Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - January 27, 2015
January 27, 2015 - Regular Meeting
Agenda Item #29

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

Action Requested
Authorization to write-off bad debts of the Utilities Department not to exceed $153,053 in Fund 401 (Potable Water/Wastewater) and $66,185 in Fund 480 (Solid Waste).

Enabling/Regulating Authority
Laws of Florida Special Act 63-1598, Section 7, requires write offs to be approved by the Board of County Commissioners.

Background Discussion

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 $219,238.  The write-off affects only inactive accounts, those that have been closed and service for the customer is discontinued.  These receivables, over 2,700 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

Reviewing Attorney

Instructions to Board Records

Please return a copy to Heather Dilldine, Financial Services Manager, Utilities Department (heather.dilldine@mymanatee.org).

Cost and Funds Source Account Number and Name
401-0000000115XXX Accounts Receivable & 480-0000000115XXX Accounts Receivable

Amount and Frequency of Recurring Costs
Non-recurring expense

Attachment:  2015 Q1 Bad Debt Breakdown.pdf