HomeMy WebLinkAboutFCS-11-226 - Miscellaneous Write-offREPORT TO:Mayor Carl and Members of Council
DATE OF MEETING:
December 5, 2011
SUBMITTED BY: Dan Chapman, Deputy CAO and City Treasurer, 519-741-
2347
PREPARED BY:
Saleh Saleh, Supervisor of Collections and Payment
Processing, 519-741-2346
WARD(S) INVOLVED: All
DATE OF REPORT: November 25, 2011
REPORT NO.: FCS 11-226
SUBJECT:
Uncollectable Miscellaneous Receivable Accounts Write-off
RECOMMENDATION:
THAT, uncollectable Miscellaneous Receivable Accounts, amounting to $38,628 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 a write-off of below 0.3% of total
dollars invoiced during the year.
REPORT:
Staff are recommending that accounts totalling $38,628 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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The current amount being recommended to be written off relates to services provided in the
following areas:
Operations (Signage/Barricades/Accident Clean-up)2,356
Cemeteries2,195
Fire (Direct Detect)119
Engineering23,294
Enforcement (Snow/Ice Removal)219
Parking7,895
Utilities (Gas Repairs/Meters, Furnace)1,990
Finance562
38,628
The cumulative amount of write-offs for 2011 represent 0.0551% 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
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
**2011$ 7,701$13,982,8730.0551%
201025,22117,234,0000.1463%
2009 29,06416,512,0000.1760%
2008
63,22413,835,0000.4570%
2007 57,23913,636,0000.4198%
Total$ 182,450$75,199,8730.2426%
**Total $ invoiced Year to Date is as at October 31, 2011
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.
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CONCLUSION:
It has been determined that $38,628 of utility accounts are 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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