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The General Annual Grant (GAG) - clawback

The main funding received by an academy is usually through the General Annual Grant (GAG). The GAG cannot generally be used ‘for the advancement of education’, as per an academy’s governing document, but instead it comes with specific restrictions on its use, only allowing expense on recurrent expenditure of the academy.

This generally includes expenditure on the establishment, conduct, administration and maintenance, but not most items of capital expenditure (specifically not those which would be covered by capital grant funding). Effectively, the GAG is designed to cover the regular running costs of an academy.

A minimum of 88% of the GAG must also be used in the year for which it is granted, with 2% of the carried forward amount can be used for any purpose for which the GAG is paid but the other 10% can only be spent on the upkeep and the improvement of premises, including the costs of equipment and routine repairs and maintenance and on capital expenditure.

The GAG is treated as a restricted fund and then the 10% carry forward figure is a separate property restricted fund.



Date: 8th August, 2011
Author: Wendy Bambrick


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