BOROUGH OF POOLE

REPORT TO SERVICE PROVISION SCRUTINY AND AUDIT COMMITTEE

13 SEPTEMBER 2007

WRITE-OFFS IN RESPECT OF TAXES AND CHARGES FOR 2006/2007 AND THE FIRST QUARTER OF 2007/2008

PART OF PUBLISHED FORWARD PLAN: NO

STATUS – GENERAL

1.PURPOSE AND POLICY CONTEXT

1.1To review the arrangement for debt write off criteria and delegations agreed at Cabinet on 24 January 2006 following the first full year of operation.

1.2To provide details of the write-offs agreed for the financial year 2006/2007.

1.3To provide details of write-offs agreed during the first quarter of

the financial year 2007/2008.

2.DECISION REQUIRED

2.1Members are asked to note:

2.1.1The debt write off criteria and delegations.

2.1.2The write-offs for 2006/2007.

2.1.3The write offs for the first quarter of 2007/2008.

3.BACKGROUND

3.1The Council is responsible for collecting over £157m of monies owed to it each year. The amounts due relate to £65m Council Tax, £52m Non Domestic Rates, £24m Sundry Debts and Housing Benefit Overpayments and £16m Council Rent. Not all of this debt will be recovered and a small proportion will eventually need to be written off. A system for managing debts that need to be written off was agreed in January 2006.

3.2The details of the write off criteria and delegations are shown in Appendix A.

3.3Details of write-offs agreed for the year 2006/2007 are shown in Appendix B, together with a comparison for 2005/2006 which has been compiled, as far as possible, based on the new scheme of delegation for comparison purposes.

3.4 Details of write-offs agreed for the first quarter of 2007/2008 are shown in Appendix C, together with a comparison for the same period during 2006/2007.

BOB JACKSON

HEAD OF FINANCIAL SERVICES

Background Papers

Nil

Name and Telephone Number of Contact Officer:

Alan Fletcher, Head of Revenues, Tel No: 01202 633113

Appendix A

COUNCIL TAX/NDR DEBT RECOVERY PROCEDURE

Outline of the recovery stages are as follows:

  1. Issue bill
  2. Issue 1st Reminder
  3. Issue 2nd Reminder
  4. Issue Final Notice
  5. Issue Summons
  6. Issue Liability Order
  7. Issue to Bailiff, Attachment of Earnings Order, Attachment to Benefits, Committal, Bankruptcy, Charging Order (any of these could be used if appropriate to the case and if the debtor’s whereabouts is known)

DEBT

/

WRITE-OFF CRITERIA

/

DELEGATION

Under £5.00 / Small balance write-off
At any stage / Head of Financial Services (Revenues Manager)
Up to £30 – Vacated (May not have gone away - Summons costs are currently £30. Not cost effective to take proceedings for less than that) / At any stage up to final notice / Head of Financial Services
(Head of Revenues)
Gone Away – No Trace
Up to £100 / At any stage.
Check Council Tax records/notes
Follow up any leads as appropriate to the case. / Head of Financial Services
(Head of Revenues)
Bankruptcy/Liquidation/Ceased Trading
Unlimited Amount / Claim lodged with Official Receiver /Trustees.
Write-off once no dividend declared at any stage / Head of Financial Services
(Head of Revenues)
Deceased / No Estate
Unlimited Amount / Write to Executors.
If no estate submit for write-off at any stage / Head of Financial Services
(Head of Revenues)
Gone Abroad
Unlimited Amount /

Submit for write-off at any stage

/ Head of Financial Services
(Head of Revenues)
Gone Away – No Trace
£100 to £1000 / Closed accounts
At any stage.
Check Council Tax records/notes
Document Management. Check with Benefits.
Check with neighbouring Authorities if suspect moved locally.
Check 192.com.
Benefits Agency
Landlords
Bailiffs
Solicitors
Estate Agents, Utilities,
If applicable.
Follow up any/all appropriate leads. / Head of Financial Services
(Head of Revenues)
Gone Away – No Trace
Over £1000 / Closed accounts
At any stage
Check Council Tax records/notes
Document Management. Check with Benefits.
Check with neighbouring Authorities.
Landlords
Check 192.com.
Bailiffs
Estate agents, solicitors, public utility if applicable -
Third Party suppliers of trace information.
And any other appropriate leads
Experian check / Portfolio Holder
Other
Unlimited Amount / Special circumstances.
Normally closed accounts.
Write-off at any stage / Portfolio Holder

