HomeMy WebLinkAboutFIN-10-024 - Receivables Write Offl
FirrancialServicres
REPORT
Report To: Mayor Carl Zehr and Members of Council
Date of Meeting: February 22, 2010
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 16, 2010
Report No.: FIN-10-024
Subject: Uncollectable Receivables Write Off
RECOMMENDATION:
That Uncollectable Receivables, amounting to $41,959.73 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 was approved by Council in August, 2009
totalling $26,682.68 covering the period from 2003 to December, 2008. The current report
includes amounts covering a period from 2005 to December, 2009 for the write-off of Sundry
Receivables totalling $41,959.73.
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. The original invoices being written
off generated revenues for the following services:
Chief Administrator's Office
Communications $ 6,004.13
Economic Development $ 40.51
Community Services:
Aquatics and Athletics $ 2,163.51
Enterprise -Cemetery $ 5,181.51
Enterprise -Special Events $ 4,531.36
Operations -Accidents $ 2,447.43
Corporate Services
Enforcement $ 146.16
6-1
Development and Technical Services:
Fire
Engineering Services (Parking)
Financial Services:
Accounting
Revenue
Utilities (includes finance contracts)
$ 483.97
$ 7, 068.95
$ 1,055.51
$12,074.53
$ 762.16
The write-offs set out in the following table represent only a fraction of the total invoices billed.
2009 Sundry Receivables Write-Off
Detailed summary
Cumulative
Write-offs
for the ear Total $ invoiced
Year to Date Write-offs as a
% of sales
2009 $14, 523.47 $16, 512, 000 0.0880%
2008 36,107.22 13, 835, 000 0.2610
2007 57,239.30 13,636,000 0.4198%
2006 39, 072.56 15, 571, 000 0.2509%
2005 70, 868.56 12, 724, 000 0.5570%
2004 68,492.14 13, 951, 000 0.4909%
2003 75,416.91 14, 055, 000 0.5366%
2002 33,214.21 19,465,000 0.1706%
2001 54, 940.60 17, 941, 000 0.3062
2000 11, 995.60 16, 897, 000 0.0710%
6- 2
1999 1,102.55 16, 951, 000 0.0065%
Total $462,973.12 $171,538,000 0.2699%
FINANCIAL IMPLICATIONS:
The cumulative write off of $462,973.12 represents approximately .2699% of the total billings.
CONCLUSION:
It has been determined that $41,959.73 of sundry receivable accounts are 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.
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City
Treasurer
6-3