HomeMy WebLinkAboutFCS-17-040 - Uncollectable Miscellaneous Receivable Accounts Write-off
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 6, 2017
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 15, 2017
REPORT NO.: FCS-17-040
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
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RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $18,963 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). Examples of
miscellaneous receivables include Direct Detect for alarm monitoring, Parking and
Cemetery sales. Property tax and utility accounts are not included in miscellaneous
receivables.
REPORT:
Staff are recommending that accounts totalling $18,963 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:
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Sending customers statements and demand letters.
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 27 customer
accounts for services provided in the following areas:
Cemeteries9,059
Communication and Marketing1,394
Community Programs319
Financial Services1,426
Parking5,391
Utilities (Cuts/Repairs)1,373
Total18,963
The cumulative amount of write-offs identified in this report equal $18,963 and relate to
the years 2014, 2015 and 2016. 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
$ 8,687$ 17,350,4590.0501%
2016
$ 42,149$ 18,483,5690.2280%
2015
$ 53,107$ 20,886,9530.2543%
2014
$ 38,629$ 20,344,5700.1899%
2013
$ 26,395$ 20,814,8830.1268%
2012
Total$ 168,967$ 97,880,4340.1726%
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.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable.
ACKNOWLEDGED BY: D. Chapman, Deputy CAO, Finance and Corporate Services &
City Treasurer
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