Common use of OVERSPENDS AND UNDERSPENDS Clause in Contracts

OVERSPENDS AND UNDERSPENDS. The Trust shall use all reasonable endeavours to arrange for the discharge of the Authority Health-Related Functions and the NHS Functions within the Financial Contributions available in each Financial Year. Without prejudice to the provisions of schedule 3 the Trust shall endeavour to manage any in-year overspends within its commissioning arrangements for the Services. The Trust shall make the Authority aware of any potential overspend as soon as it becomes aware of this possibility. The Trust will highlight reasons for the overspend, both current and projected, and make recommendations for action to bring the relevant Financial Contributions back to balance. The Trust shall make the Authority aware of any potential underspend in relation to Financial Contributions, prior to the end of the Financial Year. The Trust shall highlight reasons for the underspend and identify any part of that underspend which is already contractually committed. Any overspend or underspend at the end of the Financial Year shall be dealt with in accordance with Schedule 3 herein. CAPITAL EXPENDITURE The Financial Contributions shall be directed exclusively to revenue expenditure. Any arrangements for the sharing of capital expenditure shall be made separately and in accordance with section 256 (or section 76) of the NHS ▇▇▇ ▇▇▇▇. SET UP COSTS Each Partner shall bear its own costs of the establishment of the Partnership Arrangements under this Agreement.