and manual and premises related staff); c) employees' expenses; d) the purchase, maintenance, repair and replacement: (i) of teaching and learning materials and other educational equipment, including books, stationery and ICT equipment and software, sports equipment and laboratory equipment and materials; (ii) of other supplies and services; e) examination fees; f) repairs, servicing and maintenance of buildings (including redecoration, heating, plumbing, lighting etc); maintenance of grounds (including boundary fences and walls); cleaning materials and contract cleaning; water and sewage; fuel and light (including fuel oil, solid and other fuel, electricity and gas); rents; rates; purchase, maintenance, repairs and replacement of furniture and fittings; g) insurance; h) medical equipment and supplies; i) staff development (including in-service training); j) curriculum development; k) the costs of providing school meals for pupils (including the cost of providing free school meals to pupils who are eligible to receive them), and discretionary grants to pupils to meet the cost of pupil support, including support for pupils with special educational needs or disabilities (taking account of the fact that separate additional money will be available for pupils with statements of special educational needs); l) administration; and m) establishment expenses and other institutional costs. 4.4 Subject to clauses 4.11 and 4A.2, GAG for each Academy Financial Year for the Academy will include: a) funding equivalent to that which would be received by a maintained school with similar characteristics, determined by the Secretary of State and notified in the Annual Letter of Funding or its equivalent, taking account of the number of pupils at the Academy; b) funding for the cost of functions which would be carried out by the local authority if the Academy were a maintained school, such funding to be determined at the discretion of the Secretary of State; c) funding for matters for which it is necessary for the Academy to incur extra costs, to the extent that those costs are deemed in the discretion of the Secretary of State to be necessary; and d) payments equivalent to further, specific grants made available to maintained schools, where the Academy meets the requisite conditions and criteria necessary for a maintained school to receive these grants, such payments to be at the discretion of the Secretary of State. 4.5 Subject to clause 4.7, the basis of the pupil number count for the purposes of determining GAG at the Academy for an Academy Financial Year will be the Company’s most recent estimate in respect of the Academy provided in accordance with clause 4.6. 4.6 The Secretary of State shall in advance of each Academy Financial Year, at such time or times as he she shall determine, request that the Company provides an estimate of the number of pupils on roll in the following September at the Academy for the purposes of determining GAG for an Academy Financial Year at the Academy, and the Company shall provide the requested estimate (such estimate to be based on an objective assessment of numbers) in respect of the Academy to the Secretary of State as soon as reasonably practicable. 4.7 Once the condition specified in clause 4.8 has been satisfied with respect to the Academy for the Academy Financial Year for which funding is being calculated, the basis of the pupil number count for the purpose of determining GAG for the Academy will be be: a) for pupils in Year 11 and below, the Schools Census for the relevant month (determined at the discretion of the Secretary of State) preceding the Academy Financial Year in question; and b) for pupils in Year 12 and above, the formula which is in use at the time for maintained schools. 4.8 For the purpose of clause 4.7, the condition is satisfied in the Academy Financial Year which immediately follows the Academy Financial Year in which all planned year-groups will be present at the Academy (that is, all the pupil cohorts relevant to the age-range of the Academy will have some pupils present). 4.9 For any Academy Financial Year in which GAG for the Academy has been calculated in accordance with clauses 4.5 and 4.6, an adjustment may be made to the following Academy Financial Year's formula funding element of GAG for the Academy to recognise any variation from that estimate. The Secretary of State may for the purpose of calculating any adjustment to the formula funding element of GAG under this clause, use the Census for the relevant month (determined at the discretion of the Secretary of State) for the Academy Financial Year in question as a means of determining pupil numbers in an Academy Financial Year. The additional or clawed-back grant will be only that amount relevant to the number of pupils above or below that estimate. 4.10 For any Academy Financial Year in which GAG for the Academy is calculated in accordance with clause 4.7, no adjustment will be made to the equivalence funding element in the following Academy Financial Year’s equivalence funding element of GAG for the Academy unless the Company demonstrates to the satisfaction of the Secretary of State that there has been a significant impact on costs, such as an extra class. For any other element of GAG for the Academy the Secretary of State may make adjustments to recognise a variation in pupil numbers from that used to calculate the element of grant in question; the basis of these will be set out in the Annual Letter of Funding or its equivalent. 