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Agenda Item: 7.8 Rother District Council Report to - Cabinet Date - 21 February 2011 Report of the - Director of Resources Subject - 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