12Recurrent grants in respect of teaching hospitals

12 Recurrent grants in respect of teaching hospitals

(1) Where a university is specified in Column 1 of Schedule 6 and an amount is specified in that Schedule in relation to that university and to a year to which this Act applies, there is payable to the State in which the university is situated, for the purpose of financial assistance in respect of contributions by the university towards the appropriate costs, in respect of that year, of the teaching hospital or teaching hospitals of the university, the amount so specified. (2) Financial assistance is granted to a State under subsection (1) in relation to the teaching hospital or teaching hospitals of a university in respect of a year to which this Act applies on the conditions that:

(a) the State will pay each amount of that financial assistance received by it to the university without undue delay;

(b) the State will ensure that the amount expended by the university in making contributions towards the appropriate costs, in respect of that year, of the teaching hospital or teaching hospitals of the university is not less than the sum of the amounts paid to the State by way of financial assistance under this section in relation to the teaching hospital or teaching hospitals of the university in respect of that year; and

(c) the State will ensure that the university furnishes to the Commission, not later than 30 September next following the end of that year, a statement by a qualified auditor, in accordance with a form approved by the Commission, as to the expenditure of the university in making contributions towards the appropriate costs, in respect of that year, of the teaching hospital or teaching hospitals of the university.

(3) In this section, appropriate costs, in relation to a teaching hospital of a university, means:

(a) expenditure (other than expenditure on building projects or expenditure on the purchase of equipment) incurred by the hospital in relation to parts of the hospital used exclusively by students enrolled in the Faculty of Medicine, or School of Medicine, of the university, by students enrolled in the Faculty of Medicine, or School of Medicine, of any other university in relation to which that hospital is a teaching hospital and by their teachers and to facilities and equipment so used in connection with those parts of the hospital; and

(b) expenditure, up to an amount of $3,300, incurred in the purchase of books and periodicals for the medical library of the hospital.