CREDIT CONTROL FINANCIAL PROCEDURES

Terms of Reference:

 

Financial Regulation 7.1.2 'The Director of Finance is responsible for ensuring that procedures operated by budget holders are consistent and adequate and ensure complete collection of all income due to the University and its prompt payment into the University's bank accounts. He will issue detailed instructions from time to time and budget holders must ensure they are complied with'.
 
 

Contents

 
1. Introduction
 
2. Debtor/Student Billing
 
            2.1 Sundry Debtors
            2.2 Halls of Residence Fees
            2.3 Self-Paying Students
            2.4 Publicly Funded Fees
 
3. Debt Recovery Process
 
            3.1 Sundry Debtors
            3.2 Halls of Residence Fees
            3.3 Self-Paying Students
            3.4 Publicly Funded Fees
 
4. Income and Banking
 
5. Central Debt Collection Unit
 
6. Recommendations for Debt Write-Off
 
7. Bad Debt Provision
 
8. Monthly Debt Management Reports
 
9. Debt Forecasts        
 
Appendices
 

1. Introduction

 
The ability of the University to collect all types of outstanding debt is paramount in maintaining and enhancing cash flow and financial stability. In order to achieve this the University must establish a fair and effective credit control process that is consistently and speedily applied to ensure that income due is collected as soon as possible.
 
An increasing proportion of the University's income is sourced through the billing of clients and student fees. In 1999/2000 approximately 30% of the University's income was raised through these methods. Consequently this area of work requires a high degree of management control and the Credit Control Financial Procedures will provide the framework for this control and these procedures will be reviewed on an annual basis. Detailed process notes will be issued from time to time to supplement specific sections of the procedures.

2. Debtor/Student Billing 

 
2.1 Sundry Debtors
 
2.1.1  Sundry Debtor Accounts are raised by Central Finance on behalf of Central Departments and by each Campus Finance Office on behalf of the individual Campus. The types of goods/services which should be processed through Sundry Debtor Accounts include the following:
 
-  library fines/lost books
-  room hire
-  halls of residence vacation rentals
-  miscellaneous income            
-  recovery of costs from ex-staff (e.g. travel loans)
-  recovery of salary advances from staff
-  research and consultancy (the process should be followed even if claim forms are submitted to clients)
 
NB student sponsors invoices are raised through FBS but are subject to the same debt recovery process as sundry debtors. If the sponsor declines to pay, the debt reverts back to the student.
 
2.1.2  All goods supplied and services rendered must be accounted for by raising an official University Sundry Debtor Invoice (appendix 1), processed through the University's Finance System (Prophecy). All Primary Budget Holders must ensure that Central Finance/Campus Finance Office is promptly informed of any work done by submitting a Sundry Debtor Invoice Requisition Form. This form must be submitted within one week of the goods or services being provided and must be accompanied by a copy of the contract or confirmation letter.
 
2.1.3 The requisition form must be completed in full and include: the correct business address, a named contact, an appropriate description of the goods/services supplied and relevant dates, where appropriate, to facilitate payment. There must be a valid Cost Centre and Account Code and VAT should be included if appropriate (contact the Financial Accountant ext. 5853 or Senior Management Accountant ext 5754 regarding VAT queries).
 
2.1.4 All forms must be authorized by the Budget Holder or designated signatory. A list of all signatories authorised to sign the Sundry Debtor Invoice Requests will be kept by Central Finance and each Campus Finance Office and must be updated on a regular basis.
 
2.1.5  If the form is not completed correctly Central Finance/Campus Finance staff will refer any queries back to the initiator of the form.

2.1.6 The practice of raising sales invoices in respect of low value charges (under £50) may in certain cases be uneconomic in terms of the administrative cost of both raising and collecting the accounts. A dispensation can be sought from the Director of Finance to allow an alternative method of invoicing (e.g. lost library books). Payments in advance must be received for low cost courses (less than £50) and for room hire
 
2.1.7 Sequentially numbered Sundry Debtor Invoices must be printed and remitted, by the Campus Finance Office/Central Finance, immediately to ensure that the customer is made aware of the due debt as soon as possible following the supply of goods/services.
 
