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9-8 Debtors Write-Offs

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					Ordinary Meeting of Council
21 April 1999



9.8       DEBTORS WRITE-OFFS MSD)


PURPOSE

The purpose of this report is to submit to Council a schedule of various debtor accounts for
which recovery procedures have been unsuccessful and to obtain approval to write off debts to
the value of $9659.34


BACKGROUND

Because of long standing problems associated with the collection of some outstanding fines,
penalties and other monies due to Council, a policy exists for the collection of rates and other
monies (Policy M8.7) and this is being implemented.

Council has previously considered reports in which recommendations have been made to write
off amounts deemed uncollectable.


REPORT

A further review of the debtors ledger has revealed that there are several delinquent accounts
that, in the view of the Administration, should be written off as they are either:-

·     Deemed uncollectable;
·     Are not of sufficient value to warrant further perseverance;
·     The whereabouts of the debtor is unknown;
·     There is some dispute regarding liability

The following list of sundry debtors recommended for write off relate in the main two areas:-

·     Dog control; and
·     Fire prevention;


The amounts listed under the section of Dog Control relate initially to fines that have not been
paid that have been referred either to the Fines Enforcement Registry (FER) for collection or the
Courts for judgement. The debts relating to these transactions are where FER has not been
successful in collecting the outstanding amounts or where the debtor has still not paid despite
successful court action.

Policy M8.7 requires details of outstanding debts that remain unpaid to be referred to Council to
determine if any further action may be necessary. All recovery attempts have been unsuccessful
and the only realistic option available is for the amount of the debts to be written off.

Section 4 of the policy for the collection of rates and other monies states that:-

          Fines and penalties and other monies due to Council which are considered to be
          uncollectable are to be referred to Council to give consideration to writing off such
          amounts.
Ordinary Meeting of Council
21 April 1999

9.8     Cont’d 2


The following detailed list of debtors recommended for write off fall into this category and are
submitted to allow Council to assess each one individually.


CORPORATE PLAN/POLICY IMPLICATIONS

Debtors write offs forwarded to Council in accordance with Policy M8.7.


FINANCIAL/BUDGET IMPLICATIONS

Amount of write-off will reduce current revenues, but will also give a more realistic amount
outstanding. This is not the case at present, as some amounts still on the ledgers are in excess of
four (4) years’ old and are by any definition delinquent.

RECOMMENDATION

That Council resolve to:-

(1)     Write off the various sundry debtors as detailed on the following list of items, totalling
        $9659.34 as being uncollectable.

                                                                                     CARRIED

				
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Description: 9-8 Debtors Write-Offs