HomeMy WebLinkAboutFCS-13-135 - Uncollectible Misc Receivable Accounts Write-offREPORT TO:
Staff Report
Finance and Corporate Services Department
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
wvmkitrhener ra
Council
August 26, 2013
D. Chapman, Deputy CAO and City Treasurer
S. Saleh, Supervisor of Collections and Payment Processing
All
August 13, 2013
FCS -13 -135
Uncollectable Miscellaneous Receivable Accounts Write -off
That uncollectable Miscellaneous Receivable Accounts amounting to $29,645 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 $29,645 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) 649
Cemeteries
5,478
Fire (Direct Detect)
145
By -law Enforcement
391
Parking
3,217
Utilities (Gas Repairs /Meters, Furnace)
19,765
$ 4,951
29,645
The cumulative amount of write -offs for 2013 equal $4,951 and represent 0.0422% 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
Year to Date
% of Sales
2013
$ 4,951
$ 11,726,749
0.0422%
2012
$ 20,720
$ 20,814,883
0.0995%
2011
$ 34,490
$ 16,314,207
0.2114%
2010
36,478
17,234,000
0.2117%
2009
54,959
16, 512, 000
0.3328%
Total
$ 151,598
$ 82,601,839
0.1835%
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 $29,645 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.
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ACKNOWLEDGED BY: D. Chapman, Deputy CAO, Finance and Corporate Services & City
Treasurer
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