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Agenda 10/27/2015 Item #16D6 10/27/2015 16.D.6. EXECUTIVE SUMMARY Recommendation to adopt a resolution authorizing the removal of aged accounts receivable in the amount of $129,613.23, 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 collection is required by Resolution No. 2006-252 during each fiscal year end. Of the nearly 2.8 million library materials checked out during FY 2010-2011, approximately 0.10%were not returned by borrowers. 99.9%were returned. The value of the materials and the processing fees incurred on these materials is $59,685.38. Additionally, $69,927.85 in overdue fines was not paid on 24,067 materials that were returned late by library patrons. Total amount unpaid is $129,613.23. 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: An allowance for uncollectible accounts will be charged in the amount of $129,613.23 to remove the uncollectible amounts from the Collier County Public Library general fund budget. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: The County Attorney has reviewed this item and approved it as to form and legality. Majority support is required for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approves the proposed Resolution authorizing the removal of aged accounts receivable in the amount of$129,613.23, considered uncollectible from the financial records of the Collier County Public Library in accordance with Resolution No. 2006-252. PREPARED BY: Tanya Williams, Assistant Director Libraries Attachments: 1) Proposed Resolution (1) 2) Resolution No. 2006-252 (2) 3) Write-off Uncollectible FY2011 (1) Packet Page -1086- 10/27/2015 16.D.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.6. Item Summary: Recommendation to adopt a resolution authorizing the removal of aged accounts receivable in the amount of$129,613.23, 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: 10/27/2015 Prepared By Name: TibbettsKaren Title: Administrative Assistant, Public Services Department 9/30/2015 9:50:39 AM Submitted by Title: Assistant Division Director-Library, Public Services Department Name: WilliamsTanya 9/30/2015 9:50:40 AM Approved By Name: WilliamsTanya Title: Assistant Division Director-Library, Public Services Department Date: 9/30/2015 11:19:43 AM Name: TownsendAmanda Title: Division Director-Operations Support, Public Services Department Date: 10/7/2015 1:47:38 PM Name: AlonsoHailey Title: Operations Analyst,Public Services Department Date: 10/12/2015 10:53:25 AM Name: AlonsoHailey Title: Operations Analyst,Public Services Department Date: 10/12/2015 10:54:00 AM Packet Page -1087- 10/27/2015 16.D.6. Name: KocinValerie Title: Division Director-Library,Library Date: 10/12/2015 1:34:04 PM Name: CarnellSteve Title: Department Head-Public Services,Public Services Department Date: 10/1 3/2015 2:48:08 PM Name: KlatzkowJeff Title: County Attorney, Date: 10/14/2015 9:33:59 AM Name: FinnEd Title: Management/Budget Analyst, Senior, Office of Management&Budget Date: 10/20/2015 10:20:36 AM Name: OchsLeo Title: County Manager, County Managers Office Date: 10/20/2015 5:09:15 PM Packet Page-1088- 10/27/2015 16.D.6. RESOLUTION NO.2015- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO REMOVE 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 THE FINANCIAL RECORDS OF THE COLLIER COUNTY PUBLIC LIBRARY. WHEREAS, pursuant to Resolution No. 2006-252, the Board of County Commissioners (Board)has established a procedure to remove past due accounts from active accounts receivable where diligent efforts at collection have proved unsuccessful; and WHEREAS, the Collier County Public Library has attempted, without success, to research accounts for FY 2010-2011 to collect on its past due fines for overdue charges not paid and money owed for items not returned totaling$129,613.23. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA that: 1. The Board finds that the Collier County Public Library has 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, it is not able to collect the debts but is able to determine that $129,613.23 of the total transactions is not active accounts receivable. 3. The Board finds that the total amount of $129,613.23 may be removed from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law by Resolution. THIS RESOLUTION ADOPTED after motion, second and majority vote, this day of , 2015. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK,CLERK OF COLLIER COUNTY, FLORIDA By By: , Deputy Clerk TIM NANCE,CHAIRMAN Appro,i; ;orm and legality: I.: Jeffrey '1 Kl'tzkow County A o y [15-000-00002/1212741/1] Packet Page -1089- 10/27/2015 16.D.6. RESOLUTION NO.2006- 2 5 2 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( w day ofS0ath6tor 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E.BROOK, Clerk COLLIER COUNTY, FLORIDA By ���yr 4.0 - By: • Asp l Frank Halas,Chairman craw s Approveea asto NA and legal sufficiency: r „ illiam ountford,Assi t County Attorney – —Packet Page-1090-— 10/27/2015 16.D.6. 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. Packet Page -1091- -- 10/27/2015 16.D.6. Overdue Fines, Fees and Materials Not Returned FY 2010-2011 Fines Only(Overdues) $ 69,927.85 Fees Owed/Item Not 59,685.38 Returned Total $ 129,613.23 System-wide Circulation 2,760,163 Number of Items Overdue/ Number of Items Not Percentage of items checked- Fines Not Paid Returned out,but not returned 24,067 2,839 0.10% Packet Page-1092-