HomeMy WebLinkAboutFCS-14-028 - Miscellaneous 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:
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Council
March 3, 2014
Joyce Evans, Director of Revenue /Deputy City Treasurer
S. Saleh, Supervisor of Collections and Payment Processing
All
February 3, 2014
FCS -14 -028
Uncollectable Miscellaneous Receivable Accounts Write -off
That uncollectable Miscellaneous Receivable Accounts amounting to $18,017 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 $18,017 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.
The current amount being recommended to be written off relates to services provided in the
following areas:
Operations (Signage /Barricades /Accident Clean -up) 1,361
Cemeteries 6,265
CAO (Communications) 395
By -law Enforcement 5,680
Parking 4,315
18,017
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The cumulative amount of write -offs for 2013 equal $17,293 and represent 0.0850% 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
$ 17,293
$ 20,344,570
0.0850%
2012
$ 26,395
$ 20,814,883
0.1268%
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
$ 169,614
$ 91,219,661
0.1859%
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 $18,017 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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