Loading...
Agenda 12/12/2017 Item #16C412/12/2017 EXECUTIVE SUMMARY Recommendation to approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of Collier County Public Utilities Department in the amount of $10,493.16 OBJECTIVE: Remove uncollectible balances from the Accounts Receivable Ledger for prior years to accurately represent the true asset balances. CONSIDERATIONS: Accounts receivable management includes the periodic recognition of bad debt expense in the financial records for accounts that have been identified as uncollectible. All amounts recommended for removal from the accounts receivable balances exceed the four (4) year statute of limitations for collection, or, for commercial can accounts, error and omissions, and where t he registered entity has gone out of business. The annual review of all accounts receivable balances as of September 30, 2017 within the Collier County Water-Sewer District (CCWSD) was completed as part of the Fiscal 2017 year -end reports. Collection efforts for receivable balances included in this recommendation have been exhausted (Exhibit 1). A summary by write-off category for each receivable balance follows. Write Off Summary Account Type Exceeds Statute of Limitations Out of Business Error and Omissions Total Fund 408 Water/Sewer Bankruptcy Accounts $1,062.43 $1,062.43 Fund 408 Water/Sewer Accounts $5,563.39 $2,835.01 $8,398.40 Fund 408 Miscellaneous Billing $836.75 $ 836.75 Fund 470 Solid Waste Disposal $80.42 $80.42 Fund 473 Mandatory Collections $115.16 $115.16 Totals $6,625.82 $115.16 $3,752.18 $10,493.16 Fund (408) -Water/Sewer Accounts Receivable The accounts receivable balance of $1,062.43 represents 3 utility account balances for customers that have declared bankruptcy and are more than four years old, exceeding the statute of limitation for collection. In addition, there are 14 accounts totaling $5,563.39. This total represents the unpaid balance as of 9/30/17 that exceed the statute of limitations for c ollection primarily for existing homes with certificates of occupancy that continue to accrue base charges though no consumption has registered (and therefore considered abandoned). The errors and omissions in the amount of $2,835.01 represents 6 water and sewer accounts that had not been transferred to a new account within acceptable time frames. Miscellaneous Billing The accounts receivable balance in the amount of $836.75 is comprised of an invoice issued to a contractor for repairs to damaged infrastructure (water and sewer lines, etc.), including internal costs for staff time, equipment, and materials used to make the necessary repairs. The lien rights afforded to the District arising from a failure by a property owner to pay water or sewer services is not available in cases where District infrastructure is buried in the right of way. Solid Waste Mandatory Collections 12/12/2017 The commercial can account receivable balance of $115.16 represents a solid waste commercial can account where the customer has gone out of business. Solid Waste Disposal The account receivable balance of $80.42 represents amount in the solid waste landfill accounts for one company. Total bad debt expense for Solid Waste Disposal fund is $80.42. FISCAL IMPACT: Removal of accounts receivable balances will increase the bad debt expense in the Collier County Water-Sewer District Operating Fund (408) by $10,297.58 in the Mandatory Collections Fund (473) by $115.16 in the Solid Waste Disposal Fund (470) by $80.42 GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. JAK RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Public Utilities Department, approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of the Collier County Public Utilities Department in the amount of $10,493.16; and, approve a total write-off in the amount of $10,493.16. Prepared by: Teresa Riesen, Revenue Manager, Financial Operations Division ATTACHMENT(S) 1. Account_Balance_Detail (PDF) 2. Resolution - 2018 (PDF) 12/12/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.4 Doc ID: 4202 Item Summary: Recommendation to approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of Collier County Public Utilities Department in the amount of $10,493.16. Meeting Date: 12/12/2017 Prepared by: Title: Operations Analyst – Public Utilities Operations Support Name: Heather Sweet 11/09/2017 11:04 AM Submitted by: Title: Operations Analyst – Public Utilities Operations Support Name: Heather Sweet 11/09/2017 11:04 AM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/20/2017 8:51 AM Public Utilities Operations Support Teresa Riesen Additional Reviewer Completed 11/20/2017 8:55 AM Public Utilities Department Heather Bustos Level 1 Division Reviewer Completed 11/20/2017 12:37 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/20/2017 4:26 PM County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 11/21/2017 10:16 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/21/2017 2:46 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/28/2017 3:18 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 11/29/2017 2:56 PM Board of County Commissioners MaryJo Brock Meeting Pending 12/12/2017 9:00 AM Public Utilities Division Water/Sewer Bankruptcy Write Offs 2014 Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 06036328802 Griffith, Dale A 2/25/2015 $ 477.62 3/17/2015 Water/Sewer Balance never transferred