We are currently providing funding to support teachers' performance pay through special grants paid to local authorities. A requirement of special grants is that they are fully and properly audited. Auditors appointed by the local authority make certain that the funds are spent for the purposes for which they are paid. Local authorities are required to provide me with copies of these audits. The new special grant, providing £250 million to support performance pay across the period April 2002 to 2004, will be subject to these same audit requirements.