|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - September 27, 2016|
Agenda Item #31
Write-Off of Bad Debt
Contact and/or Presenter Information
Heather Dilldine, Financial Services Manager, Utilities Department, ext. 4966
Mike Gore, Director, Utilities Department, ext. 5323
Authorization to write-off bad debts of the Utilities Department not to exceed $658,117.90 in Fund 401 (Potable Water/Wastewater), $207,386.24 in Fund 480 (Solid Waste), $207.36 for landfill NSF checks, and $33,879.50 in miscellaneous Tort Claims.
Laws of Florida Special Act 63-1598, Section 7, requires write offs to be approved by the Board of County Commissioners.
The Utilities Department requests Board approval quarterly to write-off a portion of the Accounts Receivable (AR) that is deemed to be not collectible. This is an accounting entry that is made with the assistance of the Clerk of Courts Office and ensures that the Utility's receivables are accurately reflected on the Balance Sheet. The write-off recognizes that a portion of the AR is likely not collectible, but it does not prevent the County from eventually collecting the receivable. After being written off, payment will continue to be pursued through internal efforts and a collection agency.
The Utilities Department is requesting Board approval to write-off up to $899,591. The write-off affects only inactive accounts, those that have been closed and service for the customer is discontinued. These receivables, over 2300 accounts, are all over 365 days past due. Most of these accounts are residential and all have been actively pursued by Utilities staff and the collection agency.
The Utilities Department anticipates bad debt and includes an operating budget line item to recognize this "cost" of doing business. This budget will offset (or cover) the write-off. The Finance Department (Clerk of Courts) will generate the appropriate entries following Board approval of the write-off.
County Attorney Review
Not Reviewed (No apparent legal issues)
Explanation of Other
Instructions to Board Records
Please return a copy to Heather Dilldine, Financial Services Manager, Utilities Department (firstname.lastname@example.org).
Cost and Funds Source Account Number and Name
401-0000000115XXX Accounts Receivable & 480-0000000115XXX Accounts Receivable
Amount and Frequency of Recurring Costs
Attachment: Tort Claim Writeoffs.pdf
Attachment: Landfill NSF Checks Writeoffs.pdf
Attachment: FY16 Q4 Estimate-revised 9-15-16.pdf