HomeMy WebLinkAboutFCS-12-057 - Uncollectable Miscellaneous Receivables Accounts WREPORT TO:Mayor C. Zehr and Members of Council
DATE OF MEETING:
April 23, 2012
SUBMITTED BY: D. Chapman, Deputy CAO and City Treasurer
PREPARED BY:
S. Saleh, Supervisor of Collections and Payment Processing
WARD(S) INVOLVED: All
DATE OF REPORT: March 5, 2012
REPORT NO.:
FCS-12-57
SUBJECT:
Uncollectable Miscellaneous Receivable Accounts Write-off
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts, amounting to $14,939 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 $14,939 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)743
Cemeteries1,978
Fire (Direct Detect)140
Engineering759
Economic Dev (Façade, Special Events)7,095
Parking4,108
Utilities (Gas Repairs/Meters, Furnace)116
14,939
The cumulative amount of write-offs for 2011 represents 0.0944% 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$ 15,402$16,314,2070.0944%
2010
32,18017,234,0000.1867%
2009
29,34416,512,0000.1777%
2008 63,22413,835,0000.4570%
2007 57,23913,636,0000.4198%
Total$ 197,389$77,531,2070.2546%
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 $14,939 of miscellaneous 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: D. Chapman, Deputy CAO, Finance and Corporate Services & City
Treasurer
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