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Agenda 11/10/2020 Item #16D 2 (Resolution - Removal of uncollectible accounts)16.D.2 11/10/2020 EXECUTIVE SUMMARY Recommendation to approve and authorize the removal of uncollectible accounts receivables in the amount of $123,465.57 from the financial records of the Library Division in accordance with Resolution No. 2006-252 and authorizes 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 $123,465.57. 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 mailed notices, telephone calls, and locking patron library accounts from further use, the Library Division has determined that the identified receivables attached to this Executive Summary are uncollectible. These transactions have been in accounts receivables with collection efforts for at least five (5) years. The Division collected $740,841.85 in lost materials, processing fees, and overdue fines for FY 2015- 2016. Of the over 2.3 million library materials checked out during FY 2015-2016, approximately 0.15% were not returned by borrowers. 99.85% were returned. The value of the materials and the processing fees incurred on these materials is $87,234.14. Additionally, $36,222.43 in overdue fines was not paid on 20,766 materials that were returned late by library patrons. The total amount unpaid is $123,465.57. This review is performed annually by the Library Division staff in compliance with Resolution No. 2006- 252. FISCAL IMPACT: An allowance for uncollectible accounts will be charged to remove the total amount of $123,465.57 from the Library Division general fund budget. 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 $123,465.57 from the financial records of the Library Division in accordance with Resolution No. 2006-252 and authorizes the Chairman to execute the attached Resolution. Prepared By: Tanya Williams, Library Director, Library Division ATTACHMENT(S) 1. FY 2016 Aged Accounts Final (DOCX) 2. Resolution 2006_252 (PDF) 3. Resolution Library Accounts Receivable-JAK signed (PDF) Packet Pg. 1609 16.D.2 11/10/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.13.2 Doe ID: 13948 Item Summary: Recommendation to approve and authorize the removal of uncollectible accounts receivables in the amount of $123,465.57 from the financial records of the Library Division in accordance with Resolution No. 2006-252 and authorizes the Chairman to execute the attached Resolution. Meeting Date: 11/10/2020 Prepared by: Title: Administrative Assistant Library Name: Karen Tibbetts 10/16/2020 9:11 AM Submitted by: Title: Division Director - Library — Library Name: Tanya Williams 10/16/2020 9:11 AM Approved By: Review: Library Operations & Veteran Services Public Services Department Public Services Department Office of Management and Budget Budget and Management Office County Attorney's Office County Manager's Office Board of County Commissioners Tanya Williams Additional Reviewer Kimberley Grant Level 1 Reviewer Todd Henry Level 1 Division Reviewer Steve Carnell Level 2 Division Administrator Review Debra Windsor Level 3 OMB Gatekeeper Review Ed Finn Additional Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Nick Casalanguida Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 10/16/2020 9:35 AM Completed 10/20/2020 3:52 PM Completed 10/21/2020 11:24 AM Completed 10/27/2020 5:14 PM Completed 10/28/2020 8:24 AM Completed 10/28/2020 9:40 AM Completed 10/28/2020 10:45 AM Completed 11/01/2020 8:06 AM 11/10/2020 9:00 AM Packet Pg. 1610 16.D.2.a Overdue Fines, Fees and Materials Not Returned FY 2015 - 2016 Fees Owed/Materials Not Returned 87,243.14 Fines Only (Overdues) $ 36,222.43 Total FY16 System -wide Circulation 2,320,697 Number of Items Overdue/Fines Number of Items Not Paid Not Returned 20,766 1 3,372 123,465.57 Percentage of items checked -out, but not returned 0.15 Packet Pg. 1611 16.D.2.b 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& °i day of h 6Pr 2006. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By By. "IV as Cie r Frank Halas, Chairman 1 o airs i rt Approves as to phi and legal sufficiency: illiam ountford, Assi t County Attorney Packet Pg. 1612 16.D.2.b 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. 1613 16.D.2.c RESOLUTION NO.2020- 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, Collier County Public Library Division diligently attempted, without success, to collect on past due accounts totaling $87,243.14 for materials not returned and service fees, and $36,222.43 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 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 $87,243.14 or the $36,222.43 in overdue fines that were not paid on materials returned by patrons. 3. The Board finds that the total amount of $123,465.57 may be removed from active accounts receivable in accordance with generally accepted accounting procedures and pursuant to law by Resolution. THIS RESOLUTION ADOPTED after motion, second and majority vote, this day of , 2020. ATTEST: BOARD OF COUNTY COMMISSIONERS CRYSTAL K. KINZEL, CLERK COLLIER COUNTY, FLORIDA LN , Deputy Clerk Approvfl'd,�m and legality: Jeffrey'41Klaftk'c*, County Attorney 2020 Resolution — L% ollectible Fines and Fees Collier County Public Library Burt Saunders, Chairman Packet Pg. 1614