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Agenda 09/22/2020 Item #16A15 (Resolution - removal of uncollectibles)09/22/2020 EXECUTIVE SUMMARY Recommendation to approve and authorize the removal of uncollectible receivables in the amount of $2,570.79 from the financial records of the Airport Authority Fund (495) and $4,777.24 from the financial records of Transportation Gas Tax Fund (313) in accordance with Resolution 2006-252 and authorize the Chair to execute the attached Resolution. OBJECTIVE: For the Board of County Commissioners (BCC) to authorize the removal of past -due accounts receivable considered uncollectible within Airport Authority Fund (495) and Transportation Gas Tax Fund (313), in the amount of $2,570.79 and $4,777.24, respectively, in order to reflect proper accounts receivable balances in the county financial records. CONSIDERATIONS: A review of accounts receivable for the likelihood of collection is required by Resolution 2006-252 during each fiscal year-end. After exhausting research and collection efforts, staff has discontinued efforts to collect the list of miscellaneous receivables attached as an exhibit to this Executive Summary. All items requested for removal are now considered uncollectible after diligent efforts have been exhausted. The Airport Authority's operations generated approximately $4.9 million in revenue this past fiscal year. The records to be removed constitute less than .053% of annual generated annual revenues. Transportation Gas Tax Fund (313) has received approximately $15.4 million in revenue this fiscal year. The records to be removed constitute less than .032% of annual revenues. This exercise will continue to be performed on an annual basis at fiscal year-end by the GMD Financial Support staff to remain in compliance with the BCC adopted Resolution 2006-252. FISCAL IMPACT: An allowance for uncollectible accounts will be charged $2,570.79 and $4,777.24 to remove the uncollectible amounts from Airport Authority Fund (495) and Transportation Gas Tax Fund (313), respectively. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: To approve and authorize the removal of uncollectible receivables in the amount of $2,570.79 from the financial records of the Airport Authority Fund (495) and $4,777.24 from the financial records of the Transportation Gas Tax Fund (313) in accordance with Resolution 2006-252, and authorize the Chair to execute the attached Resolution. Prepared by: Christopher Johnson, Financial & Operational Support Manager, GMD Operations Support Division ATTACHMENT(S) 1. Resolution 2006-252 (PDF) 2. Resolution - uncollectible account write off - GMD (PDF) 3. AR-09.02.2020 (PDF) Packet Pg. 1065 16.A.15 09/22/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.A.15 Doe ID: 13474 Item Summary: Recommendation to approve and authorize the removal of uncollectible receivables in the amount of $2,570.79 from the financial records of the Airport Authority Fund (495) and $4,777.24 from the financial records of Transportation Gas Tax Fund (313) in accordance with Resolution 2006-252 and authorize the Chair to execute the attached Resolution. Meeting Date: 09/22/2020 Prepared by: Title: Accountant, Senior — Growth Management Operations Support Name: Christopher Johnson 09/04/2020 1:31 PM Submitted by: Title: Division Director - Operations Support — Growth Management Department Name: Gene Shue 09/04/2020 1:31 PM Approved By: Review: Growth Management Department Growth Management Department Growth Management Department Office of Management and Budget County Attorney's Office Budget and Management Office County Manager's Office Board of County Commissioners Judy Puig Level 1 Reviewer Gene Shue Additional Reviewer Thaddeus Cohen Department Head Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Mark Isackson Additional Reviewer Nick Casalanguida Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 09/04/2020 1:54 PM Completed 09/08/2020 9:01 AM Completed 09/08/2020 2:09 PM Completed 09/08/2020 3:09 PM Completed 09/09/2020 12:56 PM Completed 09/09/2020 3:29 PM Completed 09/15/2020 10:06 AM 09/22/2020 9:00 AM Packet Pg. 1066 16.A.15.a 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& m day of 6er 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By. aAUA_' 1 #1 1A 6 nc By: _01 At use h� 1rssA Frank Halas, Chairman ! 1 On�t�rr � Approve as to NA and legal sufficiency: illiam �ountfordAssis t County Attorney c 0 a a� r 0 c M N LO N 0 0 N c 0 0 a� r a� s U a Packet Pg. 1067 16.A.15.a 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 Pg. 1068 16.A.15. b RESOLUTION NO. 2020 - A 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, pursuant to Resolution No. 2006-252, the Board of County Commissioners (Board) 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 Growth Management Department staff has diligently attempted, without success, to collect on past -due accounts totaling $2,570.79 within Airport Authority Fund (495), and $4,777.24 within Transportation Gas Tax Fund (313). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that: 1. The Board finds that the Collier County Growth Management Department staff 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 these accounts are uncollectible. 3. The Board finds that the past -due amounts totaling $2,570.79 within Airport Authority Fund (495), and $4,777.24 within Transportation Gas Tax Fund (313), may be removed from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law. THIS RESOLUTION ADOPTED upon majority vote, this day of 92020. ATTEST BOARD OF COUNTY COMMISSIONERS CRYSTAL K. KINZEL, Clerk COLLIER COUNTY, FLORIDA IC , Deputy Clerk Burt L. 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