Apologies were received from Sheila Bowles, Angela Hodgson, Mike Calvert, Jim Curtois, and Ron Heppenstall.

1.   Matters Arising From The Previous Meeting – Multiple BACS Requisitions

Eddie advised the meeting that plans at the October 2002 User Group meeting to update The Insolvency Service website with the multiple BACS requisition form had so far been delayed; this was largely due to the more pressing reorganisation of the banking directorate. The BACS form along with the user guide and other notices are all scheduled to be updated on the website in due course. 

2.   Reorganisation of Banking Directorate

The Banking Directorate has been reorganised, so it effectively evolves into IP Banking and OR (Official Receiver) Banking. The OR Banking Section will deal with the ongoing centralisation of the Official Receivers’ receipts and payments. IP Banking, formerly CAU, remains unchanged but for its new name. Eddie wished to emphasise that all key procedures and targets remained the same; the only foreseeable changes were to the title of the user guide, business cards and headings on day-to-day correspondence.  

3.    Online Access to BANCS

Eddie advised the meeting that Alison Poppitt now headed a unit dedicated to IT and the support of Online Access to BANCS. Alison informed the meeting that the service went live on 6 January 2003. To date four hundred and fifty IP s were now online. Despite the issue of feedback forms to this number of practitioners, only thirty-two forms have been returned. Feedback has been positive and IP Banking look to the continued success of Online Access and increases in the number of IPs taking up Internet access.  

During the meeting two minor difficulties with the system were identified by Nigel Mallet. His query related to problems printing off statements on partnership cases. Michelle Mulroy for Grant Thornton had encountered printing problems with large transaction cases. Alison Poppitt will look into these issues and hopefully address any system anomalies. 

4.   Performance

Eddie discussed performance and year-end projections that indicate voluntary dividends are going up in considerable numbers. Other performance indicators show that balance statements issued are down, whilst telephone calls have increased significantly. We believe this may be a direct result of online access, which may alert IPs to reconciliation problems on their estates. Figures for reconciliation work have also increased but this is partly due to the inclusion of interest bearing in this work category. Performance indicators show that the unit is meeting requirements on posting bank giro credits on the day of receipt and processing payments within our prescribed time limits.  Eddie noted that BACS payments are up and outlined his plans to visit other government departments in order to promote the take up of receiving payments by BACS.

Nigel Mallett queried the apparent delay in some receipt postings. Gary McDonnell – Payments Manager informed the user group that service problems had arisen with the Bank of England, the daily DX mail parcel was frequently a day late and this created problems in the daily bank reconciliation and subsequent transfer of bank giro credits to Payments Section. Alison Poppitt mentioned that the apparent delay in posting receipts might be a misrepresentation of the live account since BANCS Online operates 24 hours behind the live system.  

5.   Security

Kate Werrett addressed the user group on security and advised of two attempted cheque frauds since the October user group meeting. In both instances the Bank of England detected the attempted fraud and no financial loss was borne by The Insolvency Service. Eddie informed the group that APACS approved laser printers had been purchased. Software is currently being enhanced and adapted and it is anticipated that we will move to this new means of cheque production in July or August 2003. There will be a number of benefits, most notably the speed of cheque production and the addition of increased information in the remittance advice field of the cheque counterfoil. Michelle Mulroy asked if dividend cheques could be produced in alpha order. At present our system is designed to print in value order. Eddie advised that it was his understanding that software modifications would allow flagging and the adaptation to alpha order if users required it. 

6.   Enterprise Bill – New Financial Regime

Eddie was able to inform the meeting that the new financial regime comes into effect on 1^st April 2004. The Insolvency Service is currently working on a fees structure. IP Banking is now using time recording as a means of differentiating between bankruptcy and compulsory liquidation cases and voluntary liquidation cases. This information will be used in the consideration of fees.

Eddie advised that meetings are still being undertaken to discuss interest rates that will be applicable to all cases, not just those over the £2,000 threshold.

During the meeting, Eddie canvassed opinion on IPs continuing to use the ISA account for voluntary liquidations. David Watchorn expressed the viewpoint of a number of user group attendees, in that careful consideration would have to be given to what the high street banks could offer compared to the Insolvency Service Account.

Eddie confirmed that once an indicative cost is know, he will start a round of visits to IPs in which he will advise and promote the services we can offer within IP Banking.  

7.   Refit

This is the name of the project, which will oversee the implementation of a new financial system for The Insolvency Service. Its introduction is partly linked to the changes the new financial regime will bring to The Service. Eddie advised that the name adopted for the new computer system is be CAMEO – Case Accounting Management of Estates Online. The system is being developed and adapted from GLOBUS a banking package used by The Bank of England.  

8.   Data Cleansing

Due to the impending system changes and Online Access, data is being cleansed on BANCS and The Service’s Central Index. The correction of data may include IP name, address or case name details. Alison Poppitt asked the meeting that any details requiring correction should be referred to her, this is in conjunction with insolvency practitioner Compliance Unit.  

9.   Tracing Agents

Ten agents are now actively involved in this area of work. Gary McDonnell advised the meeting that since taking over Payments Section, controls had been tightened up on the criteria for giving out information and the receipt of claims.

The User Group were canvassed for opinion as to the usefulness of IP Banking providing them with a list of cases on which a cheque was imminently due to expire. From this information they could decide whether to contact the creditor or subsequently reissue. Little positive interest was expressed at the provision of this facility. 

Eddie advised the group that he was mindful that IP Banking should not have its reputation tarnished by the use of tracing agents, should any dispute arise in the future between IPs, creditors and tracing agents. Eddie felt clarification from a Recognised Professional Body might be a necessary precaution on this issue.

10.   Cheque Payments Receipt and Turnaround

Prior to the meeting a concern had been raised by Hedley Brunt of Baker Tilly concerning apparent delays in the receipt of cheques. However the situation had rectified itself by the time of the meeting, and we can only assume this was a blip in cheque despatch and delivery. Michelle Mulroy advised that Grant Thornton had received cheques in a torn and flimsy envelope. Gary McDonnell and Kate Werrett advised that the Payment Despatch Section would be informed and that large numbers of cheques would be despatched either in boxes or heavy gauge gusseted envelopes. In the case of dividends where these are despatched in separate batches the relevant section within IP Banking have been asked to indicate that it forms part of a batch.  

11.   Treasury Bills

Eddie informed the group that The UK Debt Management Office have recently withdrawn the facility which enables the Commissioners for the Reduction of the National Debt to buy and sell Treasury Bills on behalf of The Insolvency Service. Letters have been issued to all insolvency practitioners with bills, and it is anticipated that a notice will be drafted for the next “Dear IP” publication. Alternatives have been examined, but these are restrictive since they involve the purchase of bills in multiples of £5 million that are bid for at auction, with no guarantee that any bills will be secured. The amount bid for is usually much more than the amount on offer. Eddie advised the group that the matter has now been put before lawyers to see how the failure to purchase bills impacts on regulations; the outcome at present is unknown.  

Any Other Business

Alison advised the meeting that the crediting of interest will be run today 3^rd April 2003 and will credit interest effectively on 1^st April.

The date of the next meeting has been scheduled for 2^nd October at 11.00am