Exh 8GAGENDA ITEM #8G
SEPTEMBER 24, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM Accounts Receivable Waste-Offs Recommendation and
Annual Summary of Accounts Wntten Off
SUBMITTED BY Jtm Hanso r "" ~ _ Y
DATE September 17, 2001
BACKGROUND The City has been properly recording an allowance for
- doubtful accounts over the years, as evidenced m our
financial statements In accordance with the collections
and waste-off policies and procedures adopted and
implemented by the Crty, as approved by the City
Commission m their meeting of February 12, 2001, those
accounts deemed uncoilecttble should be wntten off the
City's books In accordance wtth these procedures, when
the Finance Department refers accounts to me for waste-off,
I am tasked with submitting waste-off recommendations to
the Crty Commisston for any individual account balance
due m excess of $2,500 00
The Finance Department has completed their initial account
analysis, concentrating on accounts terminated more than
five (5) year ago The collection agency contracted, MJ
Altman, has determined that the statute of limitations for
pursuing payment of these accounts has expired
Therefore, no further collection efforts will be expended
Only two (2) accounts included m this analysis have an
individual balance m excess of $2,500 00
Customer ID # Customer Amount Due
9593 Mayport East Wash $ 3,974 75
11721 Ferguson, Chad 2,572 42
In addition to the accounts over five (5) years old, the City
wrote off a number of accounts m fiscal year 2001 that
didn't warrant further effort, e g , additional pursuit of
accounts with balances less than $25 00 would not be cost
effective
AGENDA ITEM ~8G
SEPTEMBER 24, 2001
The total number of accounts and the dollaz amount that the
Crty will have written off their books as uncollecrible
during fiscal year 2001, including the two (2) accounts
recommended for write-off in this staff report, is as
follows
Number of Accounts Amount
1,714 $ 236,924 17
BUDGET The allowances for doubtful accounts prior to these write-
offs, approximately $557,000, adequately covered the
current waste-offs As a result, no budget impact was
experienced The allowances well be adjusted during the
year-end closeout process, as is normally done, based on
the accounts with balances outstanding in excess of 120
days at September 30, 2001
RECOMMENDATION Approve recommendation to waste-off two (2) customer
accounts wrath individual balances outstanding in excess of
$2,500
ATTACHMENTS None