2.1.8 For goods and services supplied in the UK in excess of £10,000 the Campus Finance Office/CentralFinance Department must undertake credit checks on the client. In addition, an invoice must be raised in advance of the supply. For goods/services supplied overseas (or supplied to an overseas clients) a deposit equal to 20% of the contract value must be received before any part of the contract is discharged. 
 
2.1.9 Primary Budget Holders must ensure that the Campus Finance Office, or Central Finance, are notified of any invoice that requires reduction or cancellation by completing an amended Sundry Debtor Invoice Requisition Form, clearly marked cancellation/amendment. The form must be completed in full and must include the number of the original invoice and the reason for raising the reduction/cancellation. 
 
2.1.10  A clear cancellations policy must be outlined by the relevant Department/Campus and agreed by Central Finance; the policy must be notified to all clients as part of any booking or contractual process.
 
2.1.11  All income received in respect of Sundry Debtor Invoices must be banked immediately by the Campus Finance Office/Department and set off against the invoice reference number to ensure that the customer's account is updated to reflect the correct amount outstanding.
  
2.1.12  The Director of Finance should ratify all rates and tariff charges.
 
2.2   Halls of Residence Fees
 
2.2.1  The Halls of Residence procedures are governed by Halls of Residence Code of Practice, the Tenancy Agreement, Financial Regulations and Financial Procedures.
 
2.2.2  The Halls of Residences fees should be reviewed on an annual basis by the Student Housing Department and ratified by the Director of Estates/Halls of Residence Estates Manager and Director of Finance.
 
2.2.3  All students who have accepted a place (offered by Student Housing) in the University's Halls of Residence must pay a room deposit to Student Housing before a Tenancy Agreement can be processed and the student's application accepted.
 
2.2.4  Accommodation fees are due on the date of occupancy.
 
2.2.5  Records must be maintained in a fully auditable manner recording payments and income transactions for each student for each of the halls of residence.
 
2.2.6  The Halls staff must record any additional charges incurred by the students.
 
2.2.7 The room deposit is returnable minus any deductions for damages incurred, any overdue rent, minus any miscellaneous services provided during the student's residence. 
 
2.2.8  Halls of Residence transactions, as recorded by Estates & Facilities, must be reflected in the University's financial accounts.
           

2.3 Self-Paying Students

 
2.3.1  The Enrolment Form, generated from SRS, is the source document for the identification of student fees. The enrolment form data is transferred to the Fee Billing System (FBS) and Prophecy Finance System when full enrolment has been confirmed.
 
2.3.2 The enrolment process is an essential part of the credit control process in producing payment and providing the documentation that is essential in recording the amount and type of student debt. Each Campus Finance Manager (CFM) must endeavour to ensure that there are sufficient resources available to carry out the financial requirements of the enrolment process in an accurate and controlled manner.
 
2.3.3  Course fees become due on the day of enrolment, however students may pay by instalments if they pay the agreed minimum amount of fees on enrolment (as approved by VCEG and Finance & Property Committee) and complete an Instalment Payments Form (see para 2.3.7)
 
2.3.4   Students must produce adequate official evidence to substantiate the payment of fees by a third party (i.e. sponsored students, and financial assessment forms for publicly funded students).  
 
2.3.5  Students are able to temporary enrol for an initial period at the discretion of the Campus Finance Manager/Campus Regsitrar, or their authorized officers, and will be issued with a temporary enrolment card. At the end of the temporary enrolment period all temporary enrolled students who have not paid the agreed level of fees should be reviewed at this stage by the Campus Regsitrar and should be denied access to university study facilities (except students still awaiting LEA/SLC grant assessment).
 
2.3.6  Students partly funded by LEA/SLC and partly self-funded will be processed as follows: the LEA/SLC part will be processed (when assessment has been agreed) using the procedures outlined in 'Publicly Funded Fees'; the amount due from the student will be administered through the process set out in 'Self Funded Students'

2.3.7  All students who wish to pay their fees by instalments must complete and sign an Instalment Payment Form. This form must include the due dates of the actual payments; these payment dates will also be confirmed on the instalment plan produced from FBS and issued to the student by the Campus Finance Office. Instalments for 2001/02 are 50% of the fee on enrolment with the balance of fees payable at the begining of Semester 2. Overseas students wishing to pay by instalments must have a UK address (which can be verified, where possible, through documentation).
 
