Demitting Authorities (Closing of Accounts and Payment of Grants) (Scotland) Order 1975

Publication Date:January 01, 1975
 
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1975No. 826 (S. 139)

LOCAL GOVERNMENT, SCOTLAND

The Demitting Authorities (Closing of Accounts and Payment of Grants) (Scotland) Order 1975

13thMay1975

15thMay1975

16thMay1975

In exercise of the powers conferred on me by section 215 of the Local Government (Scotland) Act 1973(a) and of all other powers enabling me in that behalf, I hereby make the following order:—

Citation and commencement

1. This order may be cited as the Demitting Authorities (Closing of Accounts and Payment of Grants) (Scotland) Order 1975 and shall come into operation on 16th May 1975.

Interpretation

2.—(1) The Interpretation Act 1889(b) shall apply for the interpretation of this order as it applies for the interpretation of an Act of Parliament.

(2) In this order, unless the context otherwise requires—

"the Act of 1947" means the Local Government (Scotland) Act 1947(c);

"the Act of 1966" means the Local Government (Scotland) Act 1966(d);

"the Act of 1973" means the Local Government (Scotland) Act 1973;

"the Regulations of 1967" means the Rate Support Grant (Scotland) Regulations 1967(e);

"accounting authority" means a local authority to which this order assigns responsibility for closing the accounts of a demitting authority;

"demitting authority" means a county, town or district council which existed immediately before the coming into operation of the Act of 1973, a joint committee or joint board ceasing to exist on 16th May 1975, a river purification board established under the Rivers (Prevention of Pollution) (Scotland) Act 1951 or a regional water board established under the Water (Scotland) Act 1967 and 'demitting' shall be construed accordingly;

"joint committee" and "joint board" mean a joint committee or joint board as defined in section 379(1) of the Act of 1947;

(a) 1973 c. 65.

(b) 1889 c. 63.

(c) 1947 c.43.

(d) 1966 c. 51.

(e) S.I. 1967/715 (1967 II, p. 2162).

"successor authority" means the local authority or river purification board to which responsibility for the exercise of a function is assigned by or under the Act of 1973; and

"year" means the financial year of a demitting authority.

(3) References in this order to local or other authorities or their areas have the same meaning as in the Acts of 1947 and 1973 as the case may be.

Closing of Accounts

3. The accounts of a demitting authority in respect of the year ending on 15th May 1975, and if necessary in respect of any previous year, shall be closed, brought to balance and audited as provided by this order and for those purposes an accounting authority named in column (1) of the Schedule to this order shall assume the relevant duties of and act in place of each demitting authority specified opposite that accounting authority in column (2) of the said Schedule.

4. The provisions of section 189 and 190 and Part X of the Act of 1947 and of any instrument made thereunder (so far as saved by article 9 of the Local Government (Scotland) Act 1973 (Commencement No. 2) Order 1973(a)) shall apply with any necessary modifications in relation to any accounting authority as they applied in relation to the relevant demitting authority.

Bank and Cash Balances

5.—(1) The bank and cash balances of a demitting authority at the close of business on 15th May 1975 shall be transferred to the accounting authority as debts due to or by the demitting authority.

(2) Any payment initiated, whether by cheque or otherwise, by or to a demitting authority on or before 15th May 1975 shall be debited or credited to the bank account of the demitting authority, but no other transactions relating to that account shall be entered into by the accounting authority after that date.

Sums due to and by Demitting Authorities

6. All sums due to or by a demitting authority in respect of a specific function and not received or paid by that authority on or before 15th May 1975 shall be payable to or by the successor authority for debit or credit as the case may be to that authority's account relating to the function and any sums due to or by a demitting authority which cannot be related to a specific function shall be payable to or by the accounting authority for debit or credit as appropriate.

Late Revenue Account Payments

7.—(1) The accounting authority shall—

(a) in accordance with paragraph (2) below, determine in relation to each function of the demitting authority an amount chargeable to the revenue account of that authority for the year 1974–75;

(b) debit that amount to the said account;

(c) make a corresponding credit in the accounts of the demitting authority in favour of the successor authority;

and intimate accordingly to the successor authority.

