AGENDA MEMORANDUM

 

 

Meeting Date:           September 26, 2011

 

From:                          Jerry Boop, Finance Director, CPA, CGFO

 

Subject:                      Year End Write offs Fiscal Year 2009-2010

 

 

Staff Recommendation: No action is required.  This memo serves as formal notification to the City Commission pursuant to internal policy.  This has no impact on the operating (income) statement.  It simply reclassifies a portion of the accounts receivable on the balance sheet as uncollectible.

 

Analysis:

Internal policy requires that the Finance Director annually write off, at the end of each fiscal year, the previous year’s amount of accounts receivable determined to be uncollectible.  Uncollectible is defined as an account that is unpaid 120 days after the customer’s service has been terminated.  This policy does not prevent the City of Leesburg, from maintaining records on terminated accounts and subsequently collecting these amounts, should the customer attempt to renew service with the City.  Furthermore, when an account is written off pursuant to this policy, it has no impact on any pending or yet to be initiated collection efforts.  It has been the longstanding policy of the City that accounts are not written off until they remain in “C” (collection agency status) for one year.

 

At the end of the previous fiscal year the City reported a total of 1,529 past due utility accounts which were comprised of 77 commercial and 1,452 residential accounts totaling $586,949.  The revised deposit policy, implementation of FACTA and the combined diligence of the collections and customer service staff has reduced the total amount written off by $105,001.22 to 481,947.78 over the fiscal year.  In addition the City has recognized $66,663.29 in miscellaneous receivables as uncollectable bringing the total amount written off to 548,611.07. 

 

 

Options:

1.  Accept the information as presented; Or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The fiscal impact for these amounts has been recorded as bad debt expense in the City’s financial statements as a normal course of business throughout the fiscal year.

 

 

 

Submission Date and Time:    9/22/2011 10:02 PM____

 

Department: __Finance_____________

Prepared by:  __Jerry Boop__________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head __JB____

 

Finance  Dept. ___________JB_____                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________