Common use of OVERSPENDS AND UNDERSPENDS Clause in Contracts

OVERSPENDS AND UNDERSPENDS. If an overspend is identified the following approach will be taken: • Seek to cover the overspend from areas of underspend identified within either pool; • Utilise the risk pool funding; • Reduce uncommitted scheme allocations; • Cover from resources outside the pool. If an underspend is identified the following approach will be taken: • Underspends remain within the pooled arrangement to support overspends elsewhere in the pool; • Further joint schemes to be proposed in year which can utilise the resources in year. • Underspends may be carried forward to meet ongoing financial pressures subject to each organisation’s own governance arrangements. Allocation of funding will be subject to agreement of the pooled fund partners as part of the BCF governance. In all of these scenarios the BCF Executive Group is the forum where decisions would be made.