HomeMy WebLinkAboutFCS-11-058 - Uncollectible Utility Accounts Write-offStaff Re~p~r~
I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent w~+w.kitthenerca
REPORT TO: Mayor Carl and Members of Council
DATE OF MEETING: March 28, 2011
SUBMITTED BY: Joyce Evans, Director of Revenue, 519-741-2895
PREPARED BY: Saleh Saleh, Supervisor of Collections and Payment
Processing, 519-741-2346
WARD(S) INVOLVED: All
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
March 15, 2011
FCS-11-058
Uncollectable Utility Accounts Write-off
That, uncollectable Utility Accounts, amounting to $76,789 be written off against the
Allowance for Doubtful Utility Receivables
BACKGROUND:
Utility receivable represent invoices generally billed through the City's Customer Information
System (CIS). The majority of these invoices relate to usage for Gas and Water. The current
report represents write-off of utility accounts which have been deemed to be uncollectable up to
the end of December 2010.
REPORT:
Staff are recommending that accounts totalling $76,789 be written off and forwarded to the
collection agency. Staff have worked diligently in attempting to collect on these accounts but
have not been successful either due to the customer declaring bankruptcy, having no forwarding
address or refusing to pay. Any tenant deposits previously received on the uncollectable
accounts have been applied to reduce the debt outstanding.
The cumulative amount of utility write-offs represents 0.0929% of the total dollars invoiced for
the year. This is well below the targeted upper limit for write-offs set at 0.3% previously
approved by Council.
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Staff Re~p~r~
I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent
A five year summary of write-offs is included in the table below.
www.kitchenerca
Utility Accounts Write-0ff
Cumulative Total $ Invoiced Write-offs as a
Write-offs for the Year Year to Date % of Sales
2010 $ 111 ,318 $ 167,313,937 0.0665%
2 009 148 ,245 164,227 ,000 0.0 903%
2 008 152 ,554 161,658 ,000 0.0 944%
2 007 152 ,118 14 8,670 ,000 0.1023%
2 006 159 ,002 136,419 ,000 0.1 166%
Total $ 723,236 $ 778,287,937 0.0929%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Foundation: Effective and Efficient Government
Goal: Financial Management
Strategic Direction: Initiate corporate wide customer service standards and policies to ensure
consistent levels of service in all departments and locations.
FINANCIAL IMPLICATIONS:
The uncollectable accounts will be written off against the Allowance for Doubtful Utility
Receivables account.
CONCLUSION:
It has been determined that $76,789 of utility accounts is uncollectable and staff are
recommending that the accounts be written off to the Allowance for Doubtful Utility Receivable
account. The uncollectable account listing will be forwarded to a collection agency, which will
use their best efforts to collect these accounts.
ACKNOWLEDGED BY: Dan Chapman, CA, MPA,
Deputy CAO and City Treasurer
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