Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 24 February, 2014
Report of the Leader
Write off of outstanding debt
Purpose of the Report
1. To approve write off of debts which are deemed to be irrecoverable and exceed the authorities under officer delegation.
1. That invoice number 4818340 is written off subject to the consideration of further details under Part 2.
Reasons for the Recommendations
1. Invoiced debt is irrecoverable.
2. In accordance with the Councils Constitution, officers have delegated authority to deal with the following:
· The instigation of appropriate legal proceedings for the recovery of Rates, Council Tax, Non Domestic Rates and other monies due to the Council.
· To negotiate on disputed debts to achieve settlement in liaison with relevant departments.
· The writing off of irrecoverable Council Tax and Non Domestic Rates.
· The writing off of irrecoverable debts in relation to bankruptcy, receivership and liquidation.
· The writing off of other irrecoverable debts up to £10,000 in each case.
3. Write off of debts exceeding officers delegated authority is a matter for Cabinet.
Relevant Issues and Options
4. The following debt exceeds officer delegated authority and need to be considered by Cabinet.
Invoice No 4818340 - 15 May 1995 - £84,664.28
5. This invoice relates to Works in Default at Court Road, Barry, invoiced in 1995 and carried out by the former Vale of Glamorgan Borough Council. The building has subsequently been demolished and information on this is scant and it is believed that the actual date of the work could have started as far back as 1987. The only recent documentation is an email from the Operational Manager - Building Control dated 13th July 2009 stating that a charge had been noted with Land Charges but removed following the debtor's bankruptcy.
Resource Implications (Financial and Employment)
6. The Council makes a provision for bad and doubtful debts. This is reviewed annually as part of the closure of accounts. The provision covers the above debts and there will be no revenue implications if they are written off.
7. It is good practice to review debtor accounts and to write off debts where there is no realistic prospect of recovery.
Sustainability and Climate Change Implications
Legal Implications (to Include Human Rights Implications)
9. Appropriate legal action is taken by the Council to recover debts. Generally this is undertaken by officers in the Finance Department in consultation with service departments. In more complex cases advice is sort from the Legal Department or external lawyers.
Crime and Disorder Implications
Equal Opportunities Implications (to include Welsh Language issues)
12. The council seeks to recover income due in an efficient manner.
Policy Framework and Budget
13. This is a matter for Executive decision.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
15. Corporate Resources
R Ingram - Principal Accountant
M Bell - Payments and Income Manager
Sian Davies - Director of Resources