2.3.8  Students wishing to pay by instalments should be encouraged to complete a Direct Debit Form or a Credit/Debit Card Mandate to ensure that the Campus Finance Office can process instalment payments on the due dates. Other methods of payment are also acceptable for instalment payments (see para.4.1).
 
2.3.9  The CFM must ensure that all autumn term enrolments are processed and included in the University's financial accounts by 1 December. All spring term enrolments must be processed and reflected in the University's financial accounts by 1 April. NB this is dependant upon processes being completed by Campus Administrative Staff.

                    

2.3.10   The CFM must ensure that the true position of outstanding student fees is reported in the University's financial accounts. FBS Report No.25 'Students Enrolled but not Confirmed' should be run each month (from January-June) by each CFM. This report will be forwarded to the CAAM to assist the Campus Admin Office in ensuring temporary enrolled students are reviewed on a regular basis.
 
2.3.11 If a course of study is amended, or if a student withdraws from a course, the changes should be processed through a Student Variation Form . The Campus Registrar should ensure that all forms are raised promptly (i.e. within two weeks), following notification, and passed on to the Campus Finance Office. Changes to a student's course content may affect the costs to the student. It is essential that these changes are identified and processed as soon as possible to ensure that the FBS and the University's Financial System reflect the correct level of outstanding debt and that students are not pursued for incorrect amounts of debt.
           
2.3.12  If a student withdraws during, or before, the temporary enrolment period of each semester the student will receive a full refund for the semester(s) concerned. If a student withdraws after the end of the temporary enrolment period the student is liable for the full fee for the remainder of that semester. The student will receive a full refund for any subsequent semester for which they have paid but not attended (refund policy as approved by VCEG).
CFMs should be advised of the adjustments through a Student Variation Form together with a copy of the notification from the student.
 
2.4  Publicly Funded Fees
 
2.4.1   Students fees may be paid in full, or part, by the Local Education Authority (LEA) or Student Loan Company (SLC). Central Finance controls the process for fees paid in this way and the debt is included in the LEA/SLC ledger (when the assessment has been confirmed).
 
2.4.2   Full enrolment is permitted if the student's financial support assessment has been agreed by the LEA/SLC and documentary evidence is produced at the enrolment session.
 
2.4.3   Students awaiting provision of publicly funded fees should be fully enrolled and would normally pay the minimum fee amount , together with any fieldwork charges etc. The outstanding balance of fees should be included in the STUD2 FBS ledger but any outstanding debt will not be pursued until the outcome of the assessment is known, or a reasonable period of time has lapsed (this is to be 3 months from the enrolment date, and then on a monthly basis). When enrolment is being confirmed, the narrative box (in FBS screen 1131) must be completed to record that the student is awaiting assessment confirmation and that outstanding fees should not be pursued. The FBS 'Enrolment Problem Report' should be produced each month which will produce a listing of students who should not be pursued for outstanding fees.
 
NB The University can assist students through the provision of loans from the Hardship Fund subject to tehir application meeting the relevnat criteria.
 
2.4.4 The Campus Finance Office must forward the Student's Enrolment Form and Assessment Letter , (for students who have had their assessment agreed) to Central Finance by 1 December for autumn enrolments, or 1 May for second semester enrolments. Central Student Administration must return fee notification lists and attendance lists to the Student Loan Company within 3 weeks of receipt.
 
2.4.5 The SLC should notify Central Finance of the bulk of eligible students by mid-February each year, additional notifications are received on an ongoing basis. If a LEA or the SLC refuses to accept responsibility for a student's fees the student is reclassified as self-funded and referred back to the Campus Finance Office. The tuition fee is then due for immediate payment. The LEA/SLC has a requirement to ensure that a student's entitlement is subject to continuous assessment. This ongoing assessment may lead to a number of student debts being referred back to the Campus Finance Office later in the academic year, or in subsequent years.   
 
