HomeMy WebLinkAboutFCS-11-227 - Uncollectable Utility 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-11-227
SUBJECT:
Uncollectable Utility Accounts Write-off
RECOMMENDATION:
That, uncollectable Utility Accounts, amounting to $62,517 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 $62,517 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 or having no
forwarding address. Any tenant deposits previously received on the uncollectable accounts
have been applied to reduce the debt outstanding.
The cumulative amount of utility write-offs for 2011 equal $43,409 and represent 0.0315% 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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A five year summary of write-offs is included in the table below.
Utility Accounts Write-off
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
**2011
$ 43,409$137,885,4900.0315%
2010 129,234167,313,9370.0772%
2009 148,245164,227,0000.0903%
2008 153,746161,658,0000.0951%
2007 152,118148,670,0000.1023%
Total$ 626,751$779,754,4270.0804%
**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 Utility
Receivables account.
CONCLUSION:
It has been determined that $62,517 of utility accounts are 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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