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HomeMy WebLinkAboutFIN-10-143 - Uncollectible Receivables Write Offl FirrancialServicres REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: September 7, 2010 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Joyce V. Evans, Director of Revenue (Ext. 2895) Ward(s) Involved: All Date of Report: September 1, 2010 Report No.: FIN-10-143 Subject: Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $14,009.52 be written off against the Allowance for Doubtful Sundry Receivables and the Allowance for Doubtful Utility Receivables. BACKGROUND: The last write off report for Sundry Receivables approved by Council in February 2010, totalling $41,959.73 covering the period from 2005 to December, 2010. The current report includes amounts covering a period from 2004 to June, 2010 of write-off of Sundry Receivables totalling $14, 009.52 12-1 The write-offs set out in the following table represent only a fraction of the total invoices billed. 2010 Sundry Receivables Write-Off Detailed summary Cumulative Write-offs for the ear Total $ invoiced Year to Date Write-offs as a % of sales 2010 $ 2, 855.00 $10, 743, 000 0.0266% 2009 21, 360.10 $16, 512, 000 0.01294% 2008 39, 930.23 13, 835, 000 0.2886% 2007 57,239.30 13,636,000 0.4198% 2006 39, 072.56 15, 571, 000 0.2509% 2005 70, 868.56 12, 724, 000 0.5570% 2004 68, 987.02 13, 951, 000 0.4945% 2003 75,416.91 14, 055, 000 0.5366% 2002 33,214.21 19,465,000 0.1706% 2001 54, 940.60 17, 941, 000 0.3062 2000 11, 995.60 16, 897, 000 0.0710% Total $475, 880.09 $165, 330, 000 0.2878% 12-2 The original invoices being written off generated revenues for the following services: Chief Administrator's Office Chief Administrator's Office $ 513.03 Community Services: Operations Accidents/Signs Etc $ 3,406.14 Corporate Services Enforcement $ 121.75 Development and Technical Services: Fire $ 175.21 Engineering Services (Parking) $ 4,382.82 Financial Services -Utilities: Utilities (includes finance contracts) $ 5,410.57 If you have any questions or concerns regarding any of these amounts to be written off, we would be happy to address your concerns. REPORT: The current report represents write offs of sundry receivable accounts, which have been deemed to be uncollectable up to the end of June 2010. FINANCIAL IMPLICATIONS: The cumulative write off of $475,880.09represents approximately .2787% of the total billings. CONCLUSION: It has been determined that $14,009.52 of sundry receivable accounts is uncollectable and staff recommends that the accounts be written off in 2010. The uncollectable accounts listing will be forwarded to a collection agency, which will use their best efforts to collect these accounts. ACKNOWLEDGED BY: Dan Chapman, CA, MPA General Manager of Financial Services & City Treasurer 12-3