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RESOLVED that Cabinet
approved the write-off of bad debts, individually in excess of
£5,000 and amounting to £246,315 in total as detailed
in confidential appendix 1 and as discussed in report CAB/25/66 in
part 1 of this agenda.
 

Reasons for
decision

1.    
It is considered prudent financial
management to ensure that debts that are no longer collectable are
written off. This is so that the Financial Statements reflect the
Council’s true financial position and do not overstate the
expected income receivable. It was a continued recommendation of
internal audit that the Council should write off debts that had
been irrecoverable for a number of years with little or no prospect
for recovery.

2.    
The Council had taken all
reasonable steps to recover the debts detailed in this report and
the possibility of recovery was now considered to be extremely
remote. However, if circumstances changed and the Council became
able to collect these debts, then they would be written back
on.
 
Alternative Options
Considered
The Cabinet could decide not to write off the
debts presented in this report. However as there was little or no
chance of recovery, the Council’s financial statements would
show an overstated debt position.