4.11 The Secretary of State recognises that if he she serves notice of intention to terminate this Agreement, the intake of new pupils during the notice period is likely to decline and that in such circumstances payments based simply on the number of pupils attending the Academy are unlikely to be sufficient to meet the Academy’s needs during the notice period. In those circumstances, the Secretary of State may undertake to pay a reasonable and appropriately larger GAG with respect to the Academy in the notice period than would be justified solely on the basis of the methods set out in clauses 4.4 to 4.10, in order to enable the Academy to operate effectively. 4.12 Not used. 4.13 At the beginning of any Academy Financial Year the Company may hold unspent GAG for the Academy from previous Academy Financial Years amounting to such percentage (if any) as for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company prior to the beginning of that Academy Financial Year of the total GAG payable for the Academy in the Academy Financial Year just ended, or such higher amount as may from time to time be agreed. The Company shall use such carried-forward amount for such purpose, or subject to such restriction on its use, as is for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company. Clause 73 of the Master Agreement does not apply to the Academy. 4.14 Notwithstanding clause 4.13, any additional grant provided over and above that set out in clauses 4.4 to 4.10 and made in accordance with clause 4.11 or 4A.2 may be carried forward without limitation or deduction until the Start-up Period or the circumstances set out in clause 4.11 have come to an end. Clause 74 of the Master Agreement does not apply to the Academy. 4.15 Any savings of GAG not allowed to be carried forward under clauses clauses 4.13 and 4.14 above will be taken into account in the payment of subsequent grant. Clause 75 of the Master Agreement does not apply to the Academy. 4.16 Not used. 4.17 Not used. 4.18 Not used 4.19 In relation to this Academy, if the Secretary of State or her agents pay any grant to the Company which includes an amount to cover the VAT which will be payable by the Company in using any such grant for the purposes intended, the Company shall, having paid the VAT to a third party for any goods or services it has purchased from such a third party, where entitled, promptly and, in any event, as soon as is reasonably practicable, submit a VAT reclaim application to Her Majesty’s Revenue and Customs (“HMRC”) in respect of such VAT payment. Any failure by the Company to submit a VAT reclaim application to HMRC or repay the amount recouped to the Secretary of State as soon as reasonably practicable following the receipt of any such payment from HMRC may be taken into account by the Secretary of State either: (a) in the same Academy Financial Year that any such grant is paid to the Company; or (b) in the calculation and/or payment of any subsequent grant to the Company; or (c) by an adjustment to the GAG paid by the Secretary of State to the Company in the following Academy Financial Year or Academy Financial Years. 4.20 Not used. 4.21 Not used. 4.22 Not used. 4A ADDITIONAL FUNDING 4A.1 Not used. 4A.2 The Secretary of State may pay further grant in the Start-up Period, as determined and specified by him, for costs which cannot otherwise be met from GAG.

GAG AND EAG. 4.1 The Secretary of State agrees to pay GAG and EAG to the Company in relation to the Academy in accordance with the Master Agreement. 4.2 Clauses Agreement subject to clauses 4.2-4.9 below which replace clauses 42A to 53 49 of the Master Agreement do not apply to the Academy.Agreement. December 2012 v1 26237352623735/V33 4.3 4.2 GAG will be paid by the Secretary of State to the Company in order to cover the normal running costs of the Academy, and shall only be spent by the Company towards those costs. These costs will include, but are not limited to: a) teachers' salaries and related costs (including full and part time teaching staff and seconded teachers); b) non-teaching staff salaries and related costs (including pension contributions, educational support staff, administrative and clerical staff and manual and premises related staff); c) employees' expenses; d) the purchase, maintenance, repair and replacement: (i) of teaching and learning materials and other educational equipment, including books, stationery and ICT equipment and software, sports equipment and laboratory equipment and materials; (ii) of other supplies and services; e) examination fees; f) repairs, servicing and maintenance of buildings (including redecoration, heating, plumbing, lighting etc); maintenance of grounds (including boundary fences and walls); cleaning materials and contract cleaning; water and sewage; fuel and light (including fuel oil, solid and other fuel, electricity and gas); rents; rates; purchase, maintenance, repairs and replacement of furniture and fittings; g) insurance; h) medical equipment and supplies; i) staff development (including in-service training); ; Formatted: Fon Formatted: Fon December 2012 v1 26237352623735/V33 j) curriculum development; k) the costs of providing school meals for pupils (including the cost of providing free school meals to pupils who are eligible to receive them), and discretionary grants to pupils to meet the cost of pupil support, including support for pupils with special educational needs or disabilities (taking account of the fact that separate additional money will be available for pupils with statements of special educational needs); l) administration; and m) establishment expenses and other institutional costs. 