1

SUNDRY DEBT AND HOUSING BENEFIT OVERPAYMENT RECOVERY AND WRITE OFF PROCEDURE

Outline of the recovery stages is as follows:

1Issue bill

2Issue 1st Reminder after 21 or 28 days

3Issue 2nd Reminder after further 14 days

4Issue 1st legal proceedings letter

5Issue 2nd legal proceedings letter

6Issue Notice of Court proceedings

7Issue a Claim in the County Court

8Apply for a County Court Judgement

9Enforcement of the Judgement

DEBT

/

WRITE-OFF CRITERIA

/

DELEGATION

Under £5.00 / Small balance write-off
at any stage / Head of Financial Services
(Senior Income Officer)
£5.00 - £100 / Recovery procedure taken to and including Stage 6.
Determine if can be recovered from benefits.
Service Unit advised account to be submitted for write-off as uneconomic to pursue as agreed.
A range of up to £250.00 is agreed for Housing & Community debts and Overpayment of Benefits debts. / Head of Financial Services
(Income Manager)
Bankruptcy/Liquidation
Unlimited Amount / Claim lodged with Official Receiver /Trustees.
Write-off once no dividend declared at whatever stage / Head of Financial Services
(Head of Exchequer)
Deceased / No Estate
Unlimited Amount / Write to Executors.
If no Estate submit for write-off
at whatever stage / Head of Financial Services
(Head of Exchequer)
Gone Away / Gone
Abroad
Unlimited Amount /

Submit for write-off at whatever stage

/ Head of Financial Services
(Head of Exchequer)
Gone Away
Up to £1000 / Check Council Tax register
Document Management. Check with Benefits.
Check with neighbouring Authorities.
Check 192.com.
Check with estate agents, solicitors, public utility, landlord.
Check with originating Service Unit.
Determine if can be recovered from benefits
Submit for write-off at whatever stage / Head of Financial Services
(Head of Exchequer)
Gone Away
Over £1000 / Check Council Tax register
Document Management. Check with Benefits.
Check with neighbouring Authorities.
Check 192.com.
Check with estate agents, solicitors, public utility, landlord.
Check with originating Service Unit.
Determine if can be recovered from benefits
Submit for write-off at whatever stage / Portfolio Holder
Other
Unlimited Amount / Special circumstances, write-off at whatever stage / Portfolio Holder

1

COUNCIL RENT ARREARS

Outline of the recovery stages are as follows:

1Issue 1st Reminder

2Issue 2nd Reminder

3Pre Notice of Seeking Possession visit

4Issue Notice of Seeking Possession

5Pass to Legal and Democratic Services to obtain a Possession Order

6Default letter if applicable

7Pre Eviction Visit

8Apply for Warrant of Possession

9Eviction

10Former tenant arrears are passed to Legal and Democratic Services for County Court action after two reminders.

N.B. The Management Fee is performance related. Poole Housing Partnership (PHP) are given a base position regarding rent arrears. If PHP performs better than allowed for they will retain any extra income generated.

DEBT

/

WRITE-OFF CRITERIA

/

DELEGATION

Former Tenant Arrears –Up to £200 / At any stage.
Check records/notes
Follow up any leads as appropriate to the case.
Contact next of kin regarding any estate. / PHP
(Head of IT and Income)
Former Tenant Arrears Deceased / No Estate
£200.00 - £1000.00 / Write to Executors.
If no estate submit for write-off at any stage / PHP ( Chief Executive)
Former Tenants Arrears – In Rest Home/ Nursing Home £200.00 - £1000.00 / At any stage
Check records/notes
Document Management. Check with Benefits.
Write to next of kin if appropriate / PHP (Chief Executive)
Former Tenant Arrears – No Trace £200.00 - £1000.00 / At any stage
Check records/notes
Document Management. Check with Benefits.
Check with neighbouring Authorities.
Landlords
Check 192.com.
public utility if applicable
And any other appropriate leads. Pass to Legal Services for appropriate action. On receipt of memo, recommend for write off in due course. / PHP (Chief Executive)
Other
£200 - £1000.00 / Special Circumstances
Write off at any stage / PHP (Chief Executive)
Former Tenant Arrears Deceased / No Estate
Over £1000.00 / Write to Executors.
If no estate submit for write-off at any stage / Portfolio Holder
Former Tenant Arrears – In Rest Home/Nursing Home
over £1000.00 / At any stage
Check records/notes
Document Management. Check with Benefits.
Write to next of kin if appropriate / Portfolio Holder
Former Tenant Arrears – No Trace over £1000.00 / At any stage
Check records/notes
Document Management. Check with Benefits.
Check with neighbouring Authorities.
Landlords
Check 192.com
public utility if applicable -
And any other appropriate leads. Pass to Legal Services for appropriate action, on receipt of memo, recommend for write off in due course. / Portfolio Holder
Other
Over £1000.00 / Special Circumstances
Write off at any stage / Portfolio Holder

APPENDIX B

COUNCIL TAX

Write Off Criteria / Delegation / 2006/2007 / 2005/2006
Under £5.00 / Officer / £0.00 / £0.00
Up to £30 – Vacated (May not have gone away - Summons costs are currently £30. Not cost effective to take proceedings for less than that) / Officer / £1,181.28
(77 cases) / £2,191.23
(158 cases)
Gone Away – No Trace
Up to £100 / Officer / £6,710.80
(89 cases) / £2,298.72
(44 cases)
Bankruptcy/Liquidation/Ceased Trading
Unlimited Amount / Officer / £47,875.27
(52 cases) / £31,023.04
(40 cases)
Deceased / No Estate
Unlimited Amount / Officer / £3,442.18
(14 cases) / £7672.92
(16 cases)
Gone Abroad
Unlimited Amount / Officer / £13,740.31
(50 cases) / £2,660.04
(3 cases)
Gone Away – No Trace
£100 to £1000 / Officer / £104,090.28
(306 cases) / £103,159.37
(260 cases)
Total Delegated to Officers / £177,040.23
(588 cases) / £149005.32
(521 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £33,481.69
(23 cases) / £37,226.19
(21 cases)
Other
Unlimited Amount / Portfolio Holder / £254.87
(2 cases) / £947.42
(2 cases)
Total Delegated to the Portfolio Holder / £33,736.56
(25 cases) / £38,173.61
(23 cases)
Total Write Offs this Year / £210,776.79
(613 cases) / £187,178.93
(544 cases)
% of Debt Written Off / 0.30 / 0.29
Bad Debt Provision / £176,462.00 / £145,121.00

NON DOMESTIC RATES

Write Off Criteria / Delegation / 2006/2007 / 2005/2006
Under £5.00 / Officer / £4.39
(1 case) / £0.00
Up to £30 – Vacated (May not have gone away - Summons costs are currently £30. Not cost effective to take proceedings for less than that) / Officer / £9.60
(1 case) / £0.00
Gone Away – No Trace
Up to £100 / Officer / £55.96
(1 case) / £0.00
Bankruptcy/Liquidation/Ceased Trading
Unlimited Amount / Officer / £289,096.73
(76 cases) / £81,927.80
(33 cases)
Deceased / No Estate
Unlimited Amount / Officer / £0.00 / £0.00
Gone Abroad
Unlimited Amount / Officer / £2,174.11
(4 cases) / £0.00
Gone Away – No Trace
£100 to £1000 / Officer / £7,231.66
(11 cases) / £5,327.46
(12 cases)
Total Delegated to Officers / £298,572.45
(94 cases) / £87255.26
(45 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £0.00 / £16,586.64
(6 cases)
Other
Unlimited Amount / Portfolio Holder / £224.95
(1 case) / £0.00
Total Delegated to the Portfolio Holder / £224.95
(1 case) / £16,586.64
(6 cases)
Total Write Offs this Year / £298,797.40
(95 cases) / £103,841.90
(51 cases)
% of Debt Written Off / 0.61 / 0.21
Bad Debt Provision / £420,086.00 / £163683.00

SUNDRY DEBTOR AND HOUSING BENEFIT OVERPAYMENT

Write Off Criteria / Delegation / 2006/2007 / 2005/2006
Under £5.00 / Officer / £62.47
(68 cases) / £78.27
(71 cases)
£5.00 - £100 or £250.00 for Housing and Community Services debts and Housing Benefit Overpayments / Officer / £8,803.87
(135 cases) / £19,872.05
(190 cases)
Bankruptcy/Liquidation
Unlimited Amount / Officer / £65,793.22
(40 cases) / £17,531.32
(26 cases)
Deceased / No Estate
Unlimited Amount / Officer / £25,529.87
(41 cases) / £17,826.65
(23 cases)
Gone Abroad
Unlimited Amount / Officer / £17,584.69
(18 cases) / Not available
Gone Away
Up to £1000 / Officer / £39,748.90
(118 cases) / £29,122.41
(93 cases)
Total Delegated to Officers / £157,523.02
(420 cases) / £84,430.70
(403 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £31,189.95 (17 cases) / £30,066.79
(21 cases)
Other
Unlimited Amount / Portfolio Holder / £8,416.85
(6 cases) / £90,885.87
(52 cases)
Total Delegated to the Portfolio Holder / £39,606.80
(23 cases) / £120,952.66
(73 cases)
Total Write Offs this Year / £197,129.82
(443 cases) / £205,383.36
(476 cases)
% of Debt Written Off / 0.55 / 0.58
Bad Debt Provision / £1,189,057.90 / £950,653.43