2.4.6 Repeating students who have to undertake examination re-takes following their first year of study the CAAM should complete an additional assessment form, 'Notice of Student Repeating Study' (appendix 8). This form should be submitted to the relevant LEA (home students) or DfEE (EU students).
 
When re-sits are passed and the student moves onto the next year/level of their course the CAAM must submit a letter to the LEA regarding setting out the student's new term dates and end dates.
 

3. Debt Recovery Process

 
3.1     Sundry Debtors     
 
3.1.1   The debt recovery process is to be followed if payment is still outstanding 30 days from the invoice date, unless there are disputes regarding the goods/services supplied.
 
3.1.2   Disputes should be recorded by the CFM (Campus), or the Central Finance Credit Control Manager (Central), and referred to the project/activity manager in the supplying Campus/Department. The CFM/Central Finance Credit Control Manager should review these disputes on a regular basis; at least once per month.
 
3.1.3   The standard university reminder letters, as approved by VCEG, must be used by Central Finance and each Campus Finance Office on a consistent basis. Each Campus Finance Office should print the letters on their own headed paper and may adjust the letters to reflect agreed local practices such as cash payment facilities. The following timetable should be followed: 
 
3.1.4   Reminder Letter No.1 Is to be sent out after 30 days has elapsed from the date of the original invoice, and requests payment within 10 days.
 
3.1.5  Reminder Letter No. 2 is to be sent out after an additional 21 days has elapsed. The letter requests payment within 10 days and states the following sanctions will be imposed if payment is not received:
 
- the University will cease all ongoing contracts with the client (subject to contractual obligations).
 
-  the University is not to enter into any new contracts with the client until any account issues have been resolved.
 
3.1.6  Reminder Letter No.3 is to be sent after an additional 21 days has elapsed. The letter will confirm the sanctions imposed and will inform the debtor that the matter will be passed onto the University's solicitors.
 
3.1.7 Reminder Letter No.4 . If payment has still not been made a solicitor's letter is to be sent confirming the sanctions that have been imposed and stating if payment is not received within 10 days County Court action will be taken. All requests for solicitors' letters must be channelled through the Central Debt Collection Unit in liaison with CFMs/ Central Finance Credit Control Manager and sanctioned by the Director of Finance.
 
Debtors who reach this stage will be included on a debt risk schedule that will be circulated to Campuses/Central Departments to ensure that sanctions are enforced university wide.

 

3.1.8  Attempts should be made to contact the debtor using all means of communication, and a detailed note of these attempts recorded on the debtor's records, together with a copy of the sundry debtor invoice and copies of correspondence.
 
NB Students attending the University who have outstanding sundry debtor accounts (e.g. library book charges) are subject to the same debt collection process as applied to the recovery of student fees (see section 3.3). 
 
3.1.9 County Court action is to be taken to collect outstanding debt in appropriate circumstances where the University;
 
-  has adhered to financial procedures throughout the credit control process
-  can provide proof that that the debtor was specifically aware of their obligations and the  consequences of failing to meet these obligations
-   can prove that attempts have been made to discuss repayment of the debt.
 
Such action will also seek to recover any costs associated with the recovery procedures together with any interest accruing on the outstanding debt.
 
3.1.10   The Central Debt Collection Unit, following liaison with CFMs and the Central Finance Credit Control Manager, will produce schedules of debtors recommended for County Court action. These schedules are to be approved by the Director of Finance following liaison with the Provost/Head of Department. The Central Debt Collection Unit will process all County Court actions.
 
3.2 Halls of Residence Fees
 
3.2.1  Halls of Residence fees outstanding after 30 days from the date of occupancy, or instalment date, are subject to the University's debt recovery process unless there are mitigating circumstances.
 
3.2.2   Mitigating circumstances must be agreed by the Halls Manager and Halls of Residence Estates Manager and the student's circumstances reviewed on a regular basis (at least once per month), by the authorising officers. The Director of Finance's approval is also required if, due to mitigating circumstances, outstanding fees are not included in the debt recovery process after 90 days.           
 
