Debt Management	Document No:	D24 - 525367
	Approval Date:	23 April 2024
	Approved By:	Council
	Review Date:	30 November 2026
Responsible Officer: Director Corporate Services	Version No	05
Authorising Officer:	Chief Executive Officer

Introduction

Purpose

To outline the City of Greater Geelong's (The City)'s policy on the management and recovery of debt.

Scope

This Policy applies to all staff and in particular employees authorised with the responsibility of providing credit invoicing and recovery of outstanding debt including rates waste charges fire services property levy interest special rates & charges sundry debtors infringements recreational sporting club agreements landfill and miscellaneous charges.

Definitions

This section defines the key terms used in this policy.

• Accounts Receivable Credit Account Sundry Debtors Debt - all refer to an amount owed to City.
• Debtor - any person corporation business or other entity owing money to the City.
• Provision for Doubtful Debts - an estimate of the amount of debt raised that is unlikely to be collected.
• Service – includes goods supplied or delivered admission sale of items hire of facilities or items - supply of information and any other matter giving rise to a fee or charge being made by the City.
• Infringements – Refers to any notice or penalty notice issued for Parking and Traffic Animal Control Health and Local Law.
• Credit Risk - The probability of financial loss when payment is not made.

Policy

The City will operate effective billing and debt collection processes including the efficient management of accounts receivable and related credit management.

The granting of credit and recovery of debts outstanding must be controlled from the timely raising of invoices and subsequent monitoring and collection of debt.

The City's debt is to be managed in accordance with this policy and where applicable the defined management procedure for Debt Management.

Payment for council services should where possible be made at the time when the service is provided. For example entry fees sales of merchandise subscriptions memberships plans licences and fees should be payable at the time of service and/or delivery.

Where credit is provided the following applies:

• Trading Terms

  Unless otherwise provided by legislation trading terms are not to exceed 30 days net from date of invoice/statement.

• Invoices

  The debt is to be recognised at the time services are provided.

• Provision of Credit

  The provision of credit is not automatic and credit can be suspended or withdrawn based on compliance with trading terms. Council reserves the right to review the p