The Minister must not approve the proposal unless:
(a) the funding agreement made by the approved authority of the approved school system with the Commonwealth (or the agreement as varied) applies to the school for the earliest program year to which the proposal relates, and all later program years; and
(b) the funding agreement has been varied to provide that the approved authority of the approved school system has agreed to fulfil the obligations (if any) of the approved authority of the school under this Act or the former Act that have not been fulfilled.