HomeMy WebLinkAboutFCS-15-039 - Uncollectable Miscellaneous Receivable Accounts Write-off Staff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 30, 2015
SUBMITTED BY: Joyce Evans, Director of Revenue/Deputy City Treasurer, 519-
741-2200 extension 7895
PREPARED BY: Saleh Saleh, Supervisor of Collections and Payment Processing
519-741-2200 extension 7346
WARD(S) INVOLVED: ALL
DATE OF REPORT: March 3, 2015
REPORT NO.: FCS-15-039
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $10,051 be
written off against the Allowance for Doubtful Receivables.
BACKGROUND:
As per council policy 1-517 Utility and Miscellaneous Receivable policy, approval from
Council is required for accounts to be written-off and sent to an outside collection
agency for third party collection efforts.
This report represents Miscellaneous Receivables accounts that are deemed to be
uncollectable by collections staff. 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.
REPORT:
Staff are recommending that accounts totalling $10,051 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 collection procedures staff have undertaken include:
• Sending customers statements and demand letters.
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• Verbal request by telephone or in person.
• Negotiating revised payment terms.
• Applying any deposits held to the outstanding amounts.
• Transferring uncollectable items to the customer's property tax account where
permitted by the Municipal Act.
The current amount being recommended to be written off relates to 18 customer
accounts for services provided in the following areas:
Operations (S i gnage/Barri cades/Acci dent Clean-up) 663
Cemeteries 3,347
Utilities (Cuts/Repairs) 757
Communications 375
Parking 4,909
Tota 1 10,051
The cumulative amount of write-offs for 2014 equal $12,530 and represent 0.0600% of
the total dollars invoiced up to the end of December 2014. This is well below the
targeted upper limit for write-offs set at 0.3% previously approved by Council. 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
2014 $ 12,530 $ 20,886,953 0.0600%
2013 $ 33,786 $ 20,344,570 0.1661%
2012 $ 26,395 $ 20,814,883 0.1268%
2011 $ 35,584 $ 16,314,207 0.2181%
2010 $ 36,478 17,234,000 0.2117%
Total 1 $ 144,773 $ 95,594,613 0.1514%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Foundation: Effective and Efficient Government
Goal: Financial Management
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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.
COMMUNITY ENGAGEMENT:
This report has been posted to the City's website with the agenda in advance of the
committee meeting.
CONCLUSION:
It has been determined that $10,051 of miscellaneous accounts are uncollectable and
staff are recommending that these 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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