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3. general Accounts – Write offs 2007 COMPTES GÉNÉRAUX – RADIATIONS POUR 2007 |
Que le Conseil prenne connaissance du présent rapport sur les radiations effectuées aux comptes généraux de 2007, conformément à l’annexe E, 24 du Règlement municipal 2005-503 sur la délégation de pouvoirs.
Documentation
1. City Treasurer’s report dated 3 November 2008
(ACS2008-CMR-FIN-0051)
Corporate Services and Economic Development
Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
3 November 2008/le 3 novembre 2008
Submitted by/Soumis par : Marian Simulik, City Treasurer, Trésorière
municipale
Contact Person/Personne ressource : Ken Hughes, Manager of Revenue/
Gestionnaire, Recettes
Financial
Services/Services financiers
(613)
580-2424 x 13485, Ken.Hughes@ottawa.ca
SUBJECT:
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OBJET :
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That the
Corporate Services and Economic Development Committee and Council receive this
report on 2007 general accounts written off for information, as
required pursuant to Schedule E, 24 of the Delegation of Authority By-law
2005-503.
Que le Comité des services organisationnels et du développement économique et le Conseil prennent connaissance du présent rapport sur les radiations effectuées aux comptes généraux de 2007, conformément à l’annexe E, 24 du Règlement municipal 2005-503 sur la délégation de pouvoirs.
Financial Services, Revenue Division is responsible for the collection of all accounts billed through the City’s Financial System. The City invoices for a variety of services such as residential and commercial rents, OC Transpo fare media, damage to City property, returned cheques, and paid duty police service. The services mentioned are only a few examples of the hundreds of services or reasons the City prepares and sends invoices.
In 2007, the City invoiced just over $182 million. The Revenue Division has implemented a rigorous process for follow-up, prescribed collection activities as well as partnering with three private collection agencies to collect outstanding balances. This report addresses the accounts where collection was not successful due to a variety of reasons.
Financial Services, Revenue Division makes every effort to collect all accounts receivable due to the City of Ottawa. Efforts include letters, telephone calls, service denial, accounts payable set-offs, referral to Legal Services to initiate a claim and assignment to private collection agencies. In some instances, for reasons that are often beyond the City’s control, full or partial amounts due cannot be paid. Some of the reasons are death, bankruptcy, indigence, Legal Services recommendation, expiry of the statute of limitations to commence a legal claim and administrative errors relating to the billing. The Statute of Limitations Act for initiating litigation to collect amounts owed binds the City. As of January 1st, 2004, the limitation period changed from six years to two years from the date of the incident to commence a legal claim.
In accordance with the Delegation of Authority by-law, the City Treasurer is authorized to write-off general accounts receivable which the City Treasurer has determined to be uncollectible.
The attached Document 1 outlines the accounts deemed uncollectible in 2007 that have been removed from the City’s financial system. The amounts written off against the Allowance for Doubtful Accounts totals $114,237.94 and represents 0.00062 percent of the City’s total billings for 2007.
The public consultation process is not applicable.
There is no financial implication as Financial Services had provided for the amount, $114,237.94 in the Allowance for Doubtful Accounts in the 2007 budget.
SUPPORTING DOCUMENTATION
Document 1 – List of Accounts
Receivable deemed uncollectible in 2007 (Distributed separately and on file
with the City Clerk)
Following consideration by Corporate Services and Economic Development Committee, this report will be forwarded to Council for its information.