CHARGING BASIS. 3.1 The Administration Charges are split into three (Council Budget) years: • 2004/5 Year 1 - 1st April 2004 until 31st March 2005 • 2005/6 Year 2 - 1st April 2005 until 31st March 2006 • 2006/7 Year 3 - 1st April 2006 until 31st March 2007 as detailed in Schedule 2. It is understood by both parties that the Administration Charges for Years 1 and 2 are based on best estimates available at the time of entering into this agreement. The estimate for Year 3 from 1st April 2006 to 31st March 2007 will be assessed and notified in writing during Year 2 (but no later than 31st December 2006). As such, and using open book accounting methods, the parties understand and agree that at the end of each annual period as detailed above there will be an accounting reconciliation undertaken by the parties nominated accountants. The outcome of the reconciliation will be a final annual charge. Following this reconciliation either a further charge will be paid by the service user to reflect the actual (and reasonable) additional workloads undertaken by the service provider, or conversely a reimbursement will be paid by the service provider to reflect a reduced workload. Such payment will be made within 30 days of the reconciliation.
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