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Agenda 02/25/2014 Item #16A102/25/2014 16.A.10. EXECUTIVE SUMMARY Recommendation to authorize the removal of aged accounts receivable in the amount of $74,464.45 considered uncollectible or should otherwise be removed from the financial records of the Growth Management Division Construction and Maintenance departments in accordance with Resolution 2006 -252. OBJECTIVE: For the Board of County Commissioners (BCC) to authorize the Finance Department to write off old accounts receivable and other accounting inaccuracies in the amount of $74,464.45 considered uncollectible related to the GMD Construction and Maintenance (C &M) departments in order to reflect proper accounts receivable balances in the county financial records. CONSIDERATIONS: A review of accounts receivable for likelihood of collection is required by Resolution 2006 -252 during each fiscal year end. After exhausting research efforts on several old transactions (dating as far back as 1994) which include Trade Receivables and Non - Sufficient Funds (NSF) checks, staff will discontinue efforts to collect the list of miscellaneous receivables attached as an exhibit to this Executive Summary. From a list of 67 items totaling $3,144,355.78, it is the opinion of Staff that receivables of $3,069,891.33 remaining on the financial records are likely to be collected at this time, and more accurately reflect year -end accounts receivable balances for the GMD C &M departments. The 49 records totaling $74,464.45 to be removed constitute 2.37% of the total balance of accounts receivable for the C &M departments (average item amount of $1,519.68). All items requested for removal are aged at least 5 years. Of the 49 records to be removed, six relate to permits within Transportation Impact Fee Funds which total $14,729.93. These items are not uncollectible, but rather receivables that were never removed from the records when new /revised permits were issued, or the permits have expired and the receivable is no longer valid. These items, with the exception of two from 1994, were all able to be tracked and validated as not being true outstanding amounts. These are considered "errors" since a permit applicant may have paid a different amount for a revision to a permit without the old invoiced amount being removed from the financial records. This exercise will be performed on an annual basis in the future by the GMD C &M Department staff to be in compliance with the BCC adopted Resolution 2006 -252. FISCAL IMPACT: An allowance for uncollectible accounts will be charged $74,464.45 to remove the uncollectible and other erroneous transaction amounts from several GMD Funds and cost centers (see attachment for details of accounts to be adjusted). Amounts by Fund to be removed can be summarized as follows: 101 $ 49,518.79 112 $ 10,195.73 325 $ 20.00 331 $ 1,379.00 333 $ 3,904.00 336 $ 438.00 338 $ 4,437.00 339 $ 4,571.93 Total $ 74,464.45 GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. Packet Page -367- LEGAL CONSIDERATIONS: This item is approved as to form and legality, and req 2/25/2014 16.A.10. vote for Board approval. - SAS RECOMMENDATION: For the Board of County Commissioners to authorize the removal of aged accounts receivable and other accounting inaccuracies considered uncollectible from the financial records of the Growth Management Division Construction and Maintenance departments in accordance with Resolution 2006 -252. Prepared by: Allison Kearns, Financial & Operational Support Manager, GMD C &M Department Attachments: 1) NSF and Misc AR GMD C -M YE FY13; and 2) Resolution AR C -M GMD YE FY13 3) Resolution 2006 -252 Packet Page -368- 2/25/2014 16.A.10. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.A.16.A.10. Item Summary: Recommendation for the Board of County Commissioners to authorize the removal of aged accounts receivable in the amount of $74,464.45 considered uncollectible or should otherwise be removed from the financial records of the Growth Management Division Construction and Maintenance departments in accordance with Resolution 2006 -252. Meeting Date: 2/25/2014 Prepared By Name: KearnsAllison Title: VALUE MISSING 1 1/12/2013 8:43:06 AM Approved By Name: LynchDiane Title: Supervisor - Operations, Road Maintenance Date: 2/4/2014 10:39:37 AM Name: ShueGene Title: Director - Operations Support, Transportation Administration Date: 2/4/2014 11:56:29 AM Name: StoneScott Title: Assistant County Attorney, CAO Land Use /Transportation Date: 2/4/2014 4:45:48 PM Name: MarcellaJeanne Title: Executive Secretary, Transportation Planning Date: 2/12/2014 9:05:48 AM Name: KlatzkowJeff Title: County Attorney, Date: 2/13/2014 11:15:02 AM Name: UsherSusan Title: Management/Budget Analyst, Senior, Office of Management & Budget Packet Page -369- 2/25/2014 16.A. 10. Date: 2/14/2014 4:49:22 PM Name: FinnEd Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management Date: 2/18/2014 11:28:48 AM Name: OchsLeo Title: County Manager, County Managers Office Date: 2/18/2014 12:21:32 PM Packet Page -370- c � E � � U m ° c f 4� �A m w z Z V u 2 Y iN m e ` c c p C V o o r c m O w tl 'a ti z o U d w0 a z v LL 3 d q O z 4 R V � � Q V Y a s u u u<z u u u u u u u v u u o N Q S L° U '� °� K of a° O° v S w w w w .zu .Zu w z w w Z z w 2 Z Z Z Z Z Z 2 Z z t- 2 2 2 2 Y 7 3 F S t ¢ < < < < < < < < < < < < q < u s u E n r, 3 6 V C C 2 6 p m V �t o 6 W� u n m tl, F f. d A c d U O r O u a — A 4 [r Y ro o E 'O ua EE s D W E S�8 e8 S8 m S� m H r L x O �^ u ° ' C o Yi L .r E i . u D H z 0 i z N z z o w0 a z v LL 3 d z 4 N V z O J W w E a s u u u<z u u u u u u u v u u o N Q S L° U '� °� K of a° O° v S w w w w .zu .Zu w z w w Z z w 2 Z Z Z Z Z Z 2 Z z t- 2 2 2 2 ti Uj VI 11 u 0 Jm 0 D z U N ° czu Pac A 0 ket a s� 4, fl 4 Q C5 G� #1 21 Il � v i p a iN c`. d 0 ° Page -: O 171' 0 J Q� O ° N m v 0 2/25/2014 16.A.10. 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RESOLUTION NO. 2014 - 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 No. 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 attempted to research and collect 49 transactions 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 5 years. NOW THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The Board finds that Collier County 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 County was not able to collect the debt but was able to determine $ 14,729.93 of the total transactions to be errors and not active accounts receivable. 3. The Board finds that the total amount of $74,464.65 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, this day of February, 2014. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK OF COLLIER COUNTY, FLORIDA By: Deputy Clerk TOM HENNING, Chairman Page 1 of 2 Packet Page -373- Approval as to form and legality: Scott Stone IMP Assistant County Attorney CP \13 -CMD- 00108 \12 Page 2 of 2 Packet Page -374- 2/25/2014 16.A.10. 2/25/2014 16.A.10. RESOLUTION NO. 206. 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 thisalo w day of 6Pr 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA BY By: Qbsnutv i Cle tp Fmk Halas, Chairman ApproveStas7b Khi and legal sufficiency: ill iam ountford, Assi t County Attorney V'" Packet Page -375 2/25/2014 16.A.10. DRAFT Procedures for Ml anaeine 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 -376-