3.2.3   A schedule of students with outstanding hall fees should be sent to each Campus Registrar and CFM in August each year to ensure that any outstanding fees can be paid before enrolment. The Campus Registrar and CFM should be informed when the defaulting students pay these outstanding halls fees.
 
3.2.4 Attempts should be made to contact the student using all means of communication throughout the debt recovery process and a record of these attempts recorded on the student's records together with a copy of the tenancy agreement, copy correspondence etc.
 
3.2.5  The standard university reminder letters, as approved by VCEG, must be used by the Estates & Facilities Department on a consistent basis. The letters should be sent to both term time and home addresses. The following timetable should be followed:
 
3.2.6 Reminder Letter No.1   is to be sent out by the Hall Manager 30 days from the date of occupancy, or instalment date, requesting payment within 10 days.
 
3.2.7  Reminder Letter No.2  is to be sent out by the Central Estates and Facilities Department 60 days from the date of occupancy, or instalment date, requesting payment within 10 days.
3.2.8  Reminder Letter No.3 is to be sent out by the Central Estates & Facilities Trading Officer 90 days from the date of occupancy, or due instalment date. This letter will state that if payment is not received within 10 days the matter will be referred to the University's solicitors (a copy should be sent to Central Debt Collection Unit and to the appropriate Campus Registrar and CFM).
 
3.2.9  Reminder Letter No.4 - (Solicitor's Letter) if the debt remains outstanding a solicitor's letter will be sent to the student stating if payment is not received within 10 days the eviction process will be invoked. Requests for solicitors' letters must be channelled through the Central Debt Collection Unit and sanctioned by the Director of Finance.
 
3.2.10  If payment is not received within 10 days of the solicitor's letter the Halls of Residence Estates Manager will review the case. If appropriate, the student will be included on a schedule of eviction recommendation produced by Central Estates & Facilities, following liaison with the Director of Estates, Director of Finance and Campus Provost (Central Estates & Facilities will pursue the eviction order with the University's solicitors).
 
3.2.11   County Court action is to be introduced to assist in the collection of halls fees debt for former students of the University, in appropriate circumstances where the University:
has adhered to financial procedures  can produce evidence that attempts have been made to discuss repayment and, where possible, arrangements have been introduced to facilitate repayment of the debt.   can prove the student was specifically aware of their obligations and the consequences of failing to meet these obligations.
 
Such action will also seek to recover any costs associated with the recovery procedures together with any accrued interest on the outstanding debt.
 
3.2.12   Recommendations for County Court action are to be approved by the Director of Finance in liaison with the Director of Estates & Facilities/Halls of Residence Estates Manager. The Central Debt Collection Unit will administer the County Court process for collection of halls fees.
          
3.3  Self-Paying Students
 
3.3.1   Student fees outstanding after 30 days are subject to the University's debt collection process and sanctions should be imposed as set out in the University's Credit Control Procedures, unless there are mitigating circumstances.
 
3.3.2   Mitigating circumstances should be agreed by the CFM and Campus Registrar. These circumstances should be documented and reviewed each month by the CFM. The approval of the Director of Finance is also required if, due to mitigating circumstances, students are not subject to the debt recovery process after 90 days.
 
3.3.3   Outstanding fees for research students should be processed by the Academic Registrar's Department. A report containing research student fees details will be produced by the Central Debt Collection Unit on a monthly basis and forwarded to the Academic Registrar's Department. All reminder letters relating to research students should be forwarded to the Academic Registrar's Department who will process, record, and follow up the outstanding debt with the student. Other forms of sanctions will apply to research students as approved by the Academic Registrar's Department.
 
3.3.4   The main academic sanctions applicable are as follows:
 
-  restriction of access to the University's study facilities and services. 
 
-  withholding the award of academic credit/assessment results and the student's transcript if course fees are outstanding.
 
-  withholding the student's certificate if any debt is outstanding
 
-  withdrawing the student from the course for non-payment of course fees.
 
