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Agenda 12/08/2015 Item #16C 112/8/2015 16.C.1. EXECUTIVE SUMMARY Recommendation to approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of Collier County Public Utilities Department in the amount of $26,159.12. OBJECTIVE: Remove uncollectible balances from the Accounts Receivable Ledger for prior years to accurately represent the true asset balance for the Collier County Water - Sewer District ( CCWSD). CONSIDERATION: Accounts receivable management includes the periodic recognition of bad debt expense in the financial records for accounts that have been identified as uncollectible. All amounts recommended for removal from the accounts receivable balances exceed the four (4) year statute of limitations for collection, or, for commercial can accounts, where the registered entity has gone out of business. The annual review of all accounts receivable balances as of September 30, 2015 within the CCWSD was completed as part of the Fiscal 2015 year -end reports. The write off amount of $26,159.12 is 1% of the total accounts receivable balances of $2,668,450 due on September 30, 2015. Collection efforts for receivable balances included in this recommendation have been exhausted (Exhibit 1). A summary by write -off category for each receivable balance follows. Write Off Summary Account Type Exceeds Statute of Limitations Out of Business Balance Transfers not completed timely Total Fund 408 Water /Sewer Bankruptcy Accounts $5,178.78 $5,178.78 Fund 408 Water /Sewer Accounts $18,628.80 $18,628.80 Fund 408 Water /Sewer Accounts $2,085.22 $2,085.22 Fund 473 Mandatory Collections $266.32 $266.32 Totals $23,807.58 $266.32 $2,085.22 $26,159.12 Fund (408) Water /Sewer Accounts Receivable The accounts receivable balance of $5,178.78 represents 18 utility account balances for customers that have declared bankruptcy and are more than four years old, exceeding the statute of limitation for collection. In addition, there are 38 accounts totaling $18,628.80. This total represents the unpaid balance as of 9/30/15 that exceed the statute of limitations for collection primarily for existing homes with certificates of occupancy that continue to accrue base charges though no consumption has registered (and therefore considered abandoned). Additionally there are 15 accounts totaling $2,085.22 where balance transfers from the selling owner to the buying owner were not transferred in a timely manner. Fund (473) — Solid Waste Commercial Can Accounts Packet Page -683- The accounts receivable balance of $266.32 accounts where the customer has gone out of t GROWTH MANAGEMENT IMPACT: associated with this action. 12/8/2015 16.C.1. sents 4 solid waste commercial can is no growth management impact LEGAL CONSIDERATIONS: This item has �een reviewed by the County Attorney, is in conformance with Resolution No. 2006 -252 and as such is approved as to form and legality. This item requires majority vote for approval. -JAK FISCAL IMPACT: Removal of accounts recei able balances will increase the bad debt expense • in the Collier County Water -Sewer District Operating Fund (408) by $25,892.80; • in the Mandatory Collections Fund (473) by $266.32. RECOMMENDATIQ,NN: That the Board of County Commissioners,. the Governing Board of the Collier County Water -Sewer Di�trict, approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of the Collier County Public Utilities Department in the amount of $26,159.12; and, approve a total write -off in the amount of $26,15q.12. PREPARED BY: Teresa Riesen, Revenue Attachments: Exhibit 1 Account Balance detail Resolution 2015- i 2 i Packet Page - §84- Financial Operations Division 12/8/2015 16.C.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.C.16.C.1. Item Summary: Recommendation to approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of Collier County Public Utilities Department in the amount of $26,159.12. Meeting Date: 12/8/2015 Prepared By Name: HendricksonLisa Title: Operations Coordinator, Utilities Finance Operations 10/30/2015 2:29:34 PM Submitted by Title: Manager - Revenue, Utilities Finance Operations Name: RiesenTeresa 10/30/2015 2:29:36 PM Approved By Name: RiesenTeresa Title: Manager - Revenue, Utilities Finance Operations Date: 11/2/2015 7:04:35 AM Name: Joseph Bellone Title: Division Director - Operations Support, Utilities Finance Operations Date: 11/2/2015 7:34:48 AM Name: HapkeMargie Title: Recycling Coordinator, Solid & Hazardous Waste Management Date: 11/2/2015 8:34:11 AM Name: Pam Callis Title: Supervisor - Accounting, Utilities Finance Operations Date: 11/4/2015 3:43:13 PM Packet Page -685- 12/8/2015 16.C.1. Name: KlatzkowJeff Title: County Attorney, Date: 11/9/2015 10:55:31 AM Name: YilmazGeorge Title: Department Head - Public Utilities, Public Utilities Department Date: 11/18/2015 6:21:19 AM Name: KlatzkowJeff Title: County Attorney, Date: 11/18/2015 9:14:56 AM Name: FinnEd Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: 11/19/2015 5:47:40 PM Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 11/23/2015 5:27:06 PM n rdmlh Packet Page -686- 12/8/2015 16.C.1. N N N N Ul N N N U) N U1 Uf N M U) U) V1 N C C C C C C C C C C C C C C C C C C a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i.. Y iC! 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RESOLUTION NO. 2015 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS EX- OFFICIO THE GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT, TO REMOVE UNCOLLECTABLE ACCOUNTS RECEIVABLES FROM ACTIVE ACCOUNTS RECEIVABLE FINDING THAT DILIGENT EFFORTS HAVE BEEN MADE TO RECAPTURE THE FUNDS AND THE ACCOUNTS ARE NOT COLLECTIBLE. WHEREAS, pursuant to Resolution No. 2006 -252, the Board of County Commissioners has established 'a procedure to remove past due accounts from active accounts receivable by Resolution where diligent efforts at collection have proved unsuccessful; and WHEREAS, the Financial Operations Division has identified delinquent accounts within Fund 408 (Water /Sewer) comprising a total amount of $25, 892.80, which are uncollectabie as a result of a declaration of bankruptcy, an expiration of the statute of limitations or because the accounts were not otherwise transferred upon a change of the ownership of the property; and WHEREAS, the Financial Operations Division has identified four (4) delinquent accounts in Fund 473 (Solid Waste Mandatory Collections) in the total amount of $266.32 that are uncollectable because the customers for those accounts are no longer doing business; and WHEREAS, the County is unable to obtain reimbursement for payments owed despite its diligent collection efforts. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: The Board finds that Collier County made diluent efforts to collect the following accounts receivable: Fund 408 (Water /Sewer) - $25,892,80 Fund 473 (Solid Waste Mandatory Collections) - $266.32 This Resolution adopted this 8th day of December 2015, after motion, second and majority vote. ATTEST: DWIGHT E BROCK, CLERK. go , DEPUTY CLERK Approved as to form and legality: Jeffrey A. Klatzkow, County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA ma "I'I:M NANCE, CHAIRMAN Packet Page -691-