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Agenda 12/10/2019 Item #16C 2 (Resolution - Uncollectable Accounts Public Utilities)12/10/2019 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 $16,700.64 OBJECTIVE: Remove uncollectible balances from the Accounts Receivable Ledger for prior years to accurately represent the true asset balances. CONSIDERATIONS: Accounts receivable management includes the periodic recognition of bad debt expense for accounts that have been identified as uncollectible. Amounts recommended for removal from the accounts receivable include water and sewer uncollected customer’s account balances, Solid Waste disposal ticket, a mandatory solid waste fee and miscellaneous billing accounts. The annual review of all accounts receivable balances as of September 30, 2019 was completed as part of the Fiscal 2019 year-end reports. Collection efforts for unpaid balances included in this recommendation have been exhausted (Exhibit 1). A summary by write-off category for each receivable balance follows. Reason CCWSD Operating (408) Landfill Operating (470) Mandatory Collections (473) Total Exceeds Statute of Limitations $3,695.09 $3,695.09 Errors and Omissions $3,023.82 $3,023.82 Golden Gate Acquired Accounts $9,692.14 $9,692.14 Misc. Billings $75.00 $57.83 $132.83 Landfill Transactions $156.76 $156.76 Totals $16,486.05 $156.76 $57.83 $16,700.64 Fund (408) Water/Sewer Accounts Receivable: The balance of $3,695.09 represents 7 utility account balances for customers that are more than four years old, exceeding the statute of limitation for collection. Water/Sewer Errors and Omissions: Throughout the fiscal year, there are some prorations that need to occur following transfer of property ownership. The amount of $3,023.82 represents balances not transferred in a timely manner. Water/Sewer Accounts Receivable (Golden Gate System): The balance of $9,692.14 represents 36 tenant account balances, acquired in the acquisition of the Golden Gate Utility System for customers that left unpaid balances upon moving out of the property and determined to be uncollectable. Miscellaneous Billing: The balance of $75.00 represents one account where company went out of business. 16.C.2 Packet Pg. 2011 12/10/2019 Fund 470 Landfill Prepay Account: The accounts receivable balance in the amount of $156.76 represents one landfill customer whose credit card transaction of $78.00 did not clear and we were unable to locate customer to collect the funds. The amount of $78.76 represents 52 customer’s account balances under $5.00 as outlined in the attachment. Fund 473 Mandatory Solid Waste: The balance of $57.83 represents Solid Waste fees not collected at time of CO. Property ownership transferred was not disclosed/collected at time of closing. We are unable to locate old owner. FISCAL IMPACT: Removal of accounts receivable balances will increase the bad debt expense: in the Collier County Water-Sewer District Operating Fund (408) by $16,486.05 in Landfill Billing Fund (470) by $156.76 in the Mandatory Collections Fund (473) by $57.83 GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item 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. - JAB RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Water-Sewer District, approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of the Collier County Public Utilities Department and approve a total write-off in the amount of $16,700.64. PREPARED BY: Annia M. Machin, UBCS Manager, Financial Operations Division 16.C.2 Packet Pg. 2012 12/10/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.2 Doc ID: 10771 Item Summary: Recommendation to approve a Resolution removing uncollectible accounts receivable and their respective balances from the financial records of Collier County P ublic Utilities Department in the amount of $16,700.64 Meeting Date: 12/10/2019 Prepared by: Title: Operations Analyst – Public Utilities Operations Support Name: Heather Sweet 11/05/2019 5:20 PM Submitted by: Title: Operations Analyst – Public Utilities Operations Support Name: Heather Sweet 11/05/2019 5:20 PM Approved By: Review: Public Utilities Operations Support Annia Machin Additional Reviewer Completed 11/06/2019 8:15 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/07/2019 10:14 AM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 11/15/2019 8:36 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 11/15/2019 9:30 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/15/2019 3:07 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/18/2019 10:16 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/19/2019 10:58 AM Budget and Management Office Ed Finn Additional Reviewer Completed 11/19/2019 2:49 PM County Manager's Office Sean Callahan Level 4 County Manager Review Completed 11/25/2019 9:14 AM Board of County Commissioners MaryJo Brock Meeting Pending 12/10/2019 9:00 AM 16.C.2 Packet Pg. 2013