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HomeMy WebLinkAboutFIN-07-102 - Uncollectable Receivables Write Off1 KITC~~R Financial Services REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: August 27, 2007 Submitted By: Pauline Houston, General Manager of Financial Services & City Treasurer Prepared By: Joyce V. Evans, Director of Revenue (Ext. 2895) Ward(s~ Involved: All Date of Report: August 17, 2007 Report No.: FIN-07-102 A Subject: Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $10,616.67 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 February 2007 totalling $35,501.98 covering the period from 2003 to December 31, 2006. The current report includes amounts covering a period from 2005 to June 30, 2007 of write-off of Sundry Receivables totalling $10,616.67. The write-offs set out in the following table represent only a fraction of the total invoices billed. 2007 Year to Date Sundry Receivables Write-Off Detailed summary Cumulative Write-offs for the ear Total $ invoiced Year to Date Write-offs as a % of sales 2007 $1,525.49 $ 7,762,000 0.01965% 2006 30,540.95 15,571,000 0.19614% 2005 69,838.98 12,724,000 0.54888% 2004 58,492.14 13,951,000 0.41927% 2003 73,305.40 14,055,000 0.52156% 2002 33,214.21 19,465,000 0.17064% 2001 54,940.60 17,941,000 0.30623% 2000 11,995.60 16,897,000 0.07099% 1999 1,102.55 16,951,000 0.00650% Total $334,955.92 $135,317,000 0.24753% The original invoices being written off generated revenues for the following services: Community Services: Aquatics and Athletics $ 334.11 Enterprise Cemetery 1,102.81 Parking 3,425.58 Operations Accidents 1,997.70 Development and Technical Services: Fire 316.68 Financial Services -Utilities: Gas Repairs 1,096.58 Financing Program 2,343.21 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 2007. FINANCIAL IMPLICATIONS: The cumulative write off of $334,955.92 represents approximately 0.24753% of the total billings covered In the report. CONCLUSION: It has been determined that $10,616.67 of sundry receivable accounts is uncollectable and staff recommends that the accounts be written off in 2007. The uncollectable accounts listing will be forwarded to a collection agency, which will use their best efforts to collect these accounts. Joyce V. Evans, MPA, FCGA Director of Revenue Pauline Houston, CA General Manager of Financial Services & City Treasurer