NHS East Lancashire CCG Bad Debts Policy: Procedure for Provision and Write Off, Summaries of Finance

Download NHS East Lancashire CCG Bad Debts Policy: Procedure for Provision and Write Off and more Summaries Finance in PDF only on Docsity! Page | 1 PROVISION FOR AND WRITE OFF OF BAD DEBTS POLICY Ref: ELCCG_Fin_04 Version: Version 3 Supersedes: Version 2 Responsible Officer: Chief Finance Officer Ratified by: (Name of responsible Committee) Audit Committee Date ratified: 13th August, 2018 Review Date: June 2019 Target audience: Organisation wide This policy can only be considered valid when viewed via the East Lancashire CCG website. If this document is printed into hard copy or saved to another location, you must check that the version number on your copy matches that of the one online. Page | 2 REVIEW AND AMENDMENT LOG Version Number Date Section Description of Change 2 06/05/16 No changes made. Confirmed policy is still correct and should be reviewed April 2017. 3 27/06/18 1.3 CSU name updated 3 27/06/18 1.7 Wording refined 3 27/06/18 1.6 Defining the provision Page | 5 1.6 Calculation of Annual Provision for Bad Debts Within the statutory accounts each year, the CCG will provide for an estimate where it is deemed appropriate of the cost of bad debts. In order to calculate this, the following methodology will be used:- Age of Debt Percentage of value to be included in bad debt provision Less than 30 days 0% 31-60 days 33% 61-90 days 67% More than 90 days 100% 1.7 Write Off of Bad Debts On a quarterly basis, the CSU credit control team will produce a schedule of debts considered to be uncollectable and pass to the appropriate individual or committee at the CCG for consideration. The schedule will detail the attempts that have been made to recover the debt and the reasoning behind the recommendation. All balances on the schedule will either be recommended for write off or for further instructions to be issued to the CSU for further action to be taken to recover the debt.  Write off of debts up to £50.00 may be considered by the Deputy Chief Finance Officer.  Write off of debts over £50.00 but less than £10,000 are considered by the Chief Finance Officer.  Write off of debts over £10,000 but less than £50,000 are to be considered by the Chief Finance Officer and the Accountable Officer.  Write off of debts over £50,000 are to be considered by the governing body. All write-offs will be recorded in the CCGs losses and special payments register and will be reported to the Audit committee on a quarterly basis. All debts written off will be written back to the originating budget code unless agreed by the Chief Finance Officer. Once written off, the CCG may reinstate a debt and attempt to collect them if new information regarding the debtor becomes available 1.8 Review This policy will be reviewed on an annual basis as part of the annual accounts process. Page | 6 APPENDIX 1 CSU Debt Management Policies and Procedures Page | 7 Debtor & Write off Policies and Procedures Contents 1. Introduction ...................................................................................................... 8 2. Responsibilities ................................................................................................ 8 3. Procedure for raising invoices to other organisations/individuals ..................... 8 4. Credit Control (Debt Chasing and Collection) ................................................... 9 5. Disputes ......................................................................................................... 10 6. Provision for debts .......................................................................................... 10 7. Monitoring Compliance with and Effectiveness of this Procedure .................. 10 8. Review of the procedure ................................................................................ 10