Issue - meetings

To consider an update on the internal Audit of Housing Rents.

The Committee received an update on the internal audit of Housing Rents.

During the discussion of this item the following points were made:

·         The internal audit of Housing Rents had concluded with a level 3 assurance which meant that there were weaknesses identified in the systems of internal control.

·         Members were updated on the current and former rent arrears and progress made against the target to reduce arrears as a percentage of annual debt to 2% by the end of 2019/20.  

·         Members were informed that the former tenant arrears amount had increased from £181,208.63 (as at March 2018) to £234,238.44 (as at November 2018).  As debt aged it often became harder to collect.  Nevertheless, a positive direction of travel was being seen.

·         The Lead Specialist Finance commented that if a tenant continued not to pay their tenant arrears they would eventually be evicted and the debt would transfer from housing debt to sundry debt.  Five evictions had been carried out this year.  An eviction could take up to 12 months and was not the preferred option. 

·         The Council was using an external agency to pursue debt.

·         Councillor Shepherd-DuBey asked whether the Council used phone call reminders.  The Lead Specialist Finance stated that two additional members of staff had been engaged to phone and remind people of the need for payment.

·         It was noted that Tony Newman of HQN had undertaken a review on rent arrears management and 62 recommendations had come out of the review.  Councillor Smith asked that the Committee be informed of the status of the recommendations.  The Assistant Director Governance commented that this formed part of the action plan.  Councillor Smith also asked for information regarding ageing debt and action being taken to reduce this.

·         With regards to sundry debt, the Lead Specialist Finance stated that there was currently £4.4m of collectable debt (although £1m of this sat under 30 days).

RESOLVED:  That

1)         the update be noted;

2)        the Committee be updated on the status of the 62 recommendations on rent arrears management from an external review by Tony Newman of HQN;

3)        information on sundry debt be sent to the Chairman monthly from the March month end.