HomeMy WebLinkAboutMINUTES - 08071990 - 1.72 BOARD OF SUPERVISORS V 1-072
FROM: Phil Batchelor, County Administrator Contra
By: Nancy L. Bischoff, Director -P4�A Cost'
Office of Revenue Collection vv.�tu
DATE: July 20, 1990 Cou*
SUBJECT: Write-off of Legally Uncollectible Accounts
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION
It is recommended that the Board of Supervisors authorize the write-off
of legally uncollectible accounts receivable in the amount of $195,244.59.
II. FINANCIAL IMPACT
In accordance with generally accepted principles, the County maintains a
reserve .for Bad Debt accounts. Delinquent and uncollectible- accounts
receivable are charged against this reserve account when they are written-
off. As a result, there will be no financial impact on current year revenue
if this write-off is authorized.
III. REASONS FOR RECOMMENDATION
Approval of the recommended action will allow approximately 787 accounts
to be written-off and purged from the file of active accounts. These
accounts are an accumulation of legally uncollectible accounts dating back
to 1989. This action will reduce computer space and will allow more
concentration on current accounts.
The reasons for the write-off recommendation is summarized as follows:
A. Debtor Deceased: $97,940.33
These are accounts in which .the debtor is deceased and no estate is
locatable in which to file a claim.
B. Bankruptcy: $97,304.26
These are accounts where the debtor filed bankruptcy and the court
r :a requires the County to cease: all collection action on the account.
IV. BACKGROUND
The maintaining of legally uncollectible accounts on the accounts
receivable system inflates the balance on the system with revenue which
cannot be recovered. It also takes additional computer space, time and
costs to maintain accounts which are uncollectib e.'
CONTINUED ON ATTACHMENT: X YES SIGNATURE; ��'
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEN DAT.,ION OF BOARD COM TEE
APPROVE OTHER
SIGNATURE(SI: �J �(�Q(�
ACTION OF BOARD ON AUG (. I.7JJ APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES; NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT; �� ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: (Via Revenue Collection) ATTESTED _ AUG 7 1990
PHIL BATCHELOR. CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY 4; DEPUTY
M382/7-83
a ,
TO: BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator
By: Nancy L. Bischoff, Director
Office of Revenue Collection
DATE: July 20, 1990
SUBJECT: Write-off of Legally Uncollectible Accounts
V. CONSEQUENCES OF NEGATIVE ACTION
If the recommended action is not taken, there will be a continued
inflated balance on the accounts receivable system of accounts which
cannot be collected. Computer disk space and time is taken to maintain
these accounts on file which decreases ORC efficiency.