HomeMy WebLinkAboutFIN-19-047 - Uncollectable Miscellaneous Receivable Accounts Write-offREPORT TO: Community & Infrastructure ServicesCommittee
DATE OF MEETING:August 12, 2019
SUBMITTED BY: Saleh Saleh,Director of Revenue, 519-741-2200 extension 7346
PREPARED BY: Marcy Ignor, Supervisor of Customer Service and Collections, 519-741-
2200extension 7460
WARD (S) INVOLVED:ALL
DATE OF REPORT:July 3, 2019
REPORT NO.: FIN-19-047
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
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RECOMMENDATION:
That uncollectableMiscellaneous Receivable Accounts amounting to $27,012be written
off against the Allowance for Doubtful Receivables.
BACKGROUND:
As per council policy FIN-FEE-517Utility 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 $27,012be 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.
Verbal request by telephone or in person.
Negotiating revised payment terms.
Applying any deposits held to the outstanding amounts.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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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 41customer accounts for
services provided in the following areas:
Community Services46
Accounting103
Cemeteries7,364
Fire285
Parking6,978
Operations6,404
Utilities (Cuts/Repairs)5,832
Total27,012
The cumulative amount of write-offs identified in this report equal $27,012and relate to the years
2017, 2018 and 2019. 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
2019$2,235$15,952,3770.0140%
2018$45,310$23,132,4980.1959%
2017$31,638$19,990,2370.1583%
2016$32,255$17,350,4590.1859%
2015$50,673$18,483,5690.2741%
Total$162,111$94,909,1400.1708%
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 council /
committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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