Welcome to the ninth edition of our newsletter.  Please take time to read the newsletter and to bring it to the attention of relevant individuals within your organisation.

We would appreciate your feedback so that we may gauge the newsletter’s effectiveness and incorporate improvements in future editions.  If there are specific subjects that you would like us to cover, then please let us know. 

We hope that the guidance provided will prove to be a valuable reference tool.

Sederunt Books

 Unfortunately, some sederunt books are still not being submitted in the requested format and we would like to reiterate the following points: 

• Documents should be filed in a suitable folder, sederunt books left loose are unacceptable

• Correspondence files and sederunt books should be bound separately and clearly marked with the debtors name, case reference and file description

• Files should have the documents punched and securely filed. Elastic bands, metal or paper clips are not appropriate

• Documents should be filed in the order detailed on the document checklist which can be found as Appendix D of the Notes for Guidance

• One copy of each document in the sederunt book is sufficient

• All statutory documents must be accounted for, if documents are missing then a written explanation must be enclosed

• Final account circular has to advise “administration is now complete and the Trustee will be seeking their discharge” and advice should be given regarding the appropriate appeal period

• If unable to interview or trace the debtor, an Inventory & Valuation is still required if assets are unknown

• Current status reports and J2As, copy wage slips, cheque book or passports should be enclosed in the correspondence files

• A signed Appendix D1 must be submitted with the files

 If you have any queries regarding the above, please contact us.

Annex H

When submitting funds to AiB, please clearly state on the annex H from where the funds originated. If the amounts are defined correctly, rather than just amalgamated in a total figure, the need for further queries to the Agent’s office when the account is being determined is reduced.

State for Settlement

Please ensure that a state for settlement is included when submitting accounts with funds from heritable property (see dear Agent letter of 01/12/07). If further funds have been received in relation to the heritable property, in addition to the information detailed on the state for settlement, please clearly advise of origin (e.g. refund from secured creditor, interest on surplus funds etc.)

K1 submitted for payment of outlays/fees over £500 before final account

If submitting a K1 for advance payment of outlays and/or fees of over £500, before the end date of the final account, please provide copy evidence to allow amounts claimed to be verified (invoices, state for settlement etc). Please note that a determination is not issued in these circumstances and the next account period end date will be extended by a period of 3 months. 

A request for payment of fees due should not be an alternative to the submission of a scheme of division if a penultimate account is relevant. 

Roll-out of Accounts Workbook to Agents

As reported in the last Newsletter, an electronic Workbook has been developed to simplify the process for submitting Agency accounts. The Workbook automatically calculates fees due to Agents and AIB and replaces the paper forms Annexes G and K1.

The development of the Workbook is the first step towards the introduction of a web portal, which will allow Agents to submit accounts by means of an interface with the AIB electronic case management system.

Members of the Accounts Team have commenced visits to Agents to introduce the Workbook and give training. The feedback to date has been positive with Agents’ staff keen to adopt this method for submission of accounts. Where we have been unable to arrange a visit, an introduction has been given successfully via telephone and email.

Contact will be made with all Agents over the next few months to arrange an overview of the Workbook, but if you would like further information in the meantime, please contact the Accounts Team.

If you have any queries regarding the above, please contact us.

Final Accounts

Following the determination of a final account, Trustees have been submitting a further final account. Please note that a final account should only be submitted once the administration of the sequestration is complete and all funds have been ingathered. Previously determined fees and outlays should all be shown through the account in order to confirm all intromissions with the debtor’s estate. To ensure that Trustees retain sufficient funds for all final fees, unapplied balances should not be consigned until the final account has been determined.

When submitting a First and Final account please advise on your covering letter that a Final determination is required.

Change of Trustee Fee

For a short period of time invoices were not being generated when there was a change of Trustee. The £19 fee was added to the determination at the time but the invoice did not process. If you think you have not received the invoice for this fee please contact the Accounts team.

Approved Scheme of Divisions

When you receive an approved scheme of division with pencilled amendments, please contact the Accounts Team if you have any questions about the amendments or intend to deviate from the agreed amount payable to creditors, prior to making payment.

If you have any queries regarding the above, please contact us.

Documents Required When A Protected Trust Deed (PTD) Fails/Ends

There has been an increase in the number of Form 7s being received by AiB with incorrect or missing documents and as a result, the forms are being returned to the Trustee.  The following information provides a brief outline of the documents required by AiB for PTDs signed on or after 1 April 2008.

If the Protected Trust Deed (PTD) Fails and the Debtor is not discharged

• Form 7 with table completed along with the Trustee’s signature and discharge date

• A signed copy of the Receipts and Payments, showing a zero or negative balance

• A letter addressed to the debtor explaining what action is being taken regarding their PTD and advising them of their right to appeal to a Sheriff.  If the debtor’s whereabouts are uncertain or unknown, this letter should be sent to their last known address

The information on the Form 7 table and the Receipts and Payments should correspond.

If the PTD Ends and the Debtor is Discharged

• Signed Form 5 showing the debtor’s discharge date

• Form 7 with table completed along with the Trustee’s signature and discharge date;

• A signed copy of the Receipts and Payments, showing a zero balance.

AiB can accept the Form 5 prior to the Form 7 being submitted.  If the Form 5 is submitted without the Form 7 and Receipts and Payments, a letter reminding the Trustee to submit these documents once their discharge is approved, will be issued by AiB.

Should you require any further information please contact the PTD Supervision Team or call on 0300 200 2710.

Submission of Trust Deeds to AiB for Protection

AiB is returning, on average, 90 Trust Deeds per month to Trustees due to the paperwork being incomplete or containing errors.  It would therefore be helpful if Trustees could ensure that all documents and calculations are checked, prior to submission to the AiB, to ensure they are complete and correct.  This would save both time and resource for the Trustee and AiB.

Contact us if you need any more information relating to this or any other matters.

We hope our newsletter has been both informative and useful to you.  Remember, if you would like anyone else from your organisation to be included in our mailing list please let us know.  We welcome feedback and ideas for future topics so contact us if you have any suggestions. 

Future newsletters will be issued when sufficient relevant topics are identified.

Best Wishes

AiB Accounts Team

If you do not wish to receive details of further e-newsletters, please contact us to remove your subscription.

The AiB newsletter is produced by the AiB, Accounts and Supervision Teams, for the benefit of Agents and Trustees working with the Agency.  All information presented here is correct and accurate at the time of publication.