Write Off and Disposal Policy

Name Academy Trust

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Procedures

  1. Items for write off or disposal of an asset should be listed on the write off or disposal authorisation form, detailing model and serial number if relevant, a brief description of the item, and the reason for write off or disposal.
  1. The form should be signed and dated by the member of staff requesting the write off or disposal and then passed to their line manager for authorisation. The line manager should be satisfied that the items are to be written off/disposed of and should then enter on the form the method of disposal (e.g. scrapped, sold/offered via the weekly newsletter, sold by tender (if usable computers for example)).
  1. When authorised, the form should be returned to the Finance Lead for filing with the asset register. The asset register should be updated accordingly and the items disposed of as authorised. If relevant, the insurance policy may need to be reviewed and insurers advised.
  1. The Finance Lead should then inform the CEO who in turn will advise the trustees via the management report. The minutes should reflect that the trustees have been advised and have ratified the decision.

The above procedure will apply to any asset regardless of value in the asset register and the accounts.

Writing off bad debts

Name Academy Trust will always pursue recovery of amounts owed to it, overpayments or payments made in error, irrespective of how they came to be made. Once all reasonable action has been taken and, after consideration by the board of trustees, authorisation by the board of trustees must be obtained in writing before the write off can be transacted in the accounts.

The Academies Financial Handbook states that any write off or disposal must have EFA approval for transactions beyond the delegated limits as detailed below:

1% of the total annual income or £45,000 (whichever is the smaller) per single transaction

Cumulatively, 2.5% of total annual income in any one financial year per transaction for any academy trusts that have not submitted timely unqualified audited accounts for the previous two financial years.

Cumulatively, 5% of total annual income in any one financial year per transaction for any academy trusts that have submitted timely, unqualified audited accounts for the previous two financial years.

The above is subject to a maximum of £250,000.

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