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Agenda 06/26/2018 Item #16E306/26/2018 EXECUTIVE SUMMARY Recommendation to adopt a resolution authorizing the removal of 7,573 ambulance service accounts from FY 2014 and their respective uncollectible accounts receivable balances which total $5,325,522.54 from the accounts receivable of Emergency Medical Services Fund (490) finding diligent efforts to collect have been exhausted and proved unsuccessful. OBJECTIVE: The removal of $5,325,522.54 in uncollected ambulance service fee receivables from the accounts receivable for EMS Fund (490) billed in FY 2014. CONSIDERATIONS: The County provides for public health, safety and welfare of the public; therefore, emergency ambulance services are provided when requested and fees are billed after the fact. The chart below identifies ambulance service fee activity for Fiscal Year 2014. There are two types of adjustments made to ambulance service accounts, contractual and/or bad debt. Contractual adjustments represent Collier County’s acceptance of the Federal Medicare limits on amounts that can be collected for medical services, Medicaid statutory limits, Railroad Retirement statutory limits, and Victim Compensation Rights statutory adjustments. Receivables are recorded at 100%. When payment is received, contractual adjustments are recorded as a reduction to revenue. A review of past due accounts is completed on an annual basis and accounts deemed uncollectible are identified by the EMS Division. Collection efforts for these accounts have been exhausted. Bad debt is recognized for a variety of reasons, including patients who cannot be located, services provided to transients or migrants, patients who die with no assets and bankruptcies. These accounts cannot be removed without the Board’s adoption of an authorizing resolution. Detailed reports listing the accounts to be removed are on file in the Office of Emergency Medical Services. The Clerk’s Finance Department, in accordance with generally accepted accounting principles, annually estimates and sets an allowance for bad debts based on accounts receivable analysis. Those accounts for which the billing agency has exhausted their collection attempts were sent to the County’s contracted collection agency. If any payments are received, they will be processed through the Board’s accounting system. FISCAL IMPACT: Removal of $5,325,522.54 from the EMS Fund (490) accounts receivable will remove 7,573 individual customers’ accounts and reduce the allowance for doubtful accounts. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. County Resolution No. 08-27, Section 2. H and I, provides as follows: H. Throughout the fiscal year, the EMS Billing Section shall review all past due accounts and report to the Board of County Commissioners on an annual basis, of all past due accounts which are believed to be uncollectible. 06/26/2018 I. The Board may, after reviewing these past due accounts and after finding that diligent efforts at collection have been unsuccessful, remove these past due accounts from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law by Resolution. By approving this item, the Board is finding that diligent efforts at collection have been unsuccessful. This item is sufficient as to form and legality and requires a majority vote for Board approval. -JAK GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this action. RECOMMENDATION: To adopt a resolution authorizing the removal of 7,573 individual accounts billed in FY 2014 with a total receivable balance of $5,325,522.54 from the Emergency Medical Services Fund (490) accounts receivable. Prepared by: Artie R. Bay, Supervisor, Emergency Medical Services ATTACHMENT(S) 1. Revised Resolution - JAK signed (PDF) 2. EMS uncollectible worksheet (PDF) 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.3 Doc ID: 5739 Item Summary: Recommendation to adopt a resolution authorizing the removal of 7,573 ambulance service accounts from FY 2014 and their respective uncollectible accounts receivable balances which total $5,325,522.54, from the accounts receivable of Collier County Fund 490 (Emergency Medical Services) finding diligent efforts to collect have been exhausted and proved unsuccessful. Meeting Date: 06/26/2018 Prepared by: Title: Supervisor - Accounting – Emergency Medical Services Name: Artie Bay 05/22/2018 7:35 AM Submitted by: Title: Division Director - EMS Operations – Emergency Medical Services Name: Tabatha Butcher 05/22/2018 7:35 AM Approved By: Review: Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 05/22/2018 9:00 AM Emergency Medical Services Tabatha Butcher Additional Reviewer Completed 05/29/2018 4:56 PM Administrative Services Department Len Price Level 2 Division Administrator Review Completed 06/07/2018 1:36 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/11/2018 7:28 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/14/2018 10:20 AM Office of Management and Budget Allison Kearns Additional Reviewer Completed 06/17/2018 