Stoke Primary School
Debtors Policy

Date Reviewed by Governors

Date of Next Review

Appendices Included

Modifications

This policy is based on the LA model

Purpose

To ensure that all viable steps are taken to recover money due to the school, minimise the number of instances that credit is given and to take prompt and appropriate recovery action in respect of unpaid debts to ensure the stability of the school budget.

As a school we recognise that we have a financial responsibility to our users, and will not allow debt to accumulate, so that it creates further financial hardship. Our duty is to be clear and transparent regarding charges and their recoupment therefore this policy is designed to ensure this is followed.

Procedure

All relevant paperwork should be completed prior to the goods or services being provided, for example, all potential lettings should have completed a hire request form. This forms part of the agreement and ensures the hirer/ parent/carer is aware of the terms and conditions of the service provided.

Wherever possible obtain payment in advance of the goods or services being provided. For economy reasons we do not issue invoices for sums below £5, if an invoice is required for below this sum, an admin fee for the remaining amount totalling to £5 will be applied.

Collection of debt is dependent on the service or goods provided. It is important to dedifferentiate between a hirer and parent/ carer. Any collection of debts should not impact on any children of the school and the dignity of the child must be upheld at all times; therefore, debt recovery should be pursued in confidence with the parent/ carer.

Dinner Money

• Dinners taken are monitored daily and outstanding balances weekly.
• Parents/ Carers will be notified by via school communications on My Child at School app automatically if a debt accumulates to five days or more of dinners taken.
• If the debt remains unpaid or a repayment plan not agreed after a further 3 days (eight days) we will issue a second reminder via letter (Appendix 1). We may also follow this up with phone calls.
• If no contact or payment is received after ten school days, we will send a letter (appendix 2) detailing the debt and inform parent/ career that no further school dinners will be given and a packed lunch from home will need to be provided until the debt is cleared or a repayment plan is agreed.
• The executive senior leadership team will decide if the formal debt recovery process should be instigated. The parent/ Carer will be informed of the outcome and the next steps detailed.

Curriculum activities

Extra-curricular activity/ additional costs

• The planned activity/ additional costs and payment terms will be communicated prior to the activity taking place. The activity/ additional cost will be optional.
• Educational Visits and Trips are paid for at a fixed price for the full year and can be paid by parents and carers in instalments across the year in order to enable better financial management during the cost-of-living crisis.
• Parents/ carers will be notified via the My Child at School app automatically if the payment has not been made five days after the payment due date.
• If the debt remains unpaid a repayment plan not agreed after a further three days (eight days) we will issue a second reminder via letter (Appendix 3). We may also follow this with phone calls.
• If no contact or payment is received after ten days, the executive senior leadership team will be informed and the decision whether to withdraw the child’s place or the additional cost be given made.
• If the planned activity or additional cost has already been given then the executive senior leadership team will make the decision whether to begin the formal debt recovery process, the parent/ carer will be notified of this decision.

Breakfast club/ After school club

• Registration is confirmed and parents/ carers notified of the charges and payment terms.

• Parents/ carers will be notified by via the My Child at School app if the payment has not been made one week after the payment due date.
• If the debt remains unpaid a repayment plan not agreed, we will issue a second reminder via letter (Appendix 3). We may also follow this with phone calls.

• If no contact is received after eight school days, we will contact parent and notify them that their child will be unable to attend the club two days after the date of the issued letter.
• The decision to withdraw the child’s place and instigate the debt recovery process will be decided by the Executive Senior Leadership Team. The parent/ career will be informed of this decision.

Lettings/ Minibus hire

• Once booking is confirmed an invoice should be generated and payment terms detailed
• If payment is not made within 28days of the invoice date a reminder letter will be sent, and the hirer informed that their booking will be cancelled (appendix 3)
• A further letter (Appendix 4) will be sent 7 days after if no payment or agreement has been made and the hirer informed due to nonpayment the booking is cancelled. Further bookings may be affected.
• If the hire has taken place already a formal debt recovery process will begin.

All contact will be made as economically as possible; therefore, all contact will be made electronically where possible.

Formal debt recovery process

Once the formal debt recovery process begins, there will be an embargo placed on any further services or goods provided to the hirer/ parent/ carer.

In the instance that the debt is from a parent/ carer, this debt will not prevent the child from accessing curriculum activities or free school meals.

A request to instigate legal proceedings to recoup the monies owed will be referred to either the City Council’s Sundry Debtors Team, Coventry City Council’s Legal Services, or a private debt collection company. Additionally, we may notify other schools to prevent the debtor defaulting on debts across the city.

Write offs

On occasion in consultation with the appropriate person, the debt may be written offs.

The Authority to write off unpaid debts is as follows:

• Up to £500 Head Teacher
• £500 - £1,000 Board of Governors
• Over £1,000 Board of Governors and the City Treasurer

All debtors write offs are reported to Governors as a standing agenda item at the Resource Management Committee