To seek approval for the write off of uncollectable debt (report of the Deputy Chief Executive – Corporate Development (S151)) enclosed.
Minutes:
Consideration was given to the report of the Head of the Deputy Chief Executive – Corporate Development (S151)which sought approval for the write off of uncollectable debt.
The Portfolio Holder for Finance, Commercialisation, UKSPF and Levelling Up presented the report. The following points were highlighted:
· Members asked what the cost was to attempt to collect the debt?
o Officers explained that all services that were part of the collection fund were contracted to be collected by PSPS. The cost of collection had to be balanced against the amount of the debt. Debts would be pursued as much as they possibly could be – some would be unenforceable, some individuals had absconded etc. All costs of collection were set out in the contract with PSPS, with figures available to all members. There was a collective cost for pursuing all debt rather than the finer cost per individual debt.
· Members commented that SHDC collected on behalf of others, including Lincolnshire County Council – where we were successful in collecting any debts, were costs offset in this respect?
o Officers advised that as part of the collection fund, the costs of collection were part of that, and spread across all beneficiaries.
· Members commented that the funds recommended for write-off covered a relatively long period of time with much of the debt due to only two debtors. They were confident that all efforts had been made to collect as much of the debt as possible, whilst being realistic about outcomes.
· Members commented that as an authority, we were now much better at collection however, it was difficult to understand how the sum of some debts could accrue over a number of years. How was it possible for some individuals to continue to accrue debts over multiple years, and what action could be taken to stop this?
o Officers confirmed that some debts could range over a number of financial years, and that write-offs were not presented until all steps to pursue monies had been taken. There could sometimes be a delay, for a number of reasons, before the point was reached at which a decision had to be taken as to whether the continuation of collection was still cost-effective. There were plenty of tracing activities that could be undertaken, sometimes over several years.
· Members acknowledged the response but asked how certain individuals living at the same property for a number of years could continue to accrue debt.
o The Leader responded that officers should assist with members queries in this regard outside of the meeting.
· Members asked whether, should an individual with debt that had been written off present to the Council with a housing need, would the previous debt be pursued.
o Officers commented that in a situation such as this, any outstanding debt that had been written off would be written back on.
· The Leader commented that he agreed with most of the comments that had been made and reiterated that the authority was getting much better at effecting recovery of debts, ... view the full minutes text for item 20