11:49 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/18/2018 9:13 AM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM RESOLUTION NO. 2018 - RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO AUTHORIZE THE REMOVAL FROM THE BOOKS AND RECORDS OF COLLIER COUNTY CERTAIN ACCOUNTS AND THEIR RESPECTIVE BALANCES WHICH HAVE BEEN IDENTIFIED AS UNCOLLECTIBLE. WHEREAS, Collier County provides emergency ambulance transportation services throughout Collier County; and WHEREAS, emergency ambulance transportation service fees are received by the County after the services have been rendered due to the County's responsibility to protect the public health, safety and welfare; and WHEREAS, the County is unable to collect some debts, and others the Board is statutorily prohibited from collecting or due to contractual arrangements cannot be collected; and WHEREAS, the County's generally accepted and practiced accounting method to recognize an allowance for bad debts is a periodic or annual bad debt expense in the books and records for accounts that have been identified by the Department as un -collectible; and WHEREAS, Rule 69I-71, Florida Administrative Code, allows the Board to adjust accounts receivable for less than the full amount if the accounts have not been reported to the Department of Financial Services, Division of Accounting and Auditing for disposition; and WHEREAS, the subject accounts have not been reported to the Department of Financial Services, Division of Accounting and Auditing; and WHEREAS, County Resolution No. 08-27, Section 2. H and I, provides for removing these accounts from the Board's Emergency Medical Services Fund Accounts Receivable; and WHEREAS, the Board of County Commissioners hereby finds that diligent efforts at collection have proven unsuccessful and circumstances warrant the adjustment. NOW THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The following chart sets forth the charges billed, the portion uncollectible due to statutory prohibitions and Board contractual arrangements, the amount collected and the balance of accounts receivable to be written off: Contractual & Gross Charges Other Amount Billed Adjustments Net Billed Collected 23,370,189.00 7,214,686.99 16,155,502.01 10,829,979.47 Net Write -Off Write -Off Total Collection % Amount % Accounts 67% 5,325,522.54 33% 7573 2. The Board authorizes staff to remove 7,573 individual accounts and their respective balances for a total of $5,325,522.54 from the Board's Emergency Medical Services Fund. Same amount will be removed from the Accounts Receivable General Ledger control account, and the Allowance for Doubtful Accounts General Ledger control account in the Board's Emergency Medical Services Fund. This Resolution adopted on this day of June 201:8 after motion, second and majority vote favoring adoption. ATTEST: DWIGHT E. BROCK, CLERK , Deputy Clerk Jeffrey County BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: ANDY SOLIS, CHAIRMAN 2 Year-Month of Service # of Accounts Charge Amount Adjustments Net Charges Receipts Inactive Returned Account Balance Active and collection 2013-10 1,915 $1,767,274.75 $523,398.83 $1,243,875.92 $769,012.76 ($1,155.88) $362,259.77 $113,759.27 2013-11 2,073 $1,893,664.00 $542,750.03 $1,350,913.97 $860,745.46 $133.16 $385,851.72 $104,183.63 2013-12 2,126 $1,948,312.75 $608,288.02 $1,340,024.73 $910,815.94 ($11,495.29) $351,053.50 $89,650.58 2014-01 2,469 $2,192,842.00 $659,301.52 $1,533,540.48 $1,067,972.63 $83.21 $352,016.68 $113,467.96 2014-02 2,445 $2,201,335.25 $675,068.79 $1,526,266.46 $1,076,599.74 ($1,855.35) $336,400.80 $115,121.27 2014-03 2,679 $2,378,557.75 $676,245.84 $1,702,311.91 $1,116,391.67 ($3,225.43) $410,994.31 $178,151.36 2014-04 2,356 $2,139,995.25 $621,910.95 $1,518,084.30 $961,257.07 ($2,875.45) $421,400.40 $138,302.28 2014-05 2,100 $1,895,004.00 $571,502.03 $1,323,501.97 $860,158.95 ($1,144.62) $338,738.17 $125,749.47 2014-06 1,966 $1,723,242.50 $534,438.29 $1,188,804.21 $772,254.02 ($2,925.05) $303,494.88 $115,980.36 2014-07 1,893 $1,605,369.75 $506,728.24 $1,098,641.51 $756,322.52 ($11,365.24) $266,480.67 $87,203.56 2014-08 1,871 $1,652,211.50 $470,486.01 $1,181,725.49 $729,756.10 ($2,517.32) $351,579.39 $102,907.32 2014-09 1,878 $1,738,058.75 $536,803.58 $1,201,255.17 $738,923.14 ($1,432.00) $348,689.38 $115,074.65 transports 25,771 $23,135,868.25 $6,926,922.13 $16,208,946.12 $10,620,210.00 (39,775.26) $4,228,959.67 $1,399,551.71 5,628,511.38 Balance column H and I SAP 23,370,189.00$ 234,320.75$ 5,588,736.12 Balance Column CDEF 234,320.75$ 7,161,242.88$ 39,775.26 Inactive/write off Accts FY 14 Totals Apr-18 $23,370,189.00 7,161,242.88$ 16,208,946.12$ $10,620,210.00 Mintex $4,228,959.67 $1,359,776.45 Payments 209,769.47 Adjustments 95,463.37 IMX Active 2,252 IMX Paid 17,623 Mintex Bal 3,923,726.83 Mintex Active 5,321 IMX Bal 1,399,551.71 Mintex Paid 575 FY 14 Balances 5,323,278.54 Total Accts 25,771 FY 14 WO 5,325,522.54 credit bal corrections 2,244.00 to be done in May Total Write-Off Accts FY 14 7,573