HomeMy WebLinkAboutFCS-12-147 - Miscellaneous 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-12-147
Uncollectable Miscellaneous Receivable Accounts Write-off
That uncollectable Miscellaneous Receivable Accounts amounting to $35,402 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.
REPORT:
Staff are recommending that accounts totalling $35,402 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) 2,055
Cemeteries 6,977
Fire (Direct Detect) 343
CAO's Office (Leisure Magazine) 378
Community Services (Field Rentals) 3,701
Parking 5 ,932
Utilities (Gas Repairs/Meters, Furnace) 16,017
35,402
The cumulative amount of write-offs for 2012 equal $4,233 and represent 0.0332% 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 Yearto Date % of Sales
**2012 $ 4,233 $ 12,751,843 0.0332%
2011 $ 26,447 $ 16,314,207 0.1621%
2010 33, 037 17,234,000 0.1917%
2009 46, 759 16,512,000 0.2832%
2008 63, 224 13,835,000 0.4570%
Total $ 173,699 $ 76,647,051 0.2266%
~~ i oral ~ mvoicea Yearto uate is as at W-ugust ~ i, zu~z
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 $35,402 of miscellaneous accounts are uncollectable and staff are
recommending that the accounts be written off to the Allowance for Doubtful Receivables
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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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