The Act provides that we may require an awarding organisation to pay the costs we incur in relation to statutory sanctions we have imposed on it. This is where we have:

• directed an awarding organisation,
• fined an awarding organisation, or
• withdrawn recognition from an awarding organisation.

We may seek to recover the costs of our statutory enforcement actions. Although we have the power to recover our costs in every case in which we undertake statutory enforcement actions, we will not seek to recover such costs in each case. We will only do so where it would be proportionate and where the amount to be recovered is greater than the likely cost of recovering it.

In order to simplify this process and ensure consistency across actions taken in respect of different awarding organisations, we will not normally seek to recover the costs we incur in relation to an enforcement action in which the total amount is less than £10,000. We would normally seek to recover such costs in all other cases.

The costs that we will seek to recover are those associated with taking statutory enforcement action. This includes, in particular, investigation costs, administration costs and the costs of obtaining expert advice (including legal advice).

When we decide to recover enforcement costs, we will serve notice on the awarding organisation under section 152A (1) of the Act specifying the amount of the costs we require the awarding organisation to pay. The notice will include a detailed breakdown of those costs, state how payment should be made and set out the consequences of non-payment.

The notice will also explain the awarding organisation‟s right of appeal and specify the period within which it must lodge any appeal. This will be 28 days from receipt of the notice unless we decide that exceptional circumstances mean that a longer period should be given. The notice will also state when payment is due, which will be within 28 days from receipt of the notice unless we decide that exceptional circumstances mean that a longer time for payment should be given or unless an appeal is made.

Under section 152B of the Act, the awarding organisation may appeal to the First Tier Tribunal. If an awarding organisation appeals to the Tribunal, the payment of costs is suspended pending the appeal. The appeal may relate to the imposition of a requirement to pay costs, the size of the costs, or both.

The Tribunal may withdraw, vary or confirm the amount of costs an awarding organisation should pay. It may also take such other action as we could take in relation to the breach which led to the enforcement action (including imposing a sanction on the awarding organisation) or remit the decision on any matter relating to the decision to recover enforcement costs back to us to consider.

If an organisation does not pay its costs it becomes liable for interest on the debt, as set out in section 152C of the Act, and we will recover the debt with interest through the courts if necessary.