C11 Debtors

Background

Each Department/Office should be aware of any outstanding debts owed to DFID in respect of that Department/Office's area of responsibility. Departments/Offices with access to ARIES must record outstanding debts by means of creating an invoice on the system. Departments/Offices without access to ARIES must maintain a Claims Register and ensure it provides an up to date record of outstanding debts owed to DFID in respect of that Department/Office's area of responsibility.

With the exception of advances of pay and related allowances, Department/Offices must record all other expected receipts.

Compliance Tasks

1. Heads of Department/Overseas Offices must designate an officer in the Department/Office to be responsible for monitoring debts (normally the Departmental Finance Officer (DFO) or Accountant).

Task assigned to: Head of Department

2. Project staff must create an invoice on the ARIES system as soon as the debt is identified.

Task assigned to: Project Staff

3. Outstanding invoices must be monitored on a monthly basis and a report sent to the Head of Department/Overseas Office.

Task assigned to: Head of Department, Head of Overseas Office

4. The Claims Register must either be a bound book (not loose leaf) with printed numbered pages, or a computer based record, for which the following additional requirements must be followed:

• Access to the record is restricted to designated individuals responsible for maintaining the register, through either a password control mechanism and/or physical security of the computer and ancillary equipment (for example diskettes).
• Each claim entered on the register must be given a unique identification number, running sequentially.
• The register must record the debtor, the nature of the debt, the amount owed and the action being pursued (with appropriate file references).
• A claim, once entered on the register, must not be removed under any circumstances (to preserve in complete form a record for audit purposes). Claims settled are to be marked accordingly in the register.
• Designated officers must circulate details of outstanding debts to the rest of the Department/Office on a monthly basis for review and updating.

Task assigned to: Departmental Finance Officer (DFO)

5. Heads of Department/Overseas Offices are responsible for ensuring that debtors are pursued and that debts are not allowed to become 'aged', i.e. over three months old.

Task assigned to: Head of Department, Head of Overseas Office

6. If a debtor fails to pay/repay DFID in a reasonable amount of time and without good reason. The Head of Department/Overseas Offices must consult Internal Audit Department (IAD) and Financial Management Group (FMG) on whether or not to take legal action to recover the debt.

Task assigned to: Head of Department, Head of Overseas Office

Risks of non-compliance

• Claims on parties outside DFID get overlooked
• There is no action to recover the debt
• Potential criticism from Internal Audit, National Audit Office
• Loss of funds to DFID/Her Majesty's Treasury (HMT).