Agenda 10/11/2011 Item #16F110/11/2011 Item 16.F.1.
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing removal of 4,974 ambulance service
accounts and their respective account receivable balances which total $6,954,193.53 from
the general ledger of Collier County Fund 490 (Emergency Medical Services). Although
the amount has been recognized and recorded as Bad Debt Expense in the General Ledger,
it cannot be removed without Board adoption of an authorizing resolution.
OBJECTIVE: Adoption of a resolution authorizing the removal of $6,954,193.53 in ambulance
service fee receivables from the general ledger for Fund 490 (Emergency Medical Services).
This request represents total ambulance service fees and 4,974 accounts for Fiscal Year 2008.
CONSIDERATIONS: Collier County began providing emergency ambulance transportation
services in 1981.. Unlike the majority of governmental services provides by the County, where
fees are normally received before services are provided; emergency ambulance services are
provided and fees are received after the fact. This "service before fee" scenario is primarily due
to the County's responsibility to protect the public health, safety and welfare.
The chart below identifies ambulance service fee activity for Fiscal Year 2008.
Contractual li
Gress Charps other Amount Collection Write -tiff Wede-0if Total
Fiscal Year Billed Adjustments Net Billed Collected Net % Amount % Accounts
09 2ZO6,77LS2 5837,070.36 16,259.70116 9,305,587.63 57% 6,958,393.53 43% 4,974
As can be seen in the preceding chart, there are two types of adjustments that can be made to an
ambulance service account: 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, Victim Compensation Rights statutory adjustments, etc. Receivables
are recorded at 100 %. When payment is received, contractual adjustments are recorded as a
reduction to revenue.
Bad debt adjustments represent uncoliectible accounts that are determined by a variety of
reasons, including patients that cannot be located, services provided to transients, migrants,
patients who die with no assets, bankruptcies, etc.
Bad debt expense is recorded annually by the Finance Department, based on historical
receivables turnover. Consequently, there is no direct fiscal or budggiga impact as a result of
this write -off. Detailed reports listing the accounts to be removed are on file in the Office of
Emergency Medical Services and the Clerk's Board Minutes and Records Department.
Those accounts which may be collectible have been sent to the County's contracted collection
agency and any payments received will be processed through the Board's accounting system.
FISCAL IMPACT: There is no direct fiscal or budgetary impact. The accounts and amounts to
be removed from the General Ledger have been recognized as bad debt in prior years.
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10/11/2011 Item 161.1.
,•-N LEGAL CONSIDERATIONS: County Resolution No. 08 -27, Section 2. H and I, provides for
removing these accounts from the Emergency Medical Services Fund (Fund 490) general ledger.
This item is legally sufficient and requires a majority vote for consideration by the Board of
County Commissioners. - JBW
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated
with this action.
RECOMMENDATION: Adopt a resolution authorizing the removal of 4,974 individual
accounts with a total receivable balance of $6,954,193.53 from the Emergency Medical Services
Fund (Fund 490) general ledger. The Allowance for Doubtful Accounts in the general ledger
will be reduced by a like amount.
PREPARED BY: Cindy Long, Billing Accountant, Emergency Medical Services
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10/11/2011 Item 16. F.1.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.1.
Item Summary: Recommendation to adopt a resolution authorizing removal of 4,974
ambulance service accounts and their respective account receivable balances which total
$6,954,193.53 from the General Ledger of Collier County Fund 490 (Emergency Medical
Services). Although the amount has been recognized and recorded as Bad Debt Expense in the
General Ledger, it cannot be removed without Board adoption of an authorizing resolution.
Meeting Date: 10/11/2011
Prepared By
Name: BayArtie
Title: Supervisor - Accounting,EMS Operations
8/24/2011 11:37:55 AM
Approved By
Name: WhiteJennifer
Title: Assistant County Attomey,County Attorney
Date: 8/25/20114:11:24 PM
Name: SummersDan
Title: Director - Bureau of Emergency Services,
Date: 8/26/2011 10:58:05 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 8/29/2011 11:41:33 AM
Name: PryorCheryl
Title: Management/ Budget Analyst, Senior,Office of Management & Budget
Date: 9/19/2011 1:36:57 PM
Name: OchsLeo
Title: County Manager
Date: 10/4/20119:27:27 AM
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10/11/2011 Item 161.1.
RESOLUTION NO. 2011-
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 PREVIOUSLY RECOGNIZED AND RECORDED AS BAD DEBT
EXPENSES.
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 or due to contractual arrangements cannot be collected; and
WHEREAS, the County's procedure for receivable management includes the periodic
recognition of bad debt expense in the books and records for accounts that have been identified
as un- collectible; and
WHEREAS, the County's accepted and practiced accounting method to recognize bad
debt is a periodic bad debt recognition, based on historical receivables turnover; 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 General Ledger;
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:
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10/11/2011 Item 161.1.
1. The following chart sets forth the charges billed, the portion uncollectiblc due to
statutory prohibitions and Board contractual arrangements, the amount collected and the balance
of accounts receivable to be written off:
Contractual 8
Gross Charges Other Amount Collection Write-Off Write -Off Total
Fiscal Year Billed Adjustments Net Billed Collected Net % Amount % Accounts
22,096,771.52 5,837,070.36 16,259,70L16 9„305,507.63 57"X. 6,954,19353 43% 4.974
2. The Board authorizes staff to remove $6,954,193.53 from the Board's Emergency
Medical Services Fund General Ledger control account for Accounts Receivable, and a like
amount will be removed from the Allowance for Doubtful Accounts General Ledger control
account.
This Resolution adopted on this 11th day of October, 2011 after motion, second and
majority vote favoring adoption.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, CLERK OF COLLIER COUNTY, FLORIDA
By:
DEPUTY CLERK FRED W. COYLE, CHAIRMAN
Approval as to form and legal Sufficiency:
Jennife B. White
Assistant County Attorney
i
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