HomeMy WebLinkAboutFCS-16-034 - Uncollectable Miscellaneous Receivable Accounts Write-off
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 7, 2016
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: February 17, 2016
REPORT NO.: FCS-16-034
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
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RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $64,188 be
written off against the Allowance for Doubtful Receivables.
BACKGROUND:
As per council policy I-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 $64,188 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 20 customer
accounts for services provided in the following areas:
By-Law177
Cemeteries5,136
Community Programs34
Financial Services26,076
Parking4,226
Utilities (Cuts/Repairs)28,539
Total64,188
The cumulative amount of write-offs identified in this report equal $64,188 and relate to
the years 2014 and 2015. The cumulative write-offs are shown in the table below and
the average is well below the targeted upper limit for write-offs set at 0.3% previously
approved by Council.
Miscellaneous Receivables Write-off
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
2015$ 32,735$ 18,483,5690.1771%
2014$ 52,246$ 20,886,9530.2501%
$ 38,629$ 20,344,5700.1899%
2013
2012$ 26,395$ 20,814,8830.1268%
2011$ 35,584$ 16,314,2070.2181%
Total$ 185,589$ 96,844,1820.1916%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
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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 $64,188 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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