HomeMy WebLinkAboutFCS-17-182 - Uncollectable Misc Receivables Account Write-offREPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 4, 2017
SUBMITTED BY: Joyce Evans, Director of Revenue/Deputy City Treasurer,519-
741-2200 extension 7895
PREPARED BY: Saleh Saleh, Supervisor of Taxation and Cash Management 519-
741-2200 extension 7346
WARD(S) INVOLVED: ALL
DATE OF REPORT: September 30, 2017
REPORT NO.: FCS-17-182
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
___________________________________________________________________________
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $31,695 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
miscellaneous receivables include Direct Detect for alarm monitoring, Parking and
Cemetery sales. Property tax andutility accounts are not included in miscellaneous
receivables.
REPORT:
Staff are recommending that accounts totalling $31,695 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.
permitted by the Municipal Act.
The current amount being recommended to be written off relates to 53 customer
accounts for services provided in the following areas:
By-Law Enforcement214
Cemeteries 14,123
Communication and Marketing1,823
Community Services988
Operations384
Parking 13,715
Utilities (Cuts/Repairs)448
Total 31,695
The cumulative amount of write-offs identified in this report equal $31,695 and relate to
the years 2015, 2016 and 2017. 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
2017$ 9,231$ 15,653,3360.0590%
2016$ 30,239$ 17,350,4590.1743%
2015$ 43,061$ 18,483,5690.2330%
2014$ 53,107$ 20,886,9530.2543%
2013$ 38,629$ 20,344,5700.1899%
Total$ 174,267$ 92,718,8870.1880%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this r
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:
committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable.
ACKNOWLEDGED BY: M.Goldrup, Acting Deputy CAO, Finance and Corporate
Services.
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