-  withholding the student's invitation to the graduation ceremony
 
-   a student will not be permitted to re-enrol if they have any outstanding debt with the University, however discretion may be made by the CAAM/CFM, or their authorized officers, if the outstanding amount is paid at enrolment.
 
3.3.5  The standard university reminder letters, as approved by VCEG, must be used by each Campus Finance Office on a consistent basis. Each Campus may adjust the letters to reflect agreed local practices such as cash payment facilities. The letters should be sent to both the student's term time address and home address.
The following timetable should be followed:
 
3.3.6 Reminder Letter No.1  to be sent out 30 days from the instalment payment date, (or 60 days from date of enrolment), and requests payment within 10 days or access to the University's study facilities and services will be denied.
 
3.3.7  Reminder Letter No.2  is due when 60 days has elapsed from the instalment payment date (or 90 days from date of enrolment). The letter confirms the restrictions imposed on access to university study facilities and states if payment is not received within 10 days the University will impose academic sanctions as follows:
 
- withholding the award of academic credit/assessment results and the student's transcript if course fees are outstanding.
 
-   withholding transcripts/certificates if there are any outstanding payments.
 
3.3.8 Reminder Letter No.3 - to be sent out 90 days from the instalment payment date (or 120 days from the date of enrolment). The letter confirms the academic sanctions that have been imposed and requests payment within 10 days or the University will withdraw the student from the course.  
 
3.3.9  Letter No.4 (Solicitor's Letter) if payment is still not received a solicitor's letter will be sent requesting payment within 10 days. All requests for solicitors' letters must be channeled through the Central Debt Collection Unit by the CFM and sanctioned by the Chief Accountant.
 
3.3.10   Letter No.5 if payment is still not made the Provost should officially notify the student that they have been withdrawn from their course (copy to CFM), stating that the recovery of the may be subject to litigation.
 
3.3.11   Campus Finance Office should notify the Campus Admin Office of overdue student fees at regular intervals throughout the year (dates to be agreed) to ensure sanctions can be introduced (payments made by these students should also be communicated to the CAAMs to ensure that sanctions can be lifted).    
 
3.3.12   County Court action is to be introduced to assist in the collection of debt for former students of the University in appropriate circumstances where the University;
 
-  has adhered to financial procedures throughout the credit control process
-  can provide proof that that the student was specifically aware of their obligations and the consequences of failing to meet these obligations
-   can produce evidence that attempts have been made to discuss repayment and, where possible, arrangements have been introduced to facilitate repayment of the debt. 
 
Such action will also seek to recover any costs associated with the recovery procedures together with any accrued interest on the outstanding debt
 
3.3.13  The Central Debt Collection Unit, following liaison with CFMs, will produce schedules of debtors recommended for County Court action. These schedules are to be approved by the Director of Finance and Campus Provost/Head of Department. The Central Debt Collection Unit will process all County Court actions.
 
3.3.14  Attempts should be made to contact the debtor using all means of communication throughout the process, and a record of these attempts recorded on the student's records together with copy enrolment form, fee variation forms and correspondence.
 
3.4  Publicly Funded Students
 
3.4.1   Central Finance should notify LEAs' of any outstanding student payments by raising a Sundry Debtor Invoice.
 
3.4.2   Central Finance should submit to the Student Loan Company, at regular intervals, lists of students' awaiting clarification of assessment.
 

4. Income and Banking

 
4.1 Methods of payment
 

a) Cash (sterling) payments by US Dollars, Hong Kong Dollars and EUROS are also permitted as the University holds banks accounts in these currencies. These payments must be presented to Central Finance to pay into the appropriate university bank account.

 

b) Cheques foreign currency cheques are not encouraged due to the prohibitive level of bank charges incurred in administering these payments. Post-dated cheques are not permitted.

 

c) Credit Cards (Mastercard and VISA, Visa Delta, JCB, Maestro, Electron) and Debit Cards (Switch, Connect, Solo)  wherever possible card payments should be processed in the client's presence to ensure that any authorization issues can be resolved immediately.

