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Agenda 02/28/2023 Item #16D 4 (Resolution - Removing the uncollectivle accounts fo $53,747.18 from the financial records of the Library Division)16.D.4 02/28/2023 EXECUTIVE SUMMARY Recommendation to approve and authorize the removal of uncollectible accounts receivables in the amount of $53,747.18 from the financial records of the Library Division in accordance with Resolution No. 2006-252, determine that adjustment is in the best interest of the County, and authorize the Chairman to execute the attached Resolution. OBJECTIVE: To reflect proper accounts receivable balances in the County's financial records by writing off uncollectible debt in the amount of $53,747.18. CONSIDERATIONS: A review of accounts receivable for the likelihood of collection is required by Resolution No. 2006-252 during each fiscal year-end. Following diligent efforts to collect these past amounts, including an initial automated telephone call when the item is about to be due to see if a renewal of the item is desired then a second automated telephone call occurs the day after the item was due. If the item has not been returned at this time a mailed letter of notice is sent no later than when the item is 30 days late and the patron's library accounts is locked so that the patron cannot use the account until the item is returned and amounts paid. A second letter of notice is sent at 60 days late, if the has not been returned or amounts paid. A third letter of notice is then sent if not resolved that has a bill for the amount due to the Libraries. The Library Division has not turned the accounts over to the County's debt collection agency since the patron's account is locked and further usage of the account cannot occur until amounts due are paid. The Library Division Director has determined that the identified receivables attached to this Executive Summary are uncollectible and have complied with Board Resolution 2006-252. These transactions have been in accounts receivables with collection efforts for at least five (5) years. The Division collected $186,768.12 in lost materials, processing fees, and overdue fines for FY 2017-2018. Over 2 million library materials checked out during FY 2017-2018, approximately 0.01% were not returned by borrowers. 99.99% were returned. The value of the materials and the processing fees incurred on these unreturned materials is $23,035.18. Additionally, $30,712 in overdue fines were not paid on 15,491 materials. The total amount unpaid is $53,747.18 was the result of 872 library patrons. This review is performed annually by the Library Division staff and Division Director in compliance with Resolution No. 2006-252. FISCAL IMPACT: An allowance for uncollectible accounts will be charged to remove the total amount of $53,747.18 from the Library Division General Fund. GROWTH MANAGEMENT IMPACT: None. 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 accounts receivables in the amount of $53,747.18 from the financial records of the Library Division in accordance with Resolution No. 2006- 252, determine that adjustment is in the best interest of the County, and authorize the Chairman to execute the attached Resolution. Prepared By: Yahaira Magee, Budget Analyst I, Operations and Veterans Services Division ATTACHMENT(S) 1. Resolution (rev2) Library aged accounts - JAK signed 02.22.2023 (PDF) 2. Resolution 2006-252 (PDF) Packet Pg. 887 16. D.4 02/28/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.4 Doc ID: 24719 Item Summary: *** This Item continued from the January 10, 2023, BCC Meeting. *** Recommendation to approve and authorize the removal of uncollectible accounts receivables in the amount of $53,747.18 from the financial records of the Library Division in accordance with Resolution No. 2006-252, determine that adjustment is in the best interest of the County, and authorize the Chairman to execute the attached Resolution. Meeting Date: 02/28/2023 Prepared by: Title: Administrative Assistant — Library Name: Karen Tibbetts 02/15/2023 1:05 PM Submitted by: Title: — Library Name: Catherine Cowser 02/15/2023 1:05 PM Approved By: Review: Library Catherine Cowser Director Review Operations & Veteran Services Jeff Newman Additional Reviewer Public Services Department Todd Henry PSD Level 1 Reviewer Public Services Department Tanya Williams PSD Department Head Review Corporate Compliance and Continuous Improvement Megan Gaillard Office of Management and Budget County Attorney's Office Office of Management and Budget Community & Human Services County Manager's Office Board of County Commissioners Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Christopher Johnson Additional Reviewer Maggie Lopez Additional Reviewer Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 02/15/2023 3:03 PM Completed 02/17/2023 10:02 AM Completed 02/21/2023 11:43 AM Completed 02/22/2023 7:02 AM Additional Reviewer Completed 02/22/2023 10:45 AM Completed 02/22/2023 10:49 AM Completed 02/22/2023 10:50 AM Completed 02/22/2023 12:48 PM Completed 02/22/2023 12:52 PM Completed 02/22/2023 1:17 PM 02/28/2023 9:00 AM Packet Pg. 888 16. D.4.b RESOLUTION NO.2023 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO REMOVE 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 THE FINANCIAL RECORDS OF THE LIBRARY DIVISION. WHEREAS, pursuant to Resolution 2006-252, the Board of County Commissioners (Board) has established a procedure to remove past due accounts from active accounts receivable where diligent efforts at collection have proved unsuccessful; and WHEREAS, this adjustment is proper and in the best interest of the county because the amounts were deemed uncollectible after multiple attempts; and WHEREAS, the Library staff completed diligent efforts to collect these past amounts, including an initial automated telephone call when the item is about to be due to see if a renewal of the item is desired then a second automated telephone call occurs the day after the item was due. If the item has not been returned at this time a mailed letter of notice is sent no later than when the item is 30 days late and the patron's library accounts is locked so that the patron cannot use the account until the item is returned and amounts paid. A second letter of notice is sent at 60 days late, if the has not been returned or amounts paid. A third letter of notice is then sent if not resolved that has a bill for the amount due to the Libraries. The Library Division has not turned the accounts over to the County's debt collection agency since the patron's account is locked and further usage of the account cannot occur until amounts due are paid. The Library Division Director has determined that the identified receivables attached to this Executive Summary are uncollectible and have complied with Board Resolution 2006-252.; and WHEREAS, Collier County Public Library Division has diligently attempted, without success, to collect on past due accounts totaling $23,035.18 for materials not returned and service fees, and $30,712.00 for overdue fines of materials returned by patrons listed within active accounts receivable records; and WHEREAS, all items requested for removal are aged at least five (5) years; and WHEREAS, the Library Advisory Board is recommending that the Board remove past aged accounts receivable from active accounts receivable. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The Board finds that the Collier County Public Library Division 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, the Library Division is notable to collect the debts of materials not returned and service fees of $23,035.18 or the $30,712.00 in overdue fines that were not paid on materials returned by patrons. 3. The Board finds that the total amount of $53,747.18 may be removed from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law by Resolution. [22-soC-00977/ 176050 I / ]] Packet Pg. 889 THIS RESOLUTION ADOPTED after motion, second and majority vote, this 281h day of February, 2023. ATTEST: CRYSTAL K. KINZEL, CLERK , Deputy Clerk [22-SOC-00977/1760501/1 1 BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA IIn Rick LoCastro, Chairman Packet Pg. 890 16. D.4.c 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 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 h 6pr 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By 4 AS i �: Frank Halas, Chairman $IQn tArt �tr Approve and legal sufficiency: r ., L4 AA OL, A ,J illiam Wountford, Assi t County Attorney Packet Pg. 891 16. D.4.c 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. 892