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HomeMy WebLinkAboutFIN-08-110 - Uncollectable Receivables Write off1 KITC~~R Financial Services REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: August 18, 2008 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Joyce V. Evans, Director of Revenue (Ext. 2895) Ward(s~ Involved: All Date of Report: August 7, 2008 Report No.: FIN-08-110 A Subject: Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $22,422.28 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 March, 2008 totalling $11,725.72 covering the period from 2005 to December 31, 2007. The current report includes amounts covering a period from 2004 to June 30, 2008 of write-off of Sundry Receivables totalling $22,422.28. The write-offs set out in the following table represent only a fraction of the total invoices billed. 2008 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 2008 $ 0.00 $8,320,000 0.0000 2007 19, 564.95 13, 636, 000 0.14348% 2006 36,422.17 15,571,000 0.23391 2005 70,066.30 12,724,000 0.55066% 2004 68,492.14 13,951,000 0.49095% 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 $369,103.92 $149,511,000 0.24687% The original invoices being written off generated revenues for the following services: Chief Administrator's Office Communications and Marketing Marketing 938.58 Economic Development Downtown Community Development 47.34 Community Services: Aquatics and Athletics $ 311.00 Enterprise Parking 2,170.36 Operations Accidents 6,879.99 Corporate Services Enforcement 252.42 Development and Technical Services: Engineering Services 10,000.00 Fire 241.71 Financial Services -Utilities: Financing Program 1,580.88 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 2008. FINANCIAL IMPLICATIONS: The cumulative write off of $369,103.92 represents approximately 0.24687% of the total billings of covered In the report. CONCLUSION: It has been determined that $22,422.28 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, FCGA, M PA Director of Revenue Dan Chapman, MPA, CA General Manager of Financial Services