Issue - meetings

To consider the enclosed report which reports to members the level of write offs and the profile of outstanding debt for the 2014/15 financial year.

Members were presented with a report detailing the level of write offs of debts due to the Council for the 2014/15 financial year. 

The current bad debts provisions were noted, which Officers advised were adequate in relation to the levels of write offs and outstanding debt. 

Timing issues, for example when invoices were sent out, together with differing debt types were factors which did not make it easy to compare debt levels on a year-on-year basis.  The introduction of the Council’s new finance system in March 2015 had also impacted on available data.  Officers stated however that the authority’s level of write offs were relatively low and represented a similar picture to other authorities.

Non Domestic Rates and the liquidation/winding of businesses represented the highest level of write offs.  Whilst Officers made every effort to pursue debts before writing them off collection rates had fallen in this area as recovery action might not be pursued so rigorously where to do so might create a business more problems.  Officers worked with the North Worcestershire Economic Development and Regeneration team where necessary to determine the best course of action in such cases. 

Officers adjudged when it was either not reasonable or uneconomic to recover debts.  Work on housing benefits overpayments in particular was extremely labour intensive and there was a requirement for the Council to act on data received from HM Revenue and Customs within a set timeframe, with failure to do so resulting in an error being logged against the Council.

RESOLVED that

the contents of the report be noted.