Stoke Primary School
Debtors Policy

Date Reviewed by Governors

Date of Next Review

This policy is based on the LA model

Introduction

The policy of the Governors is to ensure that all viable steps are taken to recover money due to the school.

The Governors aim to minimise the number of instances that credit is given and to take prompt and appropriate recovery action in respect of unpaid debts.

Procedure

All paperwork relevant to the goods or services being provided will be completed, e.g. lettings application form, music tuition contract.

Wherever possible, payment is to be obtained in advance for the goods or services being provided. It is not deemed economically viable to issue sums below £5.

If an invoice is to be sent, it will be issued as soon as possible.

Outstanding debts will be monitored regularly using Aged Debtor reports.

After 21 days a first reminder will be issued (Appendix 1).

After a further 14 days a final reminder will be issued (Appendix 2).

After a further 7 days, no further services will be provided as the bad debtor will be embargoed and the matter is to be referred to the City Treasurer’s Sundry Debtors Team or Legal Services. Other schools will be notified to prevent the debtor defaulting on debts across the city.

Authority to write off unpaid debts is as follows:

            Up to £250                             Headteacher

            £251 - £1,000                        Board of Governors

            Over £1,000                          Board of Governors and the City Treasurer