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HomeMy WebLinkAboutFIN-07-024 - Uncollectable Receivables Write Off j Financial Services 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 February 5, 2007 Pauline Houston, General Manager of Financial Services & City Treasurer Joyce V. Evans, Director of Revenue (Ext. 2895) All January 30, 2007 FIN-07-24 Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $35,501 .98 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 $50,212.57 covering the period from 2003 to June 30, 2006. The current report includes amounts covering a period from 2003 to December 31, 2006 of write-off of Sundry Receivables totalling $35,501.98. Included in this report is a fagade loan dating back to 1995 in the amount of $3,417.28, which has been determined to be uncollectible. Due to the age of the debt it has not been included in the cumulative write-off summary. 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 0/0 of sales for the vear 2006 $22,495.43 $13,855,000 0.1 62360/0 2005 68,793.32 12,724,000 0.540660/0 2004 58,492.14 13,951 ,000 0.419270/0 2003 73,305.40 13,582,000 0.539720/0 2002 33,214.21 19,460,000 0.170680/0 2001 54,940.60 17,942,000 0.306210/0 2000 11 ,995.60 16,897,000 0.070990/0 1999 1 ,102.55 16,951 ,000 0.006500/0 Total $324,339.25 $125,362,0000 0.258720/0 The original invoices being written off generated revenues for the following services: Chief Administrators Office Communications and Marketing Marketing Tourism Economic Development Small Business Centre Downtown Community Development $ 370.76 2,596.00 139.23 3,417.28 Corporate Services: Legislated Services Enforcement Facilities Management 143.23 265.00 Community Services: Enterprise Cemetery Market Golf Courses Rentals Operations Support and Analysis 6,454.1 0 302.77 490.31 2,356.87 3,253.34 Development and Technical Services: Fire 198.65 Financial Services - Utilities: Gas Repairs Financing Program 468.73 15,045.71 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 2006. FINANCIAL IMPLICATIONS: The cumulative write off of $324,339.25 represents approximately 0.25872% of the total billings for the eight period covered in the report. CONCLUSION: It has been determined that $35.501.98 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