HomeMy WebLinkAboutFCS-12-146 - Uncollectable Utility Write-off1
KITC;H~.N~.R
Staff Report
finance and Corporate Ser~rices Department
www.kif[henerca
REPORT TO:
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
Council
August 27, 2012
D. Chapman, Deputy CAO and City Treasurer
S. Saleh, Supervisor of Collections and Payment Processing
All
August 17, 2012
FCS-12-146
Uncollectable Utility Accounts Write-off
That uncollectable Utility Accounts amounting to $60,815 be written off against the
Allowance for Doubtful Utility Receivables
BACKGROUND:
Utilities 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 August 2012.
REPORT:
Staff are recommending that accounts totalling $60,815 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 2012 equal $36,590 and represent 0.0338% 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
Cumulative Total $ Invoiced Write-offs as a
Write-offs for the Year Year to Date % of Sales
2012 $ 36,590 $ 108,349,062 0.0338%
2011 $ 104,109 $ 175,373,556 0.0594%
2010 132,110 167,313,937 0.0790%
2009 148,600 164,227,000 0.0905%
2008 153,746 161,658,000 0.0951
Total $ 575,154 $ 776,921,554 0.0740%
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 $60,815 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: D. Chapman, Deputy CAO, Finance and Corporate Services & City
Treasurer
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