Accounts which are overdue
must be promptly followed up in accordance with the debt recovery procedures in
the Finance Manual.
(Financial
Instructions 2005 s(48))
Recovery Measures
- The credit
officer must promptly follow up accounts that fall due. If recovery is
unsuccessful after one month, the following actions shall be taken:
- no
further credit shall be extended to the debtor;
- a
demand notice for payment shall be sent to the debtor after his/her debt
has been overdue for more than one month;
- if
the account still remains unpaid after the first demand notice was
issued, a final notice shall be issued demanding payment within fourteen
days.
- Within
the first week of each month, the credit officer shall prepare a
list of debts that are not yet due and that are overdue.
- The
list of debts shall also include recovery measures undertaken. The list
must be forwarded to the Accounting Head.
- If a
final notice had been issued to one of the debtors listed, the Accounting
Head may approve that the case be referred to the Solicitor General or
the Small Claims Tribunal, after considering the cost implications and the
probability of recovery.
- The
debtors register shall include details of cases handed to the Solicitor
General or the Small Claims Tribunal. The register shall contain the
following information:
- particulars
of recovery action taken;
- date
of referral to Solicitor General or Small Claims Tribunal;
- result
of referral.
- The Accounting
Head shall take action to write-off irrecoverable debts in accordance
with Part 14 of the Manual.
(Proforma Finance Manual)