Issue - meetings
Corporate Debt Policy
Meeting: 09/07/2015 - City Executive Board (became Cabinet on 13 May 2019) (Item 49)
49 Debt Management Policy 
PDF 100 KB
The Head of Financial Services has submitted a report which seeks the approval and formal adoption of the Oxford City Council Debt Management Policy.
Officer Recommendations: That the City Executive Board
1. APPROVE the Debt Management Policy, as set out in Appendix A to the report.
Additional documents:
Minutes:
The Head of Financial Services submitted a report (previously circulated now appended) for the approval and formal adoption of the Oxford City Council Debt Management Policy.
The Executive Director for Organisational Development and Corporate Services presented the report. She explained that this draft Debt Management Policy was a refresh of the existing policy, dating from 2013, and that there were no major changes to note. She briefed the Board on the recent organisational changes within the Council which meant that there was now a closer alignment of all service teams dealing with debt management.
The Board was pleased to note the good collection rates for 2014/15.
The City Executive Board resolved to
1. APPROVE the Debt Management Policy, as set out in Appendix A to the report.
Meeting: 02/07/2015 - Finance Panel (Panel of the Scrutiny Committee) (Item 6.)
6. Corporate Debt Policy PDF 100 KB
The Scrutiny Committee selected the Corporate Debt Policy from the Council’s Forward Plan for pre-scrutiny by the Finance Panel, before it goes to the City Executive Board on 9 July.
The Panel may wish to explore and consider:
- The level of arrears for all types of debts,
- Changes to the policy and the reasons for these,
- The identified risks, equalities impacts and mitigation measures,
- How officers will differentiate between the debtor who won’t pay, and the debtor who can’t pay, and determine what action is appropriate in either case,
- Progress and obstacles towards having a ‘single view of debt’ (the Inequality Panel has supported moves towards this),
- What approaches debt collection agencies can employ in recovering debts on behalf of the City Council,
- Whether to produce a report with one or more recommendations to the City Executive Board on 9 July.
Additional documents:
Meeting: 12/06/2013 - City Executive Board (became Cabinet on 13 May 2019) (Item 7)
7 Corporate Debt Management Policy PDF 129 KB
The report seeks approval from the Board for, and the formal adoption of, the Oxford City Council Corporate Debt Management Policy.
City Executive Board is recommended to approve the Corporate Debt Management Policy and associated action plan as set out in Appendices A and B of the report.
Minutes:
The Head of Finance submitted a report (previously circulated, now appended) seeking the approval and formal adoption of the Oxford City Council Corporate Debt Management Policy.
Councillor Ed Turner presented the report to the Board. He commended officers for their hard work on investigating how the Council can better manage its debts. Greater use of direct debit is being encouraged, as this saves the Council money and helps prevent debts from mounting out of control.
The Board noted that commercial tenants were not obliged to use direct debits, but, when leases are up for renewal, they are strongly encouraged to do so.
Resolved to approve the Corporate Management Policy and associated Action Plan, as set out in Appendices A and B of the report.
Meeting: 04/06/2013 - Scrutiny Committee (Item 9)
9 Corporate Debt Management Policy PDF 137 KB
Contact Officer: Nigel Kennedy (Head of Finance), Tel 01865 252708, Email: nkennedy@oxford.gov.uk
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Background Information |
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A review of the Council’s methods and processes for the management of debt has been undertaken with the aim of framing a more efficient and effective corporate system. The outcomes from this review have been used to refresh the Corporate Debt Management Policy.
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Why is it on the agenda? |
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The Debt Management Policy is presented. The report highlights in particular the following changes:
· To limit the circumstances in which credit will be offered and seek payment in advance wherever possible. · The Council will encourage payment by electronic means and seek to eradicate payment by cash and cheques where possible · The Council accepts payment by debit and credit card , making a 1.5% charge for credit card transactions – Para 4.5 · The Council makes use of debt collection agencies for hard to collect debts – Para 4.6 · The Council will set clear procedures for dunning processes for unregulated debts. - Para 4.6 · The Council will check other areas of the Council’s business before refunds are issued and will seek to offset debts, including against creditor payments where possible – Para 4.16 · Where multiple debts are owed instalment repayments will be allocated on a pro rate basis unless the customer advises otherwise Para 4.10 · Collections staff will take into account customer’s individual financial circumstances when agreeing instalment arrangements to ensure they are reasonable and will not cause undue financial hardship. Para 3.1(10)
An action plan for implementation is attached.
This report will be considered by the City Executive Board on the 12th. June.
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Who has been invited to comment? |
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Councillor Turner – Board Member for Finance and Efficiency. Nigel Kennedy – Head of Finance.
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What will happen after the meeting? |
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Any recommendations will be presented to the City Executive Board.
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Minutes:
The Head of Finance submitted a report (previously circulated, now appended). Nigel Kennedy (Head of Finance) attended the meeting to present the report and provide some background and context.
In answer to a question about debt collection, Nigel Kennedy explained that debt collection agencies acting for the Council had to adhere to guidelines laid down by the Council in its contract with them. The Committee asked to see a copy of these guidelines, which would be circulated in due course.
Nigel Kennedy also explained that the Council did not charge an administration fee for payment by debit card, but that it charged 1.5% for payment by credit card.
Resolved to note the report.