General Accounts - Write-offs and repayment agreements

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Report to
Rapport au:
Environment Committee
Comité de l’environnement
21 April 2015 / 21 avril 2015
Submitted on April 13, 2015
Soumis le 13 avril 2015
Submitted by
Soumis par:
Marian Simulik, City Treasurer/Trésorière municipale
Contact Person
Personne ressource:
Wendy Stephanson, Deputy City Treasurer/Trésorière municipale adjointe
613-580-2424, ext. 13192, [email protected]
Ward: CITY WIDE / À L'ÉCHELLE DE LA
VILLE
File Number: ACS2015-CMR-FIN-0018
SUBJECT: GENERAL ACCOUNTS – WRITE-OFFS AND REPAYMENT
AGREEMENTS EXECUTED IN 2014
OBJET:
COMPTES GÉNÉRAUX – RADIATIONS ET ENTENTES DE
REMBOURSEMENT CONCLUES EN 2014
REPORT RECOMMENDATION
That the Environment Committee receive this report on the 2014 general accounts
written off of $76,137 and 2014 repayments agreements executed as required by the
Delegation of Authority By-law.
RECOMMANDATION DU RAPPORT
Que le Comité de l’environnement reçoive ce rapport concernant la radiation d’un
montant de 76,137$ des comptes généraux de 2014, tel que l’exige du Règlement
sur la délégation de pouvoirs.
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BACKGROUND
This report addresses the water and sewer accounts that the Treasurer determined in
2014 are uncollectible and has therefore written off as well reports on any repayment
agreements executed.
The Finance Department is responsible for the collection of all accounts billed through
the City’s Financial System including water and sewer services.
The Revenue Branch has implemented a rigorous process for follow-up. Collection
activities including tax rolling unpaid amounts and shutting off services, as well as
partnering with three private collection agencies to collect outstanding balances. To
reduce the City’s financial risk in instances where the debt cannot be paid in full, the
City enters into a formal repayment or extension agreement. The rate of collection of the
Revenue Branch is one of the highest in the province.
In 2014, the City, water billing invoiced approximately $283 million for water and sewer
services.
DISCUSSION
The Finance Department makes every effort to collect all accounts receivable due to the
City. Efforts include letters, telephone calls, tax rolling unpaid amounts and shutting off
services, referral to City Clerk and Solicitor Department to initiate a claim and
assignment to private collection agencies. In some instances, for reasons that are often
beyond the City’s control, full or partial amounts due cannot be paid. Some of the
reasons are death, bankruptcy, indigence, legal recommendation, expiry of the limitation
period to commence a legal claim and administrative errors related to the billing.
In accordance with section 24 of the Delegation of Authority by-law, 2014-435, the City
Treasurer is authorized to write-off general accounts receivable that the City Treasurer
has determined to be uncollectible. This exercise of delegated authority must be
reported annually to the appropriate Standing Committee. The list of amounts that have
been written off over the previous year and the justification for writing off each item
reported are to be maintained by the Deputy Treasurer, Revenue.
Document 1, on file with the Deputy Treasurer, Revenue outlines the 236 water and
sewer services accounts totalling $76,137, determined to be uncollectible in 2014 that
have been removed from the City’s financial system. This represents an overall
collection rate of 99.97%.
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Finance Department policy requires that all write-offs be charged back against the water
and sewer business area in accordance with City policy. Given write-offs are charged
back to the water and sewer business area, the write-offs have been reported in the
water and sewer 2014 year-end financials.
In accordance with section 25 of the Delegation of Authority By-law No. 2014-435, the
City Treasurer; the Deputy City Treasurer, Revenue; the Manager, Customer Service
and Collections; and the Program Manager, Collections and Cash Handling are
authorized to execute repayment agreements for amounts outstanding, and the
exercise of this authority is to be reported annually to the appropriate Standing
Committee.
During 2014, one repayment agreement was executed for a water and sewer account.
Staff are monitoring the agreement. In addition to the amount owing and interest
provisions, the agreement contained the specific terms and conditions, payment
schedule and default provisions.
RURAL IMPLICATIONS
There are no rural implications to receiving the information in this report.
CONSULTATION
The public consultation process is not applicable.
COMMENTS BY THE WARD COUNCILLOR(S)
There are no comments by ward councillors.
ADVISORY COMMITTEE(S) COMMENTS
This section contains any comments or recommendations made by one or more
Advisory Committees relating to this report.
LEGAL IMPLICATIONS
There are no legal impediments to approving the recommendation in this report.
RISK MANAGEMENT IMPLICATIONS
There are no risk management implications to receiving the information in this report.
FINANCIAL IMPLICATIONS
Financial implications were identified in the body of this report.
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ACCESSIBILITY IMPACTS
There are no accessibility implications to receiving the information in this report.
TERM OF COUNCIL PRIORITIES
This meets Council’s priority with respect to Financial Responsibility.
SUPPORTING DOCUMENTATION
Supporting documentation is on file with the Deputy City Treasurer, Revenue.
DISPOSITION
This report is for information purposes only. No further action is required.