Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 24-428, removing certain uncollectible accounts from the County’s accounting records
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DEPARTMENT: Finance
ORIGINATOR: Stacy Sorensen
EXECUTIVE RECOMMENDATION: Ken Klein 10/10/24
PURPOSE: To authorize removal from the financial system of certain accounts receivable deemed uncollectible due to bankruptcy, death, statute of limitations, etc in order to more accurately reflect receivable balances on the financial statements
BACKGROUND: The County has retained a collection agency to pursue the collection of delinquent accounts receivable. The majority of the listed accounts have previously been pursued through this process. Accounts may be deemed uncollectible for reasons such as bankruptcy, death, statute of limitations of six years per RCW 4.16.040, or for other appropriate reasons. This action does not cancel these debts. It is possible that the debts may still be collected, however, it has been determined that the likelihood of such collection is remote. For optimal performance and manageability of the accounts receivable subsystem, uncollectible accounts should be periodically removed. The majority of the listed accounts have been outstanding for over six years. There will be no further impact on fund balance because all of the listed accounts have already been recorded as bad debt. This year's write-off is quite large. This is due to the policy change where we can now write off accounts in collections past the statute of limitations even though they’ve already been written off in the accounts receivable system. The County also contracted with a new collection agency and the cost to maintain old records is greater than the benefit.
FISCAL IMPLICATIONS:
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EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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TOTAL |
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REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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TOTAL |
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DEPARTMENT FISCAL IMPACT NOTES: There is no impact on expenses or revenues, only balance sheet accounts are affected.
CONTRACT INFORMATION:
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ORIGINAL |
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CONTRACT# |
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AMOUNT |
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AMENDMENT |
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CONTRACT# |
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AMOUNT |
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Contract Period
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ORIGINAL |
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END |
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AMENDMENT |
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END |
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by: Finance (Nathan Kennedy 10/9/24)