(a) S.I. 1973/2181 (1973 III, p. 7717).

(2) The amount referred to in paragraph (1)(a) above shall, unless the Secretary of State otherwise determines in any particular case, be the sum of—

(a) all payments made by the successor authority in respect of salaries and wages and related employer's pensions and national insurance contributions of former staff of the demitting authority paid fortnightly or monthly and properly chargeable to the account relating to the function of the demitting authority for the year 1974–75;

(b) the amount of interest accrued as at 15th May 1975, but not paid by that date, on borrowing by the demitting authority which is properly chargeable to the account relating to the function of the demitting authority;

(c) the amount of capital expenditure previously approved by the demitting authority as chargeable to the revenue account relating to the function which is payable on or before 15th May 1975, less any sums paid on or before that date; and

(d) an amount equal to 7 per cent. of the expenditure charged to the account relating to the function for the year 1974–75, other than—

(i) expenditure on salaries and wages and related employer's pensions and national insurance contributions;

(ii) loan charges;

(iii) capital expenditure charged to revenue account; and

(iv) payments of general administration expenses and of any other expenses apportioned to the account, and payments under requisitions.

(3) A successor authority to which an amount is intimated under paragraph (1) above shall credit the amount to their account relating to the function and make a corresponding debit in their accounts against the demitting authority.

(4) For the purposes of this article the term "function" includes the general administration of the demitting authority or any other matter the expenses of which are chargeable in the first instance to an account from which they are subsequently apportioned in whole or in part to another account, and a debit under paragraph (1) of this article in respect of any such matter shall be made only to the account to which such expenses are first charged.

Late Revenue Account Receipts

8.—(1) The accounting authority shall, in respect of amounts of the following descriptions due but not received by the demitting authority by 15th May 1975, credit to the account relating to the function in the accounts of the demitting authority—

(a) any income which was the subject of a specific demand by the demitting authority on or before 15th May 1975;

(b) any amount receivable by way of Government grants for specific purposes; and

(c) in the case of a regional water board, any water charges due up to 15th May 1975 but not the subject of a specific demand by that date;

and make a corresponding debit against the successor authority.

(2) The accounting authority shall intimate accordingly to the successor authority who shall debit any such amount to their account relating to the function and make a corresponding credit in their accounts in favour of the demitting authority.

(3) The accounting authority shall credit, or as the case may be debit, to the rating account of the demitting authority the amount of any sum received by or as the case may be recovered from them on behalf of the demitting authority in accordance with the provisions of article 20 of this order.

Deferred Revenue Expenditure

9. Any item of expenditure which is properly chargeable to a revenue account of the demitting authority but has not been so charged shall be charged to that account before it is closed.

Requisitioning Accounts

10.—(1) Where the expenses of a demitting authority are defrayed either in whole or in part by money requisitioned from other demitting authorities the accounting authority shall determine as soon as possible after 15th May 1975 the balance due to or by those other authorities for the year 1974–75.

(2) The balance determined under paragraph (1) above shall be allocated by the accounting authority among the other demitting authorities concerned in the same proportions as the requisitions for the said year and the allocations shall be notified to the accounting authorities concerned, for credit or debit in the revenue accounts of those other authorities.

Domestic Water Rating Accounts

11.—(1) The final balance on the domestic water rating account of a demitting county or town council at 15th May 1975 shall be transferred to the regional or islands council whose area comprises or includes the area of the demitting county or town council.

(2) The regional or islands council shall credit or, as appropriate, debit the balance referred to in paragraph (1) above to their domestic water rating account.

(3) Where the area of a demitting county council is divided among two or more regional councils the balance referred to in paragraph (1) above shall be divided among those regional councils in the same proportions as the net annual valuation for domestic water rating purposes of the landward area, as at 16th May 1974, is divided among them.

Capital Accounts

12.—(1) Any balance on a capital account at 15th May 1975 in respect of any property of a demitting authority shall be transferred by the accounting authority to the successor authority to which the property is transferred, and the successor authority shall enter any such balance in...

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