Chapter 10
July 2006
10.24 Initial list of records
A schedule of records handed over is incorporated in the PIQ or PIQDP , which is sent out with the initial letter to a director, partner or the bankrupt. In some cases the records and completed PIQ/PIQDP will be brought in for the first interview. However, the schedule of records handed over (SRHO) is retained as a separate form for use when records are delivered other than at the first interview or not all records are delivered at that interview.
The list of records as recorded in the PIQ/PIQDP orin the SRHO is intended to be a physical confirmation of what has been handed over.
If a director, partner or the bankrupt is unable to describe the records as ‘cash book’ or ‘ledger’ a simpler description such as ‘red book’ etc. will be acceptable. The important fact is that the dates of first and last entries are completed. The initial list completed by a director, partner or the bankrupt should not be written on by the examiner subject to the exceptions provided for in Chapter 11, Interviews and Statements paragraph 11.21.
Because considerable resources can be taken up in completing the SRHO, it is for the examiner to use his/her discretion as to whether the facts of the case, as known at the time any interview or delivery up of records, merit the use of resources required to obtain a completed SRHO. If, for example, the examiner during the course of his/her initial enquiries or interview forms the opinion that the case is likely to require further investigation, every effort should be made to ensure that the schedule is completed. In a case where the examiner feels that the case is one where further investigation is unlikely, there is no need to complete the schedule. If the records are recovered, the examiner must note the CAR as to whether a full list of the records (either in the PIQ or on a separate schedule) has been obtained.
Regardless of whether a SRHO has been completed the procedures for the completion of the receipt form (see paragraph 10.13 ) must still be adhered to as well as the updating of LOIS screen 27. The examiner function as far as recovering the records and carrying out the inspection thereof in relation the causes of failure, assets, disposals, etc. should also remain unaffected by any decision not to complete the SRHO.
In those cases where a decision has been made not to complete the SRHO but the case is subsequently placed on the Investigation Register , ( see Chapter 15 Aims and conduct of OR's investigation paragraph 15.54 and 15.55) a completed schedule will have to be obtained. It is for local management to decide whether this responsibility is for the vetting examiner or the investigating examiner. On occasion, in the case of post bankruptcy offences, for example, it may be considered that the completion of the schedule is impractical or superfluous and it will then be for local management, with reference to the Enforcement Directorate Criminal Allegation Team or Authorisations Team if deemed necessary, to decide how to proceed.
10.25 Procedure at interview
Reference should be made to Chapter 11- Interviews and statements regarding the guidelines to be followed for the conduct of the interview .
A receipt [note 2] should be issued for any records brought to the vetting interview and a copy retained. Details inserted by the bankrupt or director should not subsequently be altered, added to or deleted. If at the time of the interview the SRHO has been completed and signed by a director, partner or the bankrupt in advance of the interview but it is incomplete or incorrect, no amendments or additions should be made on that schedule. Where it is felt that the case warrants it, the examiner should, as part of the interview, complete a further schedule with a director, partner or the bankrupt and the additional information required should be entered on a new SRHO.
Any further information or points of clarification should be dealt with by way of an additional information sheet [note 3] or referring to a supplementary SRHO.
If not all of the records have been brought to the office, the official receiver should accept the records brought in, issue a receipt [note 2] and if the examiner feels that the case is likely to merit further investigation, a SRHO should be completed in respect of those records, if not already completed. The location of the remainder of the records should be established and noted in the additional information sheets [note 3] or any statement and appropriate arrangements made for their recovery.
If it is not practicable due to the volume of records for example, for the examiner to check the records produced at the time of the interview, without unreasonably extending the interview, a file note should be prepared indicating that the records produced have not been checked with the bankrupt or director, the reasons why it was not possible to check the records and a note of the time the interview started and finished.
10.26 Registration of records
All records recovered must be registered on LOIS screen 27 no later than the end of the next working day after receipt. This is irrespective of whether or not a form SRHO is completed by the deliverer and whether or not an interview is held.
10.27 CAR decision - No Further Investigation
When the CAR is considered, if the decision is that the case is NO FURTHER INVESTIGATION, any records delivered after that decision should be receipted and entered on LOIS screen 27 but it is not necessary to complete a SRHO. If at the date the CAR is considered, the records had been delivered (but at a different time to the interview) but no SRHO had been completed, it is not necessary to take any further action until a decision is made; if the decision is NO FURTHER INVESTIGATION, it is not necessary to complete a SRHO.
10.28 CAR decision - Further Investigation
If the decision in the CAR is FURTHER INVESTIGATION then subject to the advice given in paragraph 10.29 relating to the accounting information schedule a SRHO should be completed at a further interview called for that purpose; within one month from the return of the CAR to the examiner.
This will also apply to records delivered after the CAR has been considered and a FURTHER INVESTIGATION DECISION has been made. An appointment should be made for the SRHO to be completed with a director, partner or the bankrupt prior to the next case review date and no later than one month from the return of the CAR to the examiner. Generally, records should be kept in the office until the CAR is considered, but in some offices this may not be possible due to lack of storage space. If the records have been sent to store, they must be retrieved.
For further details regarding storage see also Part 4 of this chapter.
10.29
Disclosure requirements to be checked10.30 Accounting records schedule
An accounting records schedule [note 4] which provides more information than the SHRO, may be required where the failure to properly maintain the records forms the basis of an allegation in a further investigation case.The official receiver should use his/her discretion in deciding whether the completion of an accounting records schedule will add value to the case. If a case is considered suitable for an accounting records schedule, then a SRHO, if not already dealt with need not be completed as well.
Every case which is considered further investigation must have either a form SRHO or an accounting records schedule. The assistant official receiver should notify the examiner that an accounting records schedule is required in the comments section of the CAR. An appointment should be made for the accounting records schedule to be completed with a director, partner or the bankrupt prior to the next case review date, normally within six weeks from the return of the CAR to the examiner. The registration of the records and the completion of a SRHO and/or an accounting records schedule must be undertaken before the submission of a statement of facts or disqualification report.
[Back to Part 2 - Obtaining custody of records] [Onto Part 4 - Storage]