HomeMy WebLinkAboutFCS-11-059 - Uncollectable Misc ReceivablesStaff 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: March 15, 2011
REPORT NO.: FCS 11-059
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
RECOMMENDATION:
THAT, uncollectable Miscellaneous Receivable Accounts, amounting to $22,437 be
written off against the Allowance for Doubtful Receivables.
BACKGROUND:
Miscellaneous Receivables represent services that are generally billed through the City's
financial system (SAP) as compared to taxes and utilities which are billed through the Customer
Information System (CIS). Examples of these services include Direct Detect for alarm
monitoring, Parking and Cemetery sales. The current practice for miscellaneous receivables
has been to follow the Utility Collection policy and strive for awrite-off of below 0.3% of total
dollars invoiced during the year. Staff are currently in the process of developing a collections
policy specific to miscellaneous receivables.
REPORT:
Staff are recommending that accounts totalling $22,437 be written off and forwarded to a
collection agency. Staff have worked diligently in attempting to collect on these accounts but
have not been successful in the process.
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Staff Re~p~r~
I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent w~+w.kitthenerca
The current amount being recommended to be written off relates to services provided in the
following areas:
Communications (Leisure Magazine Advertisements) $ 976
Aquatics and Athletics (Field Rentals) 123
Cemeteries 1 ,410
Operations (Signage/Barricades/Accident Clean-up) 5,002
Enforcement (Snow/Ice Removal) 384
Parking 3,314
Planning (Site Plan Application) 4,724
Fire (Direct Detect) 231
Utilities (Gas Repairs/Meters, Furnace) 6,273
$ 22,437
The cumulative amount of write-offs represents 0.2382% of the total dollars invoiced for the
year. This is well below the targeted upper limit for write-offs set at 0.3%. A five year summary
of write-offs is included in the table below.
Miscellaneous Receivables Write-off
Cumulative Total $ Invoiced Write-offs as a
Write-offs for the Year Yea r to Date % of Sales
2010 $ 17, 588 $ 17,234,000 0.1021
2009 29, 064 16,512,000 0.1760%
2008 39, 930 13,835,000 0.2886%
2007 57, 239 13,636,000 0.4198%
2006 39, 073 15,571,000 0.2509%
Total $ 182,894 $ 76,788,000 0.2382%
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Staff Re~p~r~
I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent w~+w.kitthenerca
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 Receivables
account.
CONCLUSION:
It has been determined that $22,437 of utility accounts is uncollectable and staff are
recommending that the accounts be written off to the Allowance for Doubtful Receivables
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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