Agenda 09/28/2010 Item #16F 3
Agenda Item No. 16F3
September 28, 2010
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation to adopt a resolution authorizing removal of 15,376 ambulance service
accounts and their respective account receivable balances which total $11,549,642.92, from
the general ledger of Collier County Fund 490 (Emergency Medical Services). Although
the amount was recognized and recorded as Bad Debt Expense during Fiscal Years 2006
and 2007, it cannot be removed without Board adoption of an authorizing resolution.
OBJECTIVE: Adoption of a resolution authorizing the removal of $11,549,642.92 in
ambulance service fee receivables from the general ledger for Fund 490 (Emergency Medical
Services). This request represents total ambulance service fees and 15,376 accounts that have
been deemed uncollectible for Fiscal Years 2006 and 2007.
CONSIDERATIONS: Collier County began providing emergency ambulance transportation
services in 1981. Unlike the majority of governmental services provided by the County, where
fees are normally received before services are provided; emergency ambulance services are
provided and fees are received after the fact. This "service before fee" scenario is primarily due
to the County's responsibility to protect the public health, safety and welfare.
The chart below identifies ambulance service fee activity for Fiscal Years 2006 and 2007.
Fiscal Gre$S Chafg.. Cont ,adual & Nut BIlled Amount Colhu::llO'n WrUe.Oft" Writllt.OfJ To1al
Ye.ar Billed Other Collected " Amount " Aceou nts
Adjustments
06 18.926.5104.10 5,020.738 43 13 ,9::15 ,775 67 8.257.353.23 59% 5,648,0:22 44 "1% 7,727
07 20.265.66563 5,~18.97916 14,846.666 .lI7 8'.9045,.1165,99 60% 5,S(J1,220 48 40% 8,149
T.ot.l 3:9.192.179.73 lQ:,l;I3~, 717.59 2S,7S2,4b2.14 17,102.81',21 60% lL549,.6l;12,92 40% 15,376
As can be seen in the preceding chart, there are two types of adjustments that can be made to an
ambulance service account. They are contractual andlor 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 uncollectible accounts that are determined by a variety of
reasons, including patients that cannot be located, individuals who either refuse to payor cannot
pay and for services provided to transients, migrants, patients who die with no assets,
bankruptcies, etc. These accounts have been turned over to a collection agency where
permissible. Any of these accounts for which a payment might be received will be processed
through the Board's accounting system.
Computer printouts 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.
Agenda Item No. 16F3
September 28, 2010
Page 2 of 5
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.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. - .lBW,
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated
with this action.
RECOMMENDATION: Adopt a resolution authorizing the removal of 15,376 individual
accounts with a total receivable balance of $11,549,642.92 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: Artie Bay, Supervisor - Accounting, Emergency Medical Services
Item Number:
Item Summary:
Meeting Date,
Agenda Item No. 16F3
September 28, 2010
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16F3
Recommendation to adopt a resolution authorizing removal of 15,376 ambulance service
accounts and their respective account receivable balances which total $11,549,642.92, from
the general ledger of Collier County Fund 490 (Emergency Medical Services). Although the
amount was recognized and recorded as Bad Debt Expense during Fiscal Years 2006 and
2007, it cannot be removed without Board adoption of an authorizing resolution.
9/28/20109:00:00 AM
Prepared By
A rtie Bay
Bureau of Emergency
Serv ices
Senior Administrative Assistant
Date
EMS
9/15/201011:16:50 AM
Approved By
Jeff Page
Bureau of Emergency
Services
Chief ~ Emergency Medical Services
Date
EMS Operations
9/151201011:22 AM
Approved By
Dan E. Summers
Bureau of Emergency
Services and Emergency
Management
Director of Emergency Services
Date
Bureau of Emergency Services and
Emergency Management
9/16/201011:32 AM
Approved By
Jennifer White
County Attorney
Assistant County Attorney
Date
County Attorney
9/16/20102:37 PM
Approved By
Jeff Klatzkow
County Attorney
Date
Approved By
9/17/20108:44 AM
OMS Coordinator
County Manager's Office
Date
Offlce of Management & Budget
9/17/20109:23 AM
Approved By
Sherry Pryor
Office of Management &
Budget
ManagemenU Budget Analyst. Senior
Date
Office of Management & Budget
9/17/20102:22 PM
Approved By
Leo E. Ochs, Jr,
County Managers Office
County Manager
Date
County Managers Office
9/19/2010 10:43 AM
Agenda Item No. 16F3
September 28, 2010
Page 4 of 5
RESOLUTION NO. 2010-
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 (normally on a monthly basis) 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 or monthly bad debt recognition, which is a percentage of the total billed in the
month; and
WHEREAS, Rule 691-71, 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:
Agenda Item No. 16F3
September 28, 2010
Page 5 of 5
1. The following chart sets forth the charges billed, the portion uncollectible due to
statutory prohibitions and Board contractual arrangements, the amount collected and the balance
of accounts receivable to be written off:
Fiscal Gross Charges Comrtlctual & Net Billed Amount Collection Write-Off Write-Off Tota'
Year Billed Other Collected % Arnoum % Accounts
Adjustments
06 18~26,5U.10 5,020,738.43 13,905,77567 8.257.353.23 59% 5,648,422.44 41% 7;277
07 20~65.665.63 5,418,979.16 14,846,68647 8,945,465.99 60% 5.901,220.tS 40% 8,149
Total 39,192,179.73 10,439,717.59 28,752,462.1/1 17,202,819.22 60% 11,5<'19,642. S2 40% 15,376
2. The Board authorizes staff to remove $11,549,642.92 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 28th day of September, 2010 after motion, second and
majority vote favoring adoption.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
, DEPUTY CLERK
By:
FRED W. COYLE, CHAIRMAN
Approval as to form and legal Sufficiency:
'"'i 1?)10"\r....--,-<-
Jenn'iI'e'r B. White
Assistant County Attorney
2