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Agenda 09/23/2014 Item #16D 49/23/2014 16.D.4. EXECUTIVE SUMMARY Recommendation to authorize the removal of uncollectible receivables in the amount of $39,346.05 from the financial records of the Parks and Recreation Department in accordance with Resolution 2006 -252 and authorize the Chair to execute attached Resolution. OBJECTIVE: For the Board of County Commissioners (BCC) to authorize the Finance Department to remove uncollectible accounts receivable in the amount of $39,346.05. 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 by both the Department and a collection agency, staff will discontinue efforts to collect the list of miscellaneous receivables attached as an exhibit to this Executive Summary. Transactions date as far back as 2004 and have been in collection for at least 1 year. Diligent efforts have been made to collect these past due amounts. The Department's programs and services average approximately $2,223,712 annually in revenue for the past 10 years. The 334 records to be removed related to our childcare program, rentals, memberships and other miscellaneous programs, constitute approximately 0.2% of the generated annual revenue. This review will be performed on an annual basis in the future by the Parks and Recreation Department staff to be in compliance with the BCC adopted Resolution 2006 -252. FISCAL IMPACT: An allowance for uncollectible accounts will be charged $39,346.05 to remove the uncollectible from several Parks and Recreation Funds and cost centers (see attachment for details of accounts to be adjusted). Amounts by Fund to be removed can be summarized as follows: Amounts by Fund $ Amount Owed 001 $ 4,841.91 111 $ 33,073.25 130 $ 1,430.89 FTotal $ 39,346.05 GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires majority vote for approval - CMG RECOMMENDATION: For the Board of County Commissioners to authorize the removal of uncollectible accounts receivable from the financial records of the Parks and Recreation Department in accordance with Resolution 2006 -252 and authorize the Chairman to execute the Resolution. Prepared by: Natali Betancur, Operations Analyst, Parks and Recreation Department Attachments: 1) AR Master List; and 2) Resolution 2006 -252; 3) Resolution 2014- Packet Page -2414- 9/23/2014 16.D.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.4. Item Summary: Recommendation to authorize the removal of uncollectible receivables in the amount of $39,346.05 from the financial records of the Parks and Recreation Department in accordance with Resolution 2006 -252 and authorize the Chair to execute attached Resolution. Meeting Date: 9/23/2014 Prepared By Name: BetancurNatali Title: Operations Analyst, Beach & Water 8/13/2014 1:12:30 PM Approved By Name: McPhersonJeanine Title: Assistant Director - Parks & Recreation, Parks & Recreation Date: 8/14/2014 5:36:11 PM Name: Washburnllonka Title: Manager - Park Operations, Parks & Recreation Date: 8/21/2014 8:36:37 AM Name: TownsendAmanda Title: Director - Operations Support, Public Services Division Date: 9/10/2014 12:58:29 PM Name: AlonsoHailey Title: Operations Analyst, Public Services Division Date: 9/11/2014 11:20:06 AM Name: GreeneColleen Title: Assistant County Attorney, CAO General Services Date: 9/12/2014 9:29:30 AM Name: CarnellSteve Title: Administrator - Public Services, Public Services Division Date: 9/15/2014 5:38:09 PM Packet Page -2415- 9/23/2014 16.D.4. Name: KlatzkowJeff Title: County Attorney, Date: 9/16/2014 8:38:48 AM Name: FinnEd Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management Date: 9/17/2014 9:08:20 AM Name: OchsLeo Title: County Manager, County Managers Office Date: 9/17/2014 9:56:13 AM Packet Page -2416- 9/23/2014 16.D.4. n L n n n v a a o a E a n E n U U a o > m m E . u n m ` E 0 E 0 a 0 0 m E 0 0 0 m m 0 0 t a 0 w 0 m m m m m o m m m o o o o 0 o s r o L L E o E o E u u o E u 0 v ° ON to d p c c a c v o, 5 E v E" c 2 ;; ;; E S E !; _v L c a x _a " E E E E" E B c E E" c v _v c c E l' v a c .. c cc cc cc _ c _ cc CL d' d' Q LL Q d Q V1 Q V1 C LL Q Q Q N< Vf Q Q< l.L Q Co Q L Vl In to In G V) ¢ lL Vf Ln C C Q Q K 11 {n G y m N m W m C O C O C O It O N 01 O d N Q�1 M N H N M O ONj M N M =� N O M O O !� U y N d d M^ M ry�j t0+1 w n N MD M M M M M M M lm0 M M M d M N M M ly�j M M M d M M d T T d O M M M d M W d N ~ N H rl N N N N wi rl N Q Ll .'i N rl Il1 to L L!i 111 °' L!1 Ill �"' l!1 y�j Yt ✓ to Lwm LM lL .n Q .ti •+ u .� ¢ N u u u N u u N uu c u u tcu u u c u u c u c u u c u 0- m rd u m u r d d u u a a d d d d d U d d d d u d U (7 W Z (j �- L G W C W W L G C W Z Z> (7 - (7 > W O U Z W W Z W W Z o w" (7 U (7 U 0 Z 0 Z W O O O ti ti LL Y LL lL LL LL LL lYL LL LL LLT. 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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 .lames 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;?& w day of: 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By By. Cl to h� i Frank Halas, Chairman s Approe�ta and legal sufficiency: r ,, 1 --uj illiam ountford, Assi t County Attorney —Packet Page - 2424 - 9/23/2014 16.D.4. 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 dilieent 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 -2425- ---- 9/23/2014 16.D.4. RESOLUTION NO. 2014- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO REMOVE UNCOLLECTIBLE ACCOUNTS RECEIVABLE FROM PARKS AND RECREATION DEPARTMENT 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 uncollectible accounts from Parks and Recreation Department active accounts receivable where diligent efforts at collection have proved unsuccessful; and WHEREAS, Collier County Parks and Recreation Department has attempted, without success, to research accounts dating from FY 2004 to the present to collect on past due accounts relating to the childcare program, rentals, memberships, and other miscellaneous programs. The total amount of uncollectible accounts receivable is $39,346.05. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that: 1. The Board finds that Collier County Parks and Recreation Department 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, Collier County is not able to collect. the. debts and has determined that $39,346.05 of the total transactions are uncollectible and not-active accounts receivable. 3. The Board finds that the total amount of $39,346.05 may be removed from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law. This Resolution adopted 'after motion, second and majority vote, this day of , 2014. ATTEST: DWIGHT E. BROCK, CLERK , Deputy Clerk proved as to form and legality: een M. Greene Assistant County Attorney [ 14- PKR- 00475/1 1 1 1 420/11 BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA TOM HENNING, Chairman Packet Page -2426- 0