HomeMy WebLinkAboutFIN-06-026 - 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
August 28, 2006
Pauline Houston, General Manager of Financial Services
& City Treasurer
Joyce V. Evans, Director of Revenue (Ext. 2895)
All
August 22, 2006
FIN-06-026
Oncollectable Receivables Write Off
RECOMMENDATION:
That Uncollectable Receivables, amounting to $50,212.57, 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 $35,341.76 covering the period from 2003 to December 31, 2005. The current report
includes amounts covering a period from 2003 to June 30, 2006 of write-off of Sundry
Receivables totalling $50,212.57.
The write-offs set out in the following table represent only a fraction of the total invoices billed.
2006 Sundry Receivables Write-Off
Detailed summary
Cumulative Total $ invoiced Write-offs as a
Write-offs Year to Date % of sales
for the vear
2006 $ 7,050.04 $ 8,567,000 0.082293%
2005 63,050.50 12,724,000 0.49552%
2004 48,448.42 13,951,000 0.34728%
2003 72,755.40 13,582,000 0.53568%
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 $292,254.55 $120,074,0000 0.24340%
The original invoices being written off generated revenues for the following services:
Corporate Services:
Facilities Management
Communications
$1,196.33
231 . 1 2
Community Services:
Cemetery
Rentals
Development and Technical Services:
Accident Recoveries/Clean Up
Sever Blockades
Signs/Barricades
Roads
Traffic Signs
Parking
Engineering
Fire
1,793.88
121.56
9,640.85
736.16
3,836.15
1,547.87
2,491.48
5,224.59
10,000.00
6,831.29
Financial Services - Utilities:
Gas
Water s
Financing Program
880.08
690.32
4,552.34
Financial Services - Payroll
Payroll
438.55
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 June 2006.
FINANCIAL IMPLICATIONS:
The cumulative write off of $292,254.55 represents approximately 0.24340% of the total billings
for the seven and a half year period covered in the report.
CONCLUSION:
It has been determined that $50,212.57 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