COUNCIL RENT ARREARS

Write Off Criteria / Delegation / 2006/2007 / 2005/2006
Former Tenant Arrears –Up to £200 / Officer / £7,044.16
(115 cases) / ***
Former Tenant Arrears Deceased / No Estate
£200.00 - £1000.00 / Officer / £5,084.92
(18 cases) / ***
Former Tenants Arrears – In Rest Home/ Nursing Home £200.00 - £1000.00 / Officer / £2,545.48
(7 cases) / ***
Former Tenant Arrears – No Trace £200.00 - £1000.00 / Officer / £3,609.54
(7 cases) / ***
Other
£200 - £1000.00 / Officer / £7,196.38
(15 cases) / ***
Total Delegated to Officers / £25,480.48
(162 cases) / £27,490.97
(204 cases)
Former Tenant Arrears Deceased / No Estate
Over £1000.00 / Portfolio Holder / £5,115.240.00
(3 cases) / £3,636.23
(3 cases)
Former Tenant Arrears – In Rest Home/Nursing Home
over £1000.00 / Portfolio Holder / £0.00
(0 case) / £1,235.85
(1 case)
Former Tenant Arrears – No Trace over £1000.00 / Portfolio Holder / £18,479.47
(7 cases) / £13,610.95
(9 cases)
Other
Over £1000.00 / Portfolio Holder / £2,991.52
(2 cases) / £0.00
(0 cases)
Total Delegated to the Portfolio Holder / £26,586.23
(12 cases) / £18,483.03
(13 cases)
Total Write Offs this year / £52,066.71
(184 cases) / £45,974.00
(217 cases)
% of Debt Written Off / 0.35% / 0.32%

***UNABLE TO SPLIT THESE FIGURES AS THE WRITE OF PROCEDURES CHANGED DURING THE FINANCIAL YEAR

APPENDIX C

COUNCIL TAX

Write Off Criteria / Delegation / Quarter 1 2007/2008 / Quarter 1 2006/2007
Under £5.00 / Officer / £0.00 / £0.00
Up to £30 – Vacated (May not have gone away - Summons costs are currently £30. Not cost effective to take proceedings for less than that) / Officer / £320.37
(32 cases) / £357.06
(26 cases)
Gone Away – No Trace
Up to £100 / Officer / £419.01
(6 cases) / £2,445.71
(38 cases)
Bankruptcy/Liquidation/Ceased Trading
Unlimited Amount / Officer / £12,634.59
(30 cases) / £13,139.44
(18 cases)
Deceased / No Estate
Unlimited Amount / Officer / £1,975.82
(2 cases) / £2,053.89
(7 cases)
Gone Abroad
Unlimited Amount / Officer / £2,045.33
(7 cases) / £3,288.96
(10 cases)
Gone Away – No Trace
£100 to £1000 / Officer / £21,627.28
(54 cases) / £28,881.62
(114 cases)
Total Delegated to Officers / £39,022.40
(131 cases) / £50,166.68
(213 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £9,919.87
(8 cases) / £7,509.06
(6 cases)
Other
Unlimited Amount / Portfolio Holder / £343.30
(1 case) / £254.87
(2 cases)
Total Delegated to the Portfolio Holder / £10,263.17
(9 cases) / £7,763.93
(8 cases)
Total Write Offs this Quarter / £49,285.57
(140 cases) / £57,930.61
(221 cases)
Total Write Offs this Year / £49,285.77 / £57,930.61
Bad Debt Provision / £201074.00 / £176,462.00

