Renfrewshire Council is preparing to write off more than £1 million of irrecoverable debt – if elected members approve the move this week.
The step is set to be taken after the recovery of debt from a number of individuals and companies is no longer considered “viable” by finance chiefs.
A total amount of £1,183,362.91 will be reviewed by the local authority’s finance, resources and customer services policy board on Thursday.
Financial regulations require that a report on the write-off of sums in excess of £10,000 is submitted to the board for consideration.
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The paper, authored by Emma Shields, strategic service delivery manager, said the council has already “pursued” each of the debts in question before adding that it is now “considered prudent” to wipe out the outstanding balance.
It explained: “The debt recovery process involves extensive effort by the council and its collection agents to locate the debtor and recover the debt.
“During this process, a stage can be reached when it is recognised that the recovery of the sums is no longer viable, and it is prudent to write off the recovery of the outstanding liability.
“The council has already pursued each of the debts summarised … through its follow-up cycle and it is considered prudent to write off the outstanding balance.
“The approval for the write-off will enable the council to prudently reflect within the financial accounts an accurate representation of the collectable debt.
“The council continues to monitor the accounts and, where the circumstances of the debtor alter, will instigate further recovery action as appropriate.
“The level of write-off will be contained within the council’s bad debt provision.”
The debts cover council tax (£103,291.53), non-domestic rates (£1,064,386.88) and housing benefit overpayments (£15,684.50).
Councillors will be asked to approve the write-off at the meeting of the board on Thursday.
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