HomeMy WebLinkAboutFIN-2025-023 - Uncollectable Miscellaneous Receivable Accounts Write-OffFinancial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: February 24, 2025
SUBMITTED BY: Saleh Saleh,Director, Revenue, 519-904-6308
PREPARED BY: Marcy Ignor, Manager Utility Billing and Customer Service,519-783-
8057
WARD(S) INVOLVED: All
DATE OF REPORT: January 7, 2025
REPORT NO.: FIN-2025-023
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-Off
RECOMMENDATION:
That uncollectable miscellaneous receivable accounts amounting to $28,642 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 $28,642 be written off and forwarded to
an outside collection agency.
This report supports the delivery of cores services.
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.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
REPORT:
Staff are recommending that accounts totalling $28,642 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:
Cemeteries8,838
Parking595
Economic Development3,714
Fire392
Utilties15,103
Total28,642
The cumulative amount of write-offs identified in this report equal $28,642 and relate to the
years 2023 and 2024. 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.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Miscellaneous Receivables Write-off
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
2024$ 3,591$ 39,474,2000.0091%
2023$ 45,575$ 37,174,6400.1226%
2022$ 32,228$ 30,280,7550.1064%
2021$ 38,573$ 27,380,8640.1409%
2020$ 55,769$ 23,088,5160.2415%
Total$ 175,736$ 157,398,9750.1117%
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports
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-517Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.