HomeMy WebLinkAboutFIN-06-009 - Uncollectable Receivables Write Off
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KITCHENER
Financial Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Mayor Carl Zehr and Members of Council
March 20, 2006
Pauline Houston, General Manager of Financial Services
& City Treasurer
Joyce V. Evans, Director of Revenue (Ext. 2895)
All
March 7, 2006
FIN-06-009
Oncollectable Receivables Write Off
RECOMMENDATION:
That Uncollectable Receivables, amounting to $35,341.76, be written off
against the Allowance for Doubtful Sundry Receivables and the
Allowance for Doubtful Utility Receivables.
BACKGROUND:
The last write off report for Sundry Receivables approved by Council in September 2005
totalling $10,795.28 covering the period from 1999 to June 30, 2005. The current report
includes amounts covering a period from 2003 to December 31, 2005 of write-off of Sundry
Receivables totalling $35,341.76.
The write-offs set out in the following table represent only a fraction of the total invoices billed.
2005 Sundry Receivables Write-Off
Detailed summary
Cumulative Total $ invoiced Write-offs as a
Write-offs Year to Date % of sales
for the year
2005 $ 31,372.04 $12,724,000 0.24655%
2004 37,412.09 13,951,000 0.26816%
2003 72,307.66 13,582,000 0.53237%
2002 33,214.21 19,460,000 0.17068%
2001 54,637.83 17,942,000 0.30452%
2000 11 ,995.60 16,897,000 0.07099%
1999 1 ,102.55 16,951,000 0.00650%
Total $242,041 .98 $111,507,000 0.21706%
The original invoices being written off generated revenues for the following services:
Corporate Services:
Enforcement
Communications
$ 166.92
1,847.04
Community Services:
Cemetery
Rentals
7,635.65
1,791.63
Development and Technical Services:
Accident Recoveries/Clean Up
Sever Blockades
Signs/Barricades
Parking
Fire
13,737.67
179.76
1 ,235.51
3,472.59
1,697.67
Strategic Services
Economic Development
63.10
Financial Services - Utilities:
Gas
Water
1 ,074.62
2,241.38
Financial Services - Payroll
Payroll
198.22
If you have any questions or concerns regarding any of these amounts to be written off, we would
be happy to address your concerns.
REPORT:
The current report represents write offs of sundry receivable accounts, which have been
deemed to be uncollectable up to the end of December 2005.
FINANCIAL IMPLICATIONS:
The cumulative write off of $242,041.98 represents approximately 0.21706% of the total billings
for the seven year period covered in the report. The total cumulative write off, including the
Kitchener Minor Soccer write off in the amount of $535,401.83, totalling $777,443.81 represents
0.69721 % of the total billings for the seven year period covered in the report.
CONCLUSION:
It has been determined that $35,341.76 of sundry receivable accounts is uncollectable and staff
recommends that the accounts be written off in 2006. The uncollectable accounts listing will be
forwarded to a collection agency, which will use their best efforts to collect these accounts.
Joyce V. Evans, CMO, MPA, FCGA
Director of Revenue
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer