HomeMy WebLinkAboutFIN-2021-38 - Uncollectable Miscellaneous receivables Accounts Write-Off
REPORT TO: Committee of the Whole
DATE OF MEETING: August 23, 2021
SUBMITTED BY: Saleh, Saleh, Director Revenue, 519-741-2200 extension 7346
PREPARED BY: Ignor, Marcy, Supervisor of Customer Service and Collections, 519-
741-2200 ext. 7460
WARD(S) INVOLVED: ALL
DATE OF REPORT: July 5, 2021
REPORT NO.: FIN-2021-38
SUBJECT: Uncollectable Miscellaneous Receivables Accounts Write-Off
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $73,588 be
written off against the Allowance for Doubtful Receivables.
REPORT HIGHLIGHTS:
As per council policy, approval from Council is required for accounts to be written-off
and sent to an outside collection agency for third party collection efforts.
Staff have worked diligently in attempting to collect on these accounts but have not been
successful in the process.
This report recommends that accounts totalling $73,588 be written off and forwarded to
an outside collection agency.
BACKGROUND:
As per council policy FIN-FEE-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
receivables include Direct Detect for alarm monitoring, Parking and Cemetery sales.
Property tax and utility accounts are not included in miscellaneous receivables.
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REPORT:
Staff are recommending that accounts totalling $73,588 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.
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 49 customer accounts
for services provided in the following areas:
The cumulative amount of write-offs identified in this report equal $73,588 and relate to the
years 2019, 2020 and 2021. 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.
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports the ac
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The uncollectable accounts will be written off against the Allowance for Doubtful
Receivables account.
COMMUNITY ENGAGEMENT:
INFORM This
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-FEE-517 Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services