4.4 Subject to clauses 4.11 and 4A.2, GAG for each Academy Financial Year for the Academy will include: a) funding equivalent to that which would be received by a maintained school with similar characteristics, determined by the Secretary of State and notified in the Annual Letter of Funding or its equivalent, taking account of the number of pupils at the Academy; b) funding for the cost of functions which would be carried out by the local authority if the Academy were a maintained school, such funding to be determined at the discretion of the Secretary of State; c) funding for matters for which it is necessary for the Academy to incur extra costs, to the extent that those costs are deemed in the discretion of the Secretary of State to be necessary; and d) payments equivalent to further, specific grants made available to maintained schools, where the Academy meets the requisite conditions and criteria necessary for a maintained school to receive these grants, such payments to be at the discretion of the Secretary of State. 4.5 Subject to clause 4.7, the basis of the pupil number count for the purposes of determining GAG at the Academy for an Academy Financial Year will be the Company’s most recent estimate in respect of the Academy provided in accordance with clause 4.6. 4.6 The Secretary of State shall in advance of each Academy Financial Year, at such time or times as he shall determine, request that the Company provides an estimate of the number of pupils on roll in the following September at the Academy for the purposes of determining GAG for an Academy Financial Year at the Academy, and the Company shall provide the requested estimate (such estimate to be based on an objective assessment of numbers) in respect of the Academy to the Secretary of State as soon as reasonably practicable. 4.7 Once the condition specified in clause 4.8 has been satisfied with respect to the Academy for the Academy Financial Year for which funding is being calculated, the basis of the pupil number count for the purpose of determining GAG for the Academy will be the Schools Census for the relevant month (determined at the discretion of the Secretary of State) preceding the Academy Financial Year in question 4.8 For the purpose of clause 4.7, the condition is satisfied in the Academy Financial Year which immediately follows the Academy Financial Year in which all planned year-groups will be present at the Academy (that is, all the pupil cohorts relevant to the age-range of the Academy will have some pupils present). 4.9 For any Academy Financial Year in which GAG for the Academy has been calculated in accordance with clauses 4.5 and 4.6, an adjustment may be made to the following Academy Financial Year's formula funding element of GAG for the Academy to recognise any variation from that estimate. The Secretary of State may for the purpose of calculating any adjustment to the formula funding element of GAG under this clause, use the Census for the relevant month (determined at the discretion of the Secretary of State) for the Academy Financial Year in question as a means of determining pupil numbers in an Academy Financial Year. The additional or clawed-back grant will be only that amount relevant to the number of pupils above or below that estimate. 4.10 For any Academy Financial Year in which GAG for the Academy is calculated in accordance with clause 4.7, no adjustment will be made to the equivalence funding element in the following Academy Financial Year’s equivalence funding element of GAG for the Academy unless the Company demonstrates to the satisfaction of the Secretary of State that there has been a significant impact on costs, such as an extra class. For any other element of GAG for the Academy the Secretary of State may make adjustments to recognise a variation in pupil numbers from that used to calculate the element of grant in question; the basis of these will be set out in the Annual Letter of Funding or its equivalent. 4.11 The Secretary of State recognises that if he serves notice of intention to terminate this Agreement, the intake of new pupils during the notice period is likely to decline and that in such circumstances payments based simply on the number of pupils attending the Academy are unlikely to be sufficient to meet the Academy’s needs during the notice period. In those circumstances, the Secretary of State may undertake to pay a reasonable and appropriately larger GAG with respect to the Academy in the notice period than would be justified solely on the basis of the methods set out in clauses 4.4 to 4.10, in order to enable the Academy to operate effectively. 4.12 Not used. 4.13 At the beginning of any Academy Financial Year the Company may hold unspent GAG for the Academy from previous Academy Financial Years amounting to such percentage (if any) as for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company prior to the beginning of that Academy Financial Year of the total GAG payable for the Academy in the Academy Financial Year just ended, or such higher amount as may from time to time be agreed. The Company shall use such carried-forward amount for such purpose, or subject to such restriction on its use, as is for the time being specified in the Academies Financial Handbook or otherwise as the Secretary of State may specify by notice in writing to the Company. Clause 73 of the Master Agreement does not apply to the Academy. 4.14 Notwithstanding clause 4.13, any additional grant provided over and above that set out in clauses 4.4 to 4.10 and made in accordance with clause 4.11 may be carried forward without limitation or deduction until the Start-up Period or the circumstances set out in clause 4.11 have come to an end. Clause 74 of the Master Agreement does not apply to the Academy. 4.15 Any savings of GAG not allowed to be carried forward under clauses 4.13 and 4.14 above will be taken into account in the payment of subsequent grant. Clause 75 of the Master Agreement does not apply to the Academy. 4.16 Not used.