NON DOMESTIC RATES

Write Off Criteria / Delegation / Quarter 1 2007/2008 / Quarter 1 2006/2007
Under £5.00 / Officer / £0.00 / £0.00
Up to £30 – Vacated (May not have gone away - Summons costs are currently £30. Not cost effective to take proceedings for less than that) / Officer / £53.50
(3 cases) / £0.00
Gone Away – No Trace
Up to £100 / Officer / £86.16
(1 case) / £0.00
Bankruptcy/Liquidation/Ceased Trading
Unlimited Amount / Officer / £91,452.40
(24 cases) / £71,184.71
(31 cases)
Deceased / No Estate
Unlimited Amount / Officer / £847.69
(1 cases) / £0.00
Gone Abroad
Unlimited Amount / Officer / £0.00 / £0.00
Gone Away – No Trace
£100 to £1000 / Officer / £1,917.55
(3 cases) / £436.28
(1 case)
Total Delegated to Officers / £94,357.30
(32 cases) / £71,620.99
(32 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £0.00 / £0.00
Other
Unlimited Amount / Portfolio Holder / £0.00 / £224.95
(1case)
Total Delegated to the Portfolio Holder / £0.00 / £224.95
(1 case)
Total Write Offs this Quarter / £94,357.30
(32 cases) / £71,845.94
(33 cases)
Total Write Offs this Year / £94,357.30 / £71,845.94
Bad Debt Provision / £321,976.00 / £420,086.00

SUNDRY DEBTOR AND HOUSING BENEFIT OVERPAYMENT

Write Off Criteria / Delegation / Quarter 1 2007/2008 / Quarter 1 2006/2007
Under £5.00 / Officer / £11.18
(22 cases) / £11.77
(13 cases)
£5.00 - £100 or £250.00 for Housing and Community Services debts and Housing Benefit Overpayments / Officer / £1,971.26
(30 cases) / £3,554.27
(54 cases)
Bankruptcy/Liquidation
Unlimited Amount / Officer / £5,117.12
(10 cases) / £36,695.49
(17 cases)
Deceased / No Estate
Unlimited Amount / Officer / £4,751.50
(6 cases) / £5,815.28
(16 cases)
Gone Abroad
Unlimited Amount / Officer / £5,927.28
(7 cases) / £1,685.54
(5 cases)
Gone Away
Up to £1000 / Officer / £5,803.45
(17 cases) / £16,094.03
(56 cases)
Total Delegated to Officers / £23,581.79
(92 cases) / £63,856.38
(161 cases)
Gone Away – No Trace
Over £1000 / Portfolio Holder / £6,111.13
(4 cases) / £4,751.34
(3 cases)
Other
Unlimited Amount / Portfolio Holder / £1,831.76
(2 case) / £1,121.06
(1 case)
Total Delegated to the Portfolio Holder / £7,942.89
(6 cases) / £5,872.40
(4 cases)
Total Write Offs this Quarter / £31,524.68
(98 cases) / £69,728.78
(165 cases)
Total Write Offs this Year / £31,524.68 / £69,728.78
Bad Debt Provision / £1,070,207.80 / £1,189,057.90

COUNCIL RENT ARREARS

Write Off Criteria / Delegation / Quarter 1 2007/2008 / Quarter 1 2006/2007
Former Tenant Arrears –Up to £200 / Officer / £1155.75
(19 cases) / £1850.76
(27 cases)
Former Tenant Arrears Deceased / No Estate
£200.00 - £1000.00 / Officer / £0.00 / £1393.30
(6 cases)
Former Tenants Arrears – In Rest Home/ Nursing Home £200.00 - £1000.00 / Officer / £981.34
(2 cases) / £ 633.24
(2 cases)
Former Tenant Arrears – No Trace £200.00 - £1000.00 / Officer / £0.00 / £1283.76
(2 cases)
Other
£200 - £1000.00 / Officer / £554.35
(1 cases) / 0.00
Total Delegated to Officers / £2,691.44
(22 cases) / £5161.06
(37 cases)
Former Tenant Arrears Deceased / No Estate
Over £1000.00 / Portfolio Holder / £0.00 / £2798.98
(2 cases)
Former Tenant Arrears – In Rest Home/Nursing Home
over £1000.00 / Portfolio Holder / £0.00 / 0.00
Former Tenant Arrears – No Trace over £1000.00 / Portfolio Holder / £0.00 / £1673.47
(1 case)
Other
Over £1000.00 / Portfolio Holder / £0.00 / £15799.74
(5 cases)
Total Delegated to the Portfolio Holder / £0.00 / £20,272.19
(8 cases)
Total Write Offs / £2,691.44
(22 cases) / £25,433.25
(45 cases)
Total Write Offs this Year / £2,691.44 / £25,433.25

1