when property transferred to new owner - writeoff of entire balance Balance never transferred in May 2016, never created transfer 07875581302 WCI Communities 6/30/2017 $ 23.21 7/20/2017 Water/Sewer Balance never transferred to new owner April proration not transferred until June 07501108203 Dobkin, Ronald 10/30/2017 $ 561.60 11/19/2017 Water/Sewer Statute of limitations over 4 years Total Cycle 101 $ 1,062.43 Public Utilities Division Water/Sewer Write Offs 2014 Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 08401700802 Brogan, Felicia 3/29/2005 $ 88.51 5/6/2005 Water/Sewer Balance exceeds statue of limitations 05102074401 White, Philip & Nebus, Janet 10/23/2017 $ 256.52 11/12/2017 Water/Sewer Balance exceeds statue of limitations 03300560401 Watt,Kima 10/5/2017 $ 514.80 10/25/2017 Water/Sewer Balance exceeds statue of limitations 08401701000 Stringer, Gary 10/25/2017 $ 631.66 11/14/2017 Water Balance exceeds statue of limitations 07501086802 Rives,Arturo 10/30/2017 $ 561.60 11/19/2017 Water/Sewer Balance exceeds statue of limitations 07501061400 Johnson, Billy 10/30/2017 $ 61.60 11/19/2017 Water/Sewer Balance exceeds statue of limitations 03300525500 Houser,John 10/5/2017 $ 561.60 10/25/2017 Water/Sewer Balance exceeds statue of limitations 03300456601 Heinlen,Kent and Cynthia 10/5/2017 $ 248.29 10/25/2017 Water/Sewer Balance exceeds statue of limitations 08101387901 Guzman,Graciela 10/4/2017 $ 171.39 10/24/2017 Water/sewer Balance exceeds statue of limitations 07201052401 Gossard,Richard 10/30/2017 $ 561.60 11/19/2017 Water/sewer Balance exceeds statue of limitations 07501075404 Dilozir,Terry 10/30/2017 $ 561.60 11/19/2017 Water/sewer Balance exceeds statue of limitations 08101779902 Cavazos,Sandra 10/4/2017 $ 222.12 10/24/2017 Water/sewer Balance exceeds statue of limitations 03923698201 Caspian Builders 10/11/2017 $ 490.44 10/31/2017 Water/sewer Balance exceeds statue of limitations 08401718200 Camacho,Julian 10/25/2017 $ 631.66 11/14/2017 Water Balance exceeds statue of limitations Total Write Off- non bankruptcy $ 5,563.39 Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 03300484601 Board of County Commissioners 1/6/2017 $ 221.84 1/26/2017 Water/Sewer Never Transferred 03300484600 Maggio, Paul 12/29/2016 $ 131.51 1/3/2017 Water/Sewer Never Transferred 03000330700 Van Bibber, Cynthia 12/13/2016 $ 61.03 1/2/2017 Water/Sewer Never Transferred 00116341001 South West Utility Systems 3/9/2016 $ 106.65 3/29/2016 Water/Sewer Never Transferred 06900754702 Dowd, Lawrence 11/12/2015 $ 25.91 6/24/2005 Water/Sewer Never Transferred 04200177802 Petersen, Robert 2/9/2017 $ 2,288.07 2/9/2017 Water/Sewer House burned down/Dec. 2011/Meter Removed Total Write Off-non bankruptcy 2,835.01$ SAP Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 302751 Gileame Litis 115.16$ 4/17/2014 Business Closed Sunbiz has no active business, Investigators went out verified business closed for a long time TOTAL $ 115.16 SAP Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 303527 L & S Cable 9/28/2016 $836.75 10/28/2016 Misc Billing Per Water Distribution this amount should not have been estimated as water usage was due to damage TOTAL $ 836.75 SAP Account #Customer Name Last Charge Date Balance to be written off Due Date Account Type Reason for Write Off Comments 100017 Florida Fish and Wildlife 1/31/2016 $80.42 2/28/2016 Landfill Incorrect company charged TOTAL $ 80.42 RESOLUTION NO. 2017 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS EX -OFFICIO THE GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT, TO REMOVE UNCOLLECTABLE ACCOUNTS RECEIVABLES FROM ACTIVE ACCOUNTS RECEIVABLE FINDING THAT DILIGENT EFFORTS HAVE BEEN MADE TO RECAPTURE THE FUNDS AND THE ACCOUNTS ARE NOT COLLECTIBLE. WHEREAS, pursuant to Resolution No. 2006-252, the Board of County Commissioners has established a procedure to remove past due accounts from active accounts receivable by Resolution where diligent efforts at collection have proved unsuccessful; and WHEREAS, the Financial Operations Division has identified delinquent accounts within Fund 408 (Water/Sewer) comprising a total amount of $10,297.58, which are uncollectable because of a declaration of bankruptcy, an expiration of the statute of limitations or because the accounts were not otherwise transferred upon a change of the ownership of the property; and WHEREAS, the Financial Operations Division has identified a delinquent account in Fund 473 (Solid Waste Mandatory Collections) in the total amount of $115.16 and a delinquent account in Fund 470 (Solid Waste Disposal) in the total amount of $80.42 that are uncollectable because the customers for those accounts are no longer doing business; and WHEREAS, the County is unable to obtain reimbursement for payments owed despite its diligent collection efforts. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: The Board finds that Collier County made diligent efforts to collect the following accounts receivable: Fund 408 (Water/Sewer) - $10,297.58 Fund 473 (Solid Waste Mandatory Collections) - $115.16 Fund 470 (Solid Waste Disposal) - $80.42 This Resolution adopted this 12th day of December 2017, after motion, second and majority vote. ATTEST: DWIGHT E BROCK, CLERK By: DEPUTY CLERK r li A o `'�d o' �� . pp � _.� ty Jeffrey County Attorneye y p BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA 0 PENNY TAYLOR, CHAIRMAN