HomeMy WebLinkAboutMINUTES - 03141989 - 1.58 BOARD OF SUPERVISORS
Contra
FROM: Nancy L. Bischoff,
Director, ORC Costa
DATE: February 1, 1989 County
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 $166,285.15.
This includes accounts from 1982 through December, 1988.
II. FINANCIAL IMPACT
In accordance with generally accepted accounting 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 590 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 1982. 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: $102,643.94
These are accounts in which the debtor/is deceased and no estate is
locatable in which to file a claim. f
B. Bankruptcy: $63,641.24
These are accounts where the debtor filed bankruptcy and the court
requires the County to write-off the account.
IV. BACKGROUND
Many County departments transfer accounts to ORC for billing or
collection action: ORC has been in existence since 1984, at which
time many already delinquent accounts were transferred for collection
actions, some dating back to 1982 and prior.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOM E ATION OF BOARD C ITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON March APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT III ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED Ma.r(,h 14, 1989
Office of Revenue Collections J.R. OLSSON, COUNTY CLERK
Auditor-Controller AND EX OFFICIO_;CLERK OF THE BOARD.
r
M382/7-88 BY DEPUTY
1/���r1Q'Vv i
` TO: BOARD OF SUPERVISORS
J /
i
FROM: Nancy L. Bischoff,
Director, ORC
DATE: February 1, 1989
SUBJECT: Write-off Legally Uncollectible Accounts
---------------------------------------------------------------------------------------
BACKGROUND (CONT`"D)
ORC has been holding many of these uncollectible accounts on our
system without requesting relief of accountability. ORC current
accounts receivable is in excess of 64,000 accounts totalling more
than $24,000,000.00.
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 uncollectible.
ORC will in the future be requesting authorization to write-off
accounts on an annual or semi-annually basis. The Board should note
that this request is an accumulation of over seven (7) years 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.