HomeMy WebLinkAboutFIN-2023-032 - Uncollectable Misc Receivable Accounts Write-Off
Financial Services Department www.kitchener.ca
REPORT TO: Community and Infrastructure Services Committee
DATE OF MEETING: March 6, 2023
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: January 6, 2023
REPORT NO.: FIN-2023-032
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-Off December
2022
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $8,781 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 $8,781 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 generally billed
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 $8,781 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 20 customer accounts for
services provided in the following areas:
Cemeteries1,398
Fire69
Parking6,039
Operations333
Utilities942
Total8,781
The cumulative amount of write-offs identified in this report equal $8,781 and relate to the years
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$ 12,791 $ 30,280,755 0.0422%
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$ 205,674$ 129,940,3730.1583%
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports the
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 report
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-FEE-517 Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services