General Accounts Water Write-Offs

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Report to
Rapport au:
Environment Committee
Comité de l’environnement
April 2, 2014
2 avril 2014
Submitted by
Soumis par:
Marian Simulik, City Treasurer/Trésorière municipale
Contact Person
Personne ressource:
Wendy Stephanson, Manager Customer Service and Collections/Gestionnaire,
Service à la clientèle et Perception
613-580-2424, ext. 13192, [email protected]
Ward: CITY WIDE / À L'ÉCHELLE DE LA
VILLE
File Number: ACS2014-CMR-FIN-0013
SUBJECT: GENERAL ACCOUNTS – WRITE-OFFS 2013
OBJET:
COMPTES GÉNÉRAUX – RADIATIONS POUR 2013
REPORT RECOMMENDATION
That the Environment Committee receive this report, on the 2013 general accounts
write off of $61,995 as required by Schedule A, Section 24 of the Delegation of
Authority By-law 2013-71 for information.
RECOMMANDATION DU RAPPORT
Que le Comité de l’environnement reçoive à titre informatif ce rapport concernant
la radiation d’un montant de 61,995$ des comptes généraux de 2013, tel que l’exige
l’annexe A, articles 24 du Règlement 2013-71 sur la délégation de pouvoirs.
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BACKGROUND
The Finance Department is responsible for the collection of all accounts billed through
the City’s Financial System including water and sewer services. The city invoices for
water and sewer services for residential and small commercial customers bi-monthly.
For commercial and larger residential customers invoices are sent monthly.
The Revenue Branch has implemented a rigorous process for follow-up, prescribed
collection activities including tax rolling unpaid amounts and shutting off services, as
well as partnering with three private collection agencies to collect outstanding balances.
The rate of collection of the Revenue Branch is one of the highest in the province. This
report addresses the accounts recommended for write-off in 2013 where collection was
not successful due to a variety of reasons.
DISCUSSION
In 2013, the City invoiced approximately $266 million for water and sewer services. The
Finance Department makes every effort to collect accounts receivable to the City of
Ottawa. Efforts include letters, telephone calls, tax rolling unpaid amounts, shutting off
services, referral to City Clerk and Solicitor Department to initiate a legal 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. The
limitation period for initiating litigation to collect amounts owed as prescribed by the
Limitations Act, is two years from the date of the incident. This Act binds the City.
In accordance with section 24 of the Delegation of Authority by-law, 2013-171, the City
Treasurer is authorized to write-off general accounts receivable, which the City
Treasurer has determined to be uncollectible and must report annually to the
appropriate Standing Committee a list of the amounts that have been written off over
the previous year and the financial implications of writing off each item reported.
Document 1, on file with the Manager, Customer Service and Collections Revenue,
outline the 167 accounts totalling $61,995 deemed uncollectible in 2013 that have been
removed from the City’s financial system. This represents an overall collection rate of
99.98 percent of the total water and sewer services billed in 2013.
The Finance Department policy is that all write-offs are charged back against the water
and sewer business area in accordance with City policy. Given write-offs are charged
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back to the water and sewer business area, the write-offs have been reported in the
water and sewer 2013 year end financials.
RURAL IMPLICATIONS
There are no rural implications of this report.
CONSULTATION
The public consultation process is not applicable.
COMMENTS BY THE WARD COUNCILLOR(S)
There are no comments by Ward Councillors.
LEGAL IMPLICATIONS
There are no legal impediments to receiving this report for information.
RISK MANAGEMENT IMPLICATIONS
There are no risk management implications to receiving the information of this report.
FINANCIAL IMPLICATIONS
Write-offs are charged back to the water and sewer business area and have been
reported in the water and sewer 2013 year end financials.
ACCESSIBILITY IMPACTS
There are no accessibility implications to receiving the information of this report.
ENVIRONMENTAL IMPLICATIONS
There are no environmental implications to receiving the information of this report.
TECHNOLOGY IMPLICATIONS
There are no technical implications associated with this report.
TERM OF COUNCIL PRIORITIES
There are no term of council priority implications to receiving the information in this
report.
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SUPPORTING DOCUMENTATION
Specific details relating to general accounts, water and sewer deemed uncollectible in
2013 are on file with the Manager, Customer Service and Collections, Revenue.
DISPOSITION
This report is for information purposes only to the Environment Committee, no further
action is required.