Annual Report and Accounts 2009-10 - Welfare Reform impact ...

Formal recovery is managed by a specialist team within the ILF and
amounts with repayment arrangements in place are recorded for
debt management purposes. Where unspent moneys are returned by
individuals in the normal course of business (see note 2(i)) those amounts
are not included in the formal recovery system as there has been no
inappropriate payment.
Grants under formal recovery comprise amounts originally paid to
individuals, which are now under formal recovery, mostly by instalments
or deductions from ongoing payments. Recoveries are profiled over the
expected repayment period, and the amounts are discounted to present
day value. Impairment is also considered, in particular where there
is a probability that recovery arrangements may not be sustained
for a prolonged period.
Of the recoveries due over one year, £510,000 is expected to be received
within the next two to five years and £257,000 is expected to be received
within the next five to 10 years (£415,000 and £199,000 respectively at
31 March 2009).
Formal recovery includes a number of processes, such as factual
investigation, identification of a presumed receivable, negotiation
to achieve acknowledgement of a formal receivable, civil proceedings
for recovery, and repayment in full or by agreed instalment schedule.
A receivable is only recognised in the accounts when all the steps of the
process have been completed and it is probable that economic benefits
will flow to the ILF.
90 Independent Living Fund (2006)