Meeting documents

1) Standard Recovery Procedure

Normal recovery involves reminder letters being sent for unpaid debts after 21 and 35 days. When the debt reaches 49 days old automatic recovery stops.

Once debts have reached the end of the standard recovery procedure each case is reviewed as to what further action is to be taken for recovery.

2) Debts over 50 days old

When a debt reaches 50 days old the issuing department is contacted for instructions as to what action they wish CDM to take, eg send to Legal, write-off, send bespoke letter etc.  If the debt is to be written-off instructions will be required, in writing or E Mail, giving reasons for write-off.

3) Small debts / balances

Debts / balances of £10.00 and under can be presented for write-off by the CDM Manager if they are deemed uneconomical to take further action on.  These will be listed and countersigned by the Housing Benefits Manager.

4) Indicators re write-offs

As debts are identified for write-off, an indicator of  WO is entered against the invoice and the written instructions are filed.

5) Housing Benefit debts

Any debt for Housing Benefit overpayment being presented for write-off must be accompanied by a completed “write-off check pro forma” - see attachment. This is to ensure all possible action has taken place to trace the debtor, and obtain payment, before the debt is passed for write-off.  

6) Presentation of write-offs to Cabinet

A week prior to Cabinet meeting a list of all write-offs is produced, with covering header sheet, and is counter signed by the Housing Benefits Manager. These are delivered to Chief Executive to present to Cabinet under delegated powers.  These powers allow any debt up to £30,000.00 to be written-off, a special report must be presented for a debt over this sum for Cabinet approval.  

7) Clearing entries in Debtors Ledger

After Cabinet meeting, providing approval has been given, the debts are removed from the ledger and the list is filed, with accompanying paperwork, for audit / record purposes. Invoices being written-off which are dated 1/1/2002 or later are written back to the original income code, except Housing Benefit debts which are to be written back to the Benefits bad debt provision as per request from Accountancy.

After entering write off entry onto account, the WO indicator must be removed before the overnight jobs make the outstanding invoice nil.

Write off check pro forma

The debt below has been written off or has been put forward for writing off. Please check that all possible actions, as listed below have been taken before confirming write off status.

Under £50 ref No:

Please ensure that all relevant investigations have been actioned, using the list below.

Write off requested by:

Date:

Checked and signed by:

Date signed off:

Analysis of Sundry Debtor Write-Offs 2003 / 04

234 invoices were written-off during 2003/04, amounting to £98,245.
(NB: - This represents only 1.3% of the debit raised for the year).

The breakdown of the above write-offs is as follows.

29 invoices for sums under £50 were written-off as uneconomical to pursue.

95 invoices were written-off, as the Debtor could not be traced.

60 invoices for old Community Charge outstanding debts were written-off.

50 invoices (remaining balance) were written-off for various reasons, for example, bankruptcy, debtor deceased, hardship, etc.

Age of Debts written-off in 2003/04

Up to 1-year            15 invoices

1 – 3 years old            61 invoices

Over 4 years old     158 invoices