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HomeMy WebLinkAboutFIN-08-042 - Uncollectable Receivables Write Off1 KITC~~R Financial Services REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: March 17, 2008 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: March 10, 2008 Report No.: FIN-08-042 A Subject: Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $11,725.72 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 August 2007 totalling $10,616.67 covering the period from 2003 to June 30, 2007. The current report includes amounts covering a period from 2005 to December 31, 2007 of write-off of Sundry Receivables totalling $11,725.72. 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 $ 8,950.87 $13,636,000 0.06564% 2006 34, 841.29 15, 571, 000 0.22376% 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 $346, 681.92 $141,191, 000 0.24554% The original invoices being written off generated revenues for the following services: Community Services: Aquatics and Athletics $ 1,672.61 Enterprise Cemetery 280.90 Parking 2,369.57 Operations Accidents 2,201.78 Development and Technical Services: Fire 593.06 Financial Services -Utilities: Financing Program 4,607.80 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 2007. FINANCIAL IMPLICATIONS: The cumulative write off of $141,191,000 represents approximately 0.24554°0 of the total billings of covered in the report. CONCLUSION: It has been determined that $11,725.72 of sundry receivable accounts is uncollectable and staff recommends that the accounts be written off in 2008. 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