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HomeMy WebLinkAboutFIN-09-034 - Uncollectable Receivables Writeoff1 KITC~~R Financial Services REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: February 23, 2009 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: February 18, 2009 Report No.: FIN-09-034 A Subject: Uncollectable Receivables Write Off RECOMMENDATION: That Uncollectable Receivables, amounting to $27,468.50 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, 2008 totalling $22,422.28 covering the period from 2004 to June 30, 2008. The current report includes amounts covering a period from 2003 to December 2008 of write-off of Sundry Receivables totalling $27,468.50. The write-offs set out in the following table represent only a fraction of the total invoices billed. 2008 Sundry Receivables Write-Off Detailed summary Cumulative Write-offs for the ear Total $ invoiced Year to Date Write-offs as a % of sales 2008 $ 9,091.55 $12,147, 000 0.07485 2007 35, 830.39 13, 636, 000 0.26276% 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 75,416.91 14,055,000 0.53658% 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 $396,572.42 $153,338,000 0.25863% The original invoices being written off generated revenues for the following services: Chief Administrator's Office Economic Development Downtown Community Development $ 130.66 Community Services: Arts and Culture $1,260.20 Enterprise Cemetery $1,393.93 Parking $ 7,008.86 Operations Accidents $ 2,967.58 Corporate Services Legislated Services $ 178.00 Development and Technical Services: Engineering Services $ 44.69 Fire $1, 326.07 Financial Services -Utilities: Utilities $1,165.48 Financing Program $11,993.03 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 2009. FINANCIAL IMPLICATIONS: The cumulative write off of $396,572.42 represents approximately 0.25863% of the total billings of covered In the report. CONCLUSION: It has been determined that $27,468.50 of sundry receivable accounts is uncollectable and staff recommends that the accounts be written off in 2009. 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