HomeMy WebLinkAboutFIN 2018-11-06 Item 2F - Resolution - 2018 Cancellation of Uncollectable Accounts ReceivableCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carisen, Deputy Director
CC: Mayor Ekberg
DATE: October 29, 2018
SUBJECT: Cancellation of Accounts Receivable
ISSUE
Each year a resolution comes before the Council for the cancellation of uncollectable accounts
receivable. For 2018, these items include: False Alarms equaling $12,397.35, Miscellaneous
Billings equals $435.00 for a grand total of $12,832.35.
BACKGROUND
The process for tracking accounts receivable is quite thorough. The steps below are followed
prior to preparation of the attached write-off resolution.
• Invoice is sent to the recipient by the Finance Department payable in 30 days.
• If payment is not received within 30 days, the receivable is forwarded to our collection
agency, Armada Corp., and placed into pre -collect status.
• At this time, Armada sends a Delinquency Notice to debtor notifying them of the past -due
status of the receivable and asks them to contact the City to make payment. Payments
can still be made directly to the City while in pre -collect status.
• Once 30 days has passed in pre -collect status, the receivable then rolls over to active
collections. At the onset of active collections, a letter is sent to the debtor notifying them
of status change and advising that all payments must now be made through the
collection agency.
• When in active collections status, debtor is contacted both by phone and letter. A search is
made for assets with which the debt could be satisfied. Once the debt has been in active
collections for 45 days, it is then reported to the national credit bureaus.
• The last process in the collections cycle is the pursuit of legal action. This includes
attaching checking accounts, garnishments and lawsuits.
• The City will not issue or renew a business license until all outstanding debt owed to the
City is paid.
• It should be noted that while a debt may be written off our books: it is still active in
Armada's collection process.
DISCUSSION
The proposed amount of the 2018 Cancellation of Accounts Receivable is $12,832.35. This is
an annual housekeeping item.
FINANCIAL IMPACT
The financial impact of cancelling $12,832.35 will be to reduce our accounts receivable balance
by this amount. Please note that while we are writing off the accounts receivable for accounting
purposes., the accounts are still being actively worked for collection purposes with the exception
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INFORMATIONAL MEMO
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of those accounts where a responsible party cannot be identified. Accounts covered by
bankruptcy law cannot be pursued.
RECOMMENDATION
The Council is being asked to approve the annual resolution authorizing the cancellation of
Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of
11/19/2018.
ATTACHMENTS
Attachment A — Past Due Accounts Receivables
92
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, ORDERING
THE CANCELLATION OF PAST DUE ACCOUNTS
RECEIVABLES
WHEREAS, certain receivables have been deemed uncollectable after efforts by
both the City and a collection agency have been unsuccessful; and
WHEREAS, the City will continue to pursue these receivables when practical;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Miscellaneous Accounts Receivable. The total of $12,832.35 (per Attachment A)
is deemed uncollectable.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
Attachment: Exhibit A — Past Due Accounts Receivables
W:\Word Processing\Resolutions\Past Due Accts Receivables 10-31-18
VC:bjs
Page 1 of 1
93
Attachment A - Past Due Accounts Receivables
201
rite -Offs
Account #
Account Name
Date
Inv #
Description
Amount
Notes
F&G TR
F&G TR
MUCHO
RIVERS
Roche
SPRIN3
HAAKEN
HAAKEN
HAAKEN
ITT
ITT
ITT
ITT
ITT
ADENNU
BONEYM
GRANGE
HEARTL
SIMMON
F & G TRADING LLC 01/12/16 RF-01297
F & G TRADING LLC 03/17/16 RF-01324
MUCHO BURRITO MEXICAN GRILL 01/29/16 RF-01312
RIVERSIDE TERRACE APTS 01/11/16 RF-01293
LA ROCHELLE APARTMENTS 04/26/16 RF-01339
SPRINT 05/07/15 RF-01251
HAAKENSON GROUP
HAAKENSON GROUP
HAAKENSON GROUP
ITT TECH.
ITT TECH.
ITT TECH.
ITT TECH.
ITT TECH.
NUR ADEN
MAURICE BONEY, JR
GRANGE INSURANCE
HEARTLAND EXPRESS
BRENT SIMMONS
GLICK SHOSHANNA GLICK
GLICK SHOSHANNA GLICK
HRURES HRUSOBSKY RESIDENCE
04/04/16 PF-03070
06/07/16 PF-03119
08/15/16 PF-03177
08/15/16 PF-03178
09/19/16 PF-03212
10/17/16 PF-03259
10/17/16 PF-03260
11/16/16 PF-03301
12/31/16 MB-02487
12/31/16 MB-02486
12/31/16 MB-02431
11/29/16 MB-02381
12/31/16 MB-02482
REINSPECTION FEES
REINSPECTION FEES
REINSPECTION FEES
REINSPECTION FEES
REINSPECTION FEES
REINSPECTION FEES
FALSE ALARM #3
FALSE ALARM #4
FALSE ALARM #5
FALSE ALARM #3
FALSE ALARM #4
FALSE ALARM #5
FALSE ALARM #6
FALSE ALARM #7
WO # 21601611
WO # 21601609
WORK ORDER 21601614
GOLF COURSE CURB DAMAGE
WO #21601606
11/20/15 PF-02783 FALSE ALARM #3
12/10/15 PF-02900 FALSE ALARM #4
11/25/15 PF-02813 FALSE ALARM #3
000.342.400.00.00
000.342.400.00.00
000.342.400.00.00
000,342.400.00.00
000.342.400.00.00
000.342.400.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.342.800.00.00
000.359.900.00.00
000.359.900.00.00
000.359.900.00.00
Grand Total
85.00
110.00
60.00
60.00
60.00
60.00
435.00
150.00
200.00
200.00
150.00
200.00
200.00
200.00
200.00
1,617.56
3,773.82
2,006.03
1,590.64
1,409.30
11,897.35
150.00
200.00
150.00
500.00
12,832.35
to collections 2/19/2016, Unresponsive
to collections 5/19/2016, Unresponsive
to collections 3/3/16, unresponsive
to collections 2/19/16, unresponsive
to collections 6/29/16, unresponsive
to collections 8/17/15, unresponsive
to collectons 5/19/16, unresponsive
to collections 7/14/16, unresponsive
to collections 10/21/16, unresponsive
to collections 10/21/16, unresponsive
to collections 10/21/16, unresponsive
to collections 11/21/16, unresponsive
to collections 11/21/16, unresponsive
to collections 1/5/17, unresponsive
9/17/17 to insurance, unresponsive
3/10/17 filed claim w/ins, 2/5/18 missing info
insurance exp, 2/10/17 left owner msg, unresponsive
to collections 1/5/17, unresponsive
to collections 6/26/17, unresponsive
to collections 12/30/15, unresponsive
to collections 1/14/16, unresponsive
to collectons 12/30/15, unresponsive