Debt Collection Policy and Procedures 2012 1. Introduction FETAC has a legal duty to recover all sums due to it efficiently and effectively. A debt collection and debt recovery policy ensures that collection methods are fair and equitable, efficient and effective. This Policy and Procedure covers the collection of all income owed to FETAC with the exception of the State Grant payable to it by the National Qualifications Authority of Ireland. 2. Debt Collection Policy 2.1 The aims of the Policy are to: provide a structured approach to debt collection ensure more detailed liaison and involvement with the Certification and Monitoring sections to identify centres who pose a risk and thereby ensure timely action ensure timely receipt of payment from debtors in respect of invoices issued in order to maximise FETAC income which is recorded on a cash receipts basis mitigate and reduce the risk of bad and uncollectable debts by taking enforcement action against deliberate non-payers or entities who delay payment take prompt action to determine fee events and quantum due to facilitate prompt billing advise Further Education and Training centres on debt collection policy. 2.2 Links to Corporate Strategy FETAC recognises that the way in which it performs statutory functions and its values as a State Body determine the quality of services provided to its stakeholders. 1 FETAC Strives to be an organisation which: provides the highest standards of service to all its stakeholders adopts the highest standards of integrity, openness and honesty in all its dealings supports and develops its staff to deal with stakeholders accordingly promotes equity in dealing with stakeholders 3. Debt Collection Principles FETAC: considers that debtors have a responsibility to pay their due debts to it aims to identify as soon as possible those who do not pay or who delay payment aims to maximise fee income acknowledges the need to provide a service that is effective and responsive acknowledges its responsibility to collect revenue effectively If debtors get into arrears, FETAC will: ensure that payment arrangements reflect the level of debt owed focus attention on priority debts over other debts owed 4. Debt Collection Charter FETAC will provide clear and transparent information about bills and liabilities due. The information provided will show: what the bill or liability is for the amount due ways in which payment can be made a relevant contact person for enquiries and queried invoices 2 FETAC will: inform centres of their entitlement to exemptions (if any and as appropriate) train relevant staff who deal with fee events 5. Review of Debtors Ledger There will be continuous periodic review of the debtors ledger (weekly or monthly based on the materiality of the amounts involved). 6. Debtor Statements Debtor statements will be sent out monthly in respect of each debtor. Debtor statements may be sent out at any time in respect of debtors who have not paid or made arrangements to pay within 60 days of invoice. 7. Terms of Credit FETAC’s standard credit terms are 30 days. 8. Making Payment Whatever the method of payment debtors must ensure that payments reach FETAC by 30 days after the date of invoice. Where payments on account are made this should be clearly stated. 9. Monitoring Payments Failure to comply with the stated credit terms will result in enforcement action which may incur additional costs which will be included in any legal proceedings initiated to recover outstanding debts. It is envisaged that enforcement action will be pursued on the basis of the amount owing and the monitoring and certification sections experience of the particular debtor. 3 Debt Collection Procedure issue invoices to centres promptly follow up with telephone calls after 14 days to identify any queries arising from invoices issue debtor statements at the end of each month follow up with telephone calls requesting payment of due invoices Finance Manager issues a standard letter to all debtors who are over 30 days outstanding within 5 days (day 35) continue to follow up with telephone calls Certification Manager to issue a standard letter to those centres who continue to have outstanding debts within a further 7 days (day 42) advising that their access to certification will be suspended unless full payment is received by 7 days (day 49 after invoice issue date). The suspension would take effect from the next plus one assessment period following the date of issue of the relevant invoice. For example, invoices raised and unpaid in respect of the February assessment period would result in access to certification being suspended for the June assessment period, invoices unpaid arising from the April assessment period would result in access to certification being suspended for the August assessment period and so on. alert the monitoring manager with details of these centres Director of Corporate Services to issue a standard letter to all debtors who are over 45 days outstanding advising that access to certification will be suspended and that FETAC will engage its solicitors to collect the debt continue to follow up with telephone calls solicitor’s letter to issue to all debtors who are over 60 days outstanding within 10 days (day 70) advising that unless full payment is received within 7 days FETAC will initiate legal proceedings to recover debts including costs final reminder letter to issue from solicitor on day 80 with 7 day notice solicitor to commence legal proceedings to recover outstanding debts, plus costs, from debtors who are more than 90 days in arrears certification to proceed to request the Policies Committee to remove any centres from the FETAC Register of Providers who have debts outstanding greater than 120 days. 4
