9.  FINANCIAL MATTERS25

9.1  The DFE shall pay on an annual basis to the Authority the Dedicated Schools Grant adjusted as appropriate in accordance with schedule 2 and in accordance with the DFE's usual policies and procedures.

9.2  Where schedule 2 makes provision for the payment of the Academy Affordability Gap, the DFE shall pay to the Authority or the Academy (as the case may be) a sum equal to the Academy Affordability Gap.

9.3  The Authority and the Academy shall not agree to any amendment to the basis for calculation of the Academy Contribution without the prior written consent of the DFE (not to be unreasonably withheld or delayed).26




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25  Specific DFE involvement to be sought on finance matters to ensure that the arrangements for the adjustment of DSG and the funding of any Affordability Gap are properly understood and documented. See the drafting in schedule 2 and the relevant footnotes for the further information.

26  Given that the DFE is liable to indemnify the Authority under the Normal Payment Matters , it is important that the DFE has an opportunity to review and approve any changes to the Academy Contribution. This may happen for a range of reasons, perhaps following a Change to the Project Agreement or following the conclusion to any Benchmarking or Market Testing exercise.