Download Irrecoverable Debts

Agenda Item: 7.8
Rother District Council
Report to
-
Cabinet
Date
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21 February 2011
Report of the
-
Director of Resources
Subject
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Irrecoverable Debts
Recommendation: It be RESOLVED that the debts shown in paragraph 2 be
approved for writing out of the accounts.
Head of Service: Robin Vennard
Lead Cabinet Members: Councillors Maynard and Patten
1.
Financial Regulation Q4 gives me the authority to approve the writing out
from the Council’s accounts sums due to the Council of up to £4,000 for each
debt. Any debt in excess of this amount can only be written out of the
accounts with the consent of the Cabinet. This treatment of the debt does not
mean that the Council cannot take action in the future if information is
received indicating that the amount can then be recovered. Where it is
apparent, however, that the debts are not going to be recovered, then it is
financially prudent to exclude them from the accounts.
2.
The Cabinet is asked to agree to write off 6 cases relating to arrears of NonDomestic Rates. The first case was declared bankrupt on the 27/4/2010
leaving a debt of £13,909.59, with the second case the company was
dissolved on the 13/7/2010 leaving a debt of £4,831.47. The third case
absconded without a trace leaving a debt of £4,398.30, despite every effort
being undertaken to gain information on the whereabouts. The fourth case
went into liquidation under the administrators on the 13/7/2010 leaving a debt
of £6,583.92. The fifth case relates to the owner absconding leaving a debt of
£4,307.15 and the final case went into bankruptcy in November 2009 leaving
a debt of £16,046.95.
3.
The writing out of the accounts relating to Business Rates does not have a
direct impact on the Council as the cost is met by the National Non Domestic
Rate pool. Details of the cases are available on request.
4.
In addition one Council Tax case requires writing out of the accounts relating
to an outstanding balance of £4,708.35 on an executors account, where there
are no funds available from the estate.
Malcolm Johnston
Director of Resources
Risk Assessment Statement
The Council is a non-preferential debtor in bankruptcy and winding-up procedures,
and the likelihood of a dividend in these circumstances is remote. Writing the
amounts out of the accounts leaves a true picture of the size of debt where recovery
is still likely.
cb110221 – Irrecoverable Debts