Annual Debt Write Off 2016/17

Reference code: 
PCD 183
Date signed: 
12 April 2017
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

This paper requests approval to write off trade debts and salary/pension overpayments, which have been deemed irrecoverable for the financial year 2016/17. The MPS wishes to write off the following:

  • £118,643 of debts are to be written off where the debts are considered irrecoverable, and
  • £9,157 of debts are to be written off where it is considered too uneconomical to pursue.

Recommendation

The Deputy Mayor for Policing and Crime is asked to approve the following write offs of irrecoverable debts:

  • £118,643 of debts are to be written off where the debts are considered irrecoverable, and
  • £9,157 of debts are to be written off where it is considered too uneconomical to pursue.

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    The MPS aims to recover all debts including salary/pension overpayments. The MPS will only write off debts once all other avenues have been exhausted. If a debt is written off and a debtor is subsequently traced, the MPS will reverse the write off and pursue the debt again. The MPS does consider each case on its merits and makes recommendations accordingly.

2.    Issues for consideration

2.1.    Given the financial pressures facing the MPS, the MPS makes every effort to pursue debts where it is economic to do so.

2.2.    See the Part 2 for further details.

3.    Financial Comments

3.1    The amount of write offs (£127,801) in terms of the MPS’s overall budget of £3.3bn is low. The table below provides the context of the level of write offs:

 

Trade Debtors

Payroll

Pension

Total irrecoverable £

3,501

104,826

19,474

Annual cost £m

16.00

2,468.32

270.94

Percentage of cost

0.022%

0.004%

0.007%

3.2    The MPS aims to keep write offs to a minimum. The roll out of the new Business Support Services provision by SSCL provides the MPS with an opportunity to further reduce the level of write offs by reinforcing to all staff their responsibilities in this area, in particular the need to inform payroll immediately of any changes in circumstances that could affect their pay.

4.    Legal Comments

4.1.    The MOPAC Scheme of Consent and Delegation paragraph 4.8 requires approval from the Deputy Mayor of Policing and Crime to write off all debts that are considered to be irrecoverable.

5.    Equality Comments

5.1.    There are no direct equality or diversity implications arising from this report

6.    Background/supporting papers

6.1.    Write off report.