It was proposed by the Chairman, seconded by the Vice-Chairman and RESOLVED:
“THAT the recommendations as set out at paragraph 6.0 of the report be adopted, namely:
1. That Council approves the amendment to the Financial Procedure Rules to require the reporting of all aged debt over £150,000 to the next available ordinary council meeting;
2. That Council agrees that the timeline for reporting debts shall be 60 days for those debts with standard payment terms of 0 or 30 days and 90 days for those debts with payment terms of 60 days, regardless of whether or not the debt has been paid in full or in part between the expiry of the 60 or 90 day period (whatever the case may be) and the date of the next available ordinary council meeting;
3. That Council approves the amendments to Financial Procedure Rules (Regulation D: Systems and Procedures), as set out at Annex 1.”
Sarah Martin, Financial Services Manager introduced the report which asks for the Governance and Audit Committee to consider a revision of the Financial Procedure Rules to require the reporting of aged debts over £150,000 to Council.
The report was brought to the Governance and Audit Committee at the request of the Constitutional Review Working Part who met on 21 August 2013.
The report proposes that when a debt over £150,000 becomes ‘aged’ it will be reported to the next available ordinary council meeting. It is proposed that for those debts over £150,000 with payment terms of 30 days are reported to Council at day 60. At this stage the debt has been passed to EK Services and the first formal reminder letter has been sent. For those few debtors where the payment terms are 60 days, THEY will be reported to Council if the debt exceeds £150,000 at day 90. If however, the payment is made before the report to Council it will still be reported.
Although Members felt this was a good idea it was suggested that Members should be made more aware of the Council’s potential large liabilities. Sarah Martin advised that she would take this comment back to the Chief Executive for consideration.
Moved by Councillor Campbell and seconded by Councillor D Saunders that:
“5.1 the Governance and Audit Committee considered the amendment to the Financial Procedure Rules to require the reporting of all aged debt over £150,000 to the next available ordinary Council meeting and
5.2 that the Governance and Audit Committee considered that the timeline for reporting debts shall be 60 days for those debts with standard payment terms of 30 days and 90 days for those debts with payment terms of 60 days”
AGREED.
1. That Cabinet agrees for a sum of £100K to be drawn down from the Major Repairs Reserve to fund capital works to 3 listed properties within the HRA;
2. That Cabinet agrees for a sum of £100K to be utilised from reserves to fund the purchase of a Buy Back Scheme;
3. That Cabinet recommends to the Constitutional Review Working Party a revision of Financial Procedure Rules which requires the reporting of aged debts over £150,000 to Council.