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Agenda 12/10/2024 Item #16D 1 (Authorize the removal of uncollectible accounts receivables in the amount of $38,423.55 from the financial funds of the Library Division in accordance with Resolution No. 2006-252)12/10/2024 Item # 16.D.1 ID# 2024-1658 Executive Summary Recommendation to approve and authorize the removal of uncollectible accounts receivables in the amount of $38,423.55 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 $38,423.55. CONSIDERATIONS: A review of accounts receivable for the likelihood of collection is required by Resolution No. 2006-252 during each fiscal year. Collection efforts on outstanding amounts owed are made through both the Library’s automated circulation system and Library staff. As part of our service, all Library patrons receive a courtesy reminder telephone call or email three (3) days prior to material return due dates. If an item becomes past due for return, the Library’s automated circulation system will generate four (4) staggered communications by telephone call or email. When unpaid amounts reach thirty (30) days late, the Library patron’s account is locked from use until the materials are returned and owed amounts are paid. For materials kept beyond sixty (60) days, the patron is billed via email for the cost of the book and associated fines. The amount recommended for removal from accounts receivable includes late fines and fees for damaged or lost materials. The Division collected $290,039.45 from lost materials, processing fees, and overdue fines for FY 2019-2020. Over 1.6 million library materials were checked out during FY 2019-2020. Of those materials checked out, 99.96% were returned, but approximately .04% (~6,400) have not been returned by borrowers. The value of the ~6,400 unreturned materials, including incurred fines and fees, is $14,491.93. Additionally, 9,890 materials have outstanding overdue and unpaid fines of $23,931.62. This represents the total amount of the uncollectible balance of $38,423.55. This review is performed annually by the Library Division staff and Division Director in compliance with Resolution No. 2006-252. The Library Division Director has determined the identified receivables attached to this Executive Summary are uncollectible. These transactions have been delinquent in accounts receivables with collection efforts for at least four (4) years. FISCAL IMPACT: An allowance for uncollectible accounts will be charged to remove the total amount of $38,423.55 from the Library Division General Fund. (0001000000) 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 RECOMMENDATIONS: To approve and authorize the removal of uncollectible accounts receivables in the amount of $38,423.55 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: Catherine Cowser, Library Director ATTACHMENTS: 1. Fy 2020 Aged Accounts Report 2. Resolution 2006-252 3. Resolution removed aged accounts library Page 6542 of 10663 Page 6543 of 10663 Page 6544 of 10663 Page 6545 of 10663 Page 6546 of 10663