HomeMy WebLinkAboutFCS-13-027 - Uncollectable Miscellaneous Receivable Accounts Wrife-off
REPORT TO:Council
DATE OF MEETING:
March 4, 2013
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: February 21, 2013
REPORT NO.:
FCS-13-027
SUBJECT:
Uncollectable Miscellaneous Receivable Accounts Write-off
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $25,695 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 $25,695 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.
8 - 1
The current amount being recommended to be written off relates to services provided in the
following areas:
Operations (Signage/Barricades/Accident Clean-up)796
Cemeteries1,229
Fire (Direct Detect)430
By-law Enforcement292
Community Services (Field Rentals)322
Parking7,625
Utilities (Gas Repairs/Meters, Furnace)15,002
25,695
The cumulative amount of write-offs for 2012 equal $15,457 and represent 0.0743% 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
2012$ 15,457$20,814,8830.0743%
2011$ 26,700$16,314,2070.1637%
2010 33,03717,234,0000.1917%
2009
46,75916,512,0000.2832%
2008 63,22413,835,0000.4570%
Total$ 185,176$84,710,0900.2186%
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 $25,695 of miscellaneous accounts are uncollectable and staff are
recommending that the accounts be written off to the Allowance for Doubtful Receivables
8 - 2
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
8 - 3