HomeMy WebLinkAboutFIN-2025-315 - Uncollectable Miscellaneous Receivable Accounts Write-OffStaff Report
Financial Services Department www.kitchener.ca
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: September 8, 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: July 7, 2025
REPORT NO.: FIN -2025-315
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write -Off
RECOMMENDATION:
That uncollectable miscellaneous receivable accounts amounting to $12,341 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 $12,341 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 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:
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Staff are recommending that accounts totalling $12,341 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 to the customer's property tax account were permitted
by the Municipal Act.
The current amount being recommended to be written off relates to 9 customer accounts for
services provided in the following areas:
Economic Development
724
Parking
67
Operations
9,066
Utilities
2,484
Total
1221341
The cumulative amount of write-offs identified in this report equal $12,341 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.
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Miscellaneous Receivables Write -off
Cumulative
Total $ Invoiced
Write-offs as a
Write-offs for the Year
Year to Date
%of Sales
2025
$
0
$
20,000,000
0.0000%
2024
$
15,865
$
39,474,200
0.0402%
2023
$
45,642
$
37,174, 640
0.1228%
2022
$
32,228
$
30,280,755
0.1064%
2021
$
38,573
$
27, 380, 864
0.1409%
Total
$
132,308
$
154,310,459
0.0857°/
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports the achievement of the city's strategic vision 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 report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• FIN -FEE -517 Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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