HomeMy WebLinkAboutFIN-2022-308 - Uncollectable Miscellaneous Receivable Accounts Write-OffFinancial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: August 8, 2022
SUBMITTED BY: Saleh Saleh, Director, Revenue, 519-741-2200 ext. 7346
PREPARED BY: Marcy Ignor, Manager, Utility billing and Customer Service, 519-741-
2200 ext. 7460
WARD(S) INVOLVED: ALL
DATE OF REPORT: July 4, 2022
REPORT NO.: FIN-2022-308
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-Off June
2022
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $44,184 be
written off against the Allowance for Doubtful Receivables.
REPORT HIGHLIGHTS:
As per council policy, approval from Council approval 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 $44,184 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
ge
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 $44,184 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.
Transferring uncollectable items were
permitted by the Municipal Act.
The current amount being recommended to be written off relates to 37 customer accounts
for services provided in the following areas:
Cemeteries7,945
Fire133
Parking5,409
By-Law1,988
Operations494
Utilities6,361
Community Services34
Furnance Financing21,820
Total44,184
The cumulative amount of write-offs identified in this report equal $44,184 and relate to the
years 2020, 2021 and 2022. 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.
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
2022$ 4,009 $ 12,569,251 0.0319%
2021$ 38,573 $ 27,380,864 0.1409%
2020$ 55,769 $ 23,088,516 0.2415%
2019$ 44,077 $ 26,057,7400.1692%
2018$ 54,464 $ 23,132,4980.2354%
Total$ 196,892$ 112,228,8690.1754%
STRATEGIC PLAN ALIGNMENT:
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
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-FEE-517 Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services