2. Where the pupil number baseline of the Authority's allocation of DSG includes pupils attending the School (the "recoupment model"), the DSG will be calculated in accordance with the methodology that applies to all local authorities allocated DSG (but with recoupment applying), as determined by the Secretary of State, for the relevant Financial Year.
3. Where the Authority "delegates" the Academy Affordability Gap and such sum is accounted for within the relevant School budget share (and is therefore subject to recoupment), the DFE shall, subject to paragraph 8, pay to the Academy a sum equal to the Academy Affordability Gap as part of the General Annual Grant or Earmarked Annual Grant. The parties agree that the Academy shall promptly pay such sum to the Authority pursuant to the terms of the School Agreement.
4. The parties agree that the recoupment model for calculating DSG shall apply until such time as this practice ends or is amended.