 

d) Direct Debit

 

e)Bank Transfer (student payments must include the student's name and registration number)

 
f)Bankers Draft
 
g)Travellers Cheques
 
h) Postal Orders
 
4.2  All processes relating to the collection of income (e.g. credit card machines, cash receipting, storage of cash etc) must be agreed with the Chief Accountant before being introduced to ensure they comply with financial regulations
 
4.3  All bank charges incurred in administering student payments will be subsumed by the University's central funds.
 
4.4 Cash flow is vital to the University therefore all income must be presented directly to the bank within 24 hours of being received, or collected by Securicor at the next pick-up date.
 
4.5 All income transactions must be channelled through the University's central bank account with the exception of income received via direct debits, which can be directed to the relevant bank account.
 
4.6 Central Finance should notify the Department/Campus Finance Office within 2 working days of referred cheques being informed by the bank. The amount of the cheque will be debited to a returned cheque holding account. The Campus Finance Office/Central Finance must constantly clear the returned cheque holding account by re-instating the debt. The debtor must be informed that the debt is now due for payment within 10 days - payments by cheque or instalment are not allowable in this instance.
           
NB The debt recovery process is implemented using the date of enrolment or instalment date, or invoice date, not the payment deferral date.
 
4.7  Central Finance will distribute lists of unallocated income from the University's central bank account to each Campus, and each Central Department, on a monthly basis. Central Finance will endeavour to ensure that the schedules contain sufficient detail to ensure that the income can be easily and correctly allocated but are reliant on information received from the University's bankers.

5. Central Debt Collection Unit
 
5.1 The Central Debt Collection Unit has been established for an initial two-year period (from January 2001) to enhance the current level of resource specifically applied to the debt collection process. The additional resources should not replace any resources currently used to administer the credit control process.
 
5.2   The Unit members, when located in Campuses, will come under the day-to-day management of the CFM. Central Finance, in agreement with each CFM, will agree the work programme and set performance targets.
 
5.3   The Unit alone will deal with all recommendations for referral to solicitors (for County Court action), together with all the University's County Court actions.
 
5.4   The Unit will meet formally on a fortnightly basis with the Project Accountant with such meetings being minuted.
 
5.5  The Project Accountant will report to the Director of Finance and CFMs once a month to review the outstanding debtors position and review debt forecasts and propose amendments to policies and procedures. 

 

6. Recommendations for Debt Write-Off

 
6.1  The write-off of irrecoverable items of debt is permitted if the Director of Finance is satisfied that the debt is irrecoverable and all reasonable steps have been taken to investigate the loss and recover the amount due.
 
6.2  Debt write-off schedules are to be produced by each CFM and the Central Finance Credit Control Manager on an ongoing basis, as and when the conditions in para.6.1 have been met. The schedules are submitted to the Director of Finance for approval.
 
6.3  Individual debt write-offs of up to £25,000 can be written off by the Director of Finance or his nominated signatory. No individual debt of over £25,000 may be written off without the prior approval of the Finance and Property Committee. A report must be submitted to the Finance and Property Committee together with supporting documentation of original invoice, any amendments all copies of correspondence and records of contact with the debtor.    
 

7. Bad Debt Provision

 
7.1  The level of bad debt provision is to be reviewed on an ongoing basis and included in the University's final accounts.
 
7.2   Central Finance is responsible for the production of a bad debt provision schedule that should reflect a realistic level of debt that may not be recovered by the University. This schedule should be prepared in conjunction with CFMs. 

 

8.Monthly Debt Management Reports

 

8.1 Aged Debtor Reports generated through Prophecy and FBS will be circulated to each CFM and each Central Department during the first week of each month. These reports will form the basis of a review undertaken by the Deputy Director of Finance with the Payments/Credit Control Manager (Central Departments) and CFMs (Campus) 
 
8.2  The Debt Management Report includes the outstanding debt by Campus and total Central Department debt by type of debt: amount of debt collected in the month: amount of new debt in the month and the number of debtors and a schedule of debt forecasts.
                         
9. Debt Forecasts
 
9.1  Debt forecasts relating to estimated levels of outstanding debt each month are to be established by the Project Accountant in conjunction with CFMs and reviewed by the Director of Finance and Deputy Director of Finance on a monthly basis.