#IAM Connected

2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

  • 1.  2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-17-2018 11:16

    It is always refreshing to report how the Receivable Protection Program (RPP) is working to benefit IAM Members. In this write-up, I have detailed how the Unpaid Invoice Compensation process of the RPP is sending money back to IAM Members each year. Curious about the basics of the RPP, learn more on the RPP webpage. 

    How Much Did IAM Pay Out to Members Last Year?

    For the 2017 fiscal year, IAM compensated qualified IAM Member claimants up to the 2017 fiscal year maximum total annual distribution limit of $200,514.01 USD, which was 50% of the available funds in the RPP reserve account. As a result, $200,514.01 USD is the amount that has been carried forward into 2018 for the RPP reserve fund. The $200,514.01 USD paid by IAM to qualified claimants was equal to 86% of the total value of the unpaid invoices approved by IAM.

    Relevant RPP Statistics

    During the course of 2017, IAM Staff received over $1,187,511 USD in unpaid invoice claims. Below is a table showing data from both 2015 - 2017.

     

    RPP Statistic

    2017

    2016

    2015

    Total Claims Received

    178

    111

    119

    Total Invoices Received

    546

    555

    473

    Total Amount Claimed

    $1,157,090.93

    1,060,553.94

    830,493.74

    Average Amount per Claim

    $6,500.51

    9,554.54

    6,978.94

    Average Amount per Claimed Invoice

    $2,119.21

    1,910.91

    1,755.80

    Total Invoices Approved

    157

    148

    98

    Percentage of Invoices Approved

    28.75%

    26.67%

    20.72%

    Total Amount Approved

    $234,298.36

    $219,490.54

    $85,618.63

    Percentage of Total Amount Claimed Approved

    20.25%

    20.70%

    10.31%

    Average value of approved invoices

    $1,492.35

    $1,483.04

    $873.66

    Total Payout

    $201,514.01

    $198,969.00

    $85,618.83

    Cumulative Payout

    $486,101.84

    $284,587.83

    $85,618.83

     

    IAM is now beginning to have enough data to detect trends although three years still remains insufficient. While the total number of claims and total amount claimed increased 60.3% and 11.9% respectively between the 2016 and 2017 fiscal years, a number of indicators have remained steady either showing slight increases or decreases after large growth rates between the 2015 and 2016 fiscal years.

    From a cumulative perspective, IAM has now compensated 96 unique IAM members in the amount of $486,101.84 USD since January 1, 2015. This constitutes almost 5% of members receiving unpaid invoice compensation through the RPP in three years. 

    IAM Member Usage Rate of the RPP

    With 2015 serving as a launch year, it is reasonable to assume that a significant segment of the IAM Governing and Core membership was not aware of the RPP in its first year as an inclusive member benefit (Governing and Core Members receive RPP coverage as part of their membership). The consistency of statistics between the 2016 and 2017 fiscal year signifies that a considerable number of members are now actively using the RPP as a risk management solution for their business but that the usage rate has perhaps hit a natural plateau.

    2018 Projected Unpaid Invoice Compensation Payment

    While IAM hopes that the value of unpaid invoices approved for compensation in 2018 does not exceed the maximum annual distribution limit for the 2018 fiscal year, we are projecting that to be the case after two straight years of hitting this limitation. The maximum annual distribution limit is subject to the total amount IAM Governing and Core Members who pay their dues so this number will not be known until the end of the year. However, our budget is projecting that this number will be $233,996.49 USD.

    Finally, our data indicates that the reason for surpassing the maximum annual distribution limit may have been due to the same number of IAM Members (8 companies) who went out of business in both 2016 and 2017. It is likely that this data point will serve as a useful proxy for predicting end of year compensation payments in the future.

    More information on the RPP can be found at http://www.iamovers.org/rpp



    ------------------------------
    Brian Limperopulos
    Vice-President
    International Association of Movers
    ------------------------------


  • 2.  RE: 2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-22-2018 12:00
    Hi there Brian,

    Interesting reading and good to see a detailed summary on how the RPP helps us IAM members.

    Seeing the approval rating being less than 30%, it would also be good for all of us to get a brief insight to the main reasons for submitted and claimed invoices not meeting the criteria of compensation. This so we could all make sure we follow necessary steps to protect ourselves.

    In addition, does a company have to go bankrupt in order for outstanding invoices to be compensated? Are there any other consequences for companies not paying their dues to other members than being listed on the 'Alleged debtor list'? Will it affect their possibilities to continue to operate under the IAM flag whereas IAM do not renew their membership?

    ------------------------------
    Stein Krakholm
    United Relocations (Thailand) Co. Ltd.
    Bangkok Thailand
    ------------------------------



  • 3.  RE: 2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-24-2018 08:04
    Good morning,

    As Stein has mentioned, am also interested in the criteria for considering a claim against the RPP Scheme.

    Best

    ------------------------------
    Jason Franco
    General Manager
    Excess International Movers Ltd.
    London, United Kingdom
    jason.franco@excess-international.com
    ------------------------------



  • 4.  RE: 2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-24-2018 14:42

    I will be interested to know , how can we report a IAM member who kept dragging payment for over a year and now refuses to pay saying it was 3rd party payment from another partner who has shut operations

     

     

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    Manoj Sharma

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  • 5.  RE: 2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-25-2018 14:35
    Hi Jason,

    The only criteria is if your company is owed money by another IAM Member. If that is the case and you are having difficulties recovering it, that is where IAM can assist. Simply email us at rpp@iamovers.org or submit a claim on our website. From there, we can guide you through the necessary steps.

    Thanks!
    Brian

    ------------------------------
    Brian Limperopulos
    Vice-President
    International Association of Movers
    ------------------------------



  • 6.  RE: 2017 Fiscal Year for RPP – Unpaid Invoice Compensation Payouts

    Posted 05-25-2018 14:35
    Hi Stein,

    Thanks for your feedback!

    The 30% approval rate mainly stems from the following reasons:

    • Late Filing: It is necessary for claims to be submitted to IAM within 120 days of the invoice date. Any unpaid invoices submitted more than 120 days after they have been issued are automatically denied per the RPP Operating Rules and Regulations. My recommendation is that you notify us if the unpaid invoices owed by other IAM Members once they are 60 days past due at rpp@iamovers.org. At that point, you do not need to file a formal claim and can just submit a statement specifying the outstanding invoice numbers, amounts, and dates of issuance. This just serves to put your debt on record so it is not denied for an untimely filing later on. Please note that IAM holds these notifications confidentially so only IAM Staff Members charged with administering the RPP are aware. 
    • Debtor Company is Still Operating: It is important to note that recovery of unpaid funds is limited to those due from
      IAM member companies that have declared bankruptcy or have ceased to exist as a result of being financially insolvent or otherwise unable to continue operations. In many of these cases, IAM Staff cannot approve an unpaid invoice for compensation because of the debtor company is still operating. In these cases, the claimed invoice is rolled over to the next fiscal year and remains eligible for compensation in future fiscal years.
    Besides being posted on the IAM Alleged Debtor List, a company may be expelled from IAM if they owe another member $10,000 USD or more. Please note that IAM will be putting forth a By-Law change this year at the Annual Meeting where a company may be expelled from IAM if they owe a cumulative debt of $10,000 USD or more to one or more members.

    Hope that answers your questions but feel free to hit me with a few more! It is a good to have these discussions here so the entire membership can benefit from the dialogue.

    Thanks!

    ------------------------------
    Brian Limperopulos
    Vice-President
    International Association of Movers
    ------------------------------