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Agenda 12/12/2017 Item #16D 112/12/2017 EXECUTIVE SUMMARY Recommendation to adopt a resolution authorizing the removal of aged accounts receivable in the amount of $151,037.56, considered uncollectible or should otherwise be removed from the financial records of the Collier County Public Library in accordance with Resolution No. 2006-252. OBJECTIVE: To reflect proper accounts receivable balances in the County’s financial records by writing off uncollectible debt. CONSIDERATIONS: A review of accounts receivable for the likelihood of collectio n is required by Resolution No. 2006-252 at each fiscal year-end. Of the nearly 2.4 million library materials checked out during FY 2012-2013, approximately 0.16% were not returned by borrowers. 99.84% were returned. The value of the materials and the processing fees incurred on these materials is $81,409.16. Additionally, $69,628.40 in overdue fines was not paid on 25,697 materials that were returned late by library patrons. Total amount unpaid is $151,037.56. After extensive research efforts on several old transactions, which include fines for overdue charges not paid and money owed for items not returned, staff recommends that it discontinue efforts to collect the miscellaneous receivables listed in the attached exhibit to this Executive Summary. This review is performed annually by the Collier County Public Library in compliance with Resolution No. 2006-252. FISCAL IMPACT: This action has no impact upon the FY 2018 budget because these actions cover uncollectable revenues from prior years. This action will allow The Clerk of Court's Finance section to write off the bad debt from the accounting records. GROWTH MANAGEMENT IMPACT: None. 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: To approve the proposed resolution authorizing the removal of aged accounts receivable in the amount of $151,037.56, considered uncollectible from the financial records of the Collier County Public Library in accordance with Resolution No. 2006-252. Prepared By: Tanya Williams, Library Director, Library Division ATTACHMENT(S) 1. Aged Accounts_FY 2013 (XLSX) 2. Resolution - Aged Receivables (PDF) 3. Resolution 2006_252 (PDF) 12/12/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.1 Doc ID: 3924 Item Summary: Recommendation to adopt a resolution authorizing the removal of aged accounts receivable in the amount of $151,037.56, considered uncollectible or should otherwise be removed from the financial records of the Collier County Public Library in accordance with Resolution No. 2006-252. Meeting Date: 12/12/2017 Prepared by: Title: Administrative Assistant – Library Name: Karen Tibbetts 10/11/2017 11:18 AM Submitted by: Title: Assistant Division Director - Library – Library Name: Tanya Williams 10/11/2017 11:18 AM Approved By: Review: Library Tanya Williams Additional Reviewer Completed 10/11/2017 11:56 AM Operations & Veteran Services Sean Callahan Additional Reviewer Completed 10/11/2017 3:59 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 10/23/2017 8:04 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 11/21/2017 4:08 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/21/2017 4:38 PM County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 11/21/2017 5:58 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/28/2017 3:03 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 11/29/2017 12:00 PM Board of County Commissioners MaryJo Brock Meeting Pending 12/12/2017 9:00 AM Fees Owed/Materials Not Returned 81,409.16$ Fines Only (Overdues)69,628.40$ Total 151,037.56$ FY13 System-wide Circulation 2,404,290 25,697 3,810 0.16% Number of Items Overdue/Fines Not Paid Number of Items Not Returned Percentage of items checked-out, but not returned RESOLUTION NO. 2017- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO REMOVE PAST AGED ACCOUNTS RECEIVABLE FROM ACTIVE ACCOUNTS RECEIVABLE FINDING THAT DILIGENT EFFORTS HAVE BEEN MADE TO RECAPTURE THE FUNDS AND THE FUNDS ARE NOT COLLECTIBLE OR OTHERWISE REQUIRE REMOVAL FROM COUNTY FINANCIAL RECORDS. WHEREAS, pursuant to Resolution 2006-252, the Board of County Commissioners has established a procedure to remove past due accounts from active accounts receivable where diligent efforts at collection have proved unsuccessful; and WHEREAS, Collier County Public Library attempted to research and collect $81,409.16 for materials not returned and overdue fines and $69,628.40 for overdue fines of materials returned by patrons listed within active accounts receivable records and determined the accounts to have little information to make the collection successful; and WHEREAS, all items requested for removal are aged at least five years; and WHEREAS, the Library Advisory Board is recommending that the Board remove past aged accounts receivable from active accounts receivable. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The Board finds that Collier County Public Library made diligent efforts to collect the total debt amount by researching the balances and reviewing any applicable records for further information. 2. Despite diligent efforts, the Library was not able to collect the debt of materials not returned and overdue fines of $81,409.16 or the $69,628.40 in overdue fines that were not paid on materials returned by patrons. 3. The Board finds that the total amount of $151,037.56 may be removed from active accounts receivable in accordance with generally accepted account procedures and pursuant to law. THIS RESOLUTION ADOPTED after motion, second and majority vote favoring same this 14' day of November, 2017. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA am , Deputy Clerk 1 ,17 ate— i Jeffrey A#-0aJzkow, County Attorney 2017 Resolutit —,, ollectible Fines and Fees Collier County Public Library Do Penny Taylor, Chairman RESOLUTION NO. 2006_ 252 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, APPROVING PROCEDURES FOR MANAGING MISCELLANIOUS RECEIVABLES WHEREAS, it is the responsibility of each department to manage the collection of miscellaneous accounts receivable. WHEREAS, the Independent Auditor's Management Letter prepared by KPMG for the fiscal year ending September 30, 2004 revealed the following system wide deficiency, "the Board of County Commissioners does not follow-up on delinquent miscellaneous receivables. " WHEREAS, on February 8, 2006, County Manager James V. Mudd informed the Inspector General of the State of Florida, Ms. Annette C. Kittrell, that a procedure to monitor delinquency and collectabilty of miscellaneous receivables, including a write-off procedure, will be implemented by September 30, 2006. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, THAT: The Board of County Commissioners hereby approves these Procedures for Managing Miscellaneous Receivables. THIS RESOLUTION is adopted after motion, second, and majority vote favoring adoption this,2& m day of r� 6Pr 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By By. moi ' � les to Frank Halas, Chairman 1run $ ApprovveStasIm WA and legal sufficiency: illiamountford, Assi t County Attorney DRAFT Procedures for Managing Miscellaneous Receivables It is the responsibility of each department to manage the collection of their accounts receivable. The following shall be collection procedures for managing miscellaneous receivables. This procedure excludes those areas covered elsewhere by resolution, ordinance, and/or by separate policy. A. A past -due notice will be sent 30 -days after due date. B. 30 -days after the first past due notice is sent (60 -days past original due date) a second past due notice will be sent. C. After a 10 -day grace period following the second past due notice (70 -days past original due date), the account will be sent to the county's contracted collection agency. D. When, at any stage during the billing and collection procedure, a notice is returned because the Postal Service can not effectuate delivery, staff shall make reasonable efforts to ascertain the correct mailing address. E. Nothing contained in this section shall preclude reasonable telephone or other appropriate contact for billing and collection purposes, in accordance with applicable laws. F. A reasonable and customary payment plan may be made available to all service recipients or reasonable parties. Should the service recipient or reasonable party at any point fail to meet the terms or conditions of the payment plan, the unpaid balance shall be administered in accordance with this section. G. Prior to the end of each fiscal year, county department directors shall review all past due accounts and approve the discontinuance of collection efforts for those receivables that appear to be uncollectible, and report such accounts to the Board of County Commissioners. H. The Board may, after reviewing these past due accounts and after finding that diligent efforts at collection have proved unsuccessful, remove these past